National Statistics Office to Strengthen Quarterly GDP Figures with Multiple Data Sources
In a significant move to enhance the accuracy and reliability of India's economic growth measurements, the National Statistics Office (NSO) has announced plans to incorporate a wide array of administrative data sources into its quarterly GDP calculations. This initiative aims to provide a more robust and comprehensive picture of the nation's economic performance.
Comprehensive Data Integration for Improved Accuracy
The NSO will leverage multiple administrative datasets to refine its quarterly growth figures. Key sources include GST filings, which offer insights into business transactions and tax compliance across sectors. Additionally, E-Vahan data will provide information on vehicle registrations, serving as an indicator of transportation and consumer activity.
Financial results from listed companies will be analyzed to gauge corporate performance and sectoral health. Data on natural gas consumption will help assess industrial and residential energy usage patterns. Furthermore, cargo traffic statistics from both major and minor seaports will be incorporated to monitor trade and logistics activities.
Methodological Overhaul and New Base Year Implementation
This data enhancement is part of a broader overhaul of India's national accounts, scheduled for implementation on February 27. The updated series will adopt fiscal year 2022-23 as the new base year, replacing the previous benchmark to better reflect current economic structures and trends.
Alongside the GDP revisions, the NSO will also release updated datasets for the Index of Industrial Production (IIP) and Consumer Price Index (CPI) with new base years. These changes aim to align all major economic indicators with contemporary realities.
Focus on State-Level Data Reliability
The methodological improvements extend beyond national figures to enhance state-level growth calculations. By integrating diverse data sources, the NSO seeks to make regional economic assessments more reliable and comprehensive, addressing previous gaps in subnational economic reporting.
Stakeholder Consultation Through Discussion Paper
On Friday, the NSO released a discussion paper outlining proposed methodological changes and inviting responses from experts and stakeholders. This consultative approach ensures that the transition to the new National Accounts series incorporates diverse perspectives and technical inputs.
The paper details how administrative data will be systematically used to compile quarterly GDP figures, marking a shift from traditional survey-based methods to more real-time, transaction-based indicators.
This data revamp represents a crucial step toward modernizing India's statistical infrastructure, enabling policymakers, businesses, and researchers to make more informed decisions based on timely and accurate economic information.
