Industry data collection to be strengthened

The index of industrial production (IIP) released monthly by the Central Statistical Organisation (CSO) has a base of 1993-94, like the wholesale price index (WPI). The problem here is similar to that in other cases.

"Structurally, India is changing very fast. So, all bases should be changed every five years," says Saumitra Chaudhuri, economic advisor, ICRA.

"Reporting, in case of IIP has, in general, become weaker after liberalisation," said DC Joshi, senior economist, Crisil.

Earlier, industry was mandated to report data, but now, compliance has become a problem.

The National Statistical Commission had recommended construction of an additional IIP by direct collection of monthly production data on selected items from factories employing 200 or more workers.

In view of the difficulties in collection of data through mail, it had suggested using production data available with the Central Board of Excise and Customs (CBEC) for compilation of an all-India IIP.

On gross domestic product (GDP) too, data presentation is a problem. While world over, this data is presented by disposition, in India, it is available by industry of origin.

"The GDP by disposition is available only with a lag of about two-and-a-half years, which is very late from a policy formulation point of view. The CSO should focus on presenting data by disposition on a quarterly basis," said Chaudhuri.

Resources are not a constraint as far as developing a good statistical system is concerned, he adds. What is needed is a clear mission statement on what is to be done.

The National Statistical Commission, had recommended setting up of a National Commission on Statistics (NCS). A permanent and statutory apex body, the NCS, consisting of a chairman and four expert members, will be accountable to Parliament and have a policy-making, standard-setting and coordinating role for the statistical system.

It had also recommended providing penalties for refusal by informants to supply information or for supplying wrong information.

It has also stated that the informants' right to privacy should be protected by making it illegal to publish his identity or by requiring him to furnish sensitive information.