India's statistical reforms align data with global best practices: Govt
New Delhi, Jan 28
India's recent statistical reforms mark a decisive shift towards greater relevance, responsiveness, and credibility. By updating base years for GDP, Consumer Price Index, and Index of Industrial Production, strengthening the measurement of the informal and services sectors, and transforming labour statistics, the government has aligned official data more closely with the structure and dynamics of today's economy, according to an official statement issued on Wednesday.
At the same time, various measures have been undertaken to significantly improve data quality, timeliness, and public access. The coordinated rollout of new series and systems reflects a commitment not only to methodological rigour and international best practices, but also to transparency and stakeholder engagement, the statement said.
As part of these measures, the base year for GDP estimates has been revised to 2022-23 to reflect new economic structures, and the CPI base year has been revised to 2024, updating the consumption basket and weights for both rural and urban households. Besides, the IIP is being revised to 2022-23, aligned with the new national accounts series.
These initiatives lay a stronger statistical foundation for evidence-based policymaking, effective decentralised planning, and informed public discourse, ensuring that India's official statistics remain fit for purpose in a rapidly evolving economic landscape, the statement contended.
Over the decade since the last base year (2011-12), the country has seen significant structural shifts, the services sector has expanded rapidly, formalisation has increased under the Goods and Services Tax (GST), and digital platforms have transformed business models. These changes created demand for more timely indicators, finer geographic detail, and improved coverage of the informal and services sectors. In response, the government has initiated coordinated reforms as part of a broader modernisation of the national statistical system aimed at strengthening data quality, credibility, and policy relevance.
Periodic base year updates ensure that GDP and other indices reflect the current economic structure and relative prices, which tend to evolve over time. The base year is revised periodically to better capture the structural changes happening in the economy by updating the methodology of compilation and incorporation of new data sources.
Moreover, rebasing allows the adoption of international best practices in methodology as recommended by bodies like the UN Statistical Commission. Aligning with updated global standards ensures that India's statistics remain comparable and methodologically sound in light of new guidance on measuring the digital economy and supply-use tables.
Informal sector measurement has improved with quarterly QBUSE bulletins. District-level estimation has also become a core design feature across PLFS, ASUSE, and NSS surveys.
Besides, public access to official data has been expanded through GoIStats, e-Sankhyiki, and the revamped Microdata Portal, supporting transparency and data reuse, the statement added.
— IANS
Reader Comments
Finally! The CPI basket needed this update desperately. The way we spend money has changed so much since the last revision - more on services, apps, and online subscriptions. Curious to see how the new weights affect the inflation numbers we hear about every month.
Aligning with global best practices is good, but the real test is transparency and independence. The data must be credible and free from political pressure. The new portals for public access are a positive sign, but the methodology details should be openly available for academic scrutiny.
Improving measurement of the informal sector is crucial. So much of our economy, from the local kirana store to street vendors, operates informally. If these reforms can capture their contribution accurately, it will give a truer picture of India's economic health. Good move.
As someone who analyses emerging markets, this is significant. Comparable and methodologically sound data is key for foreign investment decisions. The focus on the digital economy and quarterly bulletins will make India's stats much more relevant internationally. Well done.
Hope the new systems also mean the data is released on time consistently. Sometimes there are long delays which make planning difficult for businesses like ours. Timely and accurate data is the backbone of a modern economy. 🤞
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