Date : 01/08/2023

Relevance – GS Paper 2 – Governance – Data Governance

Keywords – NSO, big data, UN Statistics Division

Context –

In recent weeks, an intense debate has taken center stage concerning the efficacy and reliability of India's statistical system. This discourse, spurred by articles like 'The sample is wrong' (IE, July 7), 'Statisticians aren't stupid' (IE, July 10), and 'Narrative in search of data' (IE, July 12), highlights the urgent need for comprehensive reforms in the country's data collection and analysis processes. Instead of defending the existing statistical system, it is essential to recognize its limitations and take decisive action to improve it.

Acknowledging the Problem and Pursuing Solutions

The first crucial step is to admit the presence of issues within the current statistical system and focus on finding viable solutions. Currently, the National Statistical Office (NSO) relies on administrative and sample surveys to collect data. While administrative data collection is cost-effective and speedy, it suffers from challenges related to representativeness. Conversely, sample surveys provide more accurate results but are relatively costlier and time-consuming. To mitigate these shortcomings, the Census frame used for most surveys must be digitized dynamically, ensuring better data quality and reduced bias in estimates. Leveraging geospatial technologies and crowd-sourced data platforms could be instrumental in achieving this objective.

Expanding and Diversifying Data Sources

The national statistical system must broaden its resource base by incorporating new and emerging sources of data. Embracing Big Data and harnessing the power of machine learning and artificial intelligence can complement traditional data sources effectively. However, to utilize these new datasets optimally, the NSO must develop standards and methodologies for data validation. In this endeavor, collaboration with multilateral and regional agencies will be instrumental in enhancing the statistical system's capacity to leverage alternative data sources. The UN Statistics Division's guidelines on using Big Data for official purposes can serve as a valuable reference point.

Strengthening the State Statistical Systems

A robust national statistical system depends significantly on the strength of state statistical systems. In this context, the Dholakia Committee Report 2020 on sub-national accounts becomes pivotal as it advocates a bottom-up approach, strengthening the data collection capacities of state governments. Building institutional frameworks at the state and district levels will be essential for effective implementation. Initiatives such as the India Statistical Strengthening Project, backed by the World Bank, can significantly enhance state statistical systems' data collection capabilities. Furthermore, inter-agency coordination between national and sub-national statistical systems must be institutionalized to promote a comprehensive and unified approach.

Drawing Lessons from Success Stories

Learning from successful experiences in other sectors can provide valuable insights for improving the statistical system. For instance, India's remarkable progress in weather predictions owes much to the establishment of the National Centre for Medium Range Weather Forecasting and advancements in observation systems and IT infrastructure. Emulating this approach, the statistical system can benefit from enhanced observation techniques and IT capabilities. Leveraging technological advancements has demonstrated success in various domains, including direct taxes, GSTN, railway reservations, banking and finance, UPI, portal aggregators, and online shopping.

Investing in Resources for Sustainable Growth

The foundation of any successful statistical system lies in the availability of resources, encompassing physical, human, financial, and technological assets. Efficiency, quality, and timeliness of statistical products are directly influenced by resource optimization. Similar to economic growth, which relies on a sustained expansion in the production possibility frontier, the statistical system's improvement necessitates continuous resource growth. Considering this as an investment to propel India towards its $5 trillion economy target is imperative.

Fast-Tracking Reforms: Implementing the National Policy on Official Statistics

To catalyze and synergize these efforts, the speedy finalization of the National Policy on Official Statistics, announced in the Budget 2020, is critical. This policy, when accompanied by appropriate institutional support and adequate resources, will enable effective tracking of India's progress on Sustainable Development Goals (SDGs) using a bottom-up approach. Furthermore, it will ensure that no one is left behind in the development process. Swift implementation of reforms and substantial investment in the national statistical system is the need of the hour if India aspires to play a prominent role in the international statistical fraternity.

Conclusion:

Recognizing the shortcomings of the current statistical system and pursuing comprehensive reforms is essential for India's sustainable development. By expanding data sources, strengthening state statistical systems, drawing lessons from successful experiences, and investing in resources, the nation can create a robust and efficient statistical framework. Fast-tracking the implementation of the National Policy on Official Statistics will further reinforce India's commitment to achieving its developmental objectives and enhance its global standing. With concerted efforts and strategic investments, India's statistical system can become a formidable tool to guide the nation towards a prosperous and inclusive future.

Source – Indian Express