India Sets Out to Enhance Economic Data and Conduct New Census

Government Initiatives to Enhance Data Quality

The Indian government is embarking on several measures to upgrade the quality of its economic data, as revealed by sources familiar with the matter. These proposals, discussed within Prime Minister Narendra Modi’s office, include reviving the business survey, last conducted in 2014, and publishing the household consumption survey annually. Additionally, plans involve introducing a uniform base year for key economic indicators and updating the basket of goods used to calculate inflation.

Reviving the Business Survey

The revival of the business survey aims to provide insights into India’s shifting economic landscape, particularly the transition away from agriculture towards other industries. This data will assist policymakers in tailoring strategies to bolster manufacturing, which has seen a decline in its contribution to GDP over the years. The World Bank estimates manufacturing’s share at about 13% in 2024, while the government targets raising it to 25% by 2025.

New Population Census on the Horizon

India is contemplating a new population census once elections are concluded. The census, usually conducted every decade, was last published in 2011, with the latest survey delayed due to the pandemic. The proposed census would involve extensive training and deployment of government staff and is expected to last approximately 12 months.

Advisory Panel for Data Improvement

An advisory panel will be established to advise the Statistics Ministry on changes to the base year and weights of key economic data categories. These adjustments will be implemented after the upcoming elections, expected by May. Currently, industrial production and GDP data utilize a base year of 2011-12, while consumer inflation is based on 2012 statistics. Regular updates to base years help ensure data accuracy and relevance.

Revising Consumer Price Basket

The consumer price basket will undergo revision to reflect changes in consumer spending patterns, such as reduced expenditure on food and increased spending on items like healthcare and education. A recent household consumption survey indicated a decline in spending on food in both urban and rural households over the past decade, highlighting the need for an updated basket.

Conclusion

India’s initiatives to enhance economic data quality and conduct a new population census underscore its commitment to data-driven policymaking and understanding demographic shifts. By modernizing data collection methods and updating statistical frameworks, India aims to better address economic challenges and formulate targeted policies for sustainable growth and development.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.