The recent debate on India's statistical system and data has highlighted the importance of accurate and reliable data for policy formulation, implementation, and research.
The three main issues emerging from the debate are:
- Quality and credibility of data: The accuracy and credibility of data are essential for policy formulation, implementation, and research. Surveys, especially household surveys, face credibility questions regarding sample selection, geographical representation, urban and rural strata, and non-response.
- Discrepancies in data from multiple agencies: Multiple agencies provide data on the same set of indicators for the same sector, but they often produce different numbers. This discrepancy poses challenges in choosing an appropriate data set for formulating policies.
- Competence and ability to generate high-quality data: The competence and ability of the statistical system to generate high-quality data are concerning. Surveys and data publication have faced delays, impacting the availability of micro-level data on variables like consumption for poverty assessment. Macroeconomic data, such as wholesale price series and consumer price index, are overdue for revisions. National income estimates also need revisions to assess economic growth. Non-availability of updated data hinders the assessment of economic growth and poverty reduction efforts.
Steps:
- Enhance data collection methods by digitizing the Census frame, utilizing geospatial technologies, and crowd-sourced data platforms to improve the quality of surveys and reduce biases in estimates.
- Expand and diversify the resource base of data by including new and emerging sources like Big Data and leveraging machine learning and artificial intelligence for processing.
- Focus on strengthening the data collection capacities of state governments through initiatives like the Dholakia Committee Report 2020 and the India Statistical Strengthening Project.
- Address rural-urban definitional issues by adopting a holistic approach to capture the interaction terms and synergies between rural and urban sub-groups.
- Draw lessons from successful experiences, such as the Ministry of Earth Sciences established the National Centre for Medium Range Weather Forecasting in 1988 and used India’s first supercomputer to develop and evolve advanced numerical models for weather forecasting.
- Ensure sustained growth in resources, including physical, human, financial, and technological resources, to optimize efficiency, quality, and timeliness of statistical products.
- Expedite the finalization of the National Policy on Official Statistics, announced in the Budget 2020, along with appropriate institutional support and resources to guide the future direction of the statistical system.
- Use a bottom-up approach to track India's progress on the Sustainable Development Goals and ensure that no one is left behind.
- Implement reforms and invest in the statistical system in a mission mode to play an active role in the international statistical fraternity and support India's aspiration to become a $5 trillion economy.
By improving data collection methods, embracing new data sources, strengthening state statistical systems, and taking other steps, India can ensure that it has the data it needs to make informed decisions.