Not disclosing statistical data will now call for fine

In what could somewhat blunt the criticism over reliability of data, particularly Index of Industrial Production (IIP), the Union government has come out with rules prescribing Rs 1,000 fine for individual and Rs 5,000 for company if they neglect furnishing information to government agencies for statistical purposes or refuse to do so.

This, and more such provisions, form part of the new rules notified by the government recently under the Collection of Statistics Act, 2008. More importantly, the rules point out that the obligation to furnish information would not cease after conviction.

“If the concerned person continues to neglect or refuse to furnish information, then after 14 days from the date of conviction, he may be punished with an additional fine of Rs 1,000 and in case of companies Rs 5,000”, says the new guidelines.

The rules also talk of stringent penalties for furnishing false information in the form of simple imprisonment up to six months or of a fine or both.

The new rules come amid increasing criticism of reliability on IIP data, since they at times show too much volatility. The latest IIP data show that industrial growth has been declining to below five per cent since November before they rose seven per cent in March. In April, the growth again fell to 4.4 per cent. The Reserve Bank of India had pointed to the volatility in IIP data.

The government came out with new IIP series taking 2004-05 as the base year. Similarly, the weights of manufacturing, mining and electricity underwent a change as well as their basket. The new series shows that industrial growth declined to a seven-month low of 6.3 per cent in April.

Chief Statistician of India T C A Anant said, “Data for the new IIP series, which was released today will be collected on the basis of the new rules.”

Anis Chakravarty, director Deloitte, Haskins & Sells, said while trends are yet to be established, it is expected that some of the volatility utilising the previous base will be ironed out. The rules also restrict use of data collected for statistical purposes for any other activity.

They also provide for designating a nodal officer at the Centre and the states who would advise the ministries on steps to be taken to avoid unnecessary duplication.