Standing Committee on Statistics (SCoS): Explained, pointwise

Introduction

The Ministry of Statistics and Programme Implementation has formed a new Standing Committee on Statistics (SCoS) to advise on official data generated by the National Statistical Office (NSO). This panel will be chaired by former National Statistical Commission chief and India’s first Chief Statistician Pronab Sen. The new panel will replace the Standing Committee on Economic Statistics that was formed in 2019 to advise on economic data. 

About India’s statistical system 

The Statistical System of India has been shaped by the constitutional division of subjects into the Union list, State list, and Concurrent list. The collection of statistics relating to any subject is generally the responsibility of the department concerned. Several union/state government entities, therefore, have full-fledged statistical divisions or cells. 

The Ministry of Statistics and Programme Implementation (MoSPI) came into existence as an Independent Ministry in 1999 after the merger of the Department of Statistics and the Department of Programme Implementation.  

The Ministry has two wings, one relating to Statistics and the other Programme Implementation.  

The National Statistical Office (NSO) was created in 2019 by merging the National Sample Survey Office (NSSO) and the Central Statistical Office (CSO).  

The NSO is the nodal agency for planning and facilitating the integrated development of the national statistical system.   

Besides these two wings, there is the National Statistical Commission (NSC) created through a government resolution on the recommendations of the Rangarajan Commission, which reviewed the Indian Statistical System in 2001. The NSC was constituted with a mandate to evolve policies, priorities and standards in statistical matters.   

What are the legal provisions for data collection in India? 

The legal framework for data collection in India mainly consists of two laws: Census Act, 1948 and Collection of Statistics Act, 2008. 

Census Act, 1948: The Population Census, which is a Union subject, is conducted under the Census Act, 1948. The Act has been further amended vide the Census (Amendment) Act 1993.

Collection of Statistics Act, 2008: The 2008 Act facilitates the collection of statistics related to social, economic, demographic, scientific and environmental aspects, by central, state and local governments.   

Why are statistics important? 

Enhance commerce and citizen welfare: Government statistics are essential for a democratic government and are used to enhance commerce and citizen welfare.  Statistical agencies provide accurate, timely, and credible information, which informs current and future policies. 

Information: A government must be aware of the demographics of the people it governs. Statistics are a crucial instrument for researching and comprehending a nation’s economic issues. Statistics aid in the analysis of economic issues including production, consumption, price, income distribution, population, unemployment, and poverty by bringing a quantitative component to qualitative claims. 

Public policy: Statistics plays a key role in planning, monitoring and evaluation of socio-economic policies and improving governance. Availability of good data during the implementation process ensures the effective control on delivery of various public services and thus results in good governance. Statistics on infrastructure, health, educational facilities and socio-economic conditions of society are essential to cater to the needs of planning and policy formulation. 

The importance of statistics has been growing rapidly with the greater integration and inter-dependence of world economies. 

How is the Standing Committee on Statistics (SCoS) different from the Standing Committee on Economic Statistics? 

As the new panel will replace the Standing Committee on Economic Statistics, a brief comparison between the two becomes necessary.  

Mandate: 

The Standing Committee on Economic Statistics was mandated to review the framework for economic indicators such as those pertaining to the industrial and services sectors, along with labour force statistics.  

This meant its focus was limited to reviewing high-frequency data like the Index of Industrial Production (IIP) and the Consumer Price Index (CPI), apart from surveys and enumerations like the Economic Census, Annual Survey of Industries and the Periodic Labour Force Survey.  

The Standing Committee on Statistics has a broader mandate to review the framework and results of all surveys conducted under the National Statistical Office (NSO). It can provide guidance to the Ministry not only on existing surveys and data sets but also to identify areas with data gaps. Furthermore, the committee is tasked with proposing solutions to fill these gaps and conducting pilot surveys and studies to refine new methodologies for obtaining more accurate and comprehensive data. 

Composition: 

The Standing Committee on Economic Statistics had 28 members which made reaching consensus difficult. Currently, the Standing Committee on Statistics is composed of 14 members, including four non-official members, 9 official members, and a member secretary. The committee can have a total of 16 members, with the possibility of extending this number based on future requirements. 

What is the need for the new Standing Committee on Statistics?  

Survey design: Recently, members of the Economic Advisory Council to the Prime Minister have critiqued India’s statistical machinery. Its chairperson Bibek Debroy has highlighted the lack of expertise in survey design within the Indian Statistical Service. 

Data quality: In recent years, there have been concerns about the credibility of certain data from the National Sample Survey Office (NSSO), particularly regarding the various household surveys. Even high-ranking government officials have raised questions about their methodology and findings. In 2019, the government decided to discard the results of two significant NSSO household surveys related to employment and consumption expenditure levels in Indian households conducted in 2017-18, due to data quality issues.  

Data divorced from ground realities: Due to the lack of updated data from a recent Household Consumption Expenditure Survey (HCES), India is currently using the 2011-12 figures for essential economic indicators like retail inflation, GDP, and poverty rates. However, these numbers do not accurately reflect the present-day ground realities.  

What are the functions of the Standing Committee on Statistics (SCoS)? 

The committee’s terms of reference include reviewing the current framework and addressing any issues raised regarding subject, results, and methodology. 

It will also provide advice on survey methodology, such as sampling frame and design, and finalize the tabulation plan of surveys. 

It will provide guidance for conducting pilot surveys and pre-testing, if necessary, before finalizing data collection schedules.  

It will also provide guidance on studying and exploring the availability of administrative statistics related to surveys, as well as identifying data gaps and additional requirements. 

The committee can also offer technical guidance to central and state-level agencies for surveys involving participation from states. 

The committee will help finalize survey results, but the National Statistical Commission will have the ultimate authority to approve the publication of those results. 

How can the SCoS bridge the trust deficit surrounding official data? 

The new panel will help the Ministry to address issues related to the results and methodology of surveys which are raised from time to time. 

Given the continuous evolution of survey design and features, the panel can raise awareness among data users regarding the intricacies involved. This effort aims to promote a better understanding and interpretation of the numbers, leading to more informed and reliable data utilization. 

The SCoS is anticipated to have a vital role in resolving data quality issues and restoring confidence in India’s official statistics by aiding the NSO in finalizing survey results. 

What should be done? 

To address the existing trust deficit, the SCoS can take the lead in cultivating a culture of data trustworthiness. This can be achieved by promoting open dialogue, addressing concerns, and embracing diverse perspectives, all of which will contribute to enhancing the credibility of India’s statistical system. 

Regular and timely surveys focusing on poverty, growth, employment, and unemployment estimates should be conducted, maintaining the highest standards of quality. 

A new statistical reforms commission can be set up to address systemic problems such as the perceived lack of independence of the NSO, instances of government wanting to control the data narrative and the lack of financial and human resources. 

Conclusion 

The establishment of the Standing Committee on Statistics (SCoS) offers a significant chance to rejuvenate India’s statistical system. The SCoS can effectively bridge the trust gap between data users and official statistics by prioritizing transparent communication. Ensuring data credibility through independent assessments by the National Statistical Commission will empower the government to make well-informed decisions. 

Sources: The Hindu (Article 1, Article 2 and Article 3), Indian Express, MOSPI