More Stories

Informist, Monday, Jul 22, 2024

 

--Should expedite CPI revision

--Must expedite PPI for better grasp of cost-push inflation

--Need to update IIP for efficient policymaking

--Need regular source-wise data on infra investment
--Infra-related data gaps persist in some key areas

--Need to address infra-related data gaps in some areas

--Econ adviser: Working on statistical system overhaul at brisk pace 

--Econ adviser: Hope to see new econ indicators soon 

 

NEW DELHI – India needs to expedite the revision of economic indicators such as Consumer Price Index, Gross Domestic Product, and Index of Industrial Production, the Economic Survey for 2023-24 (Apr-Mar) said today. The government should also expedite the introduction of the Producer Price Index to "have a greater grasp of episodes of cost-push inflation", the survey said. 

 

"An extensive exercise for base revision of important economic statistics is being taken up at MoSPI (Ministry of Statistics and Programme Implementation)," the survey said. The statistics ministry has also begun the exercise to change the base year of CPI to 2024 from 2012, it said.

 

The government last week reconstituted the Technical Advisory Committee on Statistics of Prices and Cost of Living to examine and advise on the construction of consumer, wholesale, retail, and producers' price indices. The government has also constituted a 26-member committee to decide on the base year revision of GDP.

 

"It is important that the base year of critical data series like the GDP, different price indices and volume indices like Index of Industrial Production are updated to the most recent feasible year at the earliest," the survey said. 

 

Informist previously reported that the government is aiming to bring in a new series for GDP, Index of Industrial Production, and Wholesale Price Index with 2022-23 (Apr-Mar) as the base year within the next two years. GDP, IIP, and WPI currently have 2011-12 as the base year. The base year of CPI is 2012.

 

At a post-survey press conference, the government's Chief Eeconomic Adviser V. Anantha Nageswaran said that the work on the statistical system overhaul is moving at a brisk pace, and he hopes to see new economic indicators soon.

 

The statistics ministry has been facing flak from several quarters, including from the Economic Advisory Council of the prime minister, about the robustness and accuracy of India's statistical system, including surveys undertaken by the National Sample Survey Office.

 

As such, the ministry has been under the lens of the Prime Minister's Office. The Prime Minister's office has held multiple meetings with the statistics ministry this year, which have also been attended by senior officials from different departments of the government and the Reserve Bank of India, on overhauling the statistical system.  

 

The survey said that high-frequency price monitoring data for essential food items collected by different departments should be linked in such a way that the build-up of prices at each stage from the farm gate to the final consumer can be quantified and monitored. "This will help improve the effectiveness of administrative action by the government to stabilise prices of essential food items."

 

With India looking to become a developed economy by 2047, it is important that the statistics ministry is capacitated fully to produce and integrate all required statistics with the desired quality, regularity and timeliness, the survey said. The government also needs to ensure that the quality and timeliness of administrative and transactional data of the line ministries are brought to levels that fully facilitate timely course corrections, it said.

 

"State-level variants of indices like IIP will help understand the emerging geographical patterns. Survey data to help understand private sector capital formation at regular intervals will also help policy formulation," the survey said. 

 

The survey also said that if granular GST data is made available, it has great potential to analyse the health of businesses, and understand the economies of different geographies deeply. Earlier this month, the government discontinued the practice of releasing monthly GST data.

 

"Regular indicators of the dynamics of production and employment in MSMEs (Micro, Small and Medium Enterprises) are essential, considering their potential for growth and job creation," the survey said. 

 

Regular collection of sector-wise data on infrastructure investment, bottom-up studies and aggregation of requirements of infrastructure and periodic assessment of utilisation of assets created will help to make mid-course corrections on the country’s developmental path, the survey said.  End

 

Reported by Shubham Rana

Edited by Saji George Titus

 

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2024. All rights reserved.