Data is critical for informed decision-making. However, the sheer influx of data complicates analysis, sometimes leading to questionable conclusions that impact decisions. The International Monetary Fund (IMF) recently assessed India’s national accounts, flagging ‘methodical shortcomings’ and awarding India a ‘C’ grade. The Government responded, noting that the three main IMF concerns—the old GDP base, absence of double-deflation to compute real GDP, and statistical discrepancies—would be addressed in the new data series.
The problem of shaky data was again highlighted in the latest consumer price index (CPI) figures, which pegged December 2025 inflation at 1.3%. An editorial in The Hindu pointed out that the Reserve Bank of India’s inflation expectations for the same period suggested perceived inflation of 6.6%—a striking contrast to the official CPI data.
It is in this context that the recent Parliamentary Standing Committee on Finance report on the ‘Performance Review of National Statistical Commission (NSC)’, presented in December 2025, should be viewed. The NSC, set up in 2000, serves as the nodal and empowered body for core statistical activities in India, tasked with evolving, monitoring, and enforcing statistical standards and coordinating across agencies. It operates under the administrative control of the Ministry of Statistics & Programme Implementation (MoSPI).
The Committee noted that NSC’s functions are varied and critical:
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Annual Survey of Unincorporated Sector Enterprises (ASUSE) – collects data on informal sector enterprises, including gross value added and operational details.
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Annual Survey of Industries (ASI) – principal source of industrial statistics for the organised manufacturing sector, tracking growth, composition, and structure.
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CAPEX Survey – forward-looking survey capturing capital investment intentions of financial and non-financial corporations.
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Periodic Labour Force Survey (PLFS) – measures labour force indicators, generating estimates for urban areas at short intervals.
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Household Consumption Expenditure Survey (HCES) – tracks household consumption patterns and well-being; data underpins CPI compilation.
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Index of Industrial Production (IIP) – composite indicator measuring short-term changes in industrial output across mining, manufacturing, and electricity (current base year: 2011-12).
While acknowledging NSC’s critical role, the Committee highlighted that the Rangarajan Commission (2000) had recommended NSC be established as a nodal, autonomous body with statutory backing. This has not happened; NSC lacks legislative authority. The absence of statutory support has weakened its functioning, particularly given the growing role of private data providers. Discrepancies between NSC and private data undermine public confidence.
The Committee also observed that reliable data is vital for effective policymaking and public trust. NSC currently lacks a mechanism to conduct statistical audits—the only audit undertaken was for the IIP in 2011. It recommended formalising statistical audits to regularly review processes and data collection across government and private agencies.
Complete and accurate data are indispensable for policy formulation; deficiencies can create policy voids and harm the economy. The Committee stressed the need to refine GDP data to fully capture economic activity, particularly in the informal sector. It also highlighted overlapping surveys by multiple agencies, leading to inconsistent data, and called for NSC to harmonise and ensure uniformity. Other recommendations included integrating AI into the statistical system, capacity building, and strengthening international collaboration and research.
Numbers do not speak for themselves; we imbue them with meaning. NSC is entrusted with tasks that shape economic, social, and human development policies. Even the Union Budget relies on its data. As the Standing Committee emphasised, a robust, reliable, and independent statistical system underpins informed governance, effective policy, and public trust. The Government would do well to seriously consider the recommendations, starting with granting NSC statutory authority, autonomy, and accountability to Parliament.
— The author, Najib Shah, is a former Chairman of the Central Board of Indirect Taxes & Customs. The views are personal.
