In recent news, the Indian Government has appointed the Standing Committee on Statistics (SCoS). The committee is chaired by Pronab Sen, former Chief Statistician of India. The appointment was made to review the methodology of the National Statistical Organisation (NSO). The need for such a committee has arisen in light of criticism levied towards India’s statistical system, specifically from three members of the Economic Advisory Council to the PM (EAC-PM).
Understanding the Standing Committee on Statistics
Initially, the Standing Committee on Economic Statistics (SCES) had been formed in December 2019. Consisting of 28 members, it carried the responsibility to review economic indicators pertaining to the industrial sector, the services sector and the labour force statistic. However, in a recent turn of events, the government has renamed and increased the scope of SCES to form the SCoS. Unlike its predecessor, which only reviewed particular sectors, SCoS will now evaluate all surveys.
The SCoS houses 14 members – four non-official, nine official members, and a member secretary. The total number can be extended up to 16, depending on requirements. The committee’s primary functions lie in reviewing extant frameworks, addressing issues related to survey methodology, finalising survey results, and ensuring data collected meets standards of good statistics.
A Need for Review
The call for a review is triggered by concerns regarding the outdated methodologies used in national surveys like NSS, NFHS, and PLFS. There have been suggestions of these resulting in systematic underestimation of India’s growth. The issue lies with the methodologies failing to depict the dynamic state of the Indian economy accurately over the past 30 years.
The Importance of National Level Data
National level data significantly contributes to policymaking, research, development planning, and other crucial aspects. Therefore, it’s imperative that the SCoS takes a meticulous look at the data collected through these surveys, particularly the NFHS data, which has been conducted over the past 30 years.
The Question of Rural Bias
Detractors argue that national surveys like NFHS show a rural bias due to over-reliance on outdated Census data. Contrary to this belief, an analysis of five rounds of NFHS data does not corroborate this claim. Evidence leans toward random errors rather than systematic bias.
Ways to Mitigate Errors
Errors can be minimized without completely changing the survey methodology. Firstly, no consistent relation indicates rural or urban bias in estimation, despite higher no-response percentages in urban areas. Thus, a careful assignment of sample weights can significantly correct errors and representation discrepancies.
The Way Forward
The Committee should aim to tackle concerns about sample representation and minimize errors. This could be achieved by rectifying actual errors, ensuring accurate and reliable data for informed decision-making at the national level. By addressing these concerns, the committee can make certain that national surveys offer reliable insights into India’s development and demographics.