MoSPI Overhauls Economic Data: New Surveys and GDP Refinements Underway
MoSPI Secretary Saurabh Garg reveals new surveys, including one on cooperatives, to refine India's statistical system and GDP measurements.
The Ministry of Statistics and Programme Implementation (MoSPI) is stepping up its efforts to sharpen the accuracy of India's economic storytelling. In a move to identify gaps in the national statistical system, the ministry is launching a series of new surveys designed to provide a more granular and precise view of the country's financial health.
Speaking on the sidelines of the 'Pathways to Viksit Bharat' event, MoSPI Secretary Saurabh Garg revealed that the ministry is actively seeking areas for improvement. One of the key initiatives already underway is a comprehensive survey on cooperatives to better understand their operational impact and contribution to the economy.
Beyond GDP: A Broader Economic Lens
While Gross Domestic Product (GDP) remains the primary benchmark for economic success, Secretary Garg emphasized that relying on a single indicator is not enough to capture the full complexity of the Indian economy. While acknowledging that GDP is the best available measure for economic activity, he stressed the need for supplementary data points.
A significant area of focus for the ministry is the measurement of non-market activities. Garg highlighted that conventional GDP figures often fail to capture the "care economy" and unpaid household work, which are vital social and economic components. By integrating these indicators, the government aims to build a more inclusive picture of national productivity.
Steady Growth and the Inflation Battle
Discussing India's economic trajectory, the Secretary pointed to a strong trend of resilience. He noted that for the past three years, India has consistently maintained a growth rate between 7% and 8%. This momentum continued into the current financial year, with the first quarter recording a growth of 7.8%.
Garg attributed this vibrancy to various government interventions and expressed confidence that these growth figures would remain sustainable in the future. However, he did not provide specific predictions for the second-quarter growth figures.
On the topic of inflation, Garg admitted it remains a "matter of concern." Nevertheless, he asserted that strategic interventions by various agencies have kept inflation within manageable limits, specifically aiming to minimize the burden on the general public.
Updating the Methodology: The 'Double Deflation' Approach
To bring India's statistical practices in line with global standards, MoSPI has introduced a new methodology known as double deflation. This technique is specifically aimed at improving how value addition in the manufacturing sector is measured.
According to Garg, double deflation is an internationally recognized mechanism that ensures a more accurate capture of manufacturing value, marking a significant upgrade in the country's methodological practices.
Key Highlights of MoSPI's Current Focus:
- New Surveys: Implementation of surveys on cooperatives and other untapped sectors.
- GDP Supplementation: Moving toward including the care economy and household work in economic assessments.
- Growth Trends: Consistent 7-8% growth over three years, with 7.8% in Q1 of the current year.
- Technical Upgrades: Adoption of double deflation for better manufacturing data.
- Inflation Control: Ongoing agency efforts to keep price rises manageable for citizens.