GDP, GNP, NNP Concepts — Policy Reforms

Entry	Year	Description	Impact
SNA 1993 to SNA 2008 (Methodological Revision)	2008 (implemented by countries over time)	The System of National Accounts (SNA) is the internationally agreed standard for compiling national accounts. The transition from SNA 1993 to SNA 2008 represented a significant methodological 'amendment' to how national income is calculated globally. Key changes included the capitalization of R&D expenditures and military weapons systems, treating them as investment rather than intermediate consumption. It also refined the treatment of financial services and intellectual property products. India adopted SNA 2008 in 2015, leading to a revision of its GDP calculation methodology and base year.	The adoption of SNA 2008 led to a re-estimation of India's GDP series, particularly from 2011-12 onwards, resulting in higher reported growth rates. This 'amendment' improved the comprehensiveness of national accounts by including previously unmeasured economic activities, making GDP figures more reflective of modern economies, especially in areas like innovation and services. It also enhanced international comparability of economic data.
Base Year Revisions (e.g., 2004-05 to 2011-12, then to 2017-18 under consideration)	2015 (for 2011-12 base year)	While not a constitutional amendment, periodic revisions of the base year for calculating real GDP and other constant price estimates are crucial 'amendments' to the statistical framework. India shifted its base year from 2004-05 to 2011-12 in 2015. This involves updating the prices used to value goods and services to a more recent period, ensuring that the structure of the economy reflected in the weights of different sectors is current. A new base year (2017-18) is currently under consideration.	Base year revisions significantly impact real GDP growth rates and the relative contribution of different sectors. A newer base year captures structural changes in the economy, such as the growing share of services or new industries, more accurately. This ensures that economic growth figures are more representative of contemporary economic realities, influencing policy decisions and public perception of economic performance. It also helps in better reflecting the 'real' changes in output by using more relevant price structures.