Digital activity helps track data on economy

A large, complex and growing economy like India’s needs current and authentic data for business and government decision making. Technology is now coming to the rescue of decision makers who need current data about the multiple dimensions of a rapidly changing economy.

Till recently, nearly all data was collected manually, with its attendant faults and delays. The rise in digital activity has now allowed decision makers to track various aspects of economic activity with far more accuracy. The Economic Survey of 2021-22 has spotlighted the rise in use of tech enabled data. “An important theme of this year’s Economic Survey is the use of new forms of data and information for tracking economic activity and development,” says the survey.

The government has been using data of about 80 high frequency indicators (HFIs) in recent years, to get better insights into the economy. These 80 HFIs include demat accounts; average daily electronic toll collection at highways; Aadhaar-enabled payment systems; e-way bills generated; total retail financial transactions; and Unified Payments Interface transactions.

What is common between these is the near-instant flow of data to policy makers. Digital transactions and online storage of such activity allows sharing of information. With the right data analysis design, getting a comprehensive view by combining different sets of data is possible within days, if not hours.

The finance ministry feels that such indicators allow policy makers to “pick up useful signals that allow for faster response and better targeting.”

The big shift this year has been the use of geospatial information. “Geospatial maps not only let users visualise data but also helps users to better understand trends, relationships and patterns,” says the survey. “The use of maps is not entirely new and previous Economic Surveys have used them for years, but there is now a plethora of information from satellites, drones, mobile phones and other sources.” Improvement in cartographic technology allows better visualisation and deeper insights.

For instance, the night-time luminosity of a region gives a far better picture of electricity supply, economic activity and urban expansion than a set of statistical tables. Using images of night-time luminosity, state governments and power utilities can get near-real-time information about the impact of electrification schemes.

The finance ministry has recognised the importance of including cartographic data for its policy making processes.

An important step towards improving new flows of information has been the participation of startups and private companies. Geospatial data was heavily controlled and regulated by the government.

A new policy allowed data acquired by government organisations to be accessible to domestic entities. The quality of imaging has improved since private entities can collect images with much higher resolution than earlier. The guidelines permit the export of maps with resolutions up to a 1:100 resolution from the previous threshold of 1:250,000. The higher resolution allows even city municipalities to plan urban projects and utilities like power and water.

Bhuvan, the geo-platform of the Indian Space Research Organisation, invites free downloads and collaboration with experts. The data from Bhuvan is being applied in initiatives such as disaster management, rural employment programmes, forestry projects and water conservation.

Private mapping companies are now collaborating to analyse geospatial data for multi-dimensional insights.

The new sources of data bring attendant risks, too. Often, the data flows are difficult to process unless the relevant type of analytics framework is created. Government agencies will have to put some effort into their data analysis design to ensure that new streams of information can be gainfully processed.