India's GDP Calculation: How 300+ Data Sources Are Shaping Economic Policy

Speaking at a CII summit, Saurabh Garg, Secretary of the Ministry of Statistics and Programme Implementation, said that the government is leveraging over 300 data sources for GDP calculations and is working to expand their use for data-driven policymaking across various government levels.

MoSPI Secretary said, "We use over 300 sources of data for GDP calculation. Of course, there are indicators which are even more. Use of administrative data is something which is being leveraged within the government, and needs much greater leveraging by the private sector."

He noted that the government is pursuing the harmonisation and standardisation of data across ministries and states, adding that data audits could follow once these processes are in place.

"If you have harmonisation and standardisation of data, maybe the next step is an audit. The mechanism for that is something that needs to be worked on," he said.

Garg also spoke about technology-driven approaches, including AI and machine learning, to improve data collection, processing, analysis, and dissemination. He cited ongoing efforts to create a Statistical Business Register (SBR), which will follow the 2027 economic census, as part of a broader push to streamline business and economic data.

"We'd be soon be doing the economic census, following the population census. We are likely to do the economic census in 2027," he said.

"There's a suggestion of greater use of AI and ML, whether it's for dissemination, analysis or in any other manner."

The Secretary further highlighted the availability of district-level economic indicators from surveys and state data, noting that these can provide granular insights for policymaking.

He invited stakeholders to suggest datasets that could be made publicly available to benefit both sovereign rating agencies and the private sector.

Recently, the International Monetary Fund (IMF) has given a 'C' Grade to India's national accounts and government finance data infrastructure in its 2025 Data Adequacy Assessment exercise.

This grade signifies that the data provided to the IMF has some shortcomings that somewhat hamper surveillance. IMF argued that using an old structure of relative prices and economic weights means GDP growth may be misstated, as it doesn't fully capture the rise of new sectors like digital services.

- ANI