Opinion Express View on weaknesses in statistical system: Plug the data gaps

India’s statistical system is increasingly coming under criticism. Questions have been raised not only on the quality and accuracy of the data that is collected, but also over the manner in which data has allegedly been suppressed, and seeming political interference in the statistical institutions. The government has now expanded the scope of the 2019 committee on economic statistics to also advise on survey methodology, including the sampling frame and sample design. This is a welcome signal. Equally encouraging is the composition of the committee. It is headed by former chief statistician, Pronab Sen, who has been critical of some of the questions raised by members of the Prime Minister’s Economic Advisory Council over the statistical system and the quality of surveys. The other non-official members include independent academics such as Sonalde Desai, professor, National Council of Applied Economic Research and Bishwanath Goldar, former professor, Institute of Economic Growth.

Questions raised over survey mechanisms, overestimation of rural population and low response rate will need to be addressed. As will issues of data quality. The NSS’s consumption expenditure surveys have consistently underestimated household consumption expenditure when compared to estimates arrived at in the national account statistics. Strengthening the statistical system also involves addressing issues in the collection and dissemination of data even if they are politically uncomfortable. The lack of data, after all, only compounds the problem. For instance, the decadal Census is yet to be carried out. While the delay during the initial years on account of the pandemic was understandable, the continued hold-up is inexplicable. The results of the consumption expenditure survey for 2017-18 have also not been released due to “quality issues”. As this survey forms the basis of estimating poverty and inequality in India, in its absence, there is little clarity over their trends in the past decade. Moreover, this survey is also used in the calculation of other indicators such as the consumer price index, and as such, has implications for monetary policy.

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There can be no disagreement on the need to address weakness and gaps in the country’s statistical apparatus. But, aspersions must not be cast on the accuracy and reliability of data if it does not conform to a specific narrative. Policy cannot be formulated in a data vacuum. Nor can it be effective if the data is dodgy.