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India Develops Framework to Measure Knowledge Economy Contribution

India's Ministry of Statistics is developing a framework to measure knowledge's contribution to the economy. A Technical Advisory Group was formed under Prof. Ajay Kumar Sood's recommendations. The base paper covers conceptual considerations, methodologies, traditional knowledge, and valuation framework. Public feedback is invited by June 15, 2026, for early finalization.

Key Points: India Measures Knowledge Economy's GDP Impact

  • Framework measures knowledge contribution to Indian economy
  • Technical Advisory Group formed under Prof. Ajay Kumar Sood
  • Base paper includes four chapters on knowledge economy
  • Public feedback invited by June 15, 2026
2 min read

Govt develops framework to measure contribution of knowledge to economy

India's Ministry of Statistics develops a novel framework to measure knowledge and knowledge products' contribution to the economy, seeking public feedback by June 2026.

"In the absence of a comparable precedent, this exercise represents a novel initiative in this direction - MoSPI statement"

New Delhi, May 16

The Ministry of Statistics & Programme Implementation is developing a framework to measure the contribution of knowledge and knowledge products to the Indian economy, an official statement said on Saturday.

The framework is needed due to rapid technological change and complex skill demands that make such an assessment essential, the statement from the MoSPI said.

The exercise addresses the growing centrality of knowledge in economic activity and will help formulate policy measures to capture evolving dynamics.

"In the absence of a comparable precedent, this exercise represents a novel initiative in this direction and necessitates the association of experts and other stakeholders," the statement noted

The ministry said a Technical Advisory Group (TAG) was constituted following recommendations from a meeting chaired by Prof. Ajay Kumar Sood, principal scientific advisor to the government.

Further, a brainstorming workshop in September 2025 helped develop a taxonomy of knowledge products and identify quantitative indicators and data sources to measure their contribution to GDP.

Based on the TAG's inputs, suggestions from the brainstorming session and subsequent discussions, a base paper on a framework for measuring the contribution of knowledge and knowledge products to the Indian economy has been prepared in the ministry.

It comprises four chapters: conceptual considerations on knowledge and the knowledge economy; available methodologies and quantities; India's traditional knowledge and its dimensions and challenges; and a framework primer on valuation of the knowledge contribution to the economy.

The ministry invited comments and suggestions on the Base Paper from all stakeholders and the general public as part of the consultation process.

Feedback may be shared with the Ministry of Statistics & Programme Implementation by June 15, 2026, which will enable the early finalisation of the framework, the statement noted.

- IANS

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Reader Comments

R
Rajesh Q
While I appreciate the intent, I'm skeptical. In India, we often create impressive frameworks but implementation lags behind. The real challenge will be collecting reliable data from our informal knowledge sector - village artisans, traditional craftsmen, local innovation. Hope this doesn't just become another bureaucratic exercise.
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Kavya N
As an economist, I see great potential here. The knowledge economy contributed significantly to India's 7%+ GDP growth. But we need clear definitions - is a software engineer's output "knowledge" while a factory worker's isn't? Also, how do we value open-source contributions? The TAG needs diverse experts, not just government officials.
T
Tanya I
Finally! Our IT sector alone contributes nearly 8% to GDP, but that's just one part. Indian startups, pharma research, and even our film industry create massive knowledge value. If we can measure it properly, we might finally get better funding for universities and research. Let's hope this framework includes IP protection for small innovators too. 🤞
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Sarah B
Interesting development from a global perspective. I work in knowledge management in the UK, and even advanced economies struggle with this. India's advantage is its massive youth population with digital skills. But the framework must be simple enough to capture grassroots innovation - not just corporate R&D. The June 2026 deadline seems ambitious!
N
Nisha Z
One concern: Will this framework acknowledge India's traditional knowledge systems on par with Western scientific frameworks? Our Ayurveda, agriculture wisdom, and textile techniques have economic value but often get sidelined. Also, the June 15 deadline for public comments is tight - hope they extend it for wider consultation in regional languages.

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