Chapter 15 — Economy, indicators and financial-year data

Coverage window: 1 January–10 October 2026

Revision checked: 11 October 2026

Question set: CA26-ECO-001 to CA26-ECO-030

Economic current affairs often turns on labels more than on difficult arithmetic. A GDP growth rate must be tied to a period, price basis and base year. An inflation rate must name the index and comparison period. A provisional estimate may later be revised. This chapter uses two MoSPI releases published by 31 August 2026 and the new national accounts series announced during the year. It intentionally excludes the September CPI release because MoSPI scheduled it for 12 October, after this book’s 10 October cutoff.

1. Q1 GDP estimate for FY 2026–27

MoSPI published quarterly GDP estimates for Q1 of FY 2026–27 on 31 August 2026. Q1 means April to June. The release reported real GDP growth of 7.8 per cent and nominal GDP growth of 10.3 per cent. The estimates were based on the new series with 2022–23 as the base year. These are quarterly year-on-year growth measures; they are not the full-year growth rate and not a calendar-year forecast.

Real GDP values output at constant prices, removing the effect of price changes so the measure is designed to track volume growth. Nominal GDP is measured at current prices and reflects both changes in output and prices. If the question asks for “real GDP growth,” select the constant-price measure. If it asks for “nominal GDP growth,” select the current-price measure. Never transfer a percentage from one measure to the other.

The Q1 release also noted that the 2026 series uses 2022–23 as the base year and incorporates updated source data and methodology. MoSPI’s 31 August release says the new series was released on 27 February 2026 and was updated with National Accounts Statistics on 31 August. The publication brings together revised annual and quarterly estimates, so a candidate must note which vintage of the data is being quoted.

2. Consumer price inflation: August 2026

MoSPI’s CPI release for August 2026 was published on 14 September and labels the August figures provisional. The combined all-India year-on-year headline CPI inflation rate was 4.82 per cent. The rural rate was 5.23 per cent and the urban rate was 4.31 per cent. The Consumer Food Price Index (CFPI) inflation rate was 5.95 per cent combined: 6.13 per cent rural and 5.64 per cent urban.

The CPI series in the release uses a 2024 base year. “4.82%” is the general combined CPI inflation figure for August, not the food inflation rate. The 5.95% value is the combined food inflation figure. Also distinguish the inflation rate from the index level. An index level of 108.74 and an inflation rate of 4.82% are different statistics with different meanings.

The release says price quotations were collected from 1,407 urban markets and 1,465 villages. It cautions that some state-level item indices may rely on thin samples and should be interpreted carefully. A national CPI figure and a state-by-item estimate are not interchangeable. The scheduled September CPI publication date was 12 October, outside the cutoff, so this interim edition does not include those numbers.

3. Base years, revisions and data vintage

A base year provides reference prices for constant-price comparisons and a benchmark structure for the index or national accounts series. MoSPI’s 2026 National Accounts Statistics publication uses 2022–23 as the base year. The CPI release in this chapter uses a 2024 base year. These refer to separate statistical series and should not be collapsed into one “economic base year.”

The 2026 national accounts publication presents updated final estimates for FY 2022–23 and FY 2023–24, and first revised estimates for FY 2024–25. MoSPI’s August quarterly GDP release updates the annual and quarterly estimates after incorporating the new producer price and banking services indices and administrative data. Revisions are part of the statistical process; a data point should carry its release vintage when it is likely to change.

A good exam note records: indicator; value; unit; period; base year; price basis; provisional/revised status; source date. For example: “India real GDP growth, Q1 FY 2026–27 (Apr–Jun), 7.8%, constant 2022–23 prices, MoSPI release 31 Aug 2026.” This is much safer than writing “GDP grew 7.8%” without scope.

4. Revision card

Quick recall

• What quarter does Q1 FY 2026–27 cover?
• What are the real and nominal GDP growth figures in MoSPI’s release?
• Why can nominal growth differ from real growth?
• What are the combined CPI and CFPI inflation figures for August?
• Which base year applies to the CPI release, and which applies to the GDP series?
• Why does the September 2026 CPI not appear in an edition ending 10 October?
• Which estimates are labelled final and first revised in the National Accounts Statistics 2026 publication?

Complete the 30 original questions. Before memorising a number, underline its period, price basis, base year and revision label.

Figure 15.1 — GDP, CPI and MSP: read the unit. Original teaching visual; schematic, not to scale unless the chapter specifies units.

Original practice questions

1. Which period is Q1 of FY 2026–27?

A. April–June 2026

B. January–March 2026

C. July–September 2026

D. October–December 2026

Answer: A. MoSPI’s Q1 release defines the quarter as April–June. Source CA26-062.

2. What real GDP growth did MoSPI report for Q1 FY 2026–27?

A. 10.3%

B. 7.8%

C. 4.82%

D. 5.95%

Answer: B. MoSPI reported 7.8% real GDP growth and 10.3% nominal growth for April–June 2026. Source CA26-062.

3. What nominal GDP growth did MoSPI report for Q1 FY 2026–27?

A. 7.8%

B. 4.31%

C. 10.3%

D. 6.13%

Answer: C. Nominal GDP growth was reported at 10.3%. Source CA26-062.

4. Which price basis is associated with real GDP?

A. Current prices only

B. Retail prices in one state only

C. No price basis

D. Constant prices

Answer: D. Real GDP uses constant prices to measure output-volume change. Source CA26-062.

5. Which price basis is associated with nominal GDP?

A. Current prices

B. Constant prices only

C. Export prices only

D. Wholesale prices in one district

Answer: A. Nominal GDP is measured at current prices. Source CA26-062.

6. Which base year did the new national accounts series use?

A. 2024–25

B. 2022–23

C. 2011–12

D. 2016–17

Answer: B. The 2026 GDP series uses 2022–23 as its base year. Source CA26-062 and CA26-064.

7. Which ministry issued the Q1 GDP estimates?

A. Ministry of External Affairs

B. Ministry of Agriculture only

C. Ministry of Statistics and Programme Implementation (MoSPI)

D. Reserve Bank of India alone

Answer: C. MoSPI issued the quarterly national accounts release. Source CA26-062.

8. When did MoSPI release Q1 FY 2026–27 GDP estimates?

A. 14 September 2026

B. 21 May 2026

C. 12 October 2026

D. 31 August 2026

Answer: D. The GDP release was published on 31 August 2026. Source CA26-062.

9. Which statement is correct about the 7.8% Q1 GDP rate?

A. It is a quarterly FY 2026–27 real growth rate, not a full-year figure

B. It is India’s annual CPI inflation rate

C. It is the AP fiscal-deficit percentage

D. It is a calendar-year 2027 forecast

Answer: A. The source identifies it as real GDP growth for Q1 of FY 2026–27. Source CA26-062.

10. What does the “base year” chiefly provide for constant-price GDP comparisons?

A. The number of quarters in a year

B. Reference prices and a benchmark structure for comparison

C. A list of all tax rates

D. A forecast of future inflation

Answer: B. Base years anchor the price structure used in constant-price comparisons. Source CA26-064.

11. What was combined all-India CPI headline inflation for August 2026?

A. 5.95%

B. 5.23%

C. 4.82%

D. 4.31%

Answer: C. MoSPI reported combined headline CPI inflation of 4.82%. Source CA26-063.

12. What was combined food inflation, measured through CFPI, for August 2026?

A. 4.82%

B. 5.23%

C. 4.31%

D. 5.95%

Answer: D. The combined Consumer Food Price Index inflation rate was 5.95%. Source CA26-063.

13. What was the rural headline CPI inflation rate for August 2026?

A. 5.23%

B. 4.31%

C. 4.82%

D. 5.64%

Answer: A. The provisional rural CPI inflation rate was 5.23%. Source CA26-063.

14. What was the urban headline CPI inflation rate for August 2026?

A. 5.23%

B. 4.31%

C. 5.95%

D. 6.13%

Answer: B. The provisional urban CPI inflation rate was 4.31%. Source CA26-063.

15. Which base year applied to MoSPI’s August 2026 CPI release?

A. 2022–23

B. 2011–12

C. 2024=100

D. 2016–17

Answer: C. The CPI release specifies base 2024=100. Source CA26-063.

16. What was the rural food inflation rate in August 2026?

A. 5.64%

B. 5.95%

C. 4.82%

D. 6.13%

Answer: D. MoSPI’s provisional table gives rural CFPI inflation at 6.13%. Source CA26-063.

17. What was the urban food inflation rate in August 2026?

A. 5.64%

B. 6.13%

C. 5.23%

D. 4.31%

Answer: A. The urban CFPI inflation rate was 5.64%. Source CA26-063.

18. Which pair correctly matches the August combined inflation rates?

A. CPI 5.95%; CFPI 4.82%

B. CPI 4.82%; CFPI 5.95%

C. CPI 7.8%; CFPI 10.3%

D. CPI 5.23%; CFPI 4.31%

Answer: B. The headline CPI and food CFPI values are distinct and reported as 4.82% and 5.95%. Source CA26-063.

19. What status did MoSPI assign to August 2026 CPI inflation figures?

A. Audited final accounts

B. Five-year forecast

C. Provisional

D. Census result

Answer: C. The August release labels its inflation estimates provisional. Source CA26-063.

20. Which index measures the food-inflation figure cited in the release?

A. Index of Industrial Production (IIP)

B. Human Development Index

C. Wholesale trade volume index

D. Consumer Food Price Index (CFPI)

Answer: D. MoSPI identifies food inflation through the CFPI. Source CA26-063.

21. How many urban markets were included in the August CPI price-collection framework?

A. 1,407

B. 1,465

C. 703

D. 92

Answer: A. The release reports price collection from 1,407 urban markets. Source CA26-063.

22. How many villages were covered for CPI price collection in the release?

A. 1,407

B. 1,465

C. 1,126

D. 25

Answer: B. The release lists 1,465 villages. Source CA26-063.

23. What caution did MoSPI give about some state-level item indices?

A. They are always final national inflation rates

B. They measure GDP at constant prices

C. Some may rely on thin samples and require careful interpretation

D. They apply only to foreign trade

Answer: C. The release cautions that some item-level state indices use thin samples. Source CA26-063.

24. Why is September 2026 CPI excluded from this edition’s evidence set?

A. CPI was discontinued

B. September has no price quotations

C. The release was part of the 2025 budget

D. MoSPI scheduled its release for 12 October, after the 10 October cutoff

Answer: D. The August CPI release scheduled September figures for 12 October, outside this edition’s cutoff. Source CA26-063.

25. Which base year is used by the National Accounts Statistics 2026 publication?

A. 2022–23

B. 2024=100

C. 2011–12

D. 2025–26

Answer: A. The national accounts publication is based on 2022–23. Source CA26-064.

26. Which annual estimates did the 2026 NAS publication describe as updated final estimates?

A. FY 2025–26 and FY 2026–27

B. FY 2022–23 and FY 2023–24

C. FY 2027–28 and FY 2028–29

D. Calendar years 2026 and 2027 only

Answer: B. The publication reports updated final estimates for FY 2022–23 and FY 2023–24. Source CA26-064.

27. What status did the NAS publication assign to FY 2024–25 estimates?

A. Final audited accounts

B. Budget Estimates for FY 2026–27

C. First Revised Estimates

D. Monthly provisional estimate

Answer: C. The 2026 publication includes First Revised Estimates for FY 2024–25. Source CA26-064.

28. When was the new national accounts base-year series first released?

A. 31 August 2026

B. 14 September 2026

C. 12 October 2026

D. 27 February 2026

Answer: D. MoSPI states that the new series was released on 27 February 2026. Source CA26-064.

29. Which 2026 release updated the national accounts estimates and NAS publication discussed here?

A. 31 August 2026

B. 25 August 2016

C. 23 January 2026

D. 5 October 2025

Answer: A. MoSPI issued the National Accounts Statistics 2026 publication on 31 August. Source CA26-064.

30. Which complete label is safest for the 7.8% GDP statistic?

A. India’s final annual inflation rate for 2026

B. Real GDP growth, Q1 FY 2026–27, April–June, new 2022–23 base series

C. AP’s fiscal deficit, 2026–27 BE

D. Nominal calendar-year growth for 2027

Answer: B. The period, price basis and base series prevent the quarterly real GDP figure from being mislabelled. Source CA26-062.