India recently revised its base year to better reflect structural changes in the economy since 2004-05, which was the earlier base year. Now, the new base year is 2011-12. Accordingly, FY2014 GDP growth has been revised upward to 6.9% against 4.7% estimate based on 2004-05 base year.
Here is an infographic sourced from Hindustan Times that illustrates the major changes:
Full details about the new series estimates of national income, consumption expenditure, savings and capital formation here.
While doing base year revision, three important changes are made: (i) shift in reference year to measure GDP growth, (ii) conceptual changes, and (iii) statistical changes (revision of methodology, adoption of latest classification systems and inclusion of new and recent data sources). Systems of National Accounts, 2008 has been followed. In current prices, there hasn’t been much change in GDP estimate, meaning that the standard GDP ratios (fiscal deficit, public debt, investment, etc.) are unlikely to change drastically.
The table summarizes the latest estimates based on the base year revision.