New Delhi, Feb. 27 -- India's economy is now officially smaller than previously thought. New GDP estimates released on Friday based on an updated methodology and base year have reduced the country's nominal output by over Rs.11 trillion ($133 billion), validating earlier concerns about the size of the economy

The downward revision may complicate the government's fiscal arithmetic for FY26 and FY27, and may also delay India's chances of becoming a $4-trillion economy, and the fourth largest economy leaving Japan behind.

Over the past decade, questions were raised by researchers, economists and policymakers, including former chief economic advisor Arvind Subramanian, over the methodology used in the 2011-12 series and the size of India's ...