Strengthening statistics: Why India needs periodic and reliable data

As reported by this newspaper recently, the Union government has initiated preparations for the 8th Economic Census, which is expected to be officially launched next year. The Economic Census is a vital tool that provides detailed data on the structure and operations of establishments across the country, offering insights into economic activity, ownership, and workforce engagement. This data is crucial for socioeconomic planning at the state and district levels. However, concern persists. The most recent data available is from the 6th Economic Census, which was conducted in 2013, with the results published in 2016. The 7th Economic Census, which commenced in 2019, encountered significant disruption. Initially, the process was hampered by the outbreak of the pandemic, and subsequently, it faced delays reportedly due to concern over the quality of the data collected.
 

The release of the 7th Economic Census is crucial for meaningful comparisons and analysis across different periods. The fact that the process is interrupted raises questions about its integrity and the robustness of the statistical system as a whole. There must be transparency regarding the issues that led to the compromise in data quality and the lessons learned from this experience should be shared openly. This would not only help address shortcomings, if any, but also restore confidence in the statistical processes and ensure that future Censuses are conducted with the highest level of accuracy and reliability.
 

Additionally, the government is considering the 80th round of the National Sample Survey to cover health, domestic travel, and tourism expenditure. A comprehensive survey of the services sector is anticipated to be conducted shortly, further expanding the scope of national data collection efforts. In parallel, the government has recently released data from several large-scale sample surveys, such as the household consumption expenditure survey, which was the first since 2011. These efforts are complemented by establishing various advisory committees tasked with revising the base year for national statistics and other key indices. This proactive approach is intended to ensure that the country’s statistical system remains relevant and reflects current economic realities. The publication of updated and high-frequency data across a broad range of fields is essential for informed policymaking and for strengthening the overall statistical infrastructure.
 

However, despite the government’s recent discussions and its visible commitment to improving the statistical framework, these efforts will ultimately have limited impact if the decennial Census, which was originally scheduled for 2021, is not carried out. It’s for the first time since 1881 that the Census has been postponed, and there is still no definite timeline as to when it will be conducted. The Census is the bedrock of the entire statistical system, providing the critical foundations upon which the accuracy and reliability of large-scale sample surveys and policy decisions are built. Without the most recent Census data, the integrity of some of these surveys and the effectiveness of policy decisions could be compromised. Thus, while recent government efforts to enhance the statistical framework are steps in the right direction, they must be accompanied by timely execution. It is important for policymakers in a rapidly changing economy to have timely and accurate data for making effective policy interventions.