The statistical system in India is a comprehensive network that plays a crucial role in collecting, analysing, and disseminating data for informed decision-making in policy and planning. Read here to learn more.
The Indian statistical system is multi-tiered, involving various governmental and semi-governmental agencies at the central, state, and local levels.
The recent debates about the quality of India’s official statistics, especially those produced by the National Sample Survey Office (NSSO), have brought to light significant issues within the country’s statistical system.
The main concerns revolve around the sample design and data quality, which, although not statistically invalid, emphasize the necessity for modernization in India’s approach to statistics.
Statistical system in India
Key Agencies and Institutions
- Ministry of Statistics and Programme Implementation (MoSPI):
- National Statistical Office (NSO): The NSO is the nodal agency that coordinates statistical activities in the country and maintains statistical standards. It was formed by merging the Central Statistics Office (CSO) and the National Sample Survey Office (NSSO).
- Central Statistics Office (CSO): Before merging into NSO, the CSO was responsible for national income accounting, conducting economic censuses, and compiling the Index of Industrial Production (IIP), among other activities.
- National Sample Survey Office (NSSO): The NSSO was responsible for large-scale surveys on socio-economic subjects, including employment, consumer expenditure, agriculture, and health.
- Reserve Bank of India (RBI): The RBI collects and disseminates data related to banking, financial markets, and the economy.
- Office of the Registrar General and Census Commissioner: This office conducts the decennial Population Census and the quinquennial Census of India.
- State Statistical Bureaus (SSBs): These are the nodal agencies at the state level responsible for coordinating statistical activities within the states.
- Directorates of Economics and Statistics (DES): These function under the state governments and collect data on various socio-economic indicators at the state level.
National Sample Survey Office(NSSO)
The National Sample Survey Office(NSSO) headed by a Director General is responsible for conducting large-scale sample surveys in diverse fields in all over India.
- Primarily data are collected through nationwide household surveys on various socio-economic subjects, Annual Survey of Industries (ASI), etc.
- Besides these surveys, NSSO collects data on rural and urban prices and plays a significant role in the improvement of crop statistics through supervision of the area enumeration and crop estimation surveys of the State agencies.
- It also maintains a frame of urban area units for use in sample surveys in urban areas.
The NSSO has four Divisions:
- Survey Design and Research Division (SDRD): This Division, located at Kolkata, is responsible for the technical planning of surveys, formulation of concepts and definitions, sampling design, designing of inquiry schedules, drawing up of tabulation plan, analysis and presentation of survey results.
- Field Operations Division (FOD): The Division, with its headquarters at Delhi/Faridabad and a network of six Zonal Offices, 52 Regional Offices and 117 Sub-Regional Offices spread throughout the country, is responsible for the collection of primary data for the surveys undertaken by NSS.
- Data Processing Division (DPD): The Division, with its headquarters at Kolkata and 5 other Data Processing Centers at various places, is responsible for sample selection, software development, processing, validation and tabulation of the data collected through surveys.
- Survey Coordination Division (SCD): This Division, located in New Delhi, coordinates all the activities of different Divisions of NSS. It also brings out the bi-annual journal of NSS, titled “Sarvekshana”, and organizes National Seminars on the results of various Socio-economic surveys undertaken by NSS.
Functions and Data Collection
- Surveys and Censuses:
- Population Census: Conducted every ten years to collect demographic data.
- Agricultural Census: Provides data on agricultural holdings, land use, and related statistics.
- Economic Census: Gathers data on economic activities and establishments.
- National Sample Surveys: Periodic surveys on various socio-economic indicators, such as employment, consumer expenditure, and health, conducted by the NSSO.
- Administrative Data: Data is collected through routine administrative processes by various government departments, such as health, education, and public distribution systems.
Recent Developments and Reforms
- National Statistical Commission (NSC): Established to oversee the statistical system and improve the quality and credibility of official statistics.
- National Indicator Framework (NIF): Developed to monitor the Sustainable Development Goals (SDGs) in India.
- Data Governance and Modernization: Initiatives to improve data collection methodologies, enhance the use of technology in data processing, and promote open data policies.
- Periodic Labour Force Survey (PLFS): Launched to provide quarterly estimates of key labour market indicators.
Challenges
- Sample Design and Data Quality: Concerns about the sample design and data quality from NSSO have been prominent. While these concerns are not necessarily statistically valid, they highlight the need for more robust methodologies and frameworks to ensure data accuracy and reliability.
- Modernization of Statistical Methods: India’s statistical system has lagged behind global advancements in data science and integration. This gap affects the credibility and relevance of the data, which is crucial for policy formulation and implementation.
- Coordination and Integration: Better coordination among various statistical agencies is needed to avoid duplication and improve data integration.
- Capacity Building: Continuous training and capacity building for personnel involved in data collection and analysis are essential.
Recommendations for Modernization
- Improvement in Methodologies:
- Adopt Global Best Practices: Updating statistical methodologies to align with international best practices will improve the accuracy and reliability of data.
- Advanced Analytical Tools: Leveraging advanced tools and technologies in data collection and analysis can help in capturing more granular and accurate data.
- Frequency and Timeliness of Data Releases:
- Regular Updates: Increasing the frequency of data collection and ensuring timely release of data will provide more current information, aiding in better decision-making.
- Real-time Data Collection: Utilizing technology to collect data in real-time can significantly enhance the timeliness and relevance of the information.
- Innovative Data Collection Approaches:
- Big Data and AI: Exploring the use of big data analytics and artificial intelligence can help in processing large volumes of data more efficiently and accurately.
- Crowdsourcing and Citizen Science: Engaging citizens in data collection through crowdsourcing can improve data coverage and richness.
- Capacity Building and Training:
- Training Programs: Implementing regular training programs for statisticians and data scientists to keep them updated with the latest tools and techniques.
- Institutional Strengthening: Strengthening statistical institutions to enhance their capacity to collect, process, and disseminate high-quality data.
Way forward
Modernizing India’s statistical system is crucial for providing policymakers with accurate, up-to-date information.
This is essential for making informed decisions in a rapidly changing economic and social landscape. Accurate data helps in:
- Effective Policy Formulation: Reliable data is foundational for creating effective policies that address current issues and anticipate future challenges.
- Monitoring and Evaluation: Up-to-date statistics are essential for monitoring and evaluating the impact of policies and programs, enabling adjustments as needed.
- Economic Planning: Precise data supports better economic planning, helping to allocate resources more effectively and drive sustainable development.
Conclusion
The debates on the quality of India’s official statistics underscore the urgent need to modernize the statistical system.
By investing in advanced methodologies, improving data collection and analysis processes, and ensuring timely data releases, India can enhance the credibility and relevance of its official statistics.
This, in turn, will support more informed policymaking and contribute to the country’s socio-economic development.
Frequently Asked Questions (FAQs)
Q. What is the statistical body of India?
Ans: The Statistics Wing called the National Statistical Office(NSO) consists of the Central Statistical Office (CSO), the Computer center and the National Sample Survey Office (NSSO).
Q. Who is the father of the Indian statistical system?
Ans: Prasanta Chandra Mahalanobis is also known as the father of Indian Statistics. He was a physicist by training, a statistician by instinct and a planner by conviction.
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-Article by Swathi Satish
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