India’s new GDP series has changed how economic activity is attributed to businesses and households in several major sectors. The most striking shift is in construction, where the estimated share of private corporations has more than doubled. Hotels and restaurants, meanwhile, have seen a larger share of activity attributed to household enterprises. These changes matter because national accounts are not just about how fast the economy is growing. They also help explain which parts of the economy are generating value from large companies and organised businesses to smaller, family-run enterprises. For the common person, the sectors involved are familiar. Construction includes the companies building roads, homes and commercial properties, as well as smaller contractors and household businesses. Hotels and restaurants range from large hospitality chains to family-run eateries and independent establishments. The revised figures offer a different picture of how these activities are distributed across the economy. But they do not, by themselves, show that workers have received higher wages, that more people have formal jobs or that household incomes have improved.

First, What Is GDP and What Has Changed? (keeping it brief like this)

Gross Domestic Product (GDP) measures the total value of final goods and services produced within a country during a specific period. India’s earlier GDP series used 2011-12 as its base year, while the new series uses 2022-23. The revised framework also changes how economic activity is estimated and divided between private corporations, households and the public sector, altering the picture of who contributes to the economy.

Construction: A Bigger Role for Private Companies

Under the new series, gross value added (GVA) generated by private corporations in construction for 2022-23 has been revised up by 111% to Rs 7.46 lakh crore, from Rs 3.53 lakh crore under the previous 2011-12 base series.

At the same time, construction GVA attributed to households has been revised down by 27.8% to Rs 12.37 lakh crore, compared with Rs 17.12 lakh crore earlier. Public-sector construction GVA has increased by 23.3% to Rs 1.30 lakh crore.

Despite these substantial changes in the sectoral breakdown, total construction GVA is only 2.7% lower under the new series, at Rs 21.13 lakh crore compared with Rs 21.71 lakh crore previously.

The shift changes the estimated composition of the sector:

• Private corporations: Their share rises to around 35.3%, from 16.3%.
• Households: Their share falls to around 58.5%, from nearly 79%.
• Public sector: Construction GVA is revised upwards to Rs 1.30 lakh crore.

The figures indicate that construction activity is now being attributed much more heavily to private corporations than under the earlier estimates. This is a change in the measured structure of the sector, rather than proof that the same proportion of construction workers have moved into formal employment.

What could this mean on the ground?

Construction is an important source of work for a wide range of people, including contractors, engineers, site supervisors, masons, electricians, plumbers and daily-wage workers.

A greater estimated corporate share may reflect a different assessment of where economic value is generated. However, the GVA figures alone do not tell us whether a worker is employed directly by a company, hired through a contractor or working informally.

For someone working at a construction site, the practical questions remain about wages, the regularity of work, safety, access to benefits and timely payment. The revised national accounts figures do not answer those questions directly.

Hotels and Restaurants: Household Businesses Gain a Larger Share

Hotels and restaurants show a different pattern.

Household-sector GVA in the sector has been revised up by 17.2% to Rs 1.69 lakh crore, from Rs 1.45 lakh crore. Private corporate GVA has been revised down by 8.1% to Rs 1.09 lakh crore, from Rs 1.19 lakh crore.

Unlike construction, total GVA in hotels and restaurants has also increased—by 5.7% to Rs 2.80 lakh crore, compared with Rs 2.65 lakh crore under the old series.

The resulting shares are:

• Household enterprises: Around 60.6%, up from 54.6%.
• Private corporations: Around 39.1%, down from 44.9%.

In everyday terms, the sector includes both corporate hospitality businesses and smaller establishments such as independent hotels, local restaurants and family-run food businesses.

The revised estimates assign a larger share of value added to household enterprises. That does not necessarily mean that more small restaurants have opened or that family-run businesses have become more profitable. The figures reflect a revised measurement of the sector, not a direct count of new businesses or a measure of their individual earnings.

Road Transport and Manufacturing Also See Revisions

The new series also changes the estimated distribution of activity in road transport.

Private corporate GVA in road transport has been revised down by 56.1% to Rs 54,788 crore, from Rs 1.25 lakh crore. Household GVA has declined by a smaller 9.2% to Rs 5.15 lakh crore.

For people working in transport—such as drivers, operators and small business owners—the figures offer a revised picture of how value added is classified across the sector. They do not, on their own, establish whether drivers’ incomes or working conditions have improved or worsened.

Manufacturing has seen comparatively smaller changes. Household manufacturing GVA has been revised up by 10%, while private corporate GVA has fallen by 3.7%. The household share rises to around 14.8% from 13.3%, while the private corporate share slips to around 78.8% from 80.6%.

Overall manufacturing GVA is 1.5% lower under the revised estimates.

Real Estate and Agriculture: Households Remain Important

In real estate, ownership of dwellings and professional services, household GVA has risen by 21.3% under the new series, compared with a 2.7% increase for private corporations. Total GVA in the category is 10.1% higher.

Agriculture, forestry and fishing remain overwhelmingly household-driven, with households accounting for more than 96% of GVA under the new series. Household GVA in the sector has increased to Rs 45.80 lakh crore, from Rs 42.73 lakh crore in the earlier estimates for 2022-23.

These figures underline the continued importance of household activity in parts of the economy. But GVA should not be confused with take-home income: it measures the value generated through production, not the amount each worker, farmer or business owner ultimately receives.

Why Has the Picture Changed?

The revised GDP framework makes greater use of annual surveys and administrative data. For hotels and restaurants, for example, the Ministry of Statistics and Programme Implementation (MoSPI) uses MCA-21 company filings to estimate the private corporate segment.

The household or unincorporated segment is now estimated using workforce data from the Periodic Labour Force Survey and value added per worker from the Annual Survey of Unincorporated Sector Enterprises.

The methodology also continues to rely on some older benchmarks where newer information is unavailable. For instance, estimates of the number of diesel engines used in agriculture draw on information from the 1997 and 2003 Livestock Censuses. The number was estimated up to 2015-16 and has since been held at that level.

Agricultural marketing charges also continue to use the older assumption of 3.22% of crop output for states where newer state- and crop-specific information is unavailable.

This means the new series incorporates additional data, but some estimates still depend on historical assumptions. The revised figures should therefore be understood as an updated statistical picture, with limitations where data gaps remain.

What the Numbers Tell US and What They Don’t

The new series changes the estimated distribution of economic activity across corporations, households and the public sector. Construction now has a substantially larger corporate share, while hotels and restaurants have a larger household-enterprise share.

For ordinary people, these sectors are closely connected to jobs, local businesses, housing, transport and services. Yet the revised GVA shares do not directly measure household financial security, job quality, wage growth or the affordability of goods and services.

Those questions require other indicators, including employment and earnings data, business performance, prices and household consumption.

India overtakes Russia to become the world’s fourth-largest forex reserve holder, as RBI’s dollar-mobilisation scheme triggers a historic inflow and prompts liquidity-management measures.

India’s foreign exchange reserves rose by a record $44.9 billion in the week ended September 4, reaching an all-time high of $785.706 billion, according to data released by the Reserve Bank of India (RBI). The increase lifted India above Russia to become the world’s fourth-largest holder of foreign exchange reserves, behind China, Japan and Switzerland, based on data compiled by Bloomberg.

The latest jump followed an increase of $11.475 billion in the previous reporting week, when reserves stood at $740.803 billion. The surge was driven largely by foreign currency inflows mobilised through special facilities introduced by the RBI, particularly its scheme linked to Foreign Currency Non-Resident (Bank), or FCNR(B), deposits.

FCNR(B) Scheme Drives Dollar Inflows

The RBI introduced a special US dollar-rupee swap facility on June 8, 2026, covering FCNR(B) deposits, overseas foreign currency borrowings (OFCBs) and external commercial borrowings (ECBs). The scheme was designed to attract foreign currency into the banking system.

FCNR(B) deposits allow non-resident Indians to place money with Indian banks in designated foreign currencies, rather than holding the deposits in rupees. Under the special facility, banks could access a concessional swap arrangement with the RBI.

The programme drew provisional inflows of $136.377 billion through August 31, according to figures reported by authorised dealer banks. FCNR(B) deposits accounted for $127.226 billion of the total, while OFCBs contributed $5.26 billion and ECBs added $3.89 billion.

The FCNR(B) window closed on August 31 after attracting a much larger response than anticipated. The swap facility for ECBs and OFCBs, however, was scheduled to remain open until December 31, 2026.

Foreign Currency Assets Account for the Rise

RBI data show that foreign currency assets, the largest component of India’s reserves, increased by $47.498 billion to $648.168 billion during the week ended September 4.

Gold reserves moved in the opposite direction, declining by $2.594 billion to $113.816 billion. The RBI also reported a small fall in special drawing rights, while India’s reserve position with the International Monetary Fund edged higher.

The figures indicate that the record rise was driven by the increase in foreign currency assets, rather than an appreciation in the value of gold holdings.

RBI Moves to Absorb Surplus Banking Liquidity

The large inflows have also increased the amount of cash available in India’s banking system. The RBI has consequently stepped up measures to absorb excess liquidity and keep short-term money-market conditions aligned with its policy framework.

On September 11, the central bank announced open market operation (OMO) sales of government securities worth Rs 1 lakh crore, to be conducted in three tranches: Rs 50,000 crore on September 17, followed by Rs 25,000 crore each on September 21 and September 28.

The RBI had also used variable-rate reverse repo operations to absorb surplus funds. However, these auctions had not fully addressed the durable liquidity created by the foreign currency inflows, prompting the central bank to turn to bond sales.

In an OMO sale, the RBI sells government securities to market participants, drawing rupee funds out of the banking system. Such operations can influence bond yields and short-term liquidity, even though they are separate from a change in the policy repo rate.

What the Reserve Build-Up Means for the Rupee

A larger foreign exchange reserve stock gives the RBI a substantial buffer to manage external pressures. The central bank can use foreign currency assets to intervene in the currency market, including by selling dollars when needed to moderate sharp rupee movements.

Reserves also help strengthen confidence in India’s ability to meet external payment obligations, including imports and debt servicing. However, a record reserve level does not guarantee that the rupee will appreciate or remain stable.

The currency has continued to face pressure from factors including elevated crude oil prices, global bond yields and dollar demand from importers. Reuters reported that the rupee settled at Rs 95.56 per dollar on September 11, after weakening amid these pressures.

The inflows generated through the RBI’s mobilisation programme also need to be viewed in context. While they increase the country’s foreign currency resources, deposits and swap arrangements carry corresponding obligations. The gross reserve figure alone therefore does not represent a cost-free or permanent addition to India’s external wealth.

India’s Position in the Global Reserves Ranking

India’s rise to fourth place reflects both the scale of the recent inflows and the relative movement in other countries’ reserve holdings. Russia’s reserves have been declining, contributing to the change in the ranking.

The development strengthens India’s external buffer at a time of global financial and geopolitical uncertainty. At the same time, the RBI faces the task of managing the rupee, banking-system liquidity and market interest rates as the effects of the mobilisation scheme flow through the financial system.

For consumers and businesses, the reserve build-up is not expected to translate automatically into an immediate change in borrowing rates, deposit rates or prices. Its significance lies mainly in the central bank’s capacity to manage currency volatility and external shocks, alongside the domestic liquidity operations required to contain the effects of large inflows

Sources:

Reserve Bank of India — Forex reserves data and releases 

Business Standard — Record $44.9 billion surge makes India fourth-largest forex holder 

Finance News – Business Standard

Reuters — India’s FX reserves surge $45 billion on robust capital flows 

Reuters

PIB — RBI’s USD-INR swap facility and foreign currency mobilisation 

Press Information Bureau

The Indian Express — RBI’s forex swap draws $136.37 billion 

Business News – The Indian Express

Reuters — RBI announces open-market bond sales to withdraw liquidity 

Reuters

Reuters — Rupee, portfolio flows and bond-market liquidity 

Reuters

India’s gross Goods and Services Tax (GST) collections rose 15% year-on-year (YoY) to nearly Rs 2 lakh crore in August, extending a period of strong revenue growth, according to government data released on September 1. Gross GST collections stood at Rs 1.998 lakh crore in August, compared with Rs 1.74 lakh crore in the same month last year. The latest increase follows 15.4% growth in July and 13.9% in June, marking the third consecutive month of double-digit growth.

Import Revenues Drive Growth

The rise in August collections was led largely by GST revenue from imports.

Import-related gross GST revenue increased 29% to Rs 62,604 crore in August from Rs 48,546 crore a year earlier. In comparison, domestic GST revenue grew 9.3% to Rs 1.37 lakh crore from Rs 1.26 lakh crore.

The stronger growth in import-related collections provided a significant boost to the overall GST revenue figure during the month.

Higher Refunds Moderate Net Collections

While gross collections remained strong, net GST revenue grew at a slower pace because of a sharp increase in refunds.

Total refunds rose 67.9% to Rs 31,795 crore in August from Rs 18,935 crore a year earlier. Domestic refunds increased 72.6%, while export GST refunds processed through ICEGATE rose 61.8%.

After accounting for refunds, net GST collections increased 8.3% to Rs 1.68 lakh crore, compared with Rs 1.55 lakh crore in August 2025.

Net domestic GST revenue grew 3.4% to Rs 1.19 lakh crore, while net customs GST collections rose 22.3% to Rs 49,299 crore.

GST Collections Rise 11% in FY27 So Far

For the April-August period of FY27, gross GST collections increased 11% to Rs 10.43 lakh crore, compared with Rs 9.40 lakh crore during the corresponding period last year.

Domestic gross GST revenue grew 5.3% during the first five months of the financial year, while revenue from imports increased 27.3%.

Net GST collections rose 9% to Rs 8.90 lakh crore during April-August. Cumulative refunds during the period increased 23.8% to Rs 1.53 lakh crore.

State-Level Performance Varies

GST collection growth remained uneven across major states in August.

Uttar Pradesh recorded 19% growth in domestic GST collections, followed by Telangana at 16% and Gujarat at 15%. Karnataka and Kerala recorded 13% growth each, while Haryana and Punjab reported 12% growth.

Maharashtra, the country’s largest contributor, recorded an 8% increase in collections to Rs 28,779 crore.

Some states reported declines. Tamil Nadu’s collections fell 1%, while Odisha and Andhra Pradesh recorded 7% declines each. Rajasthan and Goa saw collections fall 2%.

Assam recorded a sharp 162% increase in GST collections during the month.

What the Numbers Show

The August data points to continued strength in India’s overall tax revenue, but the composition of growth is important. Import-related GST collections grew much faster than domestic revenues, while the sharp increase in refunds moderated the rise in net collections.

The sustained growth in gross GST revenue through the first five months of FY27 provides a positive signal for government tax receipts. However, the relatively slower growth in net collections highlights the impact of rising refunds on the revenue available after adjustments.

Source: Moneycontrol