New Standing Committee on Statistics to Strengthen India's Official Data : Daily News Analysis

Date : 24/07/2023

Relevance: GS Paper 2: Governance, Transparency & Accountability,

Keywords: National Statistical Office (NSO), Index of Industrial Production (IIP), Consumer Price Index (CPI), National Sample Survey Office (NSSO),

Context -

The Ministry of Statistics and Programme Implementation has recently constituted a new Standing Committee on Statistics (SCoS) to enhance the credibility and reliability of official data generated by the National Statistical Office (NSO).
Led by former National Statistical Commission chief and India's first Chief Statistician Pronab Sen, the committee aims to address data quality issues and bridge the trust deficit surrounding India's economic indicators and poverty estimates.

The Evolution of the Standing Committee on Statistics:

The formation of the Standing Committee on Statistics (SCoS) marks a significant step in improving India's statistical framework.
It succeeds the previous committee, the Standing Committee on Economic Statistics, which was established in 2019 to advise on economic data related to industrial and services sectors, labor force statistics, and high-frequency indicators such as the Index of Industrial Production (IIP) and the Consumer Price Index (CPI).

Enhanced Mandate and Composition:

The new SCoS possesses "enhanced terms of reference" to provide guidance to the Ministry of Statistics and Programme Implementation on all existing surveys and data sets.
Additionally, the committee has the authority to identify data gaps, propose methods to address them and conduct pilot surveys and studies to refine data collection approaches.
Notably, the SCoS is composed of a smaller panel of experts, including seven distinguished academics, such as Professor Biswanath Goldar, Professor Sonalde Desai, and Professor Mausami Bose.

Significance of SCoS:

Addressing Data Quality Issues:

In recent years, the credibility of some of NSO's data, particularly household surveys conducted by the National Sample Survey Office (NSSO), has been questioned.
The government had withheld the results of two major NSSO household surveys in 2017-18, citing "data quality issues." Consequently, economic indicators like retail inflation, GDP, and poverty estimates have been based on outdated data from 2011-12, leading to a disconnect from current ground realities.

The Role of SCoS in Rebuilding Trust:

The SCoS is expected to play a crucial role in addressing data quality concerns and rebuilding trust in India's official statistics.
Apart from advising on individual surveys and datasets, the committee will also focus on sensitizing data users about the intricacies of survey design and methodology to ensure a better interpretation of the numbers.
By aiding the NSO in finalizing survey results, the committee aims to restore the credibility of India's statistics.

Enhanced Coordination and Integration:

With its expanded mandate, the SCoS will facilitate better coordination and integration of statistical activities across various ministries and departments, minimizing data duplication and inconsistency.

Increased Transparency and Accountability:

The SCoS aims to ensure regular dissemination and publication of data, engaging stakeholders and experts in the statistical process to promote transparency and accountability.

Challenges Ahead:

The SCoS might face challenges from certain ministries or departments unwilling to share or revise their data and methodologies.

Resource and Capacity Constraints:

Resource constraints in terms of manpower, infrastructure, technology, or funds may impede the effective functioning of the SCoS.

Legal and Institutional Hurdles:

Accessing and using data from various sources or platforms with different regulations may pose legal or institutional obstacles.

Political and Public Pressure:

Political or public pressure may interfere with producing or releasing sensitive or controversial data.

The Statistical Set-up of the Government of India:

The MoSPI, formed in 1999, consists of two wings:

The Statistics Wing, which includes the Central Statistical Office (CSO), the Computer center, and the National Sample Survey Office (NSSO), and
The Programme Implementation Wing.

The National Statistical Office (NSO) has a significant historical background, starting as the Central Statistical Office (CSO) in 1950 under the Ministry of Planning. In 1970, it became the National Sample Survey Office (NSSO) and was later rebranded as the NSO in 2019, evolving to become the primary statistical agency in India.

The NSO's organizational structure comprises various divisions and units responsible for different statistical functions. These include the Survey Design and Research Division, Field Operations Division, Data Processing Division, National Accounts Division, Price Statistics Division, and Social Statistics Division, among others.

The CSO, a part of the NSO, focuses on

Macroeconomic statistics and national income accounting.
It plays a crucial role in producing key economic indicators such as Gross Domestic Product (GDP), Index of Industrial Production (IIP), Consumer Price Index (CPI), and Wholesale Price Index (WPI).

The NSO conducts several essential surveys to gather comprehensive data on various aspects of the Indian economy and society. These surveys include

Population Census, which is conducted every ten years in collaboration with the Registrar General and Census Commissioner of India.
The National Sample Survey (NSS) is a large-scale household survey that provides valuable information on socio-economic aspects such as employment, consumer expenditure, poverty, education, and health.
The Economic Census collects data on business establishments, employment, and economic variables.
The Annual Survey of Industries (ASI) gathers data on the industrial sector's performance and structure.
The Agricultural Census provides comprehensive information on agricultural holdings, cropping patterns, land use, livestock, and irrigation.
Health and morbidity surveys to gather data on healthcare utilization, disease prevalence, and access to healthcare services.

Overall, the NSO plays a crucial role in collecting and analyzing statistical data, providing valuable insights into various aspects of India's economy and society.

About the Standing Committee on Statistics (SCoS):

The SCoS has been established to revamp the SCES, which was set up in 2019, and serve as a new internal oversight mechanism for official data.
Need: The creation of the SCoS gains significance in response to critical feedback on India's statistical machinery from the Economic Advisory Council (EAC) to the Prime Minister. EAC's chairperson, Bibek Debroy, highlighted the lack of expertise in survey design within the Indian Statistical Service.

Conclusion:

The establishment of the new Standing Committee on Statistics marks a significant milestone in improving the quality and reliability of India's official data. With its broader mandate and expert composition, the SCoS aims to bridge data gaps, enhance survey methodologies, and rebuild trust in the country's economic indicators and poverty estimates. By doing so, India can rely on accurate and timely data to make informed policy decisions and foster sustainable development.

Probable Questions for UPSC main exam-

Explain the role of the newly constituted Standing Committee on Statistics (SCoS) in addressing data quality issues and rebuilding trust in India's official statistics. Mention the challenges it may face and propose measures to overcome them. (10 Marks, 150 Words)
Discuss the evolution of the Standing Committee on Statistics (SCoS) and how it's expanded mandate and expert composition can enhance the credibility of India's economic indicators and poverty estimates. Highlight the importance of coordination and transparency in the statistical setup of the Government of India. (15 Marks,250 Words)

Source : The Hindu