WORKSHOP MODERNISATION OF THE STATISTICAL SYSTEM IN INDIA 14-16) September 1998 Vigyan Bhavan, New Delhi
Item
- Title
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WORKSHOP
MODERNISATION OF THE STATISTICAL SYSTEM
IN INDIA 14-16) September 1998
Vigyan Bhavan, New Delhi - extracted text
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WORKSHOP
MODERNISATION OF THE STATISTICAL SYSTEM
IN INDIA
14-16) September 1998
Vigyan Bhavan, New Delhi
COMPENDIUM
OF THE
WORKSHOP MATERIALS
Department of Statistics
Ministry of Planning and Programme Implementation
New Delhi
4
CONTENTS
Page
Abbreviations and Acronyms Used
ii
I
Keynote Address of Secretary, Department of Statistics
1
II
Working Group 1: Data collection at the Ground Level
13
III
Working Group 2 : Agricultural Statistics
19
IV
Working Group 3 : National Accounts and Informal Sector Statistics
26
V
Working Group 4 : Financial and Price Statistics
32
VI
Working Group 5 : Commerce, Industry and Corporate Sector Statistics
36
VII
Working Group 6 : Socio-economic Statistics and Labour Statistics
55
VIII
Working Group 7 : Information Technology Needs of the Statistical System
64
IX
Working Group 8 : Statistical Systems and Statistics for Decentralised Planning 67
X
Working Group 9 : Service and Infrastructure Sector Statistics
76
XI
Papers Received in Response to the Public Advertisement
92
Annexure-1
98
Annexure-II
103
Annexure-III
105
i
ABBREVIATIONS AND ACRONYMS USED
AIES
Annual Income and Expenditure Survey
AIIMS
All India Institute of Medical Sciences
ASI
Annual Survey of Industries
ASSOCHAM Association of Chamber of Commerce and Industry of India
BDO
Block Development Officer
BICP
Bureau of Industrial Cost and Prices
BoP
Balance of Payment
BR
Business Register
CAPE
Crop Acreage and Production Estimation
CC
Computer Centre
CD-ROM
CD - Read Only Memory
CEA
Central Electricity Authority
CES
Crop Estimation Survey
CIF
Chief Inspector of Factories
CII
Confederation of Indian Industry
CIL
Community Based Information Lending
CLIC
Culture, Library and information Centre
CMIE
Centre for Monitoring of Indian Economy
CPI(AL)
Consumer Price Index Number for Agricultural Labourers
CPI(IW)
Consumer Price Indices for Industrial Worker
CPI(RL)
Consumer Price Indices for Rural Labour
CPI(UNME) Consumer Price Indices for Urban Non Manual Employees
CPIs
Consumer Price Indices
CS Act
Collection of Statistics Act
CSO
Central Statistical Organisation
DC(SSI)
Development Commissioned Small Scale Industries )
DCA
Department of Company Affairs
DES
Directorate of Economics & Statistics
DFI
Development Finance Institutions
ii
DG
Director General
DGCI&S
Directorate General of Commercial Intelligence and Statistics
DGE&T
Directorate General of Employment and Training
DGTD
Directorate General of Technical Development
DIP&P
Department of Industrial Policy & Promotion
DISNIC
District centre of NIC
DME
Directory Manufacturing Establishment
DOE
Department of Electronics
DOS
Department of Statistics
DPD
Data Processing Division
DSS
Decision Support System
DTA
District. Transport Authority
DTO
District Transport Office
DTR
Daily Trade Return
EDI
Electronic Data Interchange
EPCG
Export Promotion Compensation Guarantee
EUROSTAT
European Statistical Office
FASAL
Forecasting Agricultural Output Using Space, Agricultural Meteorology
FICCI
Federation of Indian Chamber of Commerce and Industry
FSUs
First Stage Units
GATS
General Agreement on Trade in Services
GDI
Gender Development Index
GDP
Gross Domestic Product
GEM
Gender Empowerment Measure
GIS
Geographic Information System
GNIE
Government Not Included Elsewhere
GVA
Gross Value Added
HRD
Human Resource Development
HTL
Hindustan Teleprinters Limited
IASRI
Indian Agricultural Statistics Research Institute
ICICI
Industrial Credit and Investment Corporation of India
iii
ICMR
Indian Council for Medical Research
ICS
Improvement of Crop Statistics
ICSSR
India Council of Social Science Research
IDBI
Industrial Development Bank of India
IDR
Industries Development and Regulation
IBM
Industrial Entrepreneurs Memorandum
IES
Indian Economic Service
IFA
India Factories Act
IIP
Index of Industrial Production
ILO
International Labour Organisation
IMF
International Monetary Fund
IOTT
Input Output Table
IR
Indian Railway
IS Wing
Industrial Statistics Wing
ISS
Indian Statistical Service
IT
Information Technology
IWT
Inland Water Transport
KVI
Khadi and Village Industries
LOI
Letter of Intent
MIS
Management Information System
MOST
Ministry of Surface Transport
MU
Management Unit
NAD
National Accounts Division
NBO
National Building Organisation
NCT
National Capital Territory
NOME
Non Directory Manufacturing Establishment
NDWOS
National Data for Official Statistics
NFHS
National Family Health Survey
NGO
Non Government Organisation
NH
National Highway
NIC
National Informatics Centre
iv
NICNET
NIC Network
NISIS
Network of Integrated Statistical Information System
NPE
National Policy on Education
NPISH
Non Profit making Institutions Serving Households
NSS
National Sample Survey
NSSO
National Sample Survey Organisation
NSTI
National Statistical Training Institute
GAME
Own Account Manufacturing Establishment
OCR
Optical Character Recognition
OECD
Organisation for Economic Co-operation and Development
OMR
Optical Mark Reader
P&T
Post and Telegraph
P/L
Profit & Loss
PC
Personal Computer
PEC
Post Enumeration Check
PEN
Permanent Establishment number
PFCE
Private Final Consumption Expenditure
PHCs
Primary Health Centres
PKM
Passenger Kilo Meter
PLF
Pay Load Factor
POL
Petroleum Oil and Lubricants
PSUs
Public Sector Undertakings
PWDs
Public Works Departments
R&D
Research And Development
RBI
Reserve Bank of India
RDBMS
Relational Data Base Management
REC
Rural Electrification Corporation
RET
Renewable Energy Technologies
RGI
Registrar General of India
ROC
Registrar of Companies
RTAs
Regional Transport Authority
v
RTO
Regional Transport Offices
SAIL
Steel Authority of India Limited
SASA
State Agriculture Statistics Authority
SD
Statistical Department
SDDS
Special Data Dissemination Standards
SDRD
Sample Design and research Division
SEBs
State Electricity Boards
SEWA
Self Employed Women’s Association
SH
State Highway
S1DO
Small Industry Development Organisation
SLSA
State Level Statistics Authority
SNA
System of National Accounts
SRS
Sample Registration System .
SSBs
State Statistical Bureaus
SSI
Small Scale Industries
STAI
Statistics Authority of India
STAs
State Transport Authority
TAG
Technical Advisory Committee
TCIL
Telecom Consultants India Limited
TERI
Tata Energy Research Institute
TRIOS
Training and Research Institutes for Official Statistics
TRS
Timely Reporting Scheme
UGG
University Grants Commission
UN
United Nations
UPSC
Union Public Service Commission
UTI
Unit Trust of India
UTs
Union Territories
VAPW
Value Added Per Worker
VSAT
Very Small Aperture Terminal
VSNL
Videsh Sanchar Nigam Limited
WPI
Wholesale Price Index
vi
SECTION I
Keynote Address by Sh. M.D. Asthana, Secretary, Department of Statistics,
Government of India
The distinguished delegates are well aware that the estimates of national income and related
aggregates are derived statistics, and their quality depends primarily on the quality and coverage of
data that is used in the preparation of these estimates. The compilation of national accounts
prerequisites availability of large amount of data, particularly in view of the large size of our economy.
The data that is used in the estimates also need to be of high quality, in order to avoid inconsistencies in
the national accounts.
2.
Indian national accounts are currently passing through a transition phase. While the
implementation of new UN System of National Accounts, 1993 (SNA 1993) and the IMF’s Special
Data Dissemination Standards (SDDS) will mean collecting a large amount of additional data, the
quality and coverage of data that presently goes into the computations of GDP, need considerable
improvement. In the Agriculture and allied sectors, we often find inconsistencies in the data in addition
to the large data gaps. Lack of response is primary cause of wony in the industries sector. The results
of enterprise surveys, which form the basic input for services sector, are often inconsistent and
unreliable. The reasons for these are many and we must all address to these problem areas, together. I
would like to spell out briefly in the following paragraphs, the new data requirements for our emerging
commitments in the form of SNA 1993 and the SDDS, and the problems ailing our statistical system.
The SNA 1993 recommends preparation of sequence of accounts for all the institutional sectors
3.
into which the economy has been divided, namely, (i) non-fmancial corporations, (ii) financial
corporations, (iii) general government (iv) households, and (v) non-profit institutions serving
households. Several satellite accounts including the environmental accounts have also been
recommended. The other key features of SNA 1993 are the enlargement of production and assets
boundaries of the 1993 SNA. As per the extended production boundary the production of the
households for own-account consumption, illegal and underground production are required to be
reckoned within the national accounting framework. The data requirements for implementation of
SNA 1993 would be value of output, including output for own final use and inputs, GVA and factor
incomes, acquisitions, less disposals of new or existing tangible fixed assets (farm building and other
structures, machinery and equipment, cultivated assets-plantations, trees and livestock-that are used
repeatedly or continuously to produce products), major improvements to tangible non-produced assets,
including land, costs associated with the transfer of ownership of non-produced assets and changes in
stocks (work-in-progress on cultivated assets, materials and supplies and others). To capture the
activity of production of goods within the households for own account consumption, necessary changes
have been introduced in the ensuing household consumer expenditure survey of the NSSO. We are also
introducing time-use surveys on pilot basis to get an idea of the amount of time spent by the
households (in particular females) in the activities relating to production of goods meant for self
consumption. As regards illegal economic activities, concealed and underground production it will
indeed be very difficult to collect reliable information on these activities. We may have to take a
view about the coverage of illegal activities in the national accounts, whether to try and capture data
or omit the same from the national accounts. Regarding institutional sector accounts, we find that the
company finance studies of the Reserve Bank of India (RBI) do not serve the purpose, because of the
inadequate coverage and non-availability of detailed information on certain items. For preparation of
the Household sector accounts detailed household income expenditure survey is required to be
conducted. For NPISHs we do not have even the frame so as to plan a survey for collecting detail
information about them.
1
4.
For in-depth analysis of sectoral performances, SNA 1993 has recommended system of
satellite accounts. The satellite accounts allow for (a) the provision of additional information on
particular social concerns, (b) the use of complementary or alternative concepts when needed to
introduce additional dimension to the conceptual framework of national accounts, (c) extended
coverage of costs and benefits of human activities (d) further analysis of data by means of relevant
indicators and aggregates. The main areas where the satellite accounting framework has been
suggested relate to environmental economic accounting, tourism accounting, extended production
boundary (gender issues). Requirements for such satellite accounts would be introduction of new
classification systems under both the industry and commodity classifications, collection of data on
outputs, inputs, capital expenditures, salaries and wages, operating surplus/mixed income and
employment.
5.
The IMF introduced the Special Data Dissemination Standards (SDDS) and India subscribed to
the SDDS on 1.1.1997. The SDDS envisages compilation and release of data for 17 data categories
according to a prescribed periodicity and timeliness schedule. The Department of Statistics (DOS) has
been given the responsibility for co-ordinating the data categories under the Real Sector, which
comprises of gross domestic product, production index, labour market and price indices. The time
available for the subscribing member countries for complying with all the provisions of SDDS is 31
December 1998. Under the SDDS, the quarterly GDP estimates are required to be compiled and
released every quarter under the SDDS. The major data gaps in the compilation of quarterly GDP
estimates are the data on unorganised segment of various economic activities at quarterly intervals; and
data on work-force. While most countries have quarterly surveys of enterprises and employment, India
do not have these surveys. Absence of data on the performance of unorganised segment at quarterly
intervals is a major data gap in India. The SDDS prescribes compilation and release of
employment/unemployment data on quarterly basis with a lag of one quarter. The National Sample
Survey Organisation (NSSO) of the DOS is presently examining the feasibility of generating quarterly
employment/unemployment information from their annual thin sample surveys on the subject. Few
pilot studies have also been conducted. However, no concrete recommendations have emerged. At this
stage it appears that we may not be able to come up with quarterly employment/unemployment data for
India before December 1998.
6.
With regard to the current status of sectoral statistics, I find that the advance estimates of area
under crops and the production of agricultural crops are now made only by judgement by the state
agricultural statistics authorities (SASA). Till the final results are available, which is almost one year
after the close of agriculture year, we have only rough estimates, which is the reason why large scale
revisions take place in the estimates of foodgrains released by the Ministry of Agriculture at various
points of time. Over the years the functioning of the TRS has left much to be desired. There is no
monitoring by the concerned agencies about the timely receipt of TRS returns. Thus, we have
practically lost a system which was conceived to scientifically generate advance estimates of
production of agricultural commodities. The estimates of foodgrains released at various points of time,
since 1993-94 show that the range of estimates is 179-184 million tonnes for the year 1993-94, 185-192
million tonnes for the year 1994-95, 193 - 180 million tonnes for 1995-96 (largest variation in any
year) and 191 - 199 million tonnes for 1996-97. For the year, 1997-98, the likely estimate now stands
at 193 million tonnes after two revisions. Sometimes the production data does not conform to auxiliary
evidence, as is happening in the case of estimates relating to 1997-98.
While the foodgrains
production fell from 199 mn. Tonnes to 193 mn. Tonnes, the procurement (under central pool) has
risen from 21.3 mn. Tonnes to 27.0 mn. Tonnes (between July 1, 1997 to July 1, 1998), registering a
growth rate of 26.8 per cent. Looking at the main commodities of rice and wheat, the inconsistency in
the estimates emerges clearer. During the year 1997-98, the production of rice has gone up by 0.80 mn.
tonnes from 81.31 mn. tonnes in 1996-97 to 82.12 million tonnes, thus registering a marginal growth of
1 per cent. However, the procurement of rice in the same period had risen by 21 per cent, from 12.0 mn.
tonnes to 14.5 million tonnes. In the case of wheat, while the production has declined to 66.05 mn.
tonnes in 1997-98, from 69.27 mn. tonnes in 1996-97 (a negative growth rate of 4.6 per cent), the
2
procurement had risen to 12.65 mn. tonnes in 1997-98 from 9.30 mn. tonnes in 1996-97 (registering a
growth rate of 36.0 per cent). This surge in foodgrain stocks cannot be possible in a country like ours
where population is growing at a rate of about 1.7 per cent per annum and consumption cannot be
expected to drastically reduce over a period of one year.
7.
After the abolition of the DGTD and liberalisation of the licensing procedures, there has been a
steady decline in the submission of the production returns by the industrial undertakings to the
Department of Industrial Policy & Promotion (DIPP) due to lack of controls and effective penal
provisions in the Industries (Development & Regulation) Act, 1951. In any case the Act is not
applicable to non-scheduled industries and factories which do not fall under its definition. Therefore,
the data supplied by the DIPP to the CSO for compilation of IIP, consists of large amount of estimation
in respect of non-responding units Further, the data on production from Small Scale Industries (SSI’s)
is not available due to the definitional and logistic problems. The Ministry of Industry do not have any
data on the SSIs. The quality of IIP released by the DOS has, therefore, serious limitations. The
results of follow-up surveys of enterprises on unorganised manufacturing, which are used for
estimating the GDP from unorganised manufacturing, suffer from many inconsistencies and unrealistic
value addition figures. There are no indicators available on the current growth pattern of the
performance of this sector, and, therefore, current estimates of GDP of this sector depend largely on
index of industrial production data.
The availability of statistics on the unorganised services sectors which mainly constitute the
8.
informal sector, is generally through large scale sample surveys. Despite regular surveys being
conducted, the data generated on informal sector have not been realistic, due to absence of
appropriate legal provisions, education and lack of importance attached to statistics by the informants
and the private unincorporated sector. As a result of this, the value added per worker (VAPW)
estimates used in the compilation of GDP estimates of services sectors appear to be unrealistic.
Concerned with the quality of results of follow-up survey of enterprises, the DOS launched a survey
of enterprises in the month of August 1998. The survey aims to capture VAPW estimates of
unorganised sector of all economic activities at one point of time, which are presently not available.
The schedule and the survey have been designed in such a way that Value added estimates are probed
through two different approaches, namely, the income and production approaches. This survey is,
therefore, expected to give consistent and better quality results.
The GDP from the unorganised segment of manufacturing and services sectors is based on
9.
the estimates of work-force. Traditionally, the work-force estimates used in the national accounts are
based on the population censuses. However, with the introduction of Economic Census, we now
have four sets of data on work-force, based on (a) Population census, (b) Employment and
Unemployment Surveys of NSSO, (c) Economic Census and (d) Enterprises Surveys. The four sets
of data show variation in the absolute numbers and significantly among the various industry groups.
While the NSS based estimates give higher numbers of Work force, the Economic Census' estimates
are the lowest. The Advisory Committee on national accounts, which is examining the estimates of
work force during the last one year, from these four data sources, is finding it difficult to take a
decision on the choice of the source. One of the issues is that the contribution of Women in
population census has generally been found to be understated. The variation is generally due to
quality of enumeration work and also to some extent difference in definitions/concepts followed in
the four sources.
It is normally expected (given the existence of various laws on corporate sector to furnish
10.
balance sheets), we should have complete data sets on corporate sector. I find it difficult to
understand that we have a major data gap in respect of private corporate sector and that too, in this
age. As of now, we do not have complete data on the private corporate sector, even for one year, so
that bench-mark estimates could be prepared. The company finance studies done by the RBI, which
is the source of data of this sector, suffers from lack of scientific sampling procedure and inadequate
3
coverage. We must have a frame of corporate sector and a procedure for its constant updation,
keeping in view the large additions mortality rate in this sector.
11.
The data that comes from some of the states, of late, is not upto the quality or meets the
standards and definitions laid by the CSO. An example of this is the price data of various
commodities furnished by the states. It has been observed that there is a tendency on the part of
some of the states, whose per capita income is around the all-India average per capita income, to
under-report the price data, so that they stay below the all-India average per capita income. This is
because the devolution of funds to some extent depends on these statistics. We have now two
choices to either delink the per capital state domestic product from the devolution of funds or have an
auditing of price data reported by the states. With regard to other data, like production and various
survey results, too, we need to inbuild certain cross-checks so that the data that finally emerges does
not suffer from qualitative aspects.
12.
Of late, I find that there is little linkage of statistics with applied areas. Interest on the part of
academicians and researchers on statistics, seems to be on the wane. There is insufficient feedback to
the statistics compiled by the official statistical system, so as to assess and improve the quality and
coverage of statistics.
13.
India being a signatory to the General Agreement on Trade in Services (GATS) and with the
global trade in services ever expanding, it has become imperative for the country to evolve a suitable
methodology for generating data on international trade in services. This will primarily help in
providing suitable direction to the promotion of this sector in the country’s overall export effort. In
india, though receipts/payments data in certain areas of services sector are available, these are not
comprehensive enough to provide complete information. Most of the concerned agencies do not
have adequate machinery for carrying out the necessary exercises and yearly or periodical statistics
released by them do not provide an information base for many service sector areas especially in the
field of Foreign Exchange earnings. Reserve Bank of India which is the controller of foreign
exchange for India has not been able to provide full information on the foreign exchange earnings of
each area of the services sector. Information as published by the RBI in the Balance of Payment
statistics relate only to major heads like Travel, Transportation, Insurance, Investment income,
Government not included elsewhere (GNIE) , Miscellaneous and Transfers (Official and Private). As
compared to the partial and incomplete data on services presented under Balance of Payments,
practically no reliable Official statistics of international trade in services are available in India at
present. However, the possibility of capturing data on “International Trade in Services” at
disaggregated level has been receiving attention for quite some time.
14.
A quick glance of the available literature reveals that while the source document for most of
the countries for compilation of statistics of International Trade in Merchandise is the Customs
declaration form, (or electronic transmissions sent by traders or their agents to Customs Officials in
lieu of Customs declaration forms), no such recommended and time tested procedure exists in the
case of “trade in services” data. Existing statistical systems for Balance of Payment (BoP) compile
data on payments and receipts between residents and non-residents through channels such as banks
(Authorised Dealers of foreign exchange in the Indian context). This information is, however,
supplemented with sectoral surveys conducted by experts and industry associations.
15.
In India BoP statistics are compiled by the Reserve Bank of India on the basis of
information supplied by the Authorised Dealers of foreign exchange. In order that the data generated
by an Official system for statistics of international trade in services are consistent with the data
compiled by the RBI in the Balance of Payment statistics, it is advisable to obtain the basic
information relating to trade in services through the Authorised Dealers of foreign exchange in India
using a prescribed format to be devised for this purpose. In India, the Directorate General of
Commercial Intelligence & Statistics (DGCI&S) is the Official nodal agency for compilation of
4
statistics of international trade in merchandise and in order that a comprehensive Official system of
statistics of international trade is evolved over a period time, it is advantageous to make the DGCI&S
also responsible for the Official statistics of international trade in services.
As Balance of Payment statistics were not originally designed to fulfil the needs of ‘trade in
services’ data users, BoP service categories were highly aggregated. However, there being no
comparable data on international trade in services, BoP statistics become the major source of data in
this area. With requests being received from various users the service part of the standard BoP
components was made more detailed in 1993 and included 13 majority components, 14 sub
components and 9 additional items selected as supplementary information. The OECD/EUROSTAT
Trade in Service Classification which is more detailed has been developed around the same time and
is in use in the OECD areas. This Classification with modifications to suit the requirements of India
as well as the GATS can be conveniently used in India for generation of Trade in Services Data.
16.
17.
In the suggested methodology, the importer/exporter while submitting documents to the
Authorised Dealer in the event of entering into a contract with the foreign party has to indicate the
nature of service (in appropriate codes), the value of the service received/rendered and the country
from/to which the service has been imported/exported. This provision has to be made mandatory by
incorporating necessary changes in the instructions issued by the RBI to the Banks / Authorised
Dealers of foreign exchange. The information on trade in services may be transferred to the
DGCI&S from the RBI Head Quarter at Mumbai through a communication network linking RBI,
Mumbai, DGCI&S, Calcutta and the Authorised Dealers. The claim of the Importer/Exporter of
services has to be adequately supported with appropriate documents to be submitted to the
Authorised Dealers. As the data source for both the RBI and DGCI&S is proposed to be the same
Authorised Dealer, this methodology is expected to ensure consistency between the trade data and
BoP data for services.
18.
The subject “exports by state of origin” received attention from time to time and is of live
interest at present. But no official statistics of the country’s exports according to the state of origin
are available. In the context of country’s transition to a globalised economy with a view to deriving
maximum benefits from the expanding overseas market opportunities, Centre and the States will have
to mutually reinforce and step up the national endeavour for improving the country’s export
performance. As a policy, provision of incentives to the States based on the share of their exports in
the total exports efforts of the country can be thought of.
19.
It is expected that with the increase of exports on the part of the states, there may be loss of
state revenue in terms of sales tax. In order to develop a suitable mechanism for assisting the States
for their contribution to the national export effort, generation of data on exports by State of Origin is
of high priority.
The issue, of generation of such data has been examined and it has been pointed out that for
capturing such data one additional field reflecting the state of origin is required to be inserted in the
DTR module. Until now, it has been observed that this field is being provided by the customs only
in case of EDI based computerised DTR data. It is also believed that this field is being filled up
based on the declaration of the exporters. Based on such data received from Delhi Air Customs,
DGCI&S has been generating data on exports by state of origin in respect of principal commodities.
It will be possible to generate state level exports data as soon as all the Customs stations will be able
to send EDI based computerised DTR data.
20.
Since these data are based on the declarations of the exporters, there is need to provide for
external cross-checks for the data generated through the declarations. Sample studies may be
conceived in this regard. It may be stated that DGCI&S lacks in infrastructural facilities, trained
manpower resources and adequate finance to undertake such studies. DGCI&S may, however, be
21.
5
able to supply the sampling frame required for designing the suitable sample studies in this regard.
The entire work of survey may be entrusted to some renowned research institute/organisation. If
such a study is undertaken, it may help in gathering very useful additional information about trade
and industry, especially with a focus on export effort.
22.
The data on defence goods are not included in DGCI&S publications. The possibility of
incorporating such information in the imports data of DGCI&S as line entry without giving the
nature of imports and other details has to be explored. Such a step will obviate avoidable guess of
value of Defence inports often made by various international agencies.
23.
Other important issues relating to non-availability of data in foreign trade are:
Exports originating from the small scale sector, non-small scale industries;
(i)
Exports
made by exporters who fulfill export obligations under Export Promotion
(H)
Schemes such as EPCG etc;
(iii)
Impact of non-tariff barriers on exports;
(iv)
Impact of infrastructure bottle-necks on exports; and
Imports under schemes such as Special Import Licenses etc.
(v)
24.
The all-India Index of Industrial Production is being published as a monthly series since
1950. In order to capture the structural changes in the industrial sector and reflect adequately the
industrial growth, the base has been revised from time to time. As per UN recommendations, the
base of IIP should be revised quenquennially. Accordingly, it was planned to revise the base of allIndia IIP from 1980-81 to 1985-86. The complete series with revised base was compiled from April
1986 to May 1995. But the new series did not compare well with the existing series in some years
particularly in 1994-95. Further, the DCSSI was not in a position to line up data on the additional
items of the small scale sector. Even after finalisation of the weighting diagram, a number of items
have to be dropped on account of non-availability of monthly production data on regular basis.
Therefore, in the inter-ministerial meeting, it was not considered appropriate to release the revised
series at a later stage and it would not serve the position effectively especially when the CSO would
be in a position to shift the base to a more recent year, i.e., 1993-94.
25.
On availability of detailed results of ASI 1993-94, the exercise for revision of IIP to base
1993-94 was initiated. Based upon the criteria of selection of items with gross value of output of Rs.
80 crore and GVA of Rs. 20 crore at the ultimate digit level of NIC 87, a provisional item basket
containing 674 items of manufacturing sector was identified and circulated to the data source
agencies for identifying the items on which regular monthly production data are available with them
and also supplying monthly production data on each of them for revision of base of IIP. However,
the source agencies could furnish the time series monthly production data in respect of only 478
items of manufacturing sector clubbed into 285 broad item groups. Thus, the remaining 196 items
had to be dropped due to non-availability of data from the source agencies, thereby affecting the
representativeness of revised series of IIP. The DIPP, Ministry of Industry which is a major source
of data accounting for about 52% of the weight in overall IIP, also faced problems in supplying data
on 122 new items identified in the item basket of the revised series.
26.
As a follow-up of recommendations of the task force on Industrial Statistics, the issue of
setting up of an independent data reporting system for compilation of IIP was first considered in the
meeting of COS on 4 November 1993. On the directions of COS, an exploratory exercise was
carried out on the basis of monthly data on the DGTD items collected by FOD of NSSO for a period
of two years (April 92-March 94). The exploratory exercise enabled FOD to obtain good response
and in the process, to bring out the salient features of the status of the present information base of the
IIP as follows:-
6
s
i)
ii)
iii)
iv)
About 16% of the products are not produced by the units in the DGTD frame.
17% of the products in the DGT D list pertains to either non-existent or inoperative
units.
Non-response in the FOD exercise was only 5%.
Information on 40% of the products belonging to the non-response category of
DGTD could also be obtained by the FOD.
However, the extent of non-response cannot be indicated because the DGTD did not share the data
with the Department of Statistics. The position continues to be so even now.
27.
One of the major weaknesses in the IIP is inadequate representation of small scale sector for
which the source agency is the Development Commissioner, Small Scale Industries. While the
unorganised sector has grown significantly in the recent past, in the absence of item wise monthly
production data, the revised series has taken into account its contribution only through the weighting
diagram. At present, the monthly data on only 18 items of SSI sector covered in the 1980-81 series
have been included in the revised series. However, it is expected that by December 1998 the
information on additional 69 items of this sector would be made available by DCSSI which will
certainly improve the representativeness of SSI sector in the index and hence its quality.
28.
The quality and timeliness of production data are crucial factors in compilation of IIP. While
the time lag in supplying monthly data for compilation of IIP has been reduced significantly, the
quality of data is far from satisfactory which has resulted in significant differences between the
Quick Estimates and subsequent revisions of IIP.
29.
For compilation of Quick Estimates of IIP, the source agencies are required to furnish
monthly production data within 4-5 weeks from the reference month. The data are subsequently
revised by the source agencies on the basis of increased response from the production units.
However, the revisions in the data are sometimes very significant with affect the credibility and
reliability of IIPs issued by the CSO. For instance, the O/o Textile Commissioner, Bombay
intimated the revised figures of production to CSO for 1996-97 which necessitated corresponding
revisions in the indices of earlier months. Similarly, the Development Commissioner, Iron & Steel
also revised the production figures on steel items for 1996-97 retrospectively which resulted into
significant downward revision in the growth of the sector. In order to ensure that the indices for a
particular month are finalised within the next three months against the revision schedule of first, 4th
and 13th month, the issue was discussed in a meeting of source agencies held on 14 July 1998 and it
has been decided that the indices would now undergo only two revisions, i.e., in the next month and
the third month. Therefore, based upon the monthly production data furnished by the source
agencies, the indices for April 1997 onwards have been revised as a one time measure and
incorporated in the Press Release for July 1998. It has been noticed that many of the source agencies
have significantly revised their data. While DIP&P have not revised their past data, they have not
indicated their response rates.
30.
In order to improve the quality of data supplied by source agencies for compilation of IIP,
the officials of IIP Unit are having regular interactions with the source agencies. A meeting of source
agencies held in July 1998 also considered steps for improvement of quality of data. The interactions
with the source agencies have revealed that they do not have proper statistical set up for effective
monitoring of receipt of data and proper estimation procedure for non-response. The source agencies
may also submit proposals for adequate strengthening of infrastructure facilities for
collection/compilation of monthly production data.
31.
The production data available with the excise department may also be used for compilation
of IIP. However, the present set up in the excise department is not adequate to meet the timely
requirement of reliable data on all the items for compilation of IIP.
7
32.
Efforts are being made to introduce a system of regular collection of monthly production data
from large size ASI units from January 1999 by the Department of Statistics. For this purpose, the
Held agency, i.e., the FOD of NSSO would be used. Once this system stabilizes the quality and
timeliness in bringing out IIP would certainly improve significantly.
33.
The list of factories registered under the Factories Act 1948, as maintained by the Chief
Inspectors of Factories (CIF) in each State/UT, forms the basic frame for the ASI . The frame also
includes units registered under Bidi and Cigar Workers (Condition of Employment) Act 1966, which
are having 10 more workers and operating with power and having 20 or more workers and operating
without power. It also includes all electricity undertakings engaged in generation, transmission and
distribution of electricity registered with Central Electricity Authority irrespective of their size of
employment. The above list of units are supposed to be updated by the CIF annually by incorporating
the new units. The list is also supposed to be revised once in three years. Unfortunately the
maintenance, updation and revision of the frame is not being accurately done by the Chief Inspectors
of Factories as a result of which the data thrown up by the ASI even in respect of basic parameters
like the number of factories and the number of workers are not fully reflective of the true picture.
34.
Submission of returns by the factories, though mandatory under the Collection of Statistics
Act 1953 (CS Act), is also beset with problem of non-compliance by the units and in some cases the
units default altogether. Legal action under the penal provisions of the CS Act is always not found to
be the solution for the problem as the penalty is not very stringent. Moreover in cases of litigation of
units in income tax and other cases the submission of returns is affected as the relevant documents
are stated to be in legal custody. This leads to non- response and affects ASI results.
35.
Over the last few decades there has been a spurt of the growth of the number of registered
factories and consequently in the number of units from whom data are to be collected and analysed
annually but manpower resources available to the Deptt. of Statistics could not be increased much
due to financial constraints. Thus, collection and compilation of data from a large number of units
(approx. 70,000) in a very lengthy schedule (16 pages) have not only led to undue delay in the
availability of results but also involve non-sampling errors affecting quality of data. To improve
timeliness and reduce non-sampling errors the size of ASI schedule has been reduced (6 pages) for
1997-98 survey. The new ASI schedule is designed to make it users - friendly at all level of its use
than the existing one. The sampling design of ASI has also been revised.. According to the new
sample design about 30000 units will be surveyed through the ASI 1997-98 instead of about 70,000
units covered upto ASI 1996-97. This will certainly reduce the data collection and processing time.
Also, non-sampling errors will be reduced to a great extent.
36.
An action plan has been drawn to reduce the time lag in releasing the ASI results
substantially by March 1999. The time lag will be eliminated in the release of industrial statistics to
users by end of the current financial year.
37.
At present many of the States/UTs are processing the same set of ASI schedules canvassed
under ‘Central sample’ which are being processed by CSO. In order to conserve and optimise the
resources, States/UTs have been requested to utilise the database/tables generated by CSO from
‘Central sample’. On the other hand, the States/UTs may divert their resources to cover additional
units with a view to generate district/regional level estimates by pooling these additional data with
the ‘Central Sample’ data.
38.
Steps for data transmission from factories and field offices of FOD (NSSO) to the tabulating
agencies in the form of digitised schedule utilising country-wide network are under consideration of
the Deptt. of Statistics. This arrangement will improve the quality of data from the field. Common
software for scrutiny and validation of data being used by CSO can be utilised by States/UTs also to
8
ensure improvement in quality of data. The ASI results can also be disseminated electronically in a
common format.
39.
It is well known that the unregistered sector in the Indian Economy has grown significantly
in the recent past and its contributions both in terms of total output as well as the employment is
growing rapidly. Its contribution to the total manufacturing sector is about 40% in terms of Gross
Value Added and employing about 160 lakhs, workers during 1996-97. So far the DCSSI in
collobration with State/UT governments has conducted two censuses first for 1972-73 and
subsequently for 1987-88 to collect the details of units and their performances. However, regular
collection of data from large number of units in the small scale sector has posed a major problem.
Thus, the information for any recent period in respect of small scale sector is not available. A number
of surveys have also been conducted by the NSSO for collection of data on DME ( 6 or more
workers), NOME (1-5 workers) and GAME (household industries with zero worker) but no reliable
estimates are available.
Now, turning to data on socio- economic characteristics which are essentially for planning
40.
and implementing a series of welfare measures for the population, we have been experiencing
numerous problems by way of data deficiencies which I should highlight before this august
gathering. As all of us are aware, education holds the key to the all round development of individual
citizens and thereby of the society at large and the nation. India is committed to achieve
universalisation of elementary education. The National Policy on Education (NPE) envisages free
and compulsory education of satisfactory quality for all children upto the age of 14 years by the turn
of the century. Whereas, as a part of the UNESCO/OECD pilot project on world education
indicators, as many as 43 education indicators have been identified in our country, regrettably,
education statistics are presently collected only for a very limited number of items which are
inadequate for our planning requirements in terms of comprehensiveness, quality, reliability and
timeliness. In fact, it has been observed that the existing infrastructure available for educational
statistics is grossly inadequate, both qualitatively and quantitatively in terms of manpower available.
For instance in UP, only 10 out of 83 districts have one statistical assistant each. In West Bengal,
there is practically no staff available for collection and processing of educational data and as a
consequence no education statistics are forthcoming from that State for the past few years. The most
important indicator in this context is the literacy rate of the population. This data is available at all
levels only decennially through Population Census. NSSO also gives state level rates through some
of its socio-economic rounds. In such circumstances, there is a vital need for obtaining the annual
changes in the level of literacy, if we are to effectively monitor and achieve the policy objectives set
for universalisation of education in the next few years.
As regards health statistics, though programme statistics are available, data on some
important indicators to evaluate the efficiency of health programmes are not available for all
administrative levels. For instance, reliable Maternal Morality Rate data are not available even at
the national level. -In fact, Infant Morality Rate which is required to assess the efficacy of child
health interventions is not available for small States and UTs and below State level. These are very
critical indicators for assessing the impact of Child Survival Programmes. We are unfortunately not
in a position to tell reliably which is the major killing decease in India as the Causes of Death
statistics are scanty and deficient. The Civil Registration System was evolved to fulfil the vital
statistics data requirements. Although this scheme came into existence three decades ago, the
progress is far from satisfactory. We have been reportedly getting only about 50 percent of the vital
events registered.
41.
42.
Issues relating to empowerment of women are currently becoming increasingly important
and relevant. In order to assess the extent of achievements in this parameter, statistical indices like
Gender Development Index (GDI) and Gender Empowerment Measures (GEM) have been developed
. Though these measures were developed about three years back internationally, we have not yet
9
been able to develop a methodology suitable to Indian conditions till now. For computation of GDI
and GEM suitable to Indian conditions, a number of indicators have to be considered. On some of
these indicators, data are presently not available. The quality of data being collected on crimes
against women also needs much improvement.
43.
Some of the areas in labour statistics which need immediate attention are child labour, labour
engaged in informal sector both urban and rural, problems relating to migratory labour both domestic
and international, impact of new economic policy on the labour in the organised and unorganised
sectors, wage rate and working conditions of the labour in different segments of unorganised sector
etc.
44.
Price stability is an essential pre-condition for sustained growth of economy. In India, though
prices are collected and compiled by a plethora of agencies, the current practices leave a lot to be
desired. At least four CPIs are compiled in India at national level, which are for specific segments of
the population. They are, however, not oriented to reflect the effect of temporal price movements of
goods and services on the living standards of urban and rural population. A need definitely exists for
rationalisation of different CPIs. Moreover, with a multiplicity of indices being available, there are a
number of different estimates of inflation which lead to confusion amongst the users.
45.
WPI is being used for measuring inflation, for which purpose it is not designed to cater.
Clearly, WPI measures price changes at an early stage of the distribution system, and does not take
into account retail margins. Although efforts have been initiated to revise the base year of WPI in
1992, the revision is yet to become operational and by the time the revised series is implemented , it
is quite possible that the base year selected would have already been rendered obsolete.
46.
CPIs compiled in India are noted to be not revised regularly to take into account the ongoing
changes in the consumption pattern of the population. It is imperative to have a regular mechanism
for revision of base year of different price indices. For all the four national CPIs, the existing base
years are more than a decade old. Family Living Surveys were conducted in all these cases in the
early 1980s; thus rendering the weights for different items of goods and services possibly not
relevant and also not representative.
47.
A plethora of price measures are published at national and subnational levels by various
agencies. But comparability is a major problem in these measures with each index having its own
scope and specifications. As such, harmonisation of price measures is a prime necessity.
48.
One of the emerging areas in statistics relates to environment statistics encompassing various
disciplines. Department of Statistics has recently compiled a 'Compendium on Environment
Statistics’ based on available data. We have identified many indicators in consultation with countries
in Asia and Pacific region and are impressing upon data source agencies to compile data on these
indicators. We are also trying to undertake Natural Resource Accounting on a pilot basis to know the
impact of development processes on our national natural capital. The methodological issues are
being finalized.
49.
Despite the fact that India has one of the largest statistical man power in the world, so far
adequate attention has not been paid to the crucially important issue of imparting requisite training to
the statistical manpower. For instance, the field personnel of the National Sample Survey
Organisation have not had the benefit of a refresher training on relevant aspects at periodic intervals.
With a view to effectively address this long overdue problem, steps have been taken to establish a
National Statistical Training Institute(NSTI) along with a complement of regional counterpart
Institutes at some selected centres of the country.
50.
Another important problem which has been identified in this context is that the Statistical
10
education, as it exists and is being offered in the universities at present, suffers from serious
handicaps in that Official Statistics is not prescribed in the curriculum of the under-graduate, post
graduate courses in Statistics. Perhaps, it would be advisable to introduce official statistics in
adequate measure right at the graduate level so that the statisticians and economists turned out by
Indian Universities and other institutions of excellence develop an interest and appreciation of the
role and value of official statistics in the National Development Programmes. Likewise, it would be
a worthwhile idea to consider in terms of allowing the practicing official statisticians to work in the
universities and reputed statistical research institutions on certain major problems confronting the
official statistical system with a view to evolving a workable strategy for resolving such problems.
51.
The Government is responsible for a number of programmes and services being offered to
the community. But at the same time, we do not have unlimited resources to strengthen these
programmes to ideal levels. This calls for a concurrent evaluation for assessing the efficiency and
effectiveness of each of such activities. Recently, the Australian Government has evolved a system of
statistical audit with a view to evaluate the performance of range of services provided by the
Government. Such performance audit indicators focus on efficiency and effectiveness aspects of
services delivery. In our system, we have been looking at only achievements of physical and
financial targets to monitor various programmes. It is high time to have a feeling of the pulse of
people’s perception over such government services and we have to initiate the statistical audit as
being adopted in a country like Australia.
52.
The Statistical data system should be transparent and embody only truth as emanating from
data collection from grass root level upward. For this purpose, the Statistical Organisation should be
absolutely independent, having no bias or leanings to any particular segment/organ of the
government. With a view to accomplish this objective, a statutory organisation with adequate
independence, authority and power is considered to be the need of the hour. Such an organisation
can provide the required guidance, supervision and overall coordination among the Central Ministries
and States so as to strengthen and streamline the statistical system and make its role more meaningful
and purpose-oriented in the country’s developmental efforts.
53.
In order to help us to formulate appropriate policies and strategies and also continuously
evaluate the efficacy of the on-going development programmes, appropriate statistical data bases of
desired quality is a pre-requisite. It is recognised that transparency and easy access to statistical data
bases and information at all levels of the society are invaluable to the sustenance of the democratic
fabric of Ihe country. Thus, a strong statistical system is the need of the hour.
54.
The National Statistical System in India as it exists and operates today, is required to be
strengthened and substantially improved without any further loss of time to equip and enable it to
effectively address some of the critical problems confronting the official data and information
systems. Such problems include inter-alia, those relating to gaps in the data, quality of data
produced/collected and its dissemination, inordinate delays in transmission and publication of data on
various socio-economic and other characteristics generated by the Statistical System in India.
55
The National Sample Survey Organisation (NSSO) is one of the large scale sample survey
agencies in the world. Its primary mandate was to identify and fill-up the gaps in data required for
improving the national accounts as also to generate data to facilitate Socio-economic planning on
sound basis. It has been conducting sample surveys on annual basis with a very large sample size of
about 12,000 to 14,000 villages and blocks in the central sample and on equal matching independent
sample of the same size covered by various State/UT agencies. Many important subjects are being
covered such as household consumer expenditure, employment and unemployment, land holdings,
livestock holdings and debt and investment, unorganised manufacturing, trade and services, housing
condition, participation in education, health care etc. The data thrown up by these enquiries form the
basis of several important estimations such as national income, poverty, levels of living,
11
unemployment situation, labour force, conditions of living of disadvantaged sections of the
population such as scheduled castes, scheduled tribes and agricultural labourers. Price data collected
by NSSO are used in compilation of monthly consumer price indices.
56.
The NSSO functions under the overall directions of the Governing Council which is
empowered to take all technical decisions in respect of the survey work from planning to release of
results. The Governing Council has the benefit of involvement of experts from outside the
Government also. In spite of the rich experience gained by the survey Organisation in conducting the
surveys repeatedly on the same subjects over a long period of its existence of nearly five decades,
there are serious problems yet to be overcome. Serious concerns have been expressed by a number
of data users on the quality of data thrown up by these surveys. For example, estimates of private
consumption expenditure thrown up by the survey appear to be gross under estimates as compared to
the alternate estimates available from the National Accounts. There have also been instances where
the published results of the surveys have been found to be unacceptable to the user agencies as such
results appear to be unrealistic and far from the ground realities. Where the surveys of NSSO have
successfully thrown up usable and realistic results also, serious problems have cropped up in making
available these results in time for effective use in policy formulation, monitoring and evaluation. The
time gap between the survey and the final results is unduly long and hence not acceptable. There are
cases of surveys where the field work for data collection was done by NSSO at huge public costs, it
was, however, never released fully. ASI is a classic example. Not only we did not do the analysis
ourselves, we did not part with the data (in the past) for somebody else to do it. Even after the draft
report is ready, the Governing Council takes 5-6 months before authorizing its release. The very
preamble of re-structuring of the NSSO in 1970 had stated that the Governing Council of NSSO was
being created to take care of these serious problems. Even after 28 years, the situation has hardly
improved. Over and above such problems, the NSSO has not been able to evolve a concurrent
system of evaluation of survey data. The training aspect of the investigators has been completely
neglected. The requirements of data through surveys have gone up manifold; there has not been
matching increase in the size of the workforce in NSSO. This has seriously affected the quality of
data and also affected adversely the design of the surveys itself. Sample size has been determined
not on scientific basis of sampling error considerations but on the availability and location of
investigators strength. The NSSO faced such tremendous odds in spite of the fact that its Governing
Council had the benefit of some of the best brains of the country and who had international standing.
As a result of this type of environment in which the survey organisation has been functioning, several
rigidities have developed in the working and productivity of the organisation. Although there is a
concept of four sub-rounds in a round of one year duration, results relating to a sub-round are not
available immediately after completion of that sub-round. As a consequence, survey data of
immediate importance on burning issues cannot be made available through the NSSO setup. Time
has come for making serious attempt to evolve a parallel survey setup in the Government which can
cater to the immediate requirements of survey data on subjects of topical importance. Also there is a
felt need to review the structural aspects and other issues related to the conduct of surveys by NSSO.
12
SECTION II
WORKING GROUP 1
Data Collection at the Ground Level - Setting up of CLICs
Summary ofpapers
1.
Pilot Project on Community Based Information Lending (CIL) - Goa (WS 98/G-l/l):
Government of Goa
The paper provides general administrative information on Goa, followed by a discussion on the
pilot project in the State of Goa. A detailed list of statistics to be maintained at the village level is
given, along with the organisational structure, starting from the State Information Officer down to the
Village/!own Information Officer, with defined functional responsibilities. The financial
implications of the project have also been given.
2. Setting up of Culture, Library and Infor mation Centre (CLIC) at the Village Cluster Level
(WS 98/G-1/2) : Government of Tamil Nadu.
The paper starts with a dicussion on the organisational structure of the DES, Tamil Nadu along
with present statistical system. There are numerous short-comings in the existing system of data
collection and the paper supports the need for a sound statistical system in view of the fact that vast
financial and administrative powers have been vested with the village Panchayats. The 'Bottom up
Approach’ has been felt necessary in view of the need for micro-level planning at the Panchayat
level. The state of Tamil Nadu has desired to undertake the setting up of CLICs at the village cluster
level. The revised structure, along with data/information required at village level under CLICs, has
been spelt out. Methodology linkages, use of advanced information technology and the human
resource development measures have also been suggested.
3. CIL System : Aims to Modernise ( WS 98/G-1/3 ) : Andaman and Nicobar Administration
The paper narrates the peculiar problems of the Andaman & Nicobar Islands. The problems in
data collection are partly due to the location and difficult terrain and topography of the Islands, apart
from various other natural factors and shortage of staff. A number of suggestions for improvement in
the collection of data have been listed, along with the detailed types of data which are collected by
the administration from various sectors including Agriculture Industry, Transport, Banking, Labour,
Justice etc.
The Administration is ready to take up the project and views the CIL programme as an aid to
formulation of the schemes for the Poverty alleviation programme and creation of employment and
has thus supported the £bottom-up’ approach for maintaining up-to-date information about villages.
The system will bring about improvement in the quality of statistics at the district, state and national
levels and reduce time lags for supplying of data.
4. Modernisation of Statistical System - Lakshadweep Experience (WS 98/G-1/4) :
Government of Lakshadweep.
A brief description of the geographical and socio-economic features of the Union Territory of
Lakshadweep has been given in the paper, along with an account of the present status of availability
of statistical data. The delays in data compilation and dissemination in the form of publications is as
much as 4-5 years, due to several reasons, including non-availability of staff. The socio-economic
data is not available at regular intervals for suitable formulation of programmes and schemes, except
for a comprehensive Socio-economic Survey conducted by the NSSO in 1996 for the purpose.
13
The administration is willing to take up the project in order to substitute a number of activities
like Below Poverty Line survey, Electoral rolls, Households surveys etc. with the system of
generation of data at village level through CLICs. The new system will be able to provide quality of
development data at village, district, state and national level and can be utilised for micro economic
development planning and policy making. However, the achievement of this modernisation system
of CIL and CLICs will depend upon continued tapping of information of the household by
integrating it with the developmental and non -developmental institutions based on respective
Ranch ayats.
5.
Strengthening the Ground Level Foundation of Statistical Modernisation
Recommendation for a Pilot Test (WS 98/G-1/5 ) : Paul Armington, World Bank
6. Community-based Information Lending(CIL) (with an example of pilot testing in
( WS 98/G-1/6 ): Paul Armington, World Bank.
India)
Both the papers point out the interest of the World Bank in promoting lending programs for
statistical modernisation, with a strong capacity-building focus, encouraging countries to integrate
statistical capacity into their national strategies for capacity building. In this respect, the papers
present the case for a “bottom-up” strategy to this integrated approach to capacity building and
identify the main concepts in this strategy and relate them in a coherent framework (system) of
principles and methods. They then discuss, in some detail, how the strategy could be tested, taking
the statistical modernisation project as an example.
The papers conceptualise the various elements of Community-based Information Lending like
building social capital, using the information gathering capabilities of modem information
technology and simultaneously increasing the ability of local governments to provide worthwhile
public goods and services to the community. In a nutshell, the proposed project revolves around
installation of suitable equipment and communication facilities (maybe, at the village Panchayat or
village-cluster level) for purposes of maintaining all types of basic data about the community, which
can be used by the village community, as well as, by the state and national government agencies for
planning and development purposes.
7. Reaction on the proposals for modernisation of the statistical system (WS 98/G-1/7):
Government of Bihar
The paper provides the reactions of the Govt, of Bihar on the proposals of Modernisation of the
statistical system. The objectives of the project can be brought home, not by change of heart of the
personnel alone, but, by bringing a remarkable change in the out look of society at large, who are the
ultimate beneficiaries or casualties of any plan or programme. The CIL programme may eventually
give a stop to the process of having the decennial Census, with the establishment of Population
Registers in the CLICs. The scheme will enhance the capabilities of the already employed and throw
open further employment.opportunities at the Panchayat level. For ascertaining the success of the
efforts, the paper suggests that the pilot test may be carried out in one or two development Blocks of
Patna District.
8. CIL System - Aims to Modernise ( WS 98/G-1/8 ) : Andaman & Nicobar Administration
(The paper is identical to the one at S.No. 3 above)
9. Modernisation of Statistical System and Integration of Regional Accounts Statistics (WS
98/G-1/9): Government ofMeghalaya.
This paper contains reactions of the Govt, of Meghalaya to the proposed (CIL) project. The State
government has found the project of Community-based Information Lending (CIL) as a noble idea,
14
as strengthening the ground level foundations of statistical modernisation for data out-put at the
micro level is urgently required. The Project will improve Agriculture Statistics, Price and Market
Intelligence Statistics by the use of computers at village level, besides, helping in the development of
Regional Accounts Statistics. The Project will help in identifying and covering the gaps in data
requirements. It will also help to improve the reliability, timeliness and coverage of processes of
collection, transmission, processing and dissemination of data. Methodology linkages, use of
advanced information technology and the human resource development measures have also been
suggested.
Report of Working Group 1 (presented to the Plenary on 16 September, 1998 by Mr. Paul
Armington)
The salient points of the papers were presented by the concerned representatives of the
States/UTs and World Bank. The status of the present statistical system, problems of data collection,
data gaps, along-with suggestions made for setting up of CLICs, were discussed in detail, with a view
to work out a Pilot Project to be taken up in some States/UTs.
The findings and recommendations of the group are as follows:
At present the data flow from villages and subsequent analysis takes a lot of time. A need was
felt for better data collection at ground level, and great possibilities exist for improvement
through the state statistical departments.
2. A "bottom-up" approach of statistical techniques is a felt necessity. The micro-level approach
at Panchayat level is a stalling point. To have practical implementation of the idea of a bottom-up
approach, creation/establishment of Culture, Library and Information Centre (CLICs) is a felt
need.
3. Designation and selection of CLIC Board : DOS could provide a menu of alternative models
of the governance of CLICs, e.g., (a) Existing group is used, eg., the Gramsabha, b) Panchayat
appoints Board, or c) Panchayat nominates Panchayat Board candidates, or c) other existing
organisations such as NGO’s are invited to nominate candidates, or stakes of candidates,
followed by direct election by residents.
4. Organisation of CLICs: CLIC is to be organised at village Panchayat level, which is the
Management Unit (MU).
5. Training and equipment: Block/District Statistical Departments (SD) would arrange and
provide professional training and any specialised equipment (hardware, software, and network
connectivity) for a running-in period of 3 years. After this period, CLIC is expected to be acting
independently, providing, using and financing its own training and equipment, and amortizing its
initial capital stock. IT infrastructure would remain the responsibility of the Block/District SDs,
and they would also provide long-term support for training and innovation in statistical practices.
6. Coordination for CLICs:
a) At the state level:- The Department of Planning will be the nodal Department. The Directorate
of Economics and Statistics (DES) will monitor the organisation of CLICs. At State level the
Director of Economics and Statistics will be the nodal officer.
District
level:- The District Collector/Deputy Commissioner will be a controlling and co
b)
ordinating authority of the CLICs. The CLIC is established at village panchayat level, a
development administrative unit at the micro-level.
c) Block level:- The Block Development Officer (BDO) will be the immediate field level
controller and supervisory officer of the CLIC, in co-ordination with Block Level Statistical
Inspector (BSI) available in the Block office.
7. Functional Arrangement of CLICs : The CLICs established at the village Panchayat level with
the World Bank assistance would work in close liaison with all line Departments, development
agencies, welfare departments etc. This would be a meaningful data centre at the village
Panchayat level, with trained personnel in data processing/retrieval and use of computers.
1.
15
8. Service role of CLIC:- The CLIC will play a major role in:
a) Collection of local data;
b) Dissemination of data to various line departments and other Government agencies;
c) Storing of state-level welfare program data for the benefit of villagers;
d) Dissemination of eligible criteria for various welfare/senior programs, implemented by
states and central government;
e) Information/data on the eligibility criteria of persons living below poverty line, under various
welfare programs implemented by various agencies.
9. Data contracts : Block with CLIC : Block/District SDs negotiate with CLIC Board and
Director contract terms for delivery of Panchayat data as specified by an annotated Minimum
List. Terms of payment and Minimum List could be set and updated through a Standardized,
State-wide process that brings State-wide representatives of CLICs and their government
stakeholders together for collective agreements concerning contract terms and the evolving
Minimum List. Planning and implementing this continuing process of collective action is a
State/District role.
10. Funding for the CLICs: The initial set-up of CLIC would be partly funded with World Bank
support for such capital expenses as: Preparation of Business Plan of the CLIC, special office
equipment and connectivity, and the CLIC building. After a running-in period of 3 years, CLICs
should meet all costs, which should be fully covered by contract revenue from core data
operations and other sources. Also community provides volunteer support for chargeable and free
(Community) programs. Volunteer work may turn out to be the bulk of human-resource inputs to
CLICs in the long run, with important consequences for popular support of the CLIC system.
1 1. CLIC- A viable self funding unit in the long run : It is visualised that CLIC will be a selfsupporting unit after 3 years of running-in period.
12. Entrepreneurial development : The CLIC business plan should elaborate plans for both
chargeable and free community programs of the CLIC. Chargeable services might include private
access to computer and telecom equipment needed by the CLIC. This is an important challenge
for entrepreneurial creativity and innovation, contributing to community-wide support and
participation. Development of data and information resources beyond the current Minimum List
(of contract-specified variables) is a further area for developing and testing the entrepreneurship
of CLIC management, as well as for meeting special data needs of the particular community.
13. Feedback of data to CLICS from Block/District/State SDs : Within the scope permitted by
the current Minimum List, CLICs should receive prompt and relevant comparative data from the
State’s system of Statistics Offices. Obligations to provide this feedback promptly should be
incorporated, as citizen rights to public data, in the data contracts between Block SDs and
CLICs. CLIC organizations of representatives at District and State levels should take the lead in
demanding and specifying the content of this feedback of comparative development data, useful
at community level. CLIC offices should have equipment and connectivity needed to receive this
feedback quickly and cheaply.
14. Village Panchayat/Municipality Data: Data to be collected by CLICs are of the kind cited in
the Report of the Expert Committee on Small Area Statistics (1997).
15. Role of Federal-level Statistical Office (DOS) : DOS could facilitate sharing of CLIC
experiences and encourage transmission of best practices across States. DOS could monitor
States in their activities, which include: a) setting norms and terms for Block contracts with
CLICs, updating Minimum Lists, overseeing CLIC governance and representative organisations,
and facilitating choice of technologies. DOS could analyze and share start-up experiences of
CLICS, monitor and facilitate progress of CLIC system in developing chargeable services and
innovative community programs, and highlight accomplishments of CLICS in going beyond the
Minimum List. DOS could prepare Annual Report on the CLIC system in India; maintain public
database (compiled from CLIC audits) on CLIC management and operations, useful for purposes
of performance evaluation of the CLIC system; and conduct a program of research with
universities, NGOs and institutes in order to provide an intellectually stimulating environment for
the CLIC system in the long run.
16
16. Implementation by the time of the next Census : The usual preparatory work for the
Population Census (2001) gives all States and MUs an. historic incentive and opportunity to
participate during the 1999-2001 period. B.S. Minha’s suggestions (in B.N. Yugandhar and A.
Mukherjee, Readings in Decentralized Planning, Concept publishing company, New Delhi, pp.
103-112) represent a minimum effort that all panchayats can make, with proper state and federal
encouragement, toward implementing CLICs by the time of the 2001 Census. These ideas
recommended a decade ago by Minhas are fully consistant with the concept and implementation
of CLICs. States not participating in the PTP during 1999-2001 should, in any event, implement
Minhas’ proposals forthwith.
17. Contribution of other official stakeholders to CLIC System : Through Block/District/ State
SDs, offices of line ministries and regulatory/tax bodies at block, district, and state levels,
having interest in CLIC activities, should participate fully as partners of the SDs in negotiating
the Minimum List and its updating. Arranging for this collective action among Stakeholders of
CLICs would be an important role of the Block/District/State SDs. They would also undertake to
guarantee prompt and reliable sharing of properly aggregated CLIC data with official
stakeholders, at all levels of Government.
18. Setting and updating terms of payment to CLICs for Minimum ■ List data : These terms
should be negotiated and updated from year to year by district and State organisations of CLICs
with Government Stakeholders, led by the State SD. There should be a norm for the ratio of
State-wide CLIC contract revenue (from data of Minimum List) to State-wide total revenues of
CLICs. This norm could vary from State to State, and over time, but India-wide harmonization
of these norms should be a concern of the federal-level DS. This norm essentially governs the
trade-off between public and private influence on the agendas of CLIC Directors.
19. Accounting and auditing : CLICs would keep books according to regulations established by
the State and Federal SDs. These accounts would be used to monitor aggregate ratios of
revenues from core statistical work to total CLIC revenues. These books would also provide vital
information for monitoring and evaluation of CLIC performance in relation to their respective
business plans.
Comments on the Report of Group 1 by the participants at the Plenary Session
Dr. S.Ray, Addl. DG, CSO:
♦ The CLICs are recommended to be set up under the over-all charge of the District
Commissioner. They should be under the District Statistical functionaries, rather than being set
up under the District administration.
Shri J.P.Mishra, JD ,CSO:
♦ As per the recommendations, Block and State statistical functionaries will provide the leadership
to the CLIO. As such, proper training should be imparted to all the concerned officers to raise
their leadership capabilities.
Shri Ajit Mazoomdar, former Secretary, Department of Statistics:
♦ The local level information may be useful for local level planning and decision making but the
electronic data processing etc. will be an entirely different activity in the existing situations.
Given that, so far, even newspapers are not reaching Block level Community Centres, it is
difficult to imagine how the village level programme would be feasible.
♦ The programme is more related to the concerns of the Department of Rural Development rather
than to those of the Deptt. of Statistics.
♦ The scheme should be taken up at Block level rather than at the Panchayat Samiti level, if it is to
have any chance of succeeding.
17
Shri A. Vaidyanathan:
♦ CLICs may start up from the households slips, individual slips etc. prepared by the Census,
Economic Census, Live-stock Census at the village level and data can be continuously collected
and updated for the village as a unit.
♦ In Kerala, a mass mobilization programme was being run, which could generate lot of interest in
the collection of data/information.
Sh. Vi nay D. Lail:
♦ The setting up of CLICs was conceptually a very useful contribution. How to operationalise it,
how the community process can help in disseminating the information etc. need to be decided.
♦ There is already a rich data base, which can be utilised for building up the computerised data
base. Such a data base exists since olden times through community information services.
18
SECTION III
WORKING GROUP 2
Agricultural Statistics
Summary of Papers
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1. Agricultural Statistics ( WS 98/G-2/1) : Prem Narain
After introducing briefly the genesis of the Agricultural Statistics in the country, the paper
proceeds to give, in a condensed form, the system of data collection in respect of area and yield of
principal crops, area and yield of fruits and vegetables, estimation of livestock number and products,
and estimation of fish production. It, inter-alia, discusses the role of IASRI in developing the
sampling methodologies in most of the cases. Data gaps in Land Use Statistics, the lack of precision
in crop-forecasts that contradict the final estimates, the inconsistency in the irrigation statistics due to
definitional differences, lack of a proper procedure for estimating minor and fodder crops, the need
for small area statistics, the data gaps in livestock statistics, the problem of under estimation of GDP
due to non-coverage of agriculture production in kitchen gardens/backyards and the necessity for
generating environment-related agricultural data have been addressed in this paper. Quality of data
under the present system is discussed and suggestions for improvement are proposed, some of which
are as follows:
(i) Establishment of alternative/ additional field agency on part or full-time basis, wherever the field
agency at village level has collapsed or is on the verge of collapsing.
(ii) Research on newer methodologies for data collection in agriculture, modification of existing
methodologies and investigations in small area estimation for disaggregated data at lower levels.
(iii) A regular mechanism for training new people and upgrading the knowledge of existing statistical
staff in the States and the Central Ministry, so that they can cope with the newer demands of
statistical methodology and data collection. Alternatively, an autonomous research organisation
like the IASRI may be entrusted with the responsibility of conducting the sample surveys in
agriculture by incorporating necessary structural changes in their management.
(iv) Use of Remote Sensing in improving the crop forecast system. The present approach of FAS AL
is a welcome step.
(v) Proposition of collecting data on yield directly from the farmers, as an alternate system for
estimation of yield rates.
(vi) A regular mechanism for training new people and upgrading the knowledge of existing statistical
staff in the States and the Central Ministries.
(vii) Use of newer information technologies to ensure timeliness in data availability to all users.
2. Indian Statistical System for Agriculture and Allied Sectors ( WS 98/G-2/2 ) : Rajiv Mehta
The paper dwells on the details of the statistical system. The present methodologies adopted for
collection of agricultural statistics including livestock, forestry and fishery are described
comprehensively. The projects, jointly undertaken by the Department of Space and Ministry of
Agriculture, based on Remote Sensing Application in agriculture, such as CAPE and FASAL have
been explained. Issues and measures for improving agricultural statistics are given at the end of each
section.
Some of the suggestions given are as follows:
(i) There is an urgent need to have a single agency equipped with modem information technology
for coordination, collection , validation and dissemination of timely and reliable agriculture
statistics. Since the agencies generating area statistics are not always under the administrative
control of State Agriculture Statistics Authority (SASA), the requisite authority to thwart the
potential threat of non-sampling errors is often missing.
19
■=
(ii) The present nine-fold classification of land use does not fully meet the requirements of the
planning and it is necessary to collect more detailed information particularly in respect of land
characteristics such as alkalinity, salinity and inland water bodies as well as relating to
environmental issues.
(iii) The agencies concerned with agriculture statistics have weak statistical professional teams both
in terms of their strength and status in administrative hierarchy. The statistical functions are in
some cases looked after by non-statisticians.
(iv) Due to lack of instructions in the manual for Girdawari, several new short duration and summer
crops, which are being grown, are generally not covered in the land records affecting the
collection of area statistics. There is an urgent need to have a re-look at the manual for
Girdawari.
(v) The data base on horticulture and other high value added produce also needs to be strengthened
as this sub-sector is rapidly growing.
(vi) The Livestock Census is not conducted concurrently by all the States. Similarly, there is no
uniformity in the reference date followed by the States for the Agriculture Census. The two
Censuses may be conducted simultaneously to reduce cost and time, and to have consistent
data.
(vii) Adoption of uniform definition for both Land Use Statistics and Forest Statistics is necessary to
avoid the large discrepancies in the figures on area under forest.
(viii) There is a need for evolving standard methodology for estimation of inland fish.
3. Status Paper on Agricultural Statistics System in India ( WS 98/G-2/3 ) : Department of
Agriculture & Cooperation
The paper briefly describes the existing system of agricultural statistics, lists out the
shortcomings and gaps in Crop Production Statistics. Agriculture Census, Agriculture Price
Statistics, Cost of Cultivation Studies, Livestock census and other statistics relating to agriculture are
also covered in this paper.
Salient points presented in the paper are the following:
(i) The present nine-fold classification of land use does not fully meet the requirements of planning
and there have been demands for more detailed information.
(ii) Lack of adequate supervision by higher officials also affects the quality of statistics.
(iii) The data base on horticulture also needs to be strengthened.
(iv) Information on a subject like tenancy, which is a sensitive subject is required to be collected in
a special survey and the information need not be integrated with the land records made by the
Patwari, in the Agriculture Census.
(v) A large part of the information collected in Cost of Cultivation Studies remain unutilised.
4. Data Gaps and Inconsistencies in Agricultural Statistics ( WS 98/G-2/4 ) : M.D.Asthana
The paper highlights the poor quality of data, as evidenced by the inconsistencies observed
while comparing data from one source with other related or auxiliary sources. After briefly touching
upon the existing System of Agricultural Statistics and identifying the major data gaps, the paper
exemplifies the inconsistencies in the data on quantity and price of agricultural products reported by
the States for purpose of compilation of National Income. The issue of under- estimation of GDP
due to under coverage in agriculture statistics is also discussed.
Important issues presented by the author are the following:
(i) There is a time lag of three years in the release of the results of the Cost of Cultivation Studies.
(ii) There are no separate production data available on minor crops. There are no data on
production of flowers, mushrooms, medicinal herbs, and other high value commercial crops.
(iii) Agriculture production in kitchen gardens/backyards is not included in the compilation of
agriculture GDP.
20
(iv) Outputs of third and fourth crops grown in some of the States are not captured in the Crop
Estimation Survey.
(v) The present crop calendar adopted by the States is too old to capture the short duration and
summer crops sown and harvested in some of the States in between two the 'girdawari' periods.
(vi) There are no estimates of milk production from animals other than cows, buffaloes and goats .
(vii) There are no reliable estimates of annual livestock population for the inter- livestock census
period.
(viii)The supervisors’ crop record of the sample cluster under the Improvement of Crop Statistics
Scheme should be used to make appropriate correction in the TRS. estimates of crops areas.
(ix) There is no centrally maintained data base on prices of agricultural commodities to cross check
the price data supplied by the States for the purpose of compiling National Income.
(x) In view of the importance of agriculture to the Indian economy, the ISAS, IASRI, Department
of Agriculture & Cooperation and the Department of Statistics need to put in concerted efforts
to streamline the agricultural system.
5.
Modernisation of Statistical System in the Country ( WS 98/G-2/5 ) : Department of
Agricultural Research and Education, Govt, ofIndia
The paper stresses upon development and maintenance of a strong and comprehensive data
base, which will enable policy evaluation and decision making and improve institutional efficiency
and effectiveness. There has been an increasing demand of various types of information at more
disaggregated and local area level for micro level planning purposes. Some recent techniques like
remote-sensing and Geographical Information System have added new dimensions to the data
generation and its analysis, which need to be integrated in the existing system of agricultural
statistics. The needs of the Indian Council of Agriculture Research for information are indicated.
6. Existing Data Gaps & Methods of Improvement in Data Flow ( WS 98/G-2/6 ) : Ministry of
Water Resources, Government ofIndia
The paper highlights the necessity of sample surveys for collection of data on water
resources due to constraints of appropriate machinery and man power in the existing system . It lists
out the existing data gaps and gives some suggestions for streamlining the data flows. A standardised
national information system should be established with network of data banks and databases,
integrating and strengthening the existing Central and State level agencies in improving the quality
of data and the processing capabilities. Apart from the data regarding water availability and actual
water use, the system should include comprehensive and reasonably reliable projections of future
demands for water for diverse purposes.
The paper emphasises the need for conducting sample surveys to bridge the data gaps in the
following areas
(i) Water uses pattern and demand .
(ii) Environmental, socio-economic and cultural impact of major water resources projects.
(iii) Water quality data.
(iv) General aspects of irrigation such as State-wise crop yield data in irrigated and unirrigated areas,
assessment of impact of irrigation on crop yields and agricultural practices, canals and
distribution system.
Status Paper on Livestock Statistics ( WS 98/G-2/7 ) : Department of Animal Husbandry,
Government ofIndia
The paper lists out the sources of data on livestock. The existing agencies for collection and
coverage data are mentioned. The data requirements /gaps are pointed out. Constraints and
deficiencies in the existing system of data collection, such as lack of financial resources, lack of
trained staff and trained facilities, lack of computerisation and operational constraints, have been
21
mentioned in brief. Remedial measures for bridging the data gaps and overcoming the constraints
undertaken are also given. The areas and spheres to be covered in future are listed out in the end.
Salient points brought forth in the paper are the following:
(i) There is no established system for collecting data pertaining to animals slaughtered at
unauthorised slaughter houses or other places, particularly on occasions of festivals or melas/
markets.
(ii) There is no scientific system for estimation of production of broilers and poultry meat in the
States/UTs.
(iii) No realistic data on consumption of milk in rural and urban areas are available.
(iv) The data on dung production, collected under Integrated Sample Survey, are not tabulated.
(v) It is proposed to enlarge the coverage and scope of the integrated sample survey for the
estimation of major livestock products during the Ninth Plan period, so as to cover the data gaps
viz., (a) Estimates of production of broiler and poultry meat (b) Estimates of production of meat
by-products (c) Cost of production of milk and egg in all the States (d) Pattern of utilisation of
milk in rural and urban areas (e) District-wise estimates of livestock production, viz., milk, egg,
wool and meat, and (f) Seasonal/quarterly estimates of livestock products state-wise.
8. Suggestions for Improvement of Indian Statistical System: P.S.Dahiya and H.C.Sharma
fhe paper points out the data gaps in agriculture price statistics. It suggests a new system to
supplement the existing system of crop cutting experiments by having contact/contract farmers for
cooperating in conducting of these experiments.
Salient points dealt in the paper are:
(i) Certain terminal markets should be declared as markets of national importance for collection of
agricultural statistics.
(ii) All types of agricultural statistics should be accessible through CD ROMs, INTERNET,
NICNET from the Directorate of Economics & Statistics, Ministry of Agriculture.
(iii) One Agricultural Statistics Assistant should be provided at each Kanungo level in the country.
(iv) The entire land records should be computerised throughout India.
(v) In order to ensure the desired quality improvement in collection, processing and dissemination of
agricultural and various types of statistics, the Indian Statistical Service(ISS) and the Indian
Economic Service (IES) should be made All India Services.
9. The Management of Livestock and Animal Production Data and Information:
Ajit Maru
The paper addresses in general the problem of non-availability of data on livestock as required
by the users of data. Holistic approaches to development of rural communities can not be taken up
as the livestock data and information available can not be related with information from other
economic sectors and development areas such as agriculture, environment and public welfare. Paper
also mentions that there are no other sources of livestock and production data available in public
domain other than the Government viz. Department of Animal Husbandry and the State Animal
Husbandry Departments. There is a need for an improved vision in the need and provision of reliable
data . The data collected be made available in magnetic media in a usable form.
Issues raised in the paper are:
(i) Lack of identification of user needs of livestock related information.
(ii) Supply of livestock data free of cost has been proved to be a very limiting factor in improving
quality of data and information.
(iii) The raw data on livestock must be made available centrally in a compatible format to facilitate
the users in using the data without the need of any special software packages for conversion.
22
‘10. The Agricultual Statistics System in India - Strengths and Weaknesses: Rajiv Mehta
The points included in this paper are covered by the author in the other comprehensive paper
presented by him (vide. Paper No.2).
Report of the Working Group 2 (presented to the Plenary on 16 September, 1998 by
Prof Prem Narain)
The findings and recommendations of the Working Group are the following :
Land Use and irrigation Statistics
1. The four major sources of data on land use are (i) the village register (ii) Land and livestock
holding surveys, conducted every 10 years by N.S.S.O. (iii) Agricultural Census conducted every 5
years and (iv) Remote sensing. The system of reporting crop area by the village level worker namely
Patwari/Karnam has almost collapsed in a few States and has become ineffective in most of the other
States because the Patwari is overburdened with multifarious activities along with being part of the
land revenue system. The job of recording crop area statistics is considered a secondary job and there
is hardly any supervision by the high revenue officials to check the quality of data reported by him.
Sample surveys and agricultural census cannot provide data at disaggregated level. Therefore, for
getting available data on the land use and crop area at Taluk/Block/Village level complete
enumeration at village level is essential. However, in order to reduce the workload on local/village
officials, it is suggested that 20% of the villages selected randomly in the Taluk be covered every
year with intensive and strict supervision in the Southern States, where the system has broken down,
so as to cover all the villages in 5 years. For the remaining States where the Patwari System is in
existence and is working fairly well, the existing system may continue, but stricter enforcement of
supervision and checking needs to be ensured.
2. Remote sensing techniques now offer a potential alternative. However, considerable
experimentation is necessary to establish its’ capabilities and scientific procedures for verifying the
accuracy of remote-sensing estimates on the basis of verification of ground truth. It is suggested that
an intensive and systematic programme to evolve, test and evaluate remote-sensing techniques for
land use and irrigation status and cropping intensity should be undertaken for the next 5 years.
3. The 9-fold classification of land use is inadequate to cover soil characteristics and other
parameters relating to environmental issues. It is suggested that the 23-fold classification as followed
in the remote-sensing application be adopted for providing land use statistics. However, the existing
practice of the 9-fold classification be continued till the new system gets stabilised.
4. It is understood that, in some States, computerisation of village level land records has been done.
It should be done in all the States. While it is a welcome feature in the process of modernisation of
statistical system, it is essential that some sort of assessment/checks on its efficacies should be
undertaken by an independent agency, so that its extension on a wider scale can be properly planned.
5. Techniques of cross-validation may be undertaken for land use statistics obtained from different
sources to improve upon the quality of data.
6. Agriculture Census needs to be conducted once in ten years instead of 5 years as at present. It is
important to ensure that the data at the village level and above are readily available to the users.
7. There are inconsistencies in the data of irrigated areas reported by the State Irrigation
1 (Note : Papers 8 to 10 of this Section were received in response to the advertisement calling for essays on
suggestions for improvement of the Statistical System.)
23
Departments, the Land Use Statistics, and the National Sample Survey Organisation. These are due
to differences in the definitions and methods of collection adopted by various agencies. Special
sample studies need to be conducted to reconcile the differences.
8. Availability of information on the quantity and quality of water uses for different purposes is
critically important for water resource planning. There is an urgent need to conduct appropriate field
studies to assess these aspects, a task which is best entrusted to the concerned specialised agency.
Crop Production Statistics
9. The crop-cutting experiments meant for crop estimation surveys must be segregated from those
conducted for crop insurance purposes, so that the estimates of yield rates for crop estimation get
insulated from the influences of other considerations.
10. The limitations of crop-cutting approach have emerged due to faulty implementation, the
multiplicity of agencies doing the field work and the near break-down of mechanisms for supervision
and verification. Adequate training of the staff and strict supervisory checks are imperative. Because
of the logistical and organisational problems of the current system, it is important to explore
alternative techniques. Besides more systematic cross validation of estimates from different sources,
the possibility of using sample surveys of farmers to ascertain area and yields at the time of harvest
should be explored. While it may have cost advantages, it has also propensity for individual biases,
which are likely to get accentuated in the absence of objective assessment approach of crop-cuttings.
However, the merits of farmers' estimate can be made use of to improve estimates based on crop
cutting. This will have the advantage of objectivity of crop-cutting with cost efficiency of farmers'
approach. A research institute like IASRI may be entrusted with the investigation of the possibility
of adopting a method combining the two approaches.
11. Adequate training of field staff on the conduct of crop-cutting experiments needs to be imparted
periodically and rationalised supervision must be strictly carried out to improve upon the estimates of
yield rates.
12. In order to improve upon the quality of the statistics collected and processed, the State and
Central Statistical Departments, as well as Research Institutions, particularly IASRI, must be
strengthened in terms of professionally qualified statistical manpower, training and infrastructure.
13. Many details of information on agricultural outputs, inputs and their disposition (including those
of live stock products) are collected in cost of cultivation studies. But these are not at all utilised at
present. This source of data should be fully exploited and made available for analytical use by both
official and non-official agencies for research.
14. Introduction of new varieties and changes in cropping pattern have made the old classification of
crop seasons outdated. It is necessary to review the crop calendars presently used for the purpose of
Girdawari and crop cutting experiments. It is also necessary to examine their implication in sampling
design and timings of the crop cutting experiments.
15. It is necessary to have a systematic analysis of the ICS data in relation to TRS/CES over the
years to assess the nature and extent of errors and the underlying reasons to help improve quality of
production statistics.
Horticulture and Minor Crops
16. Sample survey methodology developed by IASRI for estimating production of fruits and
vegetables is yet to be adopted by all the States. In the centrally sponsored scheme operating in a few
24
States, the implementation is not satisfactory. This is because the erstwhile linkage between IASRI
and the States for proper implementation of the scheme is now not there. It needs to be revived.
17. For surveys on minor crops, an integrated approach should be developed, so that data collection
can be undertaken in a cost effective manner.
18. For cross-validation purposes, independent estimates of production of fruits and vegetables may
be undertaken by collecting data on market arrivals in the peak marketing seasons. Farmers' estimates
approach may also be explored.
Livestock Number & Products
19. It is understood that sample survey methodology developed by IASRI for milk, egg, wool and
meat has been adopted by most of the States. However, there seem to be problems in ensuring that
the procedures of selection and instructions are strictly observed in the field. Estimates are also
available with inordinate time lags. There is a need, therefore, for an independent assessment of
actual procedures adopted in the field and to incorporate independent sample checks by IASRI.
Fisheries
20. While an appropriate methodology for estimation of marine fish catch is being followed by
different States, there is none in the case of inland fish catch. For marine fish catch, the methodology
adopted needs to be assessed and checked by an independent agency like IASRI. For inland fish
catch, IASRI may be entrusted to evolve a suitable methodology, as soon as possible.
General
21. The functions of IASRI have a cutting edge in sample surveys methodology and training, which
seem to have eroded substantially over time. In order to revive their role, studies on methodological
research and training in agriculture sample surveys should be entrusted to them by providing
sufficient financial support.
22. The available sample survey methodologies for estimation of various crop and livestock products
etc. should be fine-tuned and documented. The operational and technical manual giving full details of
the methodology and field work should be brought out by the Directorate of Economics and
Statistics, Ministry of Agriculture and made available to each Development Block in the country, for
reference and use. For the use of primary field staff, field manuals should be in local languages.
25
SECTION IV
WORKING GROUP 3
National accounts and informal sector statistics
Summary of Papers
1. Statistics can Help the Informal Sector Workers and Producers - Some Experiences from
SEW A ( WS 98/G-3/1 ) : Renana Jhabvala
The paper by the Self Employed Women’s Association (SEWA) highlights the data gaps with
reference to the informal sector. The paper mentions that the census estimates of women workers are
very low, which is contrary to the general perception. On the other hand, the NSS presents a realistic
picture of this, but unfortunately these are not used in the CSO. The paper also states about lack of
data on home-based workers, street vendors, salt workers, workers in the forests, construction
workers, health workers and those working in the waste recycling. Absence of this information
results in inability to implement or canvas for various welfare schemes for the workers of informal
sector. Although contribution of informal sector to the GDP is available, there are no such estimates
with regard to savings, capital formation and exports, as well as their contribution of taxes. The
paper calls for using the extended definition of ‘work’ for collecting data on informal sector through
surveys and censuses and also suggests that the CSO use NSS based estimates of workers rather than
the Census estimates.
2. Data Issues in Planning ( WS 98/G-3/2 ): Pronab Sen and K.L. Datta, Planning Commission
The paper highlights the growing discrepancy between estimates of consumption expenditure
based on the NSS Consumption Expenditure data and the PFCE estimates presented in the national
accounts statistics (derived through commodity flow approach), which the authors perceive to be due
to inadequate information (including sector specific prices) and usage of old estimates. The data gap
is, therefore, in the form of absence of updated rates and ratios, used in the estimates of PFCE. The
paper calls for separate estimates of PFCE for the household and non-profit institutions serving
household institutions in the national accounts and second-hand goods consumed by the households
in the NSS survey results. With regard to the savings and investment estimates, the estimates at
constant prices for savings has been cited as a data gap. The contribution of unregistered
manufacturing to gross capital formation in machinery and equipment is not accurately estimated due
to the benchmark estimates being too distant and not updated regularly. The non-availability of state
specific cost of living indices as well as cost of living indices for the poor is cited by the authors as
major data gaps for estimating the poverty. The small size of sample used for NSS consumption
expenditure surveys, makes the estimation of poverty for smaller States, unreliable.
3. Business Register - Maintenance/Updation Practices in Some Countries (WS98/G-3/3) :
A.C. Kulshreshtha, Ramesh Kolli, Gulab Singh and Rajiv Sharma, CSO
The paper highlights the non-availability of a full-fledged directory and absence of updation
mechanism of enterprises in the country, as a serious weakness in the system. In this background, the
paper attempts to analyse the practices of few countries (UK, Australia, New Zealand, Mexico,
Philippines) in preparing and updating the frame of enterprises (usually called as Business Registers).
The paper observes that, generally the developed countries have the system of Business Registers,
which are based on administrative records, normally maintained by the Tax Authorities. These
countries maintain the register with the purpose of having a frame for conducting sample surveys.
The Business Register provides a directory of businesses, enterprises including small units of the
businesses, in the form of a MESHBLOCK. They also do regular updation surveys to keep the
Business Register up-to-date. However, an important observation with regard to the developed
countries is regarding the omission of economically insignificant units in the coverage of the
26
Business Register. The definition of economically insignificant unit or the informal sector is,
however, different in different countries. The contribution of these economically insignificant units
is not included in the national accounts on the ground that they account for a trifle of the national
income of the country. On the other hand, the developing countries have significant informal sectors
and thus they generally resort to Economic Censuses or Full Scale surveys of enterprises, usually
once in 5 years, to prepare the frame of enterprises for conducting quarterly/annual surveys of
enterprises. All the countries have the statutory support of legal acts for ensuring smooth flow of
information for the Business Register. Though penal provisions exist in these countries, penalties are
very rarely imposed. In fact, the legal provisions have created enough awareness among the
industries for them to generally act as partners with the government in the sharing of information.
The feed back in the form of information received from the government by the industries has been an
incentive to supply correct statistics to statistical organisations.
In this background the paper calls for commissioning a system of a Business Register in India
with an in-built mechanism for regular updation. This could be done as a central intervention by
positioning an independent setup to create and maintain Business Register, with the extensive co
operation of different Ministries (Labour, Industry, Finance, Planning etc.), using their existing legal
provisions and signing of memoranda of understanding . This setup will take care of all non-crop
businesses except own account enterprises. The BR itself will provide useful information and will
also give an ideal frame for conducting sample surveys. The informal sector (the complementary of
Business Register) could be covered through household surveys or mixed surveys by National
Sample Survey Organisation (NSSO).
4.
National Accounts Statistics - Data Requirements and Gaps
Kulshreshtha, Ramesh Kolli and Gulab Singh, CSO
( WS 98/G-3/4 ): A.C.
The paper briefly presents the data requirements of national accounts, separately for the sectoral
estimates of GDP and the expenditure aggregates, as well as for the preparation of quarterly estimates
of GDP, the implementation of 1993 System of National Accounts and the Input-Output Transactions
Table. The paper, besides highlighting the requirements, gives in a nutshell, the availability of data
from the existing data sources and the data gaps. The summary methodology adopted for the
compilation of national accounts is spelt out in the annex attached to the paper.
With regard to the data gaps, the paper mentions about the absence of production data on crops
other than the principal crops and on the emerging agricultural activities like horticulture,
floriculture, growing of mushrooms and other high-value crops, meat and meat products, as well as
the ancillary activities like cut and dried flowers. Generally, there is little data available on the inputs
of agriculture, livestock, forestry and fishing sectors. With respect to unregistered manufacturing
sector, there is a major data gap with reference to movement indicators for carrying forward the
benchmark estimates. For the services sectors, two major areas of data gaps are highlighted- namely,
the absence of benchmark estimates and performance indicators with regard to the private corporate
sector and no extrapolators for the unincorporated enterprises, besides the results of existing
enterprise surveys being unreliable. For the expenditure aggregates, the data gaps relate to the
absence of updated norms, rates and ratios, which are extensively used in their compilation and
generally based on very old studies. These can be updated by conducting type studies. With regard
to the quarterly GDP estimates, the data gap that needs to be filled urgently is quarterly performance
of various sectors, which can only be done through quarterly surveys of enterprises and employment.
The paper also highlights the data gaps for implementation of 1993 SNA, mainly focussing on the
production boundary, asset boundary and institutional sector accounts.
5.
Draft Proposal for An Enterprise Survey Scheme As a Substitute for Economic Census:
( WS 98/G-3/5 ): Sibdas Bandyopadhyay, Arijit Chauduri, J.K. Ghosh and P. Maiti,
(The paper was withdrawn)
27
6. Permanent Enterprise Number (PEN) - A Superior Alternative to Economic Census:
( WS 98/G-3/6 ): J.P. Mishra, NSSO
The paper proposes a permanent enterprise number (PEN), as a superior alternative to Economic
Census. The system could be achieved through a central legislation and creation of an agency to
register and allot the PEN as well as collect all returns to be disseminated to various data compiling
agencies. The advantages of the system are to have a permanent coding of enterprise (thereby having
a directory of enterprises), its regular updation and reducing the respondent burden (by collecting
returns at one place and through a single schedule), having small area statistics, availability of better
index of industrial production and avoiding duplication of efforts of various organisations engaged in
collection and dissemination of data. The enterprises need to quote the PEN for availing all facilities
from the government, which ensures its being on the master register and its updation.
7. Informal Sector Statistics: Needs, Availability and Deficiencies(WS 98/G-3/7) :
Sanjay Kumar, CSO
The paper by the CSO calls for an operational definition of the informal sector so that collection
of statistics could be targeted to the sector. There are problems in collecting data from informal
sector due to the fear of taxation authorities and also due to their not maintaining books of accounts.
Since units undertake mixed activities, identifying them according to a particular industry group is
extremely difficult. In view of this, the paper calls for restructuring of the existing system of data
collection. The paper also suggests for continuous updation of the frame, as birth, mobility and
mortality of small units are very high.
'S. Indian Statistical System: R.G. Parkar, Mumbai
The paper briefly mentions that the timeliness of Input-Output tables (IOTT) need to be
improved, besides calling for extensive dis-aggregation of the table. The paper also suggests
inclusion of quadrant III (wage and non-wage income) in the present IOTT released by the CSO.
The paper mentions that the concepts and definitions in the successive censuses change and the
results are not comparable. The DGE&T on the other hand gives only organised sector’s
employment data. The paper mentions that the concepts of P1M, derivation of pure tables of IOTT
and the NSS concept of current daily status, mentioned in the relevant official documents, are not
clear.
'9. Data Gaps in Statistical System: Sushim Banerjee, SAIL
The paper calls for more disaggregated lOTTs, which are needed for industry analysis. The
time lag of lOTTs too need to be reduced in future. Regarding the IIP, the paper requests for
presenting cumulative data at 2-digit level, rather than the present practice of giving only the current
months data at 2-digit level^nd cumulative data only for the totals. The paper also requests for more
disaggregated data in respect of use-based classifications and quarterly estimates/surveys for GDP,
employment, sales and production. The paper mentions that the data sources that go into the
compilation of national accounts, need to be updated and the national accounts need to be released
with a maximum time lag of one year.
Report of Working Group 3 (presented to the Plenary on 16 September, 1998 by Prof. S.
Tendulkar)
1 (Note : Papers 8 and 9 of this Section were received in response to the advertisement calling for essays on
suggestions for improvement of the Statistical System.)
28
The Working Group deliberated extensively on the issues raised in the papers as well as on the
issues concerning the subjects of national accounts and informal sector statistics. The following have
been identified as the major data gaps:
(a)
Informal Sector
Lack of an operational definition of the informal sector in the Indian context. Currently
it is identified with unorganised sector.
Frame
of unorganised sector enterprises with suitable mechanism for its regular
(H)
updation
(iii) Data on workers in the unorganised sector, industry-wise and state-wise, including
separate details on subsidiary activities
(iv) Realistic assessment of the contribution of informal sector to the economy
(v) The contribution of informal sector to the saving, capital formation and exports
(«)
(b)
Problem areas relating to data with reference to existing estimates of National Accounts
Statistics
Yield estimates of crops other than the principal crops, grass and fodder crops;
production of new emerging commercial crops like mushrooms, flowers and other high
valued herbs and spices, as well as, on ancillary activities like cut and dried flowers,
etc.
(ii) Seed rates of crops other than those covered in the cost of cultivation studies and
extension of this study to other important States/UTs.
(iii) Estimates of production of meat and meat products, including poultry meat, estimates
of fallen animals
(iv) Estimates of consumption of roughages and concentrates (including composition)
consumed by different categories of cattle
(v) Estimates of production of fish and prawns from fish ponds cultivation
(vi) Information on inputs in forestry and fishing sectors
(vii) Lack of authentic information on forest products - major as well as minor
(viii) Estimates of value added from unregistered sector; lack of current growth indicators
(extrapolators) to move forward the benchmark estimates
(ix) Updation of various rates/ratios and norms used in construction sector, private final
consumption expenditure, capital formation and changes-in-stock
(x) Information relating to the details of activities of unorganised non-banking financial
undertakings and own account money lenders
(xi) Updation of norms used for estimating the production of capital goods out of partly
capital goods and part of capital goods
(xii) Information on change in stocks in household trading enterprises
(xiii) Regular information on estimates of change in stock of food grains in trade and small
scale manufacturing
(xiv) Data on private corporate sector in general and data required for estimating the saving
of private corporate sector in particular
(xv) Estimates of saving at constant prices
(xvi) Extensive disaggregated details of expenditure required for compilation of input-output
tables
(xvii) Estimates of production in the foreyard/backyard
(xviii) Production of goods by households for own consumption
(xix) Information on concealed and underground production
(xx) Detailed income-expenditure data for households
(xxi) Directory and estimates in respect of non-profit institutions
(xxii) Regarding extended asset boundary - cost of transfer of capital assets from one unit to
the other unit; copyrights/patents, film originals, books and artistic originals; defence
(i)
29
expenditure on capital assets like radar, satellite launching systems, vehicles,
construction of buildings for office, hospitals, schools, roads, airfields, etc., which
could be used for civilian purposes; expenditure on purchase of softwares, databases,
etc; and, information on valuables
(xxiii) Disaggregated data in respect of IIP releases on use-based classification; absence of
IIP data at 2-digit level for cumulative period (upto the month)
(xxiv)Additional data for compilation of Quarterly GDP, employment, production, sales,
profits, etc. including the timeliness aspect
Recommendations of the Working Group
Considering the need to fill up the above stated data gaps, the Working Group, recommended
the following steps to be introduced in the statistical system:
1. An operational definition of the informal sector in the Indian context should be arrived at.
2. fhe Group did not have the benefit of the recommendations of other Working Groups, which
would provide input into problem areas as identified by this Group with reference to unorganised
sector and the compilation of national accounts statistics. The Group recommended that the problem
areas identified by the Group should be discussed with data supplying agencies for correcting the
weaknesses and that the outcome be discussed in the Expert Groups in these specific areas.
I zen’s Expressed in the Plenary Session
While presenting his Group’s report, Professor Tendulkar reiterated that the Group did not have
adequate time to discuss thoroughly the problems in quarterly estimates, as well as the implications
of the SNA 1993. These issues are much more complicated and cannot be discussed in a short span
of time. Summarising the data gaps mentioned in the report of the Group, Prof. Tendulkar stated that
these represent more the weaknesses of the statistical system than the data gaps. He gave the
examples of area enumeration and results of sample surveys on unorganised sector, where data exists,
but not of desired quality due to the weakness of the system. He felt that the problem of negative
value added sometimes encountered in some of the service sectors should not cause undue alarm, as
negative value added can occur in the economy, just as negative savings is a common occurrence.
Trading margins too can be negative, sometimes, in a particular reference period. This aspect must
be kept in consideration, while coming to a judgement about GDP being under-estimated. The data
gap is not easy to fill up. As regards the estimates of private corporate sector in general and savings
in particular, although it may be said that the RBI’s method of estimation is faulty, this is a
weakness of the system and it needs to be addressed. As regards the estimates of saving at constant
prices, perhaps adoption of double deflation of capital formation and net capital inflow could be a
method, but this too needs to be discussed in detail. In respect of availability of detailed data for
input-output tables and SNA 1993, the new system places more demand on data relating to
production of goods by the households for own consumption, non-profit institutions and items
covered in the new asset boundary. Regarding the index of industrial production, Prof. Tendulkar
mentioned that this would have been discussed by the concerned Working Group. Abolition of
DGTD has resulted in high non-response which needs to be addressed. Electronic data storage and
dissemination needs to be attempted in this area.
Prof. Tendulkar made two general observations on the system in his personal capacity. There
are no short cuts to improving the quality of primary data collection on regular basis. Sample
surveys are not a substitute for improving a particular system, for example the Sample Registration
Scheme. In the case of agriculture, the quality of area estimates need to be improved, by entrusting
these jobs to technically sound and motivated persons. Efforts towards improving the system should
not emphasise privatisation of data collection activities. Privatisation at best could be resorted to in
30
<
processing and dissemination activities. Data collection must be done by competent and technically
qualified persons. Highlighting his second observation, Prof. Tendulkar agreed with the comments
of Prof. J. Roy that data cleaning without affecting validity accounts for 90 per cent of the job of data
processing.
The problem, therefore, lies at the data collection stage. This needs to be attacked at that level,
by developing technical competence and motivating the investigators in various ways. Electronic
media alone cannot improve the statistical system at the collection stage.
31
SECTION V
WORKING GROUP 4
Financial and Price Statistics
Summary of Papers
1. Data base of the Indian Financial System Including Finances Of The Corporate Business
Sector ( WS 98/G-4/1 ): S.L.Shetty
The paper presents a description of the range, nature and quality of statistics gathered and
tabulated and/or published by different agencies in respect of the entire financial system including
corporate sector finances. By its very nature, the subject is a very vast one, embracing a multiplicity
of basic, periodic, ad hoc and analytical statistical series procured by official agencies statutorily or
otherwise from myriad institutions on their multifarious activities and operations. Apart from the
Reserve Bank of India (RBI) at the apex,, the commercial and cooperative banks, development
finance institutions (DFIs) including investment institutions, newly created mutual funds and non
banking financial institutions (NBFIs) are covered. RBI has been, and remains even now, the pioneer
and fountainhead of statistical and other information on the financial system, as also the fiscal
operations of the government, on the financial sector, and on the finances of the private corporate
sector. Since the mid-1960s, the Industrial Development Bank of India (IDBI) has taken over the
apex status for development finance institutions (DFIs), and to the extent of their involvement in
rendering financial assistance for industry, for investment institutions like the Unit Trust of India
(UTI) and the insurance corporations. The paper covers all these aspects except the fiscal area.
RBI has placed its publications and major data series on the internet. The author has
suggested that RBI should be in a position to put in place an institutional arrangement whereby all
statistics in the financial system could be put on the ICSSR's proposed Data Archives for easy and
steady access.
2. Price Statistics in Perspective ( WS 98/G-4/2 ) : R.L. Narasimhan, F.T Mathew S.P. Gera
The paper gives an overview of the information system on prices prevalent in the country. The
major national and subnational agencies, that either collect or compile price data, are identified.
Critical questions are asked concerning current practices in the compilation of price measures, and
the authors conclude that new approaches to price measures are required. A nationally coordinated,
and well-organised, strategy for collection, processing and dissemination of quantitative information
holds the prospect for an improved information system on Prices. The paper notes that the system for
collection and compilation of price statistics in the country is faced with many deficiencies and data
gaps. Some observations and suggestions as regards price statistics scenario in the country are given.
Need for use of satellite-based communication network for transmission of price data, and possible
relevant actions that have to precede such a system, are also dealt with.
Important issues discussed in the paper are the following:
(ii) There exists a need for harmonisation of different consumer price indices (CPIs) that are
compiled by various States and Union Territories. Construction of an all India CPI, based
on harmonised indices of consumer prices (HICP) is desirable to give an index applicable
to the whole population of the country as regards general price level from the point of view
of the consumer.
(iii) There is a need for compiling CPIs separately for the rural and urban population at
national level, as also for mega-cities of the country. There is also a need for
compilation of CPIs separately for the rural and urban poor.
(iv) Inflation-estimates, based on Wholesale Price Index (WPI) measures changes in the
general price level at level faced by the wholesaler or the producer. From the
32
viewpoint of a consumer, inflation estimates based on CPI are considered to be more
appropriate.
(v) It is imperative to have a regular mechanism for updating the CPI/WPI basket of goods
and services at least once every five years.
3. Financial and Banking Statistics in India - A Position Paper (WS 98/G-4/3 ) :
R. B. Barman
This position paper notes that the main agency for collection and dissemination of financial and
banking statistics in India is the Reserve Bank of India (RBI). RBI is also a major user of these data
by virtue of the fact that it formulates monetary and exchange rate policy. The financial sector
consists of financial intennediaries and financial auxiliaries.
Financial intermediaries are
overwhelmingly dominated by banks and financial auxiliaries which include brokers and foreign
exchange dealers. Financial instruments cover currency, deposits, loans, financial leases, derivatives,
guarantees etc. Financial intermediation channelises savings into investment, which in its turn leads
to income generation. The data cover not only areas of money and banking, but also developments in
money market, forex market, capital market, external payments, term lending market, and
developments relating to prudential aspects of institutions.
In this paper the author has focused on the availability of financial and banking statistics
currently made available by RBI, without losing sight of the need to address issues such as data gaps,
improving coverage and timely dissemination of data. A brief account of different sets of data
available in the flow of funds accounts, securities transactions, monetary surveys, banking statistics,
balance of payments statistics, Census of India's Foreign Liabilities and Assets and corporate finance
statistics is provided, inter-alia, bringing forth conceptual and coverage problems involved in each of
the areas, in the context of the changing economic and financial environment. Use of Information
Technology for collection and dissemination of data and development of a strong Data Warehouse, to
be designed specifically to meet the needs of users, are suggested for improving the dissemination of
data.
4. Note on the Wholesale Price Index ( WS 98/G-4/4 ) : Office of the Economic Adviser, Ministry
of Industry, Government ofIndia.
The paper, after dealing with the concept of Wholesale Price Index, goes on to state the
objectives and practical applications of the Index. This is followed by a discussion about the
commodity coverage under various broad Commodity Groups, and Subgroups for the current 198182 series. The various sources of price data of different commodities have been provided in this
paper.
The paper addresses the following issues:
(ii) Collection and standardisation of data and timely dissemination of data in a format
acceptable to the global markets.
(iii) Deficiencies of the existing statistical system.
(iv) Technological upgradation and dissemination of standarised economic information.
(v) Requirement of a mega (technologically upgraded) database to access data from both
primary and secondary sources on a regular basis and
(vi) Intensive training of the staff dealing directly with collection and dissemination of data on
Wholesale Price Index.
5.
Modernisation of the Statistical System Pertaining to the Financial Services Sector In
India - Some Aspects ( WS 98/G-4/5 ) : TV. Nagarajan, Reserve Bank of India
This brief note attempts to identify some of the broad critical areas that need further
consideration while deliberating on a programme of modernising the statistical system relating to the
Indian Financial Services Sector.
33
The note has briefly described the financial sector in India both in public as well as private
institutional sectors. These institutions offer capital market related services; perform sector specific
financial functions; and extend different miscellaneous and essential services to facilitate smooth
functioning of the financial system, such as money changing, arranging for payments and
settlements, etc.
Till before economic liberalisation, the official statistical agencies could access the data through
the regulators of the Indian financial system as they had extensive powers over the constituent
institutions. The problem of regulators have increased due to the process of economic liberalisation,
which has affected the functional distinction between the institutions because of their integration.
This has affected in a large way the official statistical agencies in this field. The liberalisation has
lowered also the entry barriers by various units. This has resulted in the entry of a large number of
new individual units, and in turn also in exit of many. The exiting number of functional units may
not be known to the regulatory authorities. In such a situation, the data collection can only be made
by conducting 'Surveys', which would definitely increase the cost of data collection .
Developments in the financial sector have far-reaching and immediate implications for the other
sectors. Hence, it is essential to have high frequency data series pertaining to this sector. The
requirement could even be fortnightly. Also long time series data are required for any meaningful
analysis.
fhe author has suggested the following:
the creation of a data warehouse;
(i)
to adopt up-to-date communication (V-SAT) technology to transmit data with appropriate
(ii)
security features embedded into the systems; and
(iii)
to train adequate number of people in data collection, collation, processing, storing and
dissemination, using the new technologies.
Report of Working Group 4 (presented to the Plenary on 16 September 1998 by Dr. Abhijit
Sen)
Recommendations of the Working Group
Financial Statistics
1.
The Group examined the issue of availability, coverage, and timeliness of data in the
financial and banking sector. Three papers were available to the Group covering the sector. While
these papers touched upon various aspects of availability, frequency and gaps in the current available
data, the view was that there is a requirement to list out in detail the existing data, their frequency
and problems and even more to anticipate the likely changes and future problems in this rapidly
evolving and expanding sector.
2
In view of the large amount of data and the varied requirements of different users, such as
National Accounts Division of CSO, Monetary and Fiscal authorities, and users of financial statistics
in the capital, money and foreign exchange markets, it was felt that a Task Force should be set up to
report within a reasonable period ( say 1-2 months) of its constitution. The Task Force should
comprise amongst others, representatives from RBI, Ministry of Finance (Department of Economic
Affairs), G1C, LIC and regulatory agencies, such as the SEBI. This Task Force should (a) detail the
data currently being collected by source, coverage and periodicity, (b) identify the data requirements
of each of the agencies concerned, (c) identify difficulties experienced with data currently available
and difficulties experienced during data collection, and suggest possible remedial measures
including those needed for effectively addressing the current data gaps.
The Working Group noted that there are a number of agencies, within and outside the
3.
government, which are now generating basic data and related infonnation about the financial sector.
The advantage of some of these private agencies is in the speed of making available data, but this
34
often comes with very little or no validation of data, and no adequate explanation of methodology
adopted. The Group is of the view that there might be some dangers in using such data. While such
private sources will continue, in the official statistics system, the emphasis should be on the integrity
of the data base.
4.
The Group recognises that communication and information technology are vital pre
requisites in this area. The RBI has already initiated steps to set up a V-SAT network towards this
end. A critical aspect of flow of data through V-SAT or electronic media is standardisation of
formatting of the raw data and its electronic dissemination. The Working Group is of the view that,
on account of its pre-eminence as the main agency for collection, compilation and dissemination of
financial and banking statistics in the country, the Reserve Bank of India should continue to be the
nodal agency in the area. There should be a system for continued flow of data to RBI from all other
agencies.
Price Statistics
The Technical Advisory Committee on Statistics on Price and Cost of Living (TAC on
5.
SPCL) should be reactivated.
All the national CPIs that are currently compiled are having base years that are quite old. An
urgent need exists for regularly revising the base years, preferably once in every five years.
Generally, the process of revision of base years is a long one. Under the circumstances, there should
be a provision for an arrangement within the NSSO for carrying out regularly the requisite periodic
surveys necessary to update the base.
6.
The existing CPIs of CP(IVV) and CPI(AL) should continue to be compiled because of their
7.
historic and statutory significance and practical utility. However, whether CPI(UNME), and
CPI(RL) should continue as at present, may be examined by TAC on SPCL. The introduction of
CPI(U) and CPI(R ) should also be considered. India is the only country which is using WPI for
measurement of inflation. An all-India general CPI which is duly weighted, should be built up to
serve as a measure of inflation.
In the case of domestic manufacturing goods, although factory-gate prices were supposed to
8.
be collected only in exceptional cases, this is now the norm. As a result, the existing WPI is in large
part close to a producer price index (PPI) but inclusive of excise duty. Because of this, the TAC/WG
might consider drawing appropriate distinction between PPI and WPI. In this connection, the
working group notes that PPI may be the most useful price index for national income purposes. For
deriving a proper WPI it may be necessary to collect separate data on transport and trade margins.
9.
In many countries, important price data is available on unit labour cost. For this
information, regular collection of wage rates and productivity is needed. Feasibility of collecting
data on a regular .basis on wage rates, trade margins and transport charges may be looked into, using
the same agencies who are currently collecting the price data.
In the long run, we should move towards a real time system as regards prices where data are
10.
available to any user at field level. The same data can be transmitted through satellite-based
communication links for compilation of price measures. The data should also be available on an
interaction basis from anywhere in the country.
11.
A suitable system of incentives for personnel collecting primary data should be instituted.
12.
A compendium of various data sources, listing contact persons (with telephone/fax nos. etc.)
is required to be compiled and made available to all users.
35
SECTION VI
WORKING GROUP 5
Commerce, Industry and Corporate Sector Statistics
Summary of Papers
1.
Industrial Statistics : Current Status, Limitations and Data Gaps and Suggestions for
Improvements ( WS 98/G-5/1 ) : M.S.Maulik, CSO
This paper reviews the genesis of the Annual Survey of Industries, Index of Industrial
Production and follow-up surveys on Unorganised Sector, identifies the data gaps in the existing
system and discusses improvements being made or required to be made in the existing system.
The main problems relating to ASI have been identified as relating to the ASI frame and its
updation, non-response on the part of factories and lack of stringent legal penalities for non
response. The improvements that are being made for collection and tabulation of ASI data are:
(i) A shortened ASI schedule is being canvassed for 1997-98.
(ii) Sample design for ASI 1997-98 has been revised.
(iii) Electronic data transmission from factories and field offices of NSSO to the
tabulating agencies is being envisaged.
(iv) States/UTs have been requested to use the database/tables generated by CSO from the
Central sample, instead of processing the duplicate copies of ASI returns. The States
may divert their resources to cover additional units to generate district/regional level
estimates by pooling these additional data with the central sample data.
The following steps have been or are being taken for improvement of IIP :
(i) The figure pertaining to a particular month is revised only twice and will not be revised
further.
(ii) The coverage of items pertaining to SSI sector will be enhanced by an additional 64 items
from the present 18 items by Dec. 1998.
(iii)Efforts are being made to introduce regular collection of monthly production data from
large sized units from Jan. 1999.
There is no periodical collection and publication of statistics for unorganised sector in India.
NSSO conducts follow up surveys for this sector. DC (SSI) has also conducted two censuses in 197273 and 1987-88 to collect the details of registered SSI units.
Data gaps remain in this sector on account of less frequent periodic collection of data. The
last survey was conducted by NSSO in 1994-95 after the 1989-90 survey.
The results of the follow up surveys are not used for getting the macro aggregates, only value
added per worker in different industry groups, is used.
2.
Discussion Paper on ^Modernisation of Statistical System in India
Department of Chemicals and Petrochemicals, Govt, ofIndia
( WS 98/G-5/2 ) :
1 he paper explains, in brief, the existing set up of Monitoring and Evaluation Division in
Department of Chemicals and Petrochemicals, which is primarily entrusted with sectoral planning,
promotion and development of chemicals, petrochemicals and pharmaceutical industries. The
information is collected on a wide range of products being produced by more than 550 companies in
the organised sector. All the establishments whether exempted or not from the requirement of
compulsory licensing, are required to submit monthly returns to DIP&P with a copy to
Administrative Department/Ministry concerned. The monthly return covers a wide range of
information i.e. installed capacity, production during a month, cumulative production, reasons for
short fall and, in some cases the domestic prices. The information is received from almost all
36
industrial units and the coverage is about 85 to 90%. The existing time lag in receipt of information
is about one and a half month.
The paper suggests that, for a sound statistical basis and to achieve maximum coverage, there
is a need for a statutory mechanism for submission of monthly production data by all manufacturing
units.
3. Modernisation of Statistical System in India - Industrial Statistics ( WS 5/ G-5/ 3) : Arun
Ghosh
The paper takes stock of the current procedures relating to the Index of Industrial
Production(IIP), Annual Survey of Industries(ASI) and the Small (non-factory) enterprises, identifies
grey areas and suggests measures to improve the quality of data.
The author is of the opinion that a move towards chained index number system for the IIP is
warranted in order to capture the rapidly changing production pattern. The data reporting system has
become unsatisfactory as a result of dismantling of DGTD. The author questions the universe of
Small Scale Industries (SSI) units as the DC(SSI)’s definition of “SSI” covers many SSI units
actually coming under IFA. The paper proposes introduction of severe penalties for non-response
under Collection of Statistics Act. The author opines that the IIP should be revamped to cover only
the factory establishments. In case the index for small scale sector is needed, it may be compiled on
quarterly basis for specific items e.g. Gems & jewellery, Bidies, Cigars etc. based upon the data on
such items collected from the areas of their concentration. For compilation of IIP, data on monthly
basis may be collected from 3000-5000 large and medium size factories. The remaining units may be
covered by suitable sampling procedure with different sampling fractions. For continuity of returns,
and in view of the costs, the total sample size for IIP should be restricted to 5000-6000 units. The
data should be reported by units by 7th of the following month, using the electronic media and the
concerned Ministries should compile and furnish totals to the CSO for compilation of index of
registered sector. It also suggests that, for some industries, e.g. automobiles, fertilizers, cement etc.,
Manufacturers’ Associations may be asked to send regular monthly production data.
The author expresses concern over the wide divergence between the number of factories
registered under the IFA and those treated by ASI as the total population. There is a need to find
ways to update the universe of factories listed under the IFA, otherwise, the very sampling design of
ASI may get adversely affected. There are delays in availability of ASI data.
The practice of using employment estimates for blowing up figures has been questioned and
there is a suggestion for adopting different procedures for different industries for estimation of
population aggregates. The commodity classification in ASI should be revised to conform to the
Harmonised System (HS) of nomenclature adopted for excise and foreign trade purposes. The
revision of ASI schedule should be considered only after an expert group carefully examines the
matter, as some entries in the schedule may not be for compilation but for cross checking the data.
Regarding the output of Small Non-factory enterprises, the author states that experts hold
divergent views in regard to growth of SSI sector and the statistical basis in favour of either view is
non-existent. The. NSSO is the only source of data to represent overall national aggregates of
employment, value added etc. of small enterprises. The data collection in this sector is full of
problems because of the sample size, the investigator strength required etc.
It has been suggested that, following the 1997 Economic Census, serious efforts should be made
for conducting follow up surveys and make the results available in time. For this, some detailed
information (e.g. industry classification) may have to be sacrificed, if required.
In the concluding remarks, the paper recommends that (i) using properly designed surveys is the
only way of collecting data on the non-factory sector, (ii) the data on the number of factories given
by the Chief Inspector of Factories needs to be checked and updated through sampling (iii) the
administrative control over data collection/analysis needs to be given up for improvement in the
quality of statistics and (iv) one has to have a judicious combination of reliability of data and
manageable costs for timely availability of data.
37
4. Status of Statistics in the field of foreign trade ( WS 98/G-5/4 ): Dr.N.S. Sastry
The paper brings out the present system of collection and dissemination of foreign trade data.
The main sources for foreign trade statistics are the shipping bills and bills of entry submitted to the
customs authorities. The author has identified major data gaps in foreign trade and also given
suggestions for filling up these gaps. Presently, there is no methodology available for generating
data on international trade in Services. He has suggested that the Directorate General of Commercial
Intelligence and Statistics (DGCI&S) may be made responsible for the official statistics on
international trade in Services. The OECD/EUROSTAT trade in service classification, with
modifications to suit the requirements of India, may be used for generation of data of trade in
Services. He has also suggested that suitable mandatory provisions may be made in the instructions
issued by the RBI to the Banks/Authorised dealers of foreign exchange.
Official statistics of the country’s exports according to the State of origin are not presently
available. This is required to develop a suitable mechanism for assisting the States for their
contribution to the national export effort. The author has emphasised that, as these data will be
based on the declarations of the exporters, there is need to provide for external cross- checks .
The author has suggested that incorporation of the information on defence imports as single
line entry, without giving any details in the DGCI&S publications, may be considered.
5. Corporate Sector Statistics ( WS 98/G-5/5): Mahesh Vyas
The paper highlights the role of Centre for Monitoring Indian Economy(CMIE) in the
dissemination of corporate sector statistics. CMIE is the principal source for detailed company- level
data in electronic format covering all types of business enterprises. The author has identified some
limitations in RBI’s Company Finance Studies, as such studies are based on thin samples, results are
inordinately delayed, exclusion of public & cooperative sectors etc. He has also compared company
finance aggregates, compiled by CMIE, RBI, ICICI & IDBI for five years from 1992-93 and
pointed out that CMIE’s studies were based on larger sample sizes. He has recommended that annual
accounts of companies may be made available to CMIE and CSO may purchase data from CMIE.
The author points out that the ASI results are available with the gap of about 30 months from the
close of the year of reference. He has suggested that ASI may be conducted on all types of business
enterprises, independent of the labour , or capital (power) engaged. He has also pointed out that the
revised series of index of industrial production continues to suffer from inadequate coverage.
The author has recommended that ASI may be replaced by a completely new exercise based on
information collected from accounts of business enterprises. The emphasis should be on the
economic activity and not on the characteristics of the enterprise. According to him, the annual
reports are the most reliable, transparent and comprehensive source of information. He has,
therefore, recommended that a group of experts be assigned the task of exploring the possibilities of
getting the information required for the ASI from the annual reports of the companies and suggesting
modifications, if any are required.
6. Modernisation of Statistical System - Trade Data ( WS 98/G-5/6 ):
Government of India
Ministry of Commerce,
The paper by the Ministry of Commerce has identified shortfalls in the trade data. It suggests
that Department of Statistics, with the Ministry of Commerce, may undertake a collaborative exercise
to bring out exports data on the basis of industrial classification. The export data classified by
industrial classification give an idea of the change in the export basket over a period of time, which
will be useful in understanding the dynamics of trade performance in the current economic scenario.
An attempt may also be made to do a size-wise classification of the trade data in order to arrive at
exports in the small scale sector. There is need for a comprehensive and an integrated on line
relational data base to enable the decision maker to respond proactivily to the changing economic
scenario. Lack of data on employment generated in export sectors needs to be bridged.
38
7.
Modernisation of Statistical System ( WS 98/G-5/7 ) : Department of Industrial Policy &
Promotion (DIP&P)
The paper discusses the production data collection system for the purposes of constructing the
IIP. The DIP&P furnishes data on 338 items for the IIP (base 1993-94). The data is submitted by the
industries registered under the Industries Development and Regulation Act 1951. The industries
having 50 or more workers make the frame under IDR Act. Under the Act, the data are required to be
furnished by the industries within 7 days from the reference month and no field staff is allocated for
collection of data. There is regular follow up and data are submitted in time for release of IIP as per .
SDDS norms. There are no gaps in the monthly data collected for IIP.
fhe frame of Units is updated based upon closure, stoppage of production and the new units
reported, as per Letter of Intent (LOI) and Industrial Enterprenuers Memorandum (IEM) filed by the
units. The data covers the industries which do not fall in the SSI sector. The duplication of data are
avoided by the permanent electronic record of each factory.
The paper suggests that (i) for harmonisation of data, uniformity in the number of production
units of registered and non-registered sector should be proportional to its size, (ii) a system with one
to one relation for its human resource and electronic media in Unix environment will serve the
purpose for easy access of data and (iii) there should be in-house training programmes at regular
intervals for the persons engaged in the processing of data to enable them to update their knowledge
of the latest techniques in the field.
8. Modernisation of Statistical System for SSI Sector - A status paper ( WS 98/G-5/8 ) : Deptt.
of SSI & Agro and Rural Industries, Govt, ofIndia
This status paper takes stock of the two censuses of SSI units and the three sample surveys
carried out by the Department to collect detailed data in respect of SSI units. The data series
presently available with DC(SSI), with respect to SSI sector has been enumerated. The problems of
data collection from the unorganised SSI units have been spelt out. The office of DC(SSI) collects
data on units registered with the State Directorates of Industries and makes estimates for the
unorganised SSI units. It does not collect detailed data on entire unorganised manufacturing sector.
Activities like handloom, powerloom, handicrafts,etc. fall under the purview of different All India
Boards. The follow up surveys of Economic Censuses, conducted by DOS, fail to capture all the
relevant details of the working of SSI units and there is a lack of uniformity in the definitions of SSI
as adopted by DC(SSI) and those adopted by DOS for their follow up surveys.
The limitations of the present data system have been identified as follows:
(i) Database of registered SSI units is 10 years old.
(ii) Staff available for data collection has remained static for the last 10 years.
(iii) Data on registered SSI units do not give correct position of working of SSI units.
(iv) There is no statutory backing for data collection on SSI Sector.
Emphasising the need for a sound database for the unorganised manufacturing sector to estimate
its contribution to GDP, the paper identifies the following areas for improvement:
(i)
CSO should evolve a methodology to get separate data on registered and
unregistered SSI units (based on investment definition) by excluding other
manufacturing activities such as powerloom, handloom, etc.
(ii) The periodicity of the surveys for large and medium sector should be once every year.
(iii) It is necessary to evolve some methodology to provide export data for SSI sector.
(iv) Information on sickness is being maintained by the RBI for units financed by the
banks/financial institutions and is clubbed with other segments like KVI, handloom, etc.
However, similar information for SSI units which are not financed by the
banks/financial institutions, is not available.
(v) Duplication of data collection by different departments should be avoided.
39
(vi) A census of SSI units covering both registered and unregistered SSI units should be
conducted.
(vii) It is essential to have a complete census of registered and unregistered manufacturing
units in the country based on the frame provided by the 4th Economic Census.
(viii)There should be compulsory registration of SSI units.
(ix) All forms and procedure for collection of data should be simplified.
9.
Position on Corporate Sector Statistics ( WS 98/G-5/9 )
Government of India
: Deptt. of Company Affairs,
The paper elucidates the current system of collection and dissemination of corporate sector
statistics, which are a by-product of the administration of the Companies (CA) Act, 1956. The
dissemination of corporate sector statistics is achieved by publishing the data in various publications
of the Department of Company Affairs (DCA) and other Central/State Govts. The paper gives an
account of the data bases maintained by the DCA and the efforts of the department to use modem
information technology to provide more effective services to the corporate sector in time.
The problem of identification of about 4.84 lakh non-functional registered companies, is
highlighted, and the paper proposes that a joint effort by DOS and DCA may be initiated to identify
the non-functional companies using the nation-wide network of NSSO. The paper suggests creation
of a data base of direct employment creation by the private corporate sector, by either inserting a
table on ‘trends in employment” in the balance sheets format as a compulsory requirement for each
company to present alongwith Balance Sheets and P/L account, or alternatively, by conducting a
survey on employment generation by the corporate sector. Such a survey may be clubbed with the
regular employment & unemployment survey of NSSO. A joint effort by the Ministry of Science &
Technology and DCA to collect and compile data on expenditure on R&D activities by the corporate
sector needs to be taken to bridge the data gaps in this area.
10. India's Export and Import Trade - Need for More Detailed and Accurate Statistics : R.J
Venkateswaran1
In this paper, the author has recommended the following :
(i) Compilation of state wise export statistics
(ii) Detailed statistics regarding direction of exports especially to the markets of South East
Asia, Africa etc. may be generated
(iii) Statistical officers may be appointed in the commercial sections of Indian Embassies in
the major export markets like USA, UK, Russia, China, Japan and Africa to keep New
Delhi regularly informed about our competitors and the changes in the foreign trade
policies.
(iv) Export Promotion Council and Commodity Boards may be asked to compile detailed
statistics especially in regard to their achievements and in developing and promoting new
markets.
(v) Efforts should be made to bridge the gap in the trade statistics brought out by RBI and
DGCI&S
Views Expressed in the Plenary Session
The preliminary recommendations of the Working Group were presented in the Plenary Session
on 16 September 1998. In his general observations, Shri Arun Ghosh, the Chairman mentioned that
the changes over time are needed for improvement in any system but these should not destroy the
existing system. The changes should aim at improving the existing system. However, in the recent
' Paper 10 of this Section was received in response to the advertisement calling for essays on suggestions for
improvement of the Statistical System.
40
past, some changes introduced in the system were of ad-hoc nature. He also indicated that, in the
vast areas like industry, trade and corporate sector statistics, it is not possible to formulate
recommendations in a day or two, as each of these require detailed deliberations and consultations
with the concerned organisations. He also mentioned that the unorganised manufacturing sector is a
complex area, and, in a short period, it was not possible to make any concrete recommendations for
improvement of Statistics in this sector. As such, he chose to omit this sector all together from the
recommendations and suggested that the Government may consider constituting a separate Working
Group in the DOS, which should be represented by the Ministry of Industry, O/o DCSSI and also
some prominent experts, academics in the field to consider the subject in detail and to come up with
specific recommendations.
Various participants also expressed their views on the recommendations made by the
Working Group on Commerce, Industry and Corporate sector. Dr. K.C. Seal, Ex-DG, CSO
expressed the view that pooling of the Central and State samples for district/regional level estimates
suggested by the Working Group, is not possible as the same may not give reliable estimates at the
district/regional level. He also suggested that, if DCSSI does not have adequate resources for field
work, they may undertake the survey on contract basis. On the suggestion of the Group to take help
from Industrial Associations for regular supply of monthly production data, Shri J.P. Mishra, Joint
Director, FOD (NSSO) stated that reporting by the units to the industrial associations is not binding.
Therefore, the response from units would vary from month to month, which would lead to
fluctuations in the production data. Mrs. R. Thamarajakshi, fonner Secretary Department of
Statistics stated that it would be difficult to take a puristic view and calculate IIP only for registered
sector, as the weighting diagram which is based upon AS1 also includes a portion of production of
small scale sector. She also mentioned that the census of companies recommended by the group may
not be a cost-effective proposition. Instead, the possibility of using the information available with
the RBI, ICICI, IDBI, etc. should be explored. While agreeing to the suggestion for constituting a
working group on unorganised sector, Shri R.P. Katyal, former Head (NAD) supported the view of
the Working Group for complete census of companies to provide a frame for future surveys. Prof.
S.D. Tendulkar, Director, Delhi School of Economics supported the recommendation for compilation
of separate IIPs for the organised and small scale/unorganised sectors, as the quality of data in the
two sectors differs significantly. He also reiterated the view that the two indices should be compiled
separately and then combined together using appropriate weights to give an overall Index of
Industrial Production. Dr. Vaskar Saha, Deputy Director General, SDRD/DPD, NSSO expressed his
concern on incorporation of the information on Defence Imports as a single-line entry, without
giving any details, in the DGCI&S publications.
In difference to the wishes expressed in the plenary that the Working Group should go
deeper into the issues and give its considered views and recommendations, the Working Group was
reconstituted ( see Annexure-II).
Report of the- Working Group 5
The reconstituted Working Group held four meetings on 15 October, 21 October, 29 October
and 13 November 1998. The final report of the Working Group is given below:
Industrial Statistics
1. This section of the report relates to two major segments of industry, which are dealt with
separately, first, large and medium industries and second, small industries, which include a wide
range from household industries to the relatively small modem enterprises.
2. Data from these two segments are collected with three purposes: (a) the construction of a quick
and reliable Index of Industrial Production, which permits an assessment of the pace and pattern of
41
industrial growth; (b) measurement of the contribution to the GDP of the industrial sector as a whole,
as well as, of particular sub-sectors; and (c) obtaining information regarding cost of production,
employment, capital employed, etc. to facilitate more detailed analyses of the nature and
consequences of industrial growth.
3. Improvements of the data system from the point of view of better realising these requirements
should seek to ensure (a) improved coverage; (b) better quality; and (c) greater timeliness in the
availability of data, while keeping the costs of data acquisition and tabulation/release as low as
possible.
4. Indices of Industrial Production : There are three sets of indices of industrial production that are
either currently generated or planned to be provided. These are, an overall index for the industrial
sector as a whole, an index of production in the small scale sector and, comparable state level indices
of industrial production. The national index of industrial production has been revised recently, with
1993-94 as the base and with a wider coverage of 543 items, as compared with the 352 items covered
by the earlier series, with 1980-81 as base. The revised index attempts to capture trends in the small
scale sector by including 18 items produced by that sector. The source agency, the DCSSI, collects
production information on these 18 reserved items from 4,800 SSI units selected from the sample
frame of SSI units registered up to 1984-85. The composition of these 18 items may be changed on
the basis of importance as indicated by the SSI Census 1987-88. However, the coverage varies
significantly, as of today, with the number of units actually reporting being much smaller, and
varying very considerably from month to month. (Indeed, that malady afflicts the present index in
respect of large and medium units also, an issue discussed in the next para.) The DCSSI is now
planning to collect data relating to 500 items from 28000 units using the services of 138
computerised DICs. Depending upon the success of this effort the number of items from the small
scale sector to be included in the calculation of the IIP is proposed to be enhanced to a total of 69
items by December 1998. It has been also decided that only two revisions of production data would
be made in the second and third month, so that final estimates are available within a reasonable time
span.
5. In regard to even large and medium scale units, it is well known that with 14 source agencies
providing data drawn from a variety of sources, the problem of non-response is one factor adversely
affecting the quality of the IIP. This problem has been aggravated by the abolition of the DGTD in
1995. It is, therefore, imperative that a national campaign be taken up in collaboration with industry
associations, to educate sample units about the importance, even from their own point of view, of
adhering to the provisions of the Collection of Statistics Act/ IDR Act.
6. The Working Group is also uncertain whether, given the change in the definition of the small
sector recently which would include a large number of medium-sized units in the DCSSI's frame, the
inclusion of more items from the SSI would significantly improve the representativeness of the
index. Further, the inclusion of new items could worsen problems of uneven coverage over time,
especially since it has been decided to make only two revisions of production data over a three month
period. It is, therefore, suggested that, unless the experience with regard to response is found to
be consistently good, new items from the small scale sectors should not be included in the
overall IIP being currently generated.
7. The Working Group was also of the view that indices, which separately capture what is
happening in the large scale sector and the small and medium industries sector can be of considerable
use. Currently, the DCSSI is putting together an index of production with base 1970 in the registered
small scale sector, based on a sample of 2,400 units from which production information on 356
important items is being collected on a quarterly basis. This index is to be strengthened in terms of
coverage and timeliness. Changes in the definition of units, which fall under the purview of the
DCSSI have now included a number of medium scale units in its universe. Thus the DCSSI’s index
42
can be seen as a quarterly index of production performance in the small and medium scale sector. It
is understood that, increasingly, because of the non-response - even the non-existence - of a large
number of units registered with the DCSSI, the index produced by it is not only of varying quality
from time to time, but also tends to represent the relatively more modem industries (with substantial
capital investment). This makes the comparability of data over time a questionable proposition.
8. Given the changing universe of units surveyed by the DCSSI from a policy angle, because of
periodic changes in the ceiling level of investment specified for defining a unit as a small scale unit,
the cost of collecting through large sample surveys, a range of information on employment,
investment, cost of production, etc. of units under the DCSSI may not be warranted. In any case,
units in the handloom, powerloom, handicrafts, coir, sericulture and Khadi sectors fall under the
purview of different All-India Boards under different Ministries. Indeed, the employment-intensive
(and important) segments of small industries (e.g., in gems and jewellery, and some parts of brass
ware) are not covered in the DCSSI’s universe of small units. Thus, besides looking after the units of
the small sector under its administrative purview, the DCSSI could better focus its efforts by
conducting detailed, periodic surveys of small industrial clusters in particular urban or semi-urban
areas, as is true in the case of the gems and jewellery, leather and footwear industry, glass blowing
and bangle-making, lock production, woollen garments, etc.
9. The Working Group feels that there is, today, some confusion between the DCSSI’s needs of data
relating to units registered with it, for better understanding of its ’clients’ and assisting them, and the
needs of data collection for the small scale sector, as a whole. As a result, the efforts of the DCSSI
fall between two stools, and neither requirement is adequately fulfilled. The DCSSI ought to have an
updated list of units registered with it, for which the DICs should be responsible for not only
maintaining proper lists but also the ’drop outs' - which are large - and the new entrants. The DCSSI
should attempt to have a complete, updated list of the units (for which the DICs should have the
primary responsibility for (updating/revisions/cancellations), and in regard to such units, the DCSSI
needs to devise its own questionnaire for obtaining the information it needs for better discharge of
its administrative functions.
10.
However, the above has nothing to do with data relating to the output of small scale
industries. It is to this end that the Working Group has made the following recommendations, after
careful consideration. It would be useful if, alongside the index of production in the medium and
large scale sector, we have a separate index for the small industrial sector. To this end, the Working
Group supports a twofold suggestion from the CSO. First, that it will, on an experimental basis,
conduct a monthly survey of large industry, based on a brief questionnaire addressed to units
employing 200 or more workers, (and even going below 200 workers in certain industries, where
their contribution to the industrial output is very large), which can help put together an index of
production in the large scale sector, as well as, other information relating to that sector.
11
The Working Group also understands that the CSO has nearly finalised arrangements for
collection of data from approximately 6,000-7,000 manufacturing units, on a monthly basis. Since
most of such units today have fax/e-mail facilities, and many units have expressed willingness to
supply regular data - in response to a small questionnaire - quickly, by, say, the 7th of every month
(for the previous month), the working group strongly recommends that such an index (based on
existing weights for industries) be computed and run parallel to the present index for a minimum
period of one year, and in any case till a revision of the base for the index of industrial production is
taken up. The CSO could also use the good offices of reliable industry associations in the process oi
data collection and cross-validation. The Group does not wish to suggest that two parallel indices be
published at this juncture, but a switch can be made soon after one year of experimentation, wi
specific indication that the index pertains to the output of essentially large and medium industries.
43
(c) the Annual Survey of Industries should be improved and tightened with a separate, dedicated
annual survey of non-registered factories comprising ‘Own Account Enterprises’, ’Directory’
and Non-Directory’ establishments through the annual NSS surveys by the NSSO.
Corporate Sector Statistics
Introduction
1.
Formation of a joint stock company is generally the first step in starting any organised economic
activity. A number of activities ranging from manufacturing, distribution, finance, media, and a variety
of other services are undertaken by joint stock companies. The corporate sector is an important way of
getting household savings mobilised for making new investments; and today it is also a major recipient
as well as supplier of foreign investment. Specifically, in the Indian context, the character of the
corporate sector is changing fast with reduced role of government — both directly and indirectly — and
with globalisation. In the post-liberalisation period, many of the earlier restrictions on companies
(e.g. on capital issues, managerial remuneration and inter-corporate investments) have been removed
and more are expected to follow. The objective behind these changes is to delegate decision-making
power from the government to company shareholders and board of directors. In the new regime, the
role of private sector has increased significantly due to throwing public sector reserved areas open to
the private sector and is expected to increase rapidly in the coming years due to the privatisation (part or
whole) of public sector companies. The role of foreign investment is expected to increase
substantially in the coming years in the aggregate, as also in several sectors. Similar could be the case
with outward investments by India as many Indian companies are becoming global players.
Globalisation also implies increased transactions with the outside world by the corporate sector.
2.
These developments pose new challenges and to meet the demands of the new regime the
monitoring system should be made more efficient and object-oriented than in the past. How
inadequate monitoring seriously affected the stock market during the recent past and how corporate
governance problems in East Asia have come to light following the crisis in those countries should
provide object examples. More importantly, there is need for greater ’vigilance’ so that householders'
confidence in the corporate sector is not damaged by ’fly-by-night’ operators, of which several cases
have come to light in the past. This may call for not only better data collection but also for some
minimum legislative changes.
3.
In spite of its importance, surprisingly very little is known about the characteristics of the
corporate sector in India, whether they are organisational, ownership, regulatoiy or technological. There
is considerable ambiguity even in case of important aspects like capital issues and foreign investment.
Besides serious data gaps on the sector, there is uncertainty even about the size of the sector itself. Due
to extensive non-filing of annual reports, even the number of companies in operation is not known with
any reasonable degree of accuracy. An examination of the Directory of Joint Stock Companies, 1990
suggests that non-response need not be due to defunctness, as a good number of the non-responding
ones were registered during the ‘eighties. It is understood that, as of March 1998, while there were
more than 4.8 lakh companies registered with the Registrars of Companies, between the Department of
Company Affairs and the Registrars of Companies, they had only about 2 lakh annual accounts of
companies; and this situation obtained despite all ROCs — as the DCA — being equipped with
computers and all other electronic communication facilities.
4.
Much of the problem lies in the manner in which the Indian corporate sector has grown during
the past two decades. The sector is dominated by small private limited companies registered in a few
states and urban centres, a very large number perhaps only in name, with dozens of companies with the
same address — just a room with one telephone and a clerk — with no ostensible genuine business.
Quite a number of even the listed companies promoted in such a manner are characterised by
involvement of auditors and stock-brokers, and frequent change of directors and registered offices. In
many of the corporate and financial scandals, the role of such small companies is quite conspicuous.
Such companies are also employed by persons managing public and listed companies with a distinct
46
possibility of their being used in corporate control mechanism and for personal gain at the expense of
non-managerial shareholders. There are also a very large number of new corporate registrations in
March every year, obviously with a view to tax avoidance, the new companies being essentially
promoted by existing companies, for diverse reasons. This phenomenon should, therefore, be inquired
into, without treating it as a case of mere non-reporting or defunctness, so that such bogus companies
can be weeded out and newer ones of similar type prevented from coming into being.
5.
The absence of reliable and relevant data has been one of the important reasons for lack of wideranging studies on the Indian corporate sector and on industrial organisation. That given appropriate
data, such studies would be taken up is clearly reflected in the experience of'70s and '80s. The provision
for disclosing information on production, foreign exchange earning and expenditure, particulars of
employees drawing salaries over a specified limit, etc., introduced in the early 'seventies, contributed
significantly to a number of studies based on such data. Indeed, without this information, it would not
have been possible to assess the contribution of various categories of companies to India's balance of
payments or technology imports. Such data have given birth to an entirely new set of literature on
industrial organisations. Since critical decisions are taken by company managements and not by
individual factory managers, data at company-level has additional advantages over factory data for
understanding the trends, even in the industrial sector. It is, therefore, necessary to facilitate industrial
organisation-based studies, for a better appreciation of the developments in the economy, through better
data on the corporate sector.
Besides enabling measurement of the sector's contribution to national income and other
6.
parameters, a statistical system on the sector should be such as to enable proper monitoring. The data
system should also reflect the impact of the on-going policies, apart from other aspects like
employment, technology development and contribution to net foreign exchange earnings, as also
behavioural patterns of different types of companies categorised according to ownership and
management characteristics. From the monitoring point of view, individual scrutiny becomes
increasingly infeasible due to growing numbers. Methods should be devised to organise information
on specific aspects of the functioning of the sector in an effective manner. Since the Companies Act
is being revamped, it provides a welcome opportunity to incorporate certain improvements to ensure
better disclosure and better compliance by companies. It is essential to ensure in any new legislation to
come that (a) bogus companies be strictly squeezed out, and (b) all relevant information that would
help in improving confidence in the corporate sector, be provided through company accounts.
7.
Indeed, the Woking Group strongly feels that 'confidence' of householders in the corporate
sector — and therefore in new issues — does not depend, in the long run, in speculative increases in
stock prices in the secondary market, but on the profitability of the sector, on its transparency, and on
its proper management. The Working Group's recommendations are based on the above premises.
De-registration of Defaulters
It is of utmost importance to bring out the studies on company finances conducted by RBI
8.
with minimum possible time lags to serve as basic input for policy formulation, as well as, for
building up the saving and capital formation estimates. In this connection, a lot of difficulties are
experienced by the RBI in procuring annual accounts from the companies in spite of vigorous efforts
on their part. The law, as at present, states that every company must send three copies of annual
accounts to the concerned Registrar of Companies, within a month of their being presented in the
Annual General Meeting and not more than fifteen months shall separate two annual general
meetings. The law also requires all companies to conform to the fiscal year (April-March) for
purposes of accounts, and many years have elapsed since this law was enacted, to enable companies
to change over their accounting period to the legally valid year. While initially companies were found
to be changing their accounting periods to coincide with the financial year, gradually a good number
of them have again started adopting their own accounting periods. It needs to be looked into why
47
and how the earlier stipulation was reversed. In any case, even in the normal course, by say
December 1997, almost all company accounts should be available for 1996-97. As of March 1998,
of the 4.8 lakh companies registered, only some 2 lakh companies had sent in their audited balance
sheets and profit and loss accounts for 1996-97. Assuming, say, some 40,000 companies started in
1997-98, the DC A and its ROCs should have had significantly more than 4 lakh company accounts
for 1997-98, provided they were functional. (Even where ’construction' is in progress, accounts must
be prepared and audited, by the end of September).
The obvious implication is that there is a lot of unwholesome activity in the corporate sector
today and the law must weed out all hanky panky to encourage genuine corporate development.
9.
10.
The Working Group would, therefore, strongly recommend that a one time Census is taken
say, in 1999, of all genuine and operating companies existing as on 31 March 1998 and all bogus
companies de-registered. The law may need an amendment -- and perhaps an Ordinance may be
passed initially, with a Bill to follow for presentation to Parliament — to enable this to be done.
Today, corporate winding up is a long drawn procedure but if the law provides for the disposal of
assets/liabi 1 ities, there could occur a massive 'cleaning up' operation.
11.
The Working Group recommends that — after a grace period of 3 months — any company
(other than those specifically with BIFR) which does not submit its accounts for the previous year, be
'deregistered', and the fact properly notified. That may impel shareholders to go the Court against the
concerned Directors, and the unlawful activities of some unscrupulous managements may thereby get
curbed.
12.
The one-time Census, and weeding out, may help provide the statistical authorities with the
required 'frame' for conducting proper random sample surveys of the corporate sector, on an annual
basis. The lists would need to be changed from time to time, but the legal provision for
deregistration would be a strong disincentive for the formation of bogus companies in the future.
13.
The Working Group appreciates that the above recommendation is a drastic one. But the
present state of affairs in regard to corporate data can be described as 'deplorable', and in the revised
'liberalised' framework, information would be the only means of taking proper and appropriate
decisions. The Working Group suggests that this question be taken up at the highest level, and a
proper legal opinion be obtained in regard to the precise manner in which a 'clean up' of the present
mess can be best organised. In the absence of suitable legal advice in the short time available to the
Working Group, it is constrained to make only a general recommendation to (a) change the law
regarding 'de-registration' of (bogus) companies, and (b) further legal recourse (by investors) to
prosecute and claim damages from the promoters of bogus companies.
14.
The Working Group feels that this will, in the long run, strengthen the corporate sector,
encourage householders to .invest in the primary market, and help in the proper development of the
private corporate sector.
15.
The Working Group would now focus on the aspect of analysis of corporate balance sheets.
National Accounts and Accounts of the Flow of Funds
16.
The Working Group understands that the Expert Group on Saving and Capital Formation has
recommended that DC A should get the relevant information (annual accounts) on the top 1500,
companies who would account for a preponderant portion of the paid-up capital and capital formation
of private corporate sector. The Working Group feels that the present procedures for selecting the
companies for analysis of balance sheet for various studies is largely governed by the availability of
balance sheets, and, in the absence of the knowledge of the universe, it is not based on sampling
48
procedures. The Working Group feels that there should be a properly stratified random sample
survey of corporate balance sheets, for which a frame of population is the basic pre-requisite. Only
DCA is in a position to provide this frame.
17.
The Working Group is given to understand that even a private agency - the CMIE (Mumbai)
- has more than 4,000 company accounts for a period of around eight years -- while for production
data for 1996-97, it has made use of some 7,000 profit and loss accounts. The Working Group,
would, therefore, suggest that while a 1:1 sample may be taken for large companies - say, with paidup capital of Rs. 1 crore or more — a stratified random sample should be undertaken to obtain
'population' estimates of savings and investment. The possibility of getting population estimates for
assets and turnover and value added by types of economic activities in sectors like trade, transport
and professional services should also be explored. The Working Group strongly urges that the RBI
staff should be suitably strengthened, in order to prepare all such estimates from the annual accounts
on a sample basis from all industry groups. For this, it would be necessary to know the total
universe, and to draw up a proper sampling frame.
18.
It is recommended that DCA should ensure supply of all the required annual reports to RBI
for generating the above estimates. It is, therefore, necessary to put in place appropriate systems and
measures to achieve the above purpose. Both legal changes, and strengthening of DCA would be
essential for this purpose.
19.
Most of the problems connected with generation of corporate statistics can be traced to the
absence of a good company database. The Working Group would reiterate the need to have complete
information on the universe of companies. This can only be achieved by modernising and
streamlining the database and ensuring its proper maintenance in a computerised and networked
environment on a Real Time basis. As in many cases, even the registered office address is not
known, for conducting the one-time survey the DCA would need to enlist the co-operation of
Department of Statistics and the tax authorities for this purpose.
Unique Identification of Companies
20.
One of the objectives of creating a modem database is to have all data pertaining to one
corporate entity available at a single place for a comparative time period. Technology facilitates
having the database geographically distributed, not necessarily residing in a single place or on one
system of computers. So long as linkages are provided, it still forms one single logical database for
operational and reference purposes, the key to such a system would be the unique code of
identification of the entity. In the context of Corporate Database, and this key would be the company
code. It is essential that right at the time of Registration, a company should be allotted a unique
company code to be used throughout the country for all practical purposes, and to keep this code
even if the corporate address changes. This key would be used for all purposes, e.g. even to publish
quarterly/half yearly results, to submit annual return, supply data to official agencies, apply/intimate
change of location, go in for public issues, get the Scrip listed, file Tax Returns, apply for bank loans,
mergers, acquisitions, joint-ventures, foreign direct investment, transactions in foreign currencies,
and even to offer public services like schools, parks, scholarships, social services, etc. In short, every
activity of the company can be traced uniquely to the company. If each company is allotted a unique
code (much like the PAN for income tax purposes), this will help in computer processing and
maintenance of database without any duplication. Companies will be required to quote this code
number in all their official and public dealings including litigation.
21.
As the country is increasingly getting globalised, it is necessary that such a company code
number follows, as far as possible, international conventions. In the case of public issues, SEBI
already follows such a system (ISIN). At the same time, we may add additional characteristics
required to suit our specific needs. The State code along with registration number can uniquely
49
identify the company. The structured code (permanent company registration number) containing
ROC code, State code and registration number can be framed which should never be changed. In
case of shifting from one State to another State, State code of new State may also be stored separately
but the originally allotted number should remain permanent and not altered. This coding problem
can be discussed further, after ascertaining the requirements of ROCs/DCA/RBI/SEBI.
22.
While it is absolutely essential to maintain an integrated system for registration of companies
across the country, it is equally important to operate a system of receipt of balance sheets and other
related documents within the stipulated time. Presently the collection of such statistics takes place at
the Offices of Registrar of Companies (ROC) at various locations in the country. The Balance sheet
abstract and company’s* general business profile (Part IV of Schedule VI to the Companies Act,
1956) gives additional information on the company at a quick glance. Th Balance Sheet Abstract
may, after the scope is duly enlarged, form part of the data stored by ROC.
Data Items
23.
The company’s record in ROC database may contain two parts i.e. fixed information and
year-wise information. The fixed information may relate to registration details at entry-point
including those relating to the signatories to the memorandum of association, witnesses, first
directors, particulars of Officers in Default, auditors, State code (existing), Structured address,
Address of nearest Post Office (to enquire about existence or forwarding addresses in case of non
responding companies), PAN, Names of Directors/Promoters (present as well as past), their other
directorships. Telephone, Fax, Email, Website addresses, etc.
24.
The year-wise information may contain:
Annual Accounts Receipt date, extension given, reminders etc. for the purpose of
a)
monitoring receipt;
The data from the Annual Account for the particular year; and
b)
Shareholding pattern, as also names and holdings of top shareholders (with company
c)
code in case of corporate shareholders)
Companies/firms in which Directors are interested or which are under the same
d)
Management.
Balance Sheet Abstract
25.
Balance sheet abstract (BSA), which at present has a limited scope, can be made to serve the
purpose of data collection, computerisation and analysis in a relatively quick, convenient and less
expensive manner. The balance sheet abstract may be received so as to include all essential data
required for quick processing. Those data, when consolidated, would lead to national aggregates at
various levels. Items may be decided after looking into existing balance sheet abstract, fact sheet
data and items for which global figures are important for policy making, selection of sampling frame,
compilation of national accounts, etc. in consultation with National Accounts Division of CSO, RBI,
SEBI, research institutions and other concerned agencies. The following items need to be considered
for inclusion in the balance sheet abstract in addition to the existing ones.
Code for type of companies (government, public, private, listed, etc.),
i)
Industrial classification (using NIC) based on the production/service activities,
ii)
iii)
Parent company, if any,
iv)
a) No. of employees,
b) Expenditure on R&D (separately for revenue and capital),
c) Payments and receipts in foreign currencies under major heads — Imports (cif
basis), Exports (fob basis), Dividends, Know-how fee, Royalties, Interest, etc.
d) Foreign equity investments received during the year and as at the end of the year,
separately by foreign collaborators/promoters, portfolio investments and other
overseas corporate bodies,
50
e) Investments abroad.
0 Employee remuneration,
g) Managerial remuneration, (separately for salaries & perks, and commission)
h) Presence of institutional nominee directors,
i) Special provisions in the articles for appointment of directors and decision-making
at board level,
j) Auditors qualifications if any regarding compliance with accounting standards,
and comments on interest paid, related party transactions, etc.,
Net
value of items not provided for during the year and as estimated by the
k)
auditors,
I) Default on loans and deposits,
m) Capital bought back,
n) Name(s) of the Auditors, and
o) Indication of mergers, acquisitions, sell-offs, if any,
26. To facilitate computer processing it is suggested that specific codes for various items required in
the balance sheet abstract may be developed and the definition explained, in order to ensure correct
reporting and ready identification of data. This is especially necessary in view of certain ambiguities
in the present format. For instance, the Balance Sheet Abstract (BSA) does not specify the number of
months for which the data on performance of the company refers to. Also, at times, it becomes difficult
to compare total assets as some companies net out current liabilities, while others do not. It serves only
limited purpose if companies report top three products/services. These should be accompanied by their
share in total revenue/sales as the case may be. Companies are also found to be leaving the HS
classification blank in case of services. Suitable coding pattern should be indicated for non
manufacturing activities. It is imperative to use identical structure of data file and software at all
offices of ROCs so that the country level figures may be arrived at just by consolidating the data files
on the computer. The BSA should be certified by the Auditors also apart from the Board of
Directors.
Codification of Items in the Balance Sheet
27. For facilitating computer processing of the entire data available in P&L accounts and Balance
sheets it may be worth considering, at this stage, developing exhaustive item codes and defining
them. The standardisation of balance sheet items may be attempted in consultation with DCA, ICAI,
RBI and other authorities. The codes required for balance sheet abstract may be a subset of codes
designed for the data contained in complete annual accounts. The coded information can also be
supplied on computer media or communication channels by the company after the system stabilises,
and thus save the data entry efforts and delays. If it is made mandatory that corporate filings should be
made on computer media, it will greatly help in analysis.
Foreign Direct Investment Data
28. Periodical surveys on India’s Foreign Liabilities and Assets are conducted by the BPSD,
DESACS, RBI. Foreign liabilities consist of foreign investment liabilities (FDI and Portfolio),
foreign loan liabilities and other foreign liabilities. Foreign assets on the other hand, comprise
investment abroad, balances held abroad etc. The relevant particulars are sought from the identified
corporate units along with a copy of their balance sheet. Non-response has been one of the problems
faced in conducting the said surveys. In this context, there is a need to strengthen the secondary data
sources for filling-in the response gap. One such major secondary source is the balance sheet of the
companies, which contains information pertaining to (1) sources of funds and (ii) application of
funds. The balance sheet, however, does not explicitly state the foreign component in both of them.
If the balance sheet shows explicitly the figures of foreign participation in equity capital and
borrowings (Source of Funds/Liabilities side) and also those of assets held abroad, loans and
advances to foreign parties and investments made abroad (Application of Funds/assets side), it would
51
immensely help to improve the coverage of the census/surveys, as such data can be substituted for
missing information pertaining to the non-responding companies. Repatriability details relating to
the non-resident components may be incorporated in the concerned schedules.
Change of Registered Office
29.
It is a serious matter that an RBI survey established that 30% of the 3,000 companies were nontraceable and that as per the DCA only 41 per cent of the registered companies filed their balance sheets
for the year 1996-97 by the end of March 1998. It is equally serious that the RBI could not reach
NBFCs that sought registration only a few months earlier and had to issue advertisements in the press to
inform the companies and the public at large that those companies will not be accorded registration as
NBFCs. A major reason why many companies are not traceable could be that at the time of registration,
they do not need to have a registered office. They need to have it only from the day when they
commence business or from the 30th day after the day of incorporation, whichever is earlier. The fact that
the Directory of Joint Stock Companies, 1990 does not contain the addresses of many companies (or the
address is confined just to the name of the state) may indicate the possibility of such companies not
informing the ROCs of the subsequent establishment of the Registered Office. In case of change of
address within the city/municipal limits, the ROCs need to be informed only within 30 days. At present,
the fine for not informing the ROC of the change in the registered office is only Rs. 50 per day. It should
be made mandatory for companies to receive acknowledgement of the ROC about the change in
Registered Office address within a reasonable time (preferably in advance), with severe penalties
both at the company level and the level of Directors/authorised management officials for noncompliance.
Other Provisions Needing Attention
30. Exemptions for private limited companies should be minimum, as a good number of private
limited companies are owned by persons managing listed companies and are used as tools for
perpetrating frauds. It is also important to note in this context that many companies with substantial
foreign equity could qualify as private limited companies. There does not seem to be any
justification for extending private limited company status to such companies. Today, Private Limited
Companies are not required under Company Law to submit their Profit & Loss Accounts to ROCs. In
fact, this facility is being grossly misused by public limited companies to form wholly owned private
limited companies. Since they are public companies (public or private) there is no reason for granting
this exemption. Private limited companies - it should be noted - are not partnerships but corporate
bodies in the meaning of that term. Hence, the Working Group feels that this matter should be
reviewed, and the law changed in order to enable better ‘monitoring’ of developments. The
provisions like Companies Under the Same Management and those relating to Director’s Interest also
need to be tightened. Unless these provisions in the law are tightened, siphoning-off of funds from
companies would be rampant, and prevention would be very difficult. The existing provisions are
grossly inadequate to cover related party transactions by affiliates and subsidiaries of foreign
companies. This aspect Should draw special attention of the lawmakers. Data on certain items like
R&D and advertisement expenditure should be reported irrespective their relative share in turnover.
Employment data need to be given at various operational levels. Efforts should be made to introduce
greater standardisation in various items reported to make aggregates and inter-temporal and inter
company comparisons meaningful. The annual report should also state in clear terms: (a) individual
Director’s record in attending Board Meetings; (b) transactions in the company’s securities by
Directors, their relatives, companies in which they are directly or indirectly interested including
companies under the same management; (c) all immovable properties owned/leased by the company;
(d) major export products and markets (with their relative shares); (e) active foreign financial and
technical collaborations, franchise and royalty agreements (local as well as foreign); (f) direct
imports from and exports to foreign collaborators and their affiliates and the company’s own
subsidiaries and joint ventures abroad; (g) patents obtained; (h) litigations relating to taxes, duties,
labour, Company Law, environment, etc.; (i) value of finished goods traded (separately for direct
52
imports and locally procured ones); (j) mergers, acquisitions and sell-offs; and (k) donations by the
company. It should be remembered that the health and progress of the private sector would depend
greatly on 'transparency'. Data are essential; and the steps suggested are not ’regulatory'; they would
not increase control. But they would increase public confidence and help in the growth of the
corporate sector and of the economy. In respect of Mergers/Acquisitions, perhaps there is need for
tighter legislation and prior approval because such Mergers/Acquisitions can only increase
monopolistic tendencies in the functioning of the economy.
31.
From the provisions of Companies Bill 1997, it appears that, once the Bill becomes the Law,
installed capacities need not be reported by companies. This is a major lacuna and needs to be
rectified. While in the new regime, licensed capacities have lost their relevance, installed capacities
provide a valuable information for investors and analysts. Reporting of capacities, production and
sales should be given in a clear-cut manner instead of in vague terms like personal products or basic
chemicals. Inter-corporate investments need to be presented in the schedules in such a manner that
not only the amount of investment but also the extent of involvement (percentage share) by the
investing company would be easily known. This information may be computerised to enable
detection of possible cross and circular holdings. If any shares under the category ‘Sweat Equity’ are
issued, these should be specified separately for Directors and other employees along with the
consideration received, if any. More aspects could be considered when the Act is finally recodified.
In case of capital issues by listed companies, close cooperation should be established between SEBI
and DC A. Efforts should be made to encourage electronic filing by companies to save on costs and
time. Given the spread of computerisation and computers replacing typewriters in offices, supplying
data on electronic media would not place any additional burden on companies.
Dissemination
32.
To reduce the scope for malpractices and to encourage studies on the sector, there is a need for
introducing greater transparency. Computerisation of various returns as suggested above enables sharing
of data on companies at different levels. Besides strengthening the Research & Statistics Division of the
DCA, this objective could be achieved by making available information on the Internet to the public at
large. Taking the Balance Sheet Abstract as a starting point, efforts should be made to bring out every
year (a) studies on trends in capital issues, employment, and transactions in foreign currencies and (b)
detailed fact sheets on mergers, acquisitions, companies with foreign direct investments and foreign
branches. The studies, estimates at various level of aggregation, and other findings should be widely
disseminated through official publications and the Internet.
Infrastructure
33.
The infrastructure necessary at DCA and ROC will need computers linked by a WAN terrestrial or satellite network. All user organisations may be provided access rights, if need be, to
select data.
Internet Web-based Communication
34.
Today Internet has become all-pervasive. Net based commerce and banking are already
talked about seriously in India also. Any individual or company can open a website for a fee from
agencies who are willing to provide the services. Hence, we may stipulate that companies with PUC
above Rs. 50 lakh (say) should open their own websites and publish their annual results and other
vital information therein. This will help to substantially improve the coverage and reduce the time
lag in generating reliable and up-to-date corporate statistics.
53
Responsibility’ for Compliance
35.
Reporting for statistical purposes under official legislations like Collection of Statistics Act
should be made mandatory under the Companies Act itself and the responsibility for compliance
including filing of Annual Returns and Annual Accounts, should vest with the Company Secretaries
(whether in whole time employment of the company or those giving Compliance Certificate), and any
non-compliance should attract the attention of ICSI. It should be examined if the Auditors can be made
to share the responsibility of filing certified accounts with the ROCs.
Foreign Trade
1.
With the global trade in services ever expanding, it is necessary to evolve a suitable
methodology for generating data on international trade in services. This will primarily help in
providing suitable direction to the promotion of this sector in the country’s overall export effort.
DGCI&S may be made responsible for the official statistics of international trade in services.
Efforts should be made to bridge the gap in the trade statistics brought out by RBI and
DGCI&S. In particular, the idea of indicating the total defence imports as single line entry without
giving any details may be explored.
2.
54
SECTION VII
WORKING GROUP 6
Socio-economic Statistics and Labour Statistics
Summary of Papers
1. Status of Health Statistics in India (WS 98/ G-6Z 1) : Dr. Padam Singh, ICMR
The paper highlights the status of health statistics in India in the context of measuring the targets
laid down in the plans for human development as well as health for all. The various sources of Health
data have been described including the Decennial Census, Sample Registration System and Survey of
Causes of Deaths. The publications containing health and family welfare data are listed giving brief
summary of data availability in these. Brief details of the surveys conducted by NSSO on health
aspects, National Family Health Survey (NFHS 1992-93) and ICMR have also been mentioned. The
Health Management Information System being implemented by Ministry of Health and progress
achieved in computerisation have been described. A list of desirable Health Indicators has also been
added. Some suggestions have also been given to improve the quality and reliability of health data.
2. Status of Database on Population and Gender Issues in India (WS 98/ G-6/ 2):
Dr.R.N.Pandey, Central Statistical Organisation
In this paper, the major data producing agencies in the areas of population and gender issues have
been enumerated. The data availability of population and vital statistics through population census,
Civil Registration System and Sample Registration System has been discussed in detail. It has also
been stressed that National Family Health Survey also provides data on fertility, mortality, child and
infant mortality both at state level and all India level. The important gaps in demographic data have
been discussed in detail. Some of indicators on the Gender Issues where data are either not published
or not available have been listed. The remedial measures initiated by the Department of Statistics in
the recent past to fill up the data gaps in the area of population and gender have also been
highlighted. In addition, some suggestions were given to make available the data on demographic
characteristics at district level.
3. Some Issues on the Development of Environment Statistics in India (WS 98/ G-6/3): Central
Statistical Organisation
The steps taken by the Central Statistical Organisation to develop data bases in the area of
environment statistics have been discussed in detail in this paper. The publication of Compendium of
Environment Statistics 1997 to make available the data on various environmental concerns at single
place and organisation of National Workshop on Environment Statistics to initiate dialogue between
users and producers were major initiatives. It has also been mentioned that Central Statistical
Organisation organised an international training programme on Environment Statistics. Steps taken to
prepare the Natural Resource Accounting on pilot basis in Goa have also been highlighted. The paper
also mentions few areas where standardisation of concepts and definitions are required. A list of
environmental indicators identified by the ADB organised Workshop for compilation by the
countries in Asia and Pacific Region has also been included in the paper.
4.
Methodology of National Sample Survey Organisation- An Appraisal (WS 98/ G-6/ 4) :
A.K. Yogi
This paper gives a brief appraisal of the overall methodology adopted by the NSSO with some
suggestions for the improvement. The NSSO carries out sample surveys throughout the country in
55
the field of socio-economic, agricultural and industrial statistics. In addition, it also collects data on
price statistics. The inquiries of the socio-economic household surveys are multi-subject in nature,
which have certain disadvantageous due to compromises made on precision of the estimates of
various characteristics . The sampling designs followed by NSSO have been studied and it has been
suggested that some methodological studies may be undertaken to study the effect of designs by the
research institutions or NSSO itself. The aspects of sub-sampling, rounds and sub-rounds and
reference periods have also been discussed in the paper. It has been suggested that some special
studies may be undertaken to standardize the reference period.
The limitations of the sample frames for different types of surveys have been described and it
was suggested that, for socio-economic surveys based on Economic Census, the sampling frames
may be used, which may be based on enumeration blocks from the Economic Census. The
shortening of the NSSO schedules has also been suggested. The modernization of the field work by
using palmtop computers is also one of the useful means for improving the quality and timeliness of
data.
5. Data Gaps in Labour Statistics and suggestions to bridge the gaps (WS 98/ G-6/ 5 ) :
Ministry of Labour, Government of India
In this paper various types of labour statistics collected by attached/ subordinate offices of the
Ministry of Labour, as well as other autonomous organizations under the Ministry of Labour, have
been mentioned. The data gaps and data availability in the labour statistics is discussed in detail.
The mechanism of data collection through administrative records/specialized surveys is enumerated.
It is mentioned that the returns prescribed need to be simplified as recommended by the Committee
chaired by Dr. K. C. Seal. The need for timeliness and reliability of the data have been emphasised.
The training of the staff at various levels have been recommended. It is suggested that all offices
dealing with labour statistics may be networked. It is also pointed out that there is no uniformity in
the definitions as prescribed in various Acts. The need for standardization has been advocated. The
gaps in current labour statistics have been examined vis-a-vis ILO Convention and its
recommendations.
6. Modernisation of Statistical System for the Department of Justice -Status Paper ( WS 98/
G-6Z 6 ) : Department ofJustice, Ministry’ ofHome Affairs, Government ofIndia
The paper describes the procedure followed for monitoring the institutions, disposal and
pendency of cases in High Courts, District and Sub-ordinate Courts. The quarterly reports have been
prescribed in respect of High Courts and half yearly reports in respect of district/sub-ordinate courts.
The proforma includes the position about the sanctioned and existing strength of judges, all types of
cases disposed and number of civil and criminals cases instituted, disposed off and pending in
various categories and year-wise details of pending cases. The present position of the installation of
computers in the High Courts and the software used by them has been mentioned. It has been
suggested that Department of Justice may be linked with the High Courts and district courts. A
specialised software may be developed for this purpose to prepare reports about pendency.
Adequate staff are also needed for data entry work at the district level NIC computers. The
necessary funds required may be sanctioned at the State level/ Central level for modernisation.
7. Recommendations for Engendering the 2001 Census ( WS 98/ G-6/ 7 ) : Department of
Women and Child Development, Government ofIndia
The issues of falling sex ratio of women and the low rate of women workforce participation,
which are primarily captured through the census are getting attention. The efforts in the 1991 census
for gender sensitization of census 1991 resulted in about 4% increase in women’s work participation
rate. It has been pointed out that a Core Group has been set up in the Department of Women and
Child Development in engendering the 2001 census. The recommendations of the Core Group have
56
been made in five broad categories: (i) conceptual issues, (ii) data collection, (iii) training, (iv) media
strategy for awareness and (v) language and methodology. Some steps have been suggested for
additional tabulation for sex-wise break up of the data. It has also been suggested that students
pursuing studies may not be shown as unemployed.
8.
Status Paper on Educational Statistics ( WS 98/ G-6/ 8 ) :
Government of India
Department of Education ,
In this paper the sources of educational data for regular and ad hoc educational planning have
been described. The flow of information in the present system of educational statistics has been
enumerated from grass root to central level. Various returns have been prescribed for the purpose by
the Central Department of Education. The organisational set up in States/UTs comprises of the
district education officers at the district level,who forward the required data at state head quarters.
From the State Headquarter level the data are transmitted to Central level. The data are compiled on
manual basis. The difficulties faced by data collection agencies have been mentioned. It is pointed
out that there is no legislative measure in India under which submission of educational statistics
could be made mandatory. The major data gaps have been enumerated and steps for improvement
have been suggested which include strengthening of statistical machinery in State /UTs,
introduction of legislative measures and regular interaction between data suppliers and data users.
9. Issues for Consideration Regarding the Statistical System in the Country
( WS98Z G-6/ 9 ) : Ministry of Home Affairs, Government ofIn dia
This paper describes the requirement/suggestions of the Department of Jammu & Kashmir
(J&K), Foreigner’s Division and Department of Justice under the Ministry of Home Affairs. The
Department of J&K have suggested the strengthening of infrastructure at the ground level, alongwith
the training for the field staff to enhance their skills. Besides suggesting other steps, it was brought
out that basic data on various aspects may be made available at one point i.e. village level office .
The supervision by superior officers is absolutely necessary for quality of data. The users may be
made to pay for data in the form of the print outs of the village level data, at a nominal price. The
Foreign Division has described the system of data collection in the Central Foreign Bureau. The
information is received from Indian Mission/posts abroad, immigration check posts, Foreigners
Registration Officers and State Registration Officers. The main problem is non-receipt of returns in
time resulting in delay in compilation and consolidation of the information. The Department of
Justice have submitted a separate paper which has been summarised earlier.
10. Information System of Implementation of Family Welfare Programmes ( WS 98/ G-6/ 10) :
Department of Family Welfare, Government ofIndia
The paper provides details about the information system used for collection of data for
evaluating the performance of various family welfare programmes from grass root level up to central
level. The data on performance of programmes is collected from primary health centres (PHCs) and
urban family welfare centres, hospitals, dispensaries etc. by the District Family Welfare Bureau.
These are consolidated at state levels by the respective Departments of Family Welfare and sent to
Central Department of Family Welfare. It has been pointed out that there is a considerable delay in
the receipt of the detailed information from the States. The paper suggests linking up of the
districts to the Centre through NICNET.
11. Improvements in Statistical System for better information on employment -certain
suggestions ( WS 98/ G-6/11): N K Ghosh, Nilambuj Sharan and Shailendra Sharma
The paper reviews existing data base on employment and proposes certain approaches for linking
the estimates of employment with organisation of other economic indicators. The paper describes the
57
various sources of employment data such as population census, NSS surveys and employment market
survey and suggests that efforts be made towards reducing the time lag of availability of data
through these sources. The paper emphasises the need for having linkages between National
Accounts Statistics and Employment estimates. A social account framework in the form of input output table may be worked out. Social problems such as child labour,, slum residence,
small/marginal farmers and rural poverty can be considered for linkages while preparing the
institutional accounts.
'12. Industrial Statistics- The data gap : C Bose, Calcutta
In this paper, the author has pointed out the gaps in the industrial data required for corporate
planners. Some of these are with regard to quantitative sales both for domestic and corporate
purposes, energy, fuel and consumption of raw materials for international comparison, capacity
utilization, percentage of import and indigenous components used in production, R&D expenditure
both in value and percentage of total expenditure, environmental expenditure incurred, inventory of
human capital engaged in industry, status of infrastructure project etc. Most of these data are
available with the various agencies and there is a need to collate and publish such data. It is
suggested that IT facilities should be used extensively for collection of data.
*13. Improving the quality of data and timeliness, accuracy and form of delivery : 5 P Sharma,
Calcutta
In this paper, an attempt has been made to examine the current quality of data collected through
census/sample surveys in various areas with the particular emphasis on data through National Sample
Survey. It is suggested that the relevant codes may also be published along with the table in the NSS
reports so that users may not have to search codes. The change in codes in subsequent surveys
should be prominently highlighted. The sample size of the first stage units (FSUs) should be actual,
based on sample errors and not on the investigator strength, as is being done now. Actually, it is
suggested that these should be based upon the size and heterogeneity of the population in the given
State. There should be emphasis on proper identification of the FSUs on the basis of important
landmarks and these should not be revised for at least five to 10 years. The field staff should be
trained adequately about the techniques of data collection, sampling techniques as well as sampling
and non-sampling errors. The sample size should be determined on the basis of the scientific
criterion. The sampling errors may be published along with estimates and where these are of high
order, suitable caution/ remarks may be used to warn the users. Attempts should be made to reduce
the time lag in finalisation of the results. The data may be inter-linked with the relevant scientific
data, particularly for suitability of the crops for particular soils on the basis of soil testing before
recommendation to the farmers. The packaging of the data may also depend upon the need of the
users.
214. Suggestions for Improving of Indian Statistical System: G B Venkatesha Murthy
In this paper the author highlights the absence of data on social variables, economic
indicators and demographic parameters at the district level. It is suggested that the sample size of the
SRS( Sample Registration System) may be increased to provide data at the district level. Regarding
co-ordination between various agencies, it has been suggested that the data available with these
agencies may be collated and be kept at a single place. The services of the Anganwadi workers may
be utilized for collecting the data at village level.
1 Papers 12 and 13 of this Section were received in response to the advertisement calling for essays on
suggestions for improvement of the Statistical System.
2 Paper 14 of this Section was received in response to the advertisement calling for essays on suggestions for
improvement of the Statistical System.
58
Report of the Working Group 6 (presented to the plenary on 16 September 1998 by Dr
Pravin Visaria)
In this Group, 10 papers in the areas of population and gender issues and statistics relating to
health, labour, education, environment, family welfare and justice were presented. One paper on
methodology of National Sample Survey Organisation was also considered in this Group. The
problem of timeliness, accuracy and inadequacy of data in the respective fields were highlighted by
presenters of the papers. Problems faced by different Departments in collecting the data were also
shared with the participants. Wide ranging discussions took place on the issues raised in the papers
and those raised by the participants. Discussions were moderated by the Chairman, Prof. Pravin
Visaria and Co-Chairman, Prof. L.K. Deshpande.
After detailed discussions, the following recommendations emerged.
Recommendations
(I)
In the data of 1991 Census, about 45,000 villages were found to be uninhabited. The share of
Bihar and Uttar Pradesh in such villages were found to be 20% each. Some studies should be
undertaken to assess and verify the reasons for their being uninhabited and the extent to which
seasonal variations are a factor.
(2)
In the 1991 Census, sufficiently large number of villages have also shown unacceptable levels
of sex ratio, female work participation, percentage of Scheduled Caste population, etc. In so far
as possible, it should be checked whether there have been errors of classification and tabulation
in such cases. A sample of such villages should be visited to find out the possible reasons at
the earliest to minimise similar problems in the 2001 Census.
(3)
Houseless population’s estimate of 2.0 million from 1991 Census appears to be an
underestimate, as the 1981 Census gave the figure of 3.0 million. Housing conditions should
also be studied carefully to assess such figures. This is vital for improving the coverage of the
houseless, which may be problem.
(4)
There is need to adjust the total population of India for the net undercount shown in the Post
Enumeration Check (PEC) as that may help in assessing various requirements more
realistically. As, ideally PEC should be conducted by an agency other than the RGI, an
attempt may be made to explore the possibility of extending financial assistance for conducting
PEC for 2001 Census by an independent agency with enlarged coverage.
(5)
Suggestions may be made to the RGI, about the modification of economic questions in the
2001 Census, to capture better the female work participation.
(6)
As regards the treatment of “persons engaged in activities for production of goods for• own
as of NSSO, so that
consumption”, 2001 Census should adopt exactly the same definition
-----differences in the results due to concepts can be avoided.
(7)
In view of the fact that very little use of the data can be made on “marginal workers” given by
the censuses, Census 2001 may consider dropping the distinction between main and “marginal
“workers.
(8)
fhe size of the sample and the number of questions canvassed in the annual rounds of NSSO
should be expanded to broaden the range of social and economic data available each quarter
and each year.
59
(9)
Though maternal mortality rate is required for various planning purposes, data at least on
maternal deaths should be collected and tabulated in both the Sample Registration and Civil
Registration System.
(10) An efficient Civil Registration System will take care of many problems of non-availability of
vital statistics at lower administrative levels. Therefore, efforts should be made to revamp the
system in all the States.
(11) About 45% villages in 1991 Census had a population of less than 500. Such small villages
have to be given special attention for collection of statistics on their share of development
benefits.
(12) Ideally geo-coding of all the villages should be attempted so that same code may be used by
various data collection agencies. However, as this may take some time, in the interim, 2001
Census should use the same village codes as the 1991 Census.
(13) A number of international agencies are sponsoring various surveys on similar topics. There is a
need to set up a Division/Unit in the CSO to attempt the pooling of data from similar surveys
and supply of data to users.
(14) For improving the quality of data generated by different data producing agencies, maximum
attention should be paid for provision of basic facilities, formats, schedules, etc., to the lowest
level functionaries.
(15) As there is a long delay in collection and publication of education statistics, there is a need to
study the system of collection of education statistics in various States and to evolve a model
system.
(16) In view of the monitoring of progress of Universalisation of Primary Education, only school
enrolment data should be collected annually by the Department of Education. Other education
statistics, such as school attendance, drop-out rates, socio-economic background of students,
expenditure on education, as available from Population Census, NSSO and 6th AIES should be
utilised by the Department of Education.
(17) Records kept by schools from which various types of education statistics are culled out, should
be inspected on a regular basis to verify their quality and coverage.
(18) There is a need to change the criteria of linking fund and number of teachers in schools to the
enrolment to get reliable figures for enrolment in schools.
(19) For better dissemination of data being collected by different Divisions of Ministries amongst
each other, each Ministry should bring out a Booklet giving information about data being
collected by each Division. Similarly, one Government Department should keep the
publications and Reports released by other Government Departments and research institutions.
As CSO is playing the co-ordination role, this responsibility can be entrusted to it. For
handling this additional responsibility, if need be, CSO should be provided with man-power
and hardware. One copy each of the publications released by various Government Departments
should also be sent to five National Libraries for the benefit of common people.
(20) Though deciding the sample size according to the standard error is a scientific approach, it is
difficult to adopt it in the NSSO, as surveys cover a number of subjects and wide variability is
found in different variables. There are also problems in getting requisite number of
60
Investigators for the field work. Human problems are also responsible for the present practice
of allocating the sample size according to the Investigators’ strength.
(21) Standard errors of different variables should be published for different rounds of NSSO.
(22) Need for training of Investigators and effective supervision needs due attention for better data
quality. Necessary measures may be taken to strengthen them in the NSSO and other data
collection agencies.
(23) To assess the data gaps relating to wage structure and distribution, labour cost, productivity,
etc., required to meet the requirements of ILO standards, an inventory of labour statistics is
essential and should be prepared.
(24) Collection of data on labour in un-organised sector should be given more emphasis.
(25) Regarding environment statistics, the following recommendations emerged:
(a)
Strengthening of the necessary infrastructure/procurement of hardware and software
for application of remote sensing data/image processing, Geographic Information
System (G1S) in the Central Statistical Organisation and States.
(b)
Creation of environmental statistical units, where they are not present in the State
Directorates of Economics & Statistics or suitable strengthening the existing unit.
(c)
The publications on environment statistics at Regional/State level may be brought out.
(d)
The natural resources accounting in the Centre/States may be undertaken.
(e)
Development of environmental indicators and its publication in booklet form by the
Central Statistical Organisation.
Capacity building of the statistical personnel working in the environment statistics
through training courses.
Other Recommendations
(0
As full justice could not be done in the short time to all the issues, it was decided that further
deliberations will need to continue on various themes and to arrive at final recommendations.
Accordingly the Working Group was reconstituted ( See Annexure-II for details). From the
deliberations of the re-constituted Working Group held on 26-27 October 1998, the following
recommendations emerged:
Labour Statistics
i)
Whenever any organisation tries to collect data on new areas relating to labour through
surveys, a comprehensive review of the existing data available from other
sources/organisations should be done to avoid duplication of efforts. For this purpose,
extensive data dissemination efforts need to be supported.
ii)
The city specific surveys being conducted by the Labour Bureau for SC & STs may be
reviewed with a view to examine the feasibility of using the available data from the Census
and NSSO.
61
iii)
I he observation of DG, Labour Bureau about the high level of non-response ( about 70%)
for statutory return was noted. The Labour Bureau has to devise suitable mechanism to
reduce the non-response.
iv)
Fhe differences in definitions of some of the terms in different Acts should be resolved.
Whenever the Acts permit, changes through administrative mechanisms should be made. For
future, Labour Bureau /Department of Statistics may be also consulted for definition of
statistical terms used in the Act.
v)
The need to strengthen the data base on Wages and Earnings of casual and regular employees
was noted. It was felt that data on wages and earnings in the organised sector may be
collected through Annual Surveys of Industries and for unorganised sector some suitable
medianism/survey may be devised.
vi)
Some mechanisms have to be developed for computation of labour productivity indices on a
regular basis.
vii)
Following important data gaps in the areas of Labour Statistics were identified.
a) Quality of employment data on child labour
b) Working conditions of labour in the unorganised sector
viii)
As regards data gaps identified by Labour Bureau with regard to various ILO Conventions
and recommendations, the existing statutory and non-statutory returns and questionnaires of
ongoing surveys may be reviewed. Suitability of various ILO Conventions and
recommendations to the Indian situation may be studied in consultation with other concerned
organisations and users/ experts groups.
Education
i)
Though it may be necessary to meet the demands of international agencies in the area of
educational statistics, the suitability of indicators suggested and the strength of the system to
generate appropriate statistics need to be kept in view while accepting and implementing
these obligations.
ii)
Definitions relating to education adopted by different sources may be compared and
mechanisms may be developed for interaction among concerned organisations to arrive at
agreed definitions.
iii)
Though household data on educational expenditure are being collected every 10 years in the
NSSO Surveys, the possibility of a quinquennial survey may be explored. The data should
be also available by age and level of education in addition to rural and urban residence.
iv)
The effort of NSSO to give data on attendance ratios and other aspects twice in a decade will
be sufficient in addition to data from other sources such as census and Deptt. of Education.
v)
All the publications of the NSSO in the field of educational statistics need to be disseminated
widely.
vi)
NSSO and census should be mainly concerned with the household level data and Deptt. of
Education and its constituent bodies need to deal with institutional statistics.
Environment Statistics
i)
The existing data on environment statistics available with various public and non-public
sector agencies and institutions should be pooled together and disseminated by the DOS at
appropriate intervals.
ii)
In view of the emphasis on environmental safeguards by the developing countries , the
prescribed environment rules relevant to international trade should be collected by the
Ministry of Environment and Forests and the Department of Statistics. Agricultural and
62
Processed Food Products Export Development Authority (APEDA) and other Export
Promotion Councils may also be contacted at appropriate intervals.
iii)
On the basis of the pilot study on Natural Resource Accounting in Goa being conducted by
the Department of Statistics and the similar exercise carried out by the Gujarat Ecological
Commission, other states may be encouraged to replicate these studies. Suitable guidelines
and benchmarks on Natural Resource Accounting may also be applied at the national level to
understand the impact of environmental and Natural Resource changes on the estimates of
Gross Domestic Product.
iv)
Capability building in the area of environment by training the statistical personnel both at
home and abroad is necessary to apprise them of the current concepts and methodologies
followed by various agencies.
V)
The Compendium of Environment Statistics is very useful for researchers, policy makers and
planners working in the environment sector. Its coverage may be improved by providing time
series data.
vi)
The spatial data is very useful for planning purposes. The Department of Statistics may also
develop infrastructure for utilising these data.
vii)
The mechanism of interaction between data producers and users may be made a regular
feature. This will help in better understanding of the data by the users and enhance its utility.
63
SECTION VIII
WORKING GROUP 7
Information Technology Needs of the Statistical System
Summary of Papers
1. An Approach Towards Modernisation ( WS 98/ G-7/ 1 ) : D.D. Kanojia, Computer Centre,
Department ofStatistics.
The paper discusses the evolution of the Computer Centre (CC) of the Department of Statistics
since its inception in 1967 and how its role changed over the years. Initially, the CC had a focal role
to play in Government-wide computerisation efforts, including creating awareness and training
manpower for developing skills in both hardware and software. The CC also provided computer
consultancy to government organisations and the public sector. However, with the establishment of a
Computer Directorate in the Department of Electronics and the National Informatics Centre (NIC),
the focal role of the CC gradually diminished and it was confined to the computerisation efforts of
the Department of Statistics during the 1970s. Further, to keep pace with changing technology, the
Computer Centre has had a number of computer systems over the years, ranging from the Honeywell
systems to Burroughs and finally to Bull’s DPS series. They have also acquired PC based systems.
The CC has simultaneously been changing/modifying their training programmes to adapt to the
changing needs. The paper also discusses the new role envisaged for the CC of becoming a
repository of statistical information as a National Data Warehouse for Official Statistics (NDWOS),
whereby the data processing work for NSSO would be shared between the DPD HQ and Central
Statistical Organisation (IS Wing).
2. Futuristic Model For On Line Flow of Data ( WS 98/ G-7Z 2 ): S.K Nath, Central Statistical
Organisation (IS Wing), Department ofStatistics.
The paper discusses the flow of data emanating from the NSSO(FOD) with respect to the
statistical system in the Department of Statistics. It focusses on the opportunities for computerising
the different stages of the data cycle, namely, data collection, transmission, validation and
dissemination. The different subjects on which the FOD is collecting data can be categorised under
groups like socio-economic data, industrial statistics data, agricultural statistics data and price
statistics. The data so collected is processed in the Department of Statistics (NSSO DPD, CSO-IS
Wing and Computer Centre) before the results are finally disseminated. The paper also indicates that
the experience of the Department of Statistics for transmission of data using the NICNET and the
network of Department of Posts was not very encouraging and had to be terminated. It then proceeds
to outline the necessity and advantages for having a dedicated VSAT- based network, exclusively for
the Department of Statistics, which would also enable an effective two-way communication channel
for the flow of statistical information to make it more timely and relevant.
The author also presented another paper for an on-line system for the entire statistical system,
which would establish an NISIS (Network of Integrated Statistical Information System) as an
effective decision support system. In the proposed NISIS system, the Department of Statistics would
function as a repository of all statistical information including statistical data, derived statistics,
statistical bibliography and geographical data.
3. Emerging Role of a National Statistical Office as an Information Provider (WS 98/ G-7/3) P.
Srivastava, Central Statistical Organisation
The paper highlights the convergence of the telecom, IT and information industry resulting in
new opportunities in an information society and how these pressures are heralding a new role that
64
national statistical offices have to play. It dwells on the role of information as a strategic tool for
competitive advantage for both business and the public sector. It then describes the statistical life
cycle beginning from the survey planning, frame management, sample selection, data collection,
input processing, estimation, output processing, dissemination, evaluation and marketing of
information and how IT could play a significant role in each of these stages. With the pressures on
statistical offices to provide more customer oriented and value added services, the paper highlights
the advantages of having a uniform platform for IT across the statistical system.. The essence of data
management and the criticalities involved in the data warehousing concepts are discussed in light of
the new role envisaged for the Computer Centre of the Department of Statistics. Some of the
advantages include improved client service and integration of statistical data. It then discusses the
strategy of common databases (or walk about systems) which several developed countries have
adopted by providing standardised data and metadata. Regarding the future directions, the paper
describes how the Department of Statistics needs to corporately organise their database holdings and
use marketing tools to make the statistical system more customer friendly and how the products have
to be segregated into public and private goods. A proposal for integrating the statistical system was
presented using the benefits of communication technology. It also described a PR strategy for
improving the credibility and corporate image of the Department of Statistics, where it could be seen
to be producing more timely, relevant and objective information products as a management process.
4. Information Technology: Its role in the Modernisation of the Statistical System in India ( WS
98/ G-7/ 4 ): Dr. Vaskar Saha, DPD & SDRD, Department ofStatistics.
The paper discusses how the advances of IT could be easily implemented in the statistical system
which could be subdivided into several subsystems like data collection, transmission, processing,
database creation, data linkage and dissemination. Closely linked to these are the human resources
and the upgradation and maintenance policy for IT. The author gives details of how IT could be
fruitfully applied to each of these stages and describes some of the tools and techniques that are
available for each of them. In the data collection stage, he emphasises that the input data should be
normalised and standardised across the data collecting agencies to facilitate large scale integration at
higher levels. It was also argued that too many checks at the data collection stage would create
bottlenecks, and that a manual bypass should be built-in for non-response. The different modes of
capturing data like Palm Top Computers, Remote Sensing, Scanners, etc have also been discussed.
For data transmission, the various modes and channels available, like the NICNET, DOE net,
Internet, etc are discussed. For data processing, the advantages of decentralised and distributed
processing is emphasised to reduce delays and bottlenecks as compared to centralised processing,
where not only the data entry load becomes voluminous, but it is practically impossible to correct and
validate inconsistent data. Decentralised data processing, however, increases the hardware, software
and manpower requirements at the field offices. A careful analysis and monitoring programme for
detecting, checking and validating data is required to be developed, so that the end results do not get
affected. This leads to the necessity for creating a database environment for large scale data like that
collected by the Department of Statistics, and for which there is a need to upgrade the hardware,
software, communications and manpower. The author proposes the establishment of a National
Statistical Authority to ensure that concepts, standards and methodologies are uniform and consistent
so that timely and reliable data flows in the statistical system, without duplication and redundancies.
The author also propounds the necessity of a national statistical database to be managed by the
Statistical Authority. For the statistical system to be effective, it is necessary to upgrade the skills of
the human resources and also plan for upgrading the IT to keep pace with changing technologies.
Recommendations of the Working Group (presented to the Plenary by Dr N. Vijayaditya)
The Working Group on IT Needs of the Statistical System deliberated on the papers
presented in the group and on larger developments and advancements in IT. The focus of the
65
recommendations was to derive better and improved service from existing institutions,
following are the recommendations of the Working Group:
The
1.
I he IT needs have to be defined at each stage of the data cycle, right from the collection,
validation, processing, transmission and dissemination of final results. There are several
agencies in the country which are involved in collecting, processing and disseminating
statistical data. The penetration of Information Technology in these agencies is not uniform.
To create a Modern Statistical System in India it is imperative that these agencies reach a
minimum level of technological capability to produce data in the desired time frame.
2.
Validation and consistency checks on the data have to be built into the system as close to the
data collection stage as is feasible. The data processing centres would have to ensure that the
validation checks are carried out with the utmost care so that problems at the time of
consolidation can be minimised. This knowledge needs to be widely distributed throughout
the statistical system. The precise mechanism of the use of information technology for
primary information collection and validation is best left to the agency responsible to collect
such information.
The Department of Statistics should, in its role as the nodal agency for dissemination of
information, design a conceptual model for an integrated statistical database and make use of
the best technology available to establish a Data Warehouse. The establishment of Statistical
Data Warehouse needs to be implemented with abundant caution and care, as it is a highly
complex task.
4.
The Working Group noted that there are significant advantages of having a compatible
platform for hardware and software, which could be determined after a careful analysis of the
needs of the statistical system.
5.
•
•
•
Further, the working group recommends that the Department of Statistics needs to:
Substantially improve its internal capabilities of collection, processing, transmission,
database creation and its management.
Substantially improve its capabilities to interface with the other agencies which provide
information
Set up systems to interact with bulk downstream users and final consumers of information.
6.
The Department of Statistics should evolve standards for coding, classification, processing,
methods and procedures for data and meta data and ensure that these are not only used but
are also widely circulated amongst the data producers as well as the users.
7.
fhe Department of Statistics should use latest computer and computer communication
technologies to collect, process, transmit and disseminate information.
8.
The Working Group recommended that all IT efforts must be properly documented so that
systems would be self-reliant on standard procedures and not be dependant on individuals.
This would assist in the planning for renewal of IT for the statistical system.
9.
The Working Group recommends the organisation of training programmes and workshops
for developing and upgrading IT skills, and sharing experiences on IT on a continuing basis.
It also noted that incentives, and motivation are essential to ensure the success of any IT
plan.
10.
Fhe group recommends that while introducing any new technology it should examine
its compatibility and suitability in the existing and proposed system.
66
SECTION IX
WORKING GROUP 8
Statistical Systems and Statistics for Decentralised Planning
Summary of the Papers
1. On Some Aspects Of Coordination Of Statistical Activities At The Centre And In
States ( WS 98/ G-8Z 1): VV Divatia
The
This paper highlights problems faced by the present statistical set-up in turning out quality data at
the desired level of disaggregation and suggests ways to evolve a strong, reliable syatem. The paper
points out that though there is a superstructure for collection of required data, there exist problems of
quality of the data. Problem areas have been identified such as lack of motivation on the part of the
respondents to furnish true data, motivational level of the statistical personnel and pooling of
estimates of the state and central samples of surveys. The author is of the opinion that the statistical
coordination work carried out by DOS and SSBs leaves a lot to be desired.
For evolving an efficient statistical system, an optimum amalgam of both the ‘bottom-up’ and
‘top-down’ approaches are necessary. The ‘top-down’ element will consist of a National Statistical
Authority for (a) co-ordinating and monitoring all Statistical activities (including those of Central
Ministries and State Governments), (b) for ensuring that the data collection work (through statutory
returns, surveys and other means) conforms to uniform set of concepts and definitions and (c) for
ensuring that the data is collected, subject to a uniform set of methodologies.
The ‘bottom-up’ element should concentrate on creating a network of training and research
facilities under the Department of Statistics and the State Statistical Bureaus. These institutions,
having on-line inter-networking in place, will be engaged, on an on-going basis, in the skill
upgradation of the data collectors (field staff), processors and analysers with a view to upgrade the
statistical machinery in the Central and State Governments to a uniform level.
Research bodies like Indian Association of Research in National Income and Wealth (IARNIW)
should be involved in the upgradation process, for example by engaging them to organize seminars
and conferences in association with the State Governments.
2. Decnetralised Planning : Some Issues and Database For Local Level Development
(WS98/G-8/2) : Prof B S Minhas
The author discusses the scope of decentralised planning in India and sets out the actions to be
taken for development of basic data sets required at the village/block/District level. The scope of
decentralised planning has more or less been limited to coordination and collation of local level
statistics and administrative data. The DISNIC also appears to have been launched with little thought
behind it as the data base for village level indicators prepared through it suffered from various
infirmities.
The main problem with administrative data is their poor quality, often caused by non-uniformity
of concepts, definitions and procedures in different states and areas. On the other hand, the data
from population censuses become available only after considerable time lags.
Since the local statistical capacity is rather low (if not non-existent), there has been little
development of the capability of project formulation and data generation at the local level.
For developing local level statistical capacity for planning, a beginning could be made by
retrieving and processing the population census data at the local level. The efforts of statistical
67
personnel at the local level should be supplemented, in this regard, by offering part time jobs to the
educated unemployed.
The above-mentioned para-statistical personnel could also be gainfully employed for conducting
the field work for agricultural and livestock censuses and for firming up the civil registration system
for recording marriages, births and deaths. With the passage of time, some more statistical functions
can also be entrusted to the local level functionaries of this decentralised data system.
As democratic decentralisation can disturb the old channels of information and data flows and
also choke off the State staff support available at the local level, the author points out that action
points for construction of basic data sets at the village/block/district level need urgent attention.
3. Status Paper on Data Gaps ( WS 98/G-8/3 ) : Govt of Tamil Nadu
The paper looks into the issues relating to the modernisation of a decentralised statistical system.
Collection, validation and primary use of data should take place at village panchayat level.
Accordingly, modernisation and strengthening of ground level statistical data gathering should start
from village panchayat and involve the district level information centre and ultimately there should
be a linkage between the panchayat level data base to the state level data centre.
4. Some Major Areas of Concern for Revamping the Current Statistical System
National and Sub-National Levels ( WS 98/ G-8Z 4 ) : Dr KC. Seal
at
The paper discusses the role of NIC in setting up a national network. Referring to
Recommendation No. 92 of the National Task Force on Information Technology and Software
Development, the author points out that the major concern of the NIC should be to focus its
attention on providing its expertise and technical assistance to the setting up and maintenance of high
speed, reliable, scalable and fault-tolerant, basic information network at the national level. The
responsibility of setting up of domain- specific knowledge database should rest with carefully
selected specialised institutions/departments having expertise in the specialised fields (e.g. AIIMS for
medical field). The NIC is the national information infrastructure provider and, therefore, it should
concentrate on providing requisite technical expertise and support to the specialised agencies in
setting up and maintaining distributed data base systems for the various fields.
Regular consultation among data suppliers, data producers and data users, at least once a year at
the national level, is essential to take a rational decision on crucial data gaps and possible data
redundancies. Emphasis should be on minimal data collection with a clear understanding of the
prospective users and the urgency of the specific data.
5. A Note on Modernisation of the Statistical System ( WS 98/G-8/5 ) : Government of Tripura
The focus of the paper revolves around the concept of ‘Grass root level Data bank’. To
overcome the problem of delays and duplication, all information being collected by different
agencies may be computerised and placed on a common platform — ‘Grass root level Data Bank’.
The data banks will be hosted and maintained by the Department of Statistics. The records, however,
will be updated by the agencies that have been collecting the data earlier. This would require that the
data bank is connected to the other data collecting agencies as also the higher level statistical
establishments so that flow of information is ensured from the grass root level to the top.
Since the Grass root level data Bank will be the primary source for users, it will need to be
carefully planned by the ‘nodal agency’, involving a scrutiny of the forms being used by data
collection agencies.
A village level profile is necessary for building up basic information on the enterprises
belonging to the informal sector. A frame of enterprises can be built up from these profiles so that
68
detailed studies could be conducted for estimating the contribution of this part of the informal sector
in the economy.
6. The Public Visa System and Its Uses In Developing Countries: A Vision Statement and
Prospectus For a Study of Feasibility ( WS 98/ G-8/ 6 ): Paul Armington
The author introduces the concept of access to public services through the use of Public Visa
Cards which would be taken up as a pilot in Maharashtra. It is expected that Maharashtra
experiment would help in laying down programmes for capacity buildings in statistics in the 21st
Century.
7. Modernisation of Statistical System ( WS 98/G-8/7 ) : Govt, of Uttar Pradesh
The paper identifies some of the gaps in the statistical system and makes suggestions for
improvement. One of the great weaknesses in the past has been the tendency to collect too much
information. The provisions of the Registration of Births and Deaths Act need to be enforced
effectively. A system of regular data collection needs to be developed regarding the capital
investment, employment, production, raw materials etc. in respect of the units not covered under the
Factories Act.
8. Modernisation of Statistical System ( WS 98/G-8/8 ) : Govt. ofNCT ofDelhi
The paper identifies some of the grey areas in the statistical system and suggests ways to make
improvements. They relate to (a) multiplicity of agencies leading to resource wastage as well as
respondent alienation; (b) dissemination of data without involving the users; (c) length of schedules
for inquiries; (d) rationalisation of forms for statutory returns; (e) delay in the release of survey
results; (f) pooling of central and state samples; and, (g) upgrading the infrastructure facilities,
particularly the data processing facilities of the State DESs.
9. Modernisation of Statistical System - A Few General Suggestions
Shetty
( WS 98/ G-8/ 9 ):
S.L.
The paper points out that for the decentralised statistical set up to be effective, there is an urgent
need to create a centralised institutional structure for bringing about co-ordination of the agencies
Inconsistency of concepts and definitions,
engaged in data collection, analysis and dissemination.
on the one hand, and multiplicity of efforts on the other, have emerged as two major areas of
concern for the statistical system in the country.
The proposed Statistical Authority of India (STAI) should serve as an apex institution for all
other institutions engaged in statistical activity, including SSBs, and should be responsible for
bringing about, on an on-going basis, improvements in the organisation of statistical system and of
the institutions serving the system. To enable it to discharge its functions effectively, the STAI
should be conferred with an independent status like the UGC and UPSC.
The Collection of Statistics Act, 1953 should be amended with a view to make the enabling
provisions more explicit and to cast a responsibility on the statistics gathering organisation to be
transparent and to reveal how the data obtained have been utilised. The Collection of Statistics Act,
1953 should also make it mandatory for the Govt, departments and PSUs to supply data to the STAI
or an agency designated by it, within a time frame laid down by the STAI.
All large-scale surveys, particularly those of the NSSO, should be carried out on a collaborative
basis with separate samples being assigned to the participating agencies with a clear cut mechanism
making it obligatory to pool the samples.
While specialised bodies like the ICSSR are welcome to conceive projects for modernisation of
statistical system pertaining to their area(s) of interest, actual execution of such modernisation
69
projects must be subject to overall guidance, control and supervision of the STAI or an agency
nominated by it.
10. Statistical System of Bihar and Data Gaps ( WS 98/ G-8Z 10 ):
Govt, of Bihar
The paper identifies the data gaps at the decentralised level and suggests ways to make the
system effective at the panchayat level. The major data gaps in the estimation of state domestic
product (SDP), savings and capital formation relate to Bihar agricultural by-products, dated cattle
census, minor forest produce, district wise data on central sector (railways, telecommunication etc.),
lack of a credible methodology for estimating household sector savings etc.
The paper emphasises that the statistical system needs to locate a statistical functionary at the
Panchayat level (Panchayat Investigator) who would be responsible for collection of all types of
statistical information, namely, agriculture, demographic and socio-economic characteristics of the
households, prices, administrative intelligence and allied information. In order to make the system
responsive and effective, the existing Block and District level statistical set up will need to be
suitably upgraded in terms of manpower, with appropriate infrastructure for their skill development.
Data Bank operations should be automated at the Block level with inter-networking with the
State level institutions. Computerisation of all DES offices in the State with proper networking
should be undertaken so as to make it possible to pool the central and state samples of the NSS
surveys.
11. Modernisation of Statistical System in Sikkim ( WS 98/ G-8/ 11)
Govt, of Sikkim
The paper deals with the serious problem of duplication of data collection efforts and ways to
eliminate the same. In many cases, the new ventures and launching of surveys in different sectors are
not brought to the knowledge of the statistical authority of the State. A mechanism needs to be
developed under Statutory provision to check the duplication of efforts.
The paper makes special mention of the need for computers at the various levels coupled with
adequate HRD facilities. The Centre should help the States by (a) introducing an exchange
programme for the officers, (b) supplying the necessary computer hardware/software, (c) train (at
least the senior) state statistical personnel, and (d) help set up suitable HRD centres for the statistical
personnel in the States.
12. Suggestions for Improvement of Statistical System in India ( WS 98/ G-8/ 12 ):
Maharashtra
Govt, of
The paper contains suggestions for improving official statistics at the taluk level. The present
statistical system is characterized by duplication of efforts, delay in processing of data and lack of
connectivity from one level to the other etc. Steps suggested for improvemnet are:
(i) Use of OCR and OMR machines to reduce time lag between the data collection and the
availability of the processed data,
(ii) A computerized integrated data base of official statistics needs to be created and maintained
at the taluka level as most of the basic official statistics, relevant for local level planning,
originates at the village and taluka levels.
(iii) Networking facility for transmitting the data electronically to and from taluka level to
district/State/Central level needs to be provided.
(iv)
Since planning exercise is generally required with reference to geographical units, the data
bases can be made very effective if a system is evolved to assign permanent code for
identification of villages and towns in the country. For example, all villages/towns in the
state (country) at a given point of time could be serially listed and assigned a permanent
identification number with the state, district, taluka codes appended to the village/town
70
permanent code. This would ensure that the permanent number of the village/town does not
change even when it is shifted to another taluka/district/state.
13. Data, Democracy, Decentralization and Development WS 98/ G-8Z13 ): Michael Ward
The paper discusses various components of the concept of decentralisation and ways to measure
the progress towards decentralisation. The concept of decentralisation encompasses different
governmental arrangements including devolution, decentralisation and delegation. This involves
allocation of decision making responsibilities between central and sub-national governments and the
degree of local autonomy over revenue rising and spending decisions. It is important, therefore, to
develop indicators of decentralisation.
The indicators should relate, inter-alia, to the progress achieved toward decentralisation over
time and levels of services provided to the community and should include indicators, which help the
central government in monitoring the activities of the sub-national governments and their
contributions to macro economic goals, as well as,
indicators for measuring financial selfsufficiency of local governments.
14. Status Paper on Modernisation of the Statistical System ( WS 98/ G-8/ 14 ) :
Punjab
Govt, of
The paper proposes the following steps for modernisation and improvement of the statistical
system:
® Data needs of different Government organisations /Departments should be standardised /
harmonised to avoid duplication.
• CSO should bring out a publication, after collecting information from the SSBs, giving
complete list of sources of different kinds of data.
• Special training should be imparted to SSB officers in schedule designing.
• To take full advantage of computer technology, all SSBs should be provided with computer
facilities within a certain time frame. To make computerisation more useful, the SSBs
should be linked with the CSO.
• State Statistical Services should be created to facilitate transfer of trained statistical officers
from one department to the other within the State.
• A system of exchange of officers between Centre and States on deputation should be
introduced with sufficient financial benefits.
15. Modernisation of Statistical System in Assam ( WS 98/ G-8/15 ) : Govt, ofAssam
The paper deals with setting up of a proper statistical system in the State. A State Level
Statistical Authority (SLSA) should be constituted, with appropriate statutory back up to control and
co-ordinate all statistical activities in the State. The SLSA would also draw up a work calendai for
each of the sub-systems with a view to ensure timeliness in releasing data.
It would be necessary that all the sub-systems of the SLSA are inter-linked by computei network.
The SLSA would maintain a library where all data received from the various sub-systems would be
stored.
The paper proposes modernisation of facilities for data collection supported by the
establishment of an apex training institution to train the statistical personnel of the state.
16. Modernisation of Statistics - Data Gaps and their Removal
( WS 98/ G-8/ 16 ) : Govt, of
Haryana
The
The paper
paper suggests
suggests a few measures to improve data collection in the area of agriculture and
of
unorganised manufacturing. Crop cutting experiments should be conducted in respect
i
required
to
be
miscellaneous and unspecified crops also on a regular basis. Some repeat surveys are
71
conducted at District level to get the data on production of grass, as the current estimates are
extended from a 1955-56 NSS survey.
Area and production data of fruits and vegetables estimated and supplied by the State Land
Record Department may be treated as final even though it may not agree with the data from
alternative sources such as the State Horticulture Department.
Surveys of the unorganised manufacturing sector need to be carried out more frequently through
a specially constituted agency under the Department of Statistics.
17. Modernisation of Statistical System ( WS 98/G-1/9 ): Govt, of Meghalaya
This paper was transferred from Working Group No. 1 and the summary is included in that
section.
Recommendations of the Working Group (Presented to the Plenary by Prof. J. Roy)
Proposed structure
1.
To ensure compliance with uniform concepts, definitions, standards and acceptable levels of
reliability, creation of a ’’Constitutional Statistical
Authority" is recommended. The
independence and integrity of this Authority should be assured through a framework which
ensures quality, professional standards, freedom from political interference and transparency.
The scope of the Statistics Authority should be inclusive of all statistics of public interest at
national, regional and local levels of governance.
2.
The Department of Statistics (DOS), as the Nodal agency, will be the executive arm of the
Authority.
A cell for critical analysis of the quality of information collected by various Governments,
agencies should be set up under the Statistical Authority. This cell should provide
guidance/suggestions for improvement in the statistical methodology.
4.
A Statistical Audit Cell may also be created under the Statistical Authority to ensure proper
implementation of concepts, definitions, coverage, standards etc. and the recommendations
of the Methodology cell.
5.
For better coordination amongst the statistical agencies and to enable statistics play a more
positive role in the decision making process, it is recommended that the DOS should be
brought under the Cabinet Secretariat.
6.
The Collection of Statistics Act, 1953 should be appropriately amended for vesting
sufficient administrative powers with the designated Statistical Authority for collection of
data, with provision for graded penalties for failure to provide information.
7.
The different Ministries & Departments in the Central & State Governments, responsible
for the release, maintenance and storage of data/reports pertaining to their areas of operation
will be subject to the standards set forth by the DOS. It will be mandatory for the
Departments/Organisations to obtain the advice/approval of the DOS for new areas of
statistical activities. This will help to make optimum utilisation of the available resources and
its judicious usage by avoiding possible duplication and ensuring maintenance of standards.
Decentralisation
8.
With the 73rd & 74th Amendments of the Constitution of India, the data requirements of the
local bodies are to be met by extending the already decentralised system of data collection.
72
In keeping with the spirit of decentralisation of power for governance, the statistical system
should now have four-tiers instead of three, as at present. To collect the village level
information, adequate number of statistical personnel should be available at the second tier of
the Panchayati Raj system, viz. the block/tehsil/taluka level. The information collected
should be stored as a manually operated data base at the local level. The work of these
statistical personnel will be supervised by the DSO. who in turn will report directly to the
State statistical authority in the DES/SSB.
Education, Research and Training
9.
The present curriculum at the graduation and post-graduation levels are not oriented towards
the requirements of the official statistical system. As the largest employer of University
graduates, DOS should take up with the Human Resources Development Ministry the issue
of revision of curriculum to provide for teaching and research in official statistics to meet
this requirement.
10.
The DOS and SSBs may arrange for providing practical training to the students of statistics
at the graduation and post-graduation levels.
11.
Appropriate training and retraining programme should be organised keeping in view the
aptitude and background of each category of statistical personnel. However, instead of
giving a general exposure, it is desirable that the requirements of the statistical personnel
working at various levels should be assessed by the training institutes and then job-specific
course content should be prepared so that the participants should be able to perform their
duties efficiently.
12.
The DOS should set up Training and Research Institutes for Official Statistics (TRIOS),
preferably as
Autonomous bodies with Regional Centres, located away from the
Headquarters. The objective of TRIOS would be to:
— provide initial training to ISS probationers;
— organise refresher courses and courses on methodological advance;
— critically assess the quality of official statistics and procedures of data
collection and analysis; and
— carry out applied statistical research of importance to the statistical system.
13.
The Institutes should work in close collaboration with leading statistical research
institutes/societies in India and abroad.
14.
DOS may sponsor critical studies about the quality of data by professional bodies.
15.
Every officer of the ISS must work in the TRIOS for a total period of at least 5 years during
the length of his career, either as a trainer or as a researcher.
16.
There should be an arrangement for ISS officers to participate in the training programmes in
India and abroad.
Data Bases and dissemination
17.
As a part of the effort to improve dissemination of available information, it is desirable to
prepare a set of directories containing information on various reports, results, brought out by
various agencies. Besides listing the type of data available, details about the salient features
of the studies may be included in these abstracts/directories.
73
18.
Computer Technology is undergoing very rapid multi-dimensional changes. To keep pace
with these changes, it in necessary to formulate a global policy regarding continuous
maintenance and upgradation of the software and hardware at regular intervals. In order to
avoid compatibility problems, there should be simultaneous periodic replacement across the
length and breadth of the system.
19.
Keeping in view the technological improvements and down going costs of hardware, a policy
of periodical replacement of equipment with new models having long warranty periods
instead of the annual maintenance contracts is recommended. Similarly contract for
upgradation/changeover to latest releases of software should also form a part of the
upgradation policy.
20.
For operational convenience and to meet the technical requirements, activities such as frame
preparation/automation/updation, sample design/allocation/selection, questionaire designing,
operational control over quality of field work, data linkages between various Ministries etc.
have to be computerised
The DOS at present uses electronic computers mainly for processing of survey data.
Computers should be used for preparing geo-coded frame for first stage sampling units,
sample selection, carrying out simulation experiments to compare effectiveness of competing
sampling schemes, assess the margins of errors in estimates obtained from sample surveys,
graphical representation of information, desk-top publication, publication of CD-ROM and
electronic dissemination of information.
DOS should function as the warehouse of all statistical information collected by the various
Government agencies. The data should be made available to the users throughout the country
with the help of a suitable dedicated network. It would be the responsibility of the DOS to
meet the queries of the users regarding the reliability, method of production and concepts
used by the producers. This will help in proper presentation of the data to minimise the risk
of mis-interpretation and ensure that the data is fit to be used for the purpose for which it is
used.
23.
Adequate training in computers is a prerequisite for successful implementation of the
modernisation process. Use of computing equipments for cleaning of data is one of the major
areas of importance. The experience gained by the large scale data processing organisation
scan be fruitfully utilised for imparting training to the ISS officers & other statistical
personnel. The Group therefore recommends creation of training cells in all the large scale
data processing organisations of the Government..
24.
Results of statistical analysis should be widely disseminated to the users through various
media in the form of both technical and popular articles and other modes of presentation in
an impartial manner, to help the policy makers and other users of statistics, to take
appropriate decisions on various issues.
25.
The DOS should provide the following services to the community of users of statistics:
locate where specific information would be available
assure the users about reliability of the data and pitfalls, if any, in using the data.
Networking of statistical databases
26.
Data collected by various agencies of the government should be maintained and updated by
the agencies themselves in computerised data bases and in accordance with standards set by
the DOS. These data bases should be connected to a computerised network and the DOS
74
should act as the administrator of this distributed database. The statistical network should
connect all the head quarters of the State Directorates of Economics and Statistics, and in
course of time, link all the District Statistical Offices with the DOS.
Capacity Building of the States
27.
The statistical systems of the States need urgent attention for building their capacity to meet
the challenges of more decentralised and yet, responsive, statistical systems. The two key
areas for capacity building would be:
(a) improving the infrastructure especially for computerisation of operations and data
banking, data transmission and sharing; and,
(b) human resource development, including exchange of officers from Centre to States and
vice versa.
Other recommendations
28. Efforts may be made for provision of unique geo-codes to villages/towns for their unique
identification and universal use by P&T, DOS and other organisations. This will not only
facilitate linkage of data collected by various organisations, but also will allow the feasibility of
preparing indicators for any desired region for area planning.
29. For promoting transparency, timeliness and accountability, every statistical agency should lay
down and declare its work calendar.
75
SECTION X
WORKING GROUP 9
Service and Infrastructure Sector Statistics
Summary of Papers
1. Discussion Paper on Modernisation of Statistical System - Transport Statistics Maintained
by M.O.S.T. ( WS 98/ G-9Z 1 ) : M/o Surface Transport Government ofIndia
The paper takes stock of the statistical system for the collection of surface transport data,
identifies gaps in the existing set-up and suggests ways to improve the system.
Data on port statistics from 11 major ports controlled by the Ministry is timely, adequate and
streamlined. However, one data gap or insufficiency in information in port sector identified at
present is with regard to cost of handling containers from user point of view and for port use. To
develop a standard format and to identify source agencies, a TAG has been set up by the Ministry.
Once forms etc. are standardised data will be collected by Transport Research Wing of the Ministry
and will be made available to all after processing etc. The second area in which a data gap is
identified is with regard to data on port equipments utilisation, fixation of its life and disposal of
surplus equipments. The third area of concern is to develop a single productivity indicator to assess
the over all performance in each major port on the lines of construction of Consumer Price Index.
TAG is looking into this aspect also. Data on coastal movement of cargo from port to port is also not
available. In the case of minor ports, the flow of data on various physical and financial parameters
was not adequate and timely.
Regarding shipping statistics, the paper mentions that the data on financial performance of
private shipping companies are not flowing in time. Ministry is making efforts to collect such data.
Regarding Inland water Transport (IWT), the flow of data, coverage timeliness of data etc. are
inadequate except for the vessels maintained by Central Inland Water Transport Corporation. The
data for the IWT vessels run by State Govts, is also not being supplied in time. There is a need to
create statistical cell and strengthen the IWT Directorates in the States/UTs.
The basic road statistics of India brought out annually by Transport Research Wing of the
Ministry, cover maximum road length available in the country. There is a data gap on Rural Roads
which is being bridged by the Ministry , by identifying the agencies/offices in the States, from whom
data can be collected regularly. Road inventory data, alongwith the traffic, are very useful for
planning purpose and the Data base is not proper in the State PWDs. A proposal for establishing a
Highway Management Cell in the Ministry, with Regional set up, is under the consideration of the
Govt, of India. There is a major data gap in respect of passenger and freight carried on road
Transport Ministry is trying to utilise the data collected by NSSO (FOD) through enterprise surveys
regarding passengers and freight carried by private operators for both mechanised and non
mechanised road transport and IWT. However, the paper pleads for an institutional arrangement to
collect, analyse, compile and disseminate the road traffic flow data on a regular basis. Further, there
is a need to have data on each vehicle being newly registered or in case of renewing the permit. In
order to have this data directly from the Regional Transport Offices/Distt. Transport offices of the
States, proper linking of each of them with the Ministry is a must. Similarly, there is a need for
motor vehicle census on similar lines of economic census/censuses of Small Scale Industries, which
could be followed by sample surveys to maintain annual data. The cost for providing information
technology support for flow of information, from RTO/DTOs. i.e. the cost of modernisation by
providing hardware/software etc. may be provided by the Deptt. of Statistics under modernisation of
the statistical system in India.
76
2. Data Base in Housing Sector: Status, Gaps and Development Needs ( WS 98/ G-9Z 2 ) :
\ 'inay D. Lull
The paper highlights the need for having a sound database on housing sector as a result of the
Habitat Agenda. The Agenda identifies major areas for policy and programme implementation with a
goal of “housing for all”. New approaches to attain this goal have been endorsed which include,
among others, decentralised governance and participatory role for all stake holders to replace the topdown approach by bottom up approach in all aspects of assessment of housing needs. This require
the availability of a sound data base on all aspects of housing. Major data deficiencies identified in
the existing datasets are :
• Housing data are household based and are not in terms of housing units.
• Data are classified by housing typologies such as Pucca, Semi-pucca and Kutcha nits.
• Inadequacy of data on access to housing facilities such as water, sanitation, electricity, etc.
• Housing stock produced by some producers such as Housing Agencies and Cooperative Societies
are only available and even these have coverage and timeliness problems.
• Housing Finance Data restricted to public financial institutions and are generally not available at
dis-aggregated levels.
• Inadequate Data base on use of new technology.
Noting that opening up the housing sector to the market forces is expected to increase resources
Bow into the sector, the paper observes that data needs will change entirely. In order to meet the
requirements, a comprehensive data base needs to be developed to take care of the aspects like new
housing stock, upgradation and renewal of housing stock, housing need assessment covering both
physical and financial dimensions. The author opines that this can be met with the following
initiatives:
• UN Habitat indicators.
« Comprehensive Housing Census.
• Participatory approach in data generation and management system involving local bodies in
urban and rural areas, development authorities, housing boards, federations, private sector,
financial institutions, NGOs and training institutes.
® Capacity building inputs both for data generators and users.
® Research Institutions may be suitably strengthened to develop data base.
Some of the policy issues, which need to be examined, are enumerated in the paper.
3.
Statistical Information System on Housing and Urban Infrastructure (WS 98/ G-9/ 3) :
Department of Urban Development, Government ofIndia
The paper stresses the importance of reliable housing and building statistics in order to assess
the housing stock, housing conditions, demand and supply position, employment situation in the
sector and investment requirements for the implementation of housing and urban infrastructure
development. The data gaps identified in the existing system are in respect of:
® Housing construction and its related infrastructure
• Housing in the Industrial sector
• Employment issues in building sector
• Slum development
• Urban Transport
The paper calls for streamlining of flow of data to National Building Organisation by the
establishment of a HOUSENET with State Govts./Municipalities/Housing Boards/PSUs, etc.
Statistical cell needs to be created in each of the organisations dealing wit generation and creation of
data on housing. NBO may be connected with other data collecting agencies through V-
77
SAT/NICNET. There is also a need to vest with some legal authority the data collecting agencies, on
the lines of Collection of Statistics Act, 1953.
4.
Statistical System Modernisation : Housing, Real Estate a nd Service Sector
(WS 98/ G-9/ 3): Aromar Revi, et al.
The paper traces the evolution of statistics on housing, identifies the weak links in the system,
which inhibit objective policy formulation and suggests ways to revamp the existing system.
Population censuses of India has been a prime source for statistics on housing condition since its
inception. A number of inter-censal surveys and data collection systems were also established,
notable among therm being that of the CSO/NSSO, NBO and various State Public Works Deptts,
Housing and Development Authorities. But the data available for use by the policy makers is at least
5 years old and in some cases 30 years out of date. The need for strengthening the State/National
level statistical system for housing, real estate and house hold service infrastructure has been
emphasised by many official documents.
The author emphasises the need to have the housing data at more decentralised levels, even
below district level (which is not available at present) and also inter sectoral information besides
intra-sectoral information. Housing information must be supplemented with information on security
of tenure, adequate space and safety standards, and, provision of adequate environmental, physical
and social infrastructure, for gainful and sustainable livelihood.
Large gaps are observed in this sector in respect of prices of building materials, prices of
developed land in rural/urban areas, various technologies available for construction activity,
availability of skilled/unskilled manpower, source of finance, status of debt and investment etc.
These gaps need immediate attention so that information is made available through surveys etc. for
use by the policy makers.
At present there are three models at macro level currently in use for policy formulation and
investment planning in the sector. The first one used by NBO, the second was developed by
Planning Commission and the third is the BMTPC/TARV model. The present statistical system is
primarily designed to provide partial inputs to fulfil the requirements of NBO model. In other
models, data requirements are still to be met properly. The paper identifies major areas in which
statistics has to be collected
The author notes that development of a fully functional MIS/DSS for housing real estates sector
is a medium-term tasks, designed to be executed over a 5-15 years period. This process, by its
nature, has to be iterative. Initial sequence will include a series of sample surveys, which may be
undertaken by the NSSO and private research agencies. Following the successful completion of this
process, the information may be integrated into larger and regular data collection processes.
5.
Project for Modernisation of Statistical System in India ( WS 98/ G-9/ 5 ) :
Electricity Authority
Central
The paper discusses’the important points to be addressed, while establishing a good statistical
system. These are the following:
(i) In order to avoid duplication of work of manually feeding of data at starting point as well
as receiving point, the latest technology/computer software may be used.
(ii) The data collected should be relatively reliable, timely received, easily understandable
and extent of precision determined.
(iii) Department of Statistics
may improve its efficiency by timely publication of
information, adopting latest information technology.
(iv) To improve the quality of data, a quality cell consisting of officers may be set up in
Ministry of Planning and Programme Implementation for periodical monitoring. The quality
cell should be able to visit the organisations of every suppliers of information to discuss
personally the entire procedure for the latest information already supplied.
78
(v) The use of IS/ISO 9000 series in various orgaanisations may be enforced for improving
the system in the Indian Power Sector.
(vi) Department of Statistics should develop data according to the common needs of, at least,
the big users.
(vii) Central Electricity Authority has developed its own data for ascertaining the future
demand of areas such as industry, agriculture, establishment of business centre, population
growth and establishment of Airports/marine ports etc. Deptt. of Statistics should look into
the aspect of duplication of work, that can be eliminated. The role of Central Electricity
Authority is important in respect of future planning in setting up of Thermal/Hydro/Nuclear
Power Stations.
6. Status Paper on Tourism Statistics ( WS 98/ G-9Z 6 ); D/o Tourism
The paper takes note of the contribution made by the tourism sector to the economic
development and stresses the need for having information on the socio-economic, environmental and
cultural impact of tourism on a continuing basis. Broad-based statistical infonnation is an
indispensable requirement at each step of national planning for tourism marketing and investment
decisions.
The various items/aspects on which tourism data are collected include, among other things, (1)
International Tourist arrivals (2) Statistics of duration of stay (3) Profiles of foreign tourists (4)
Estimates of Foreign Exchange (5) Statistics of Indians going abroad, (6) Domestic Tourist statistics,
(7) Profiles and Expenditure pattern of tourists, (8) Hotel statistics, and (9) Statistics of Economic
Impact of tourists.
Some of the major data gaps in the statistical system are identified as (1) statistics of non
resident Indians, (2) statistics of Indian going abroad (3) tourism marketing (4) domestic tourist
statistics (5) supply statistics (6) economic statistics and (7) environment and social statistics. The
paper calls for these gaps to be filled up, keeping in view the importance of this sector.
7. Modernisation of Statistical System: A Status Paper (WS 98/ G-9/ 7): Ministry of Power,
Government of India
The paper identifies the data requirements for the Power sector, lists the constraints in the data
collection/dissemination and suggests ways for evolving a user-friendly information system.
Important areas of data requirement have been highlighted in the paper as assessment of energy
requirements of area, optimal utilisation of available load and management thereof, transmission and
design issues, and energy shortage analysis. The source agencies have also been identified.
Constraints in data collection and dissemination are identified, as follows:
• Data dissemination from different sources is not consistent.
• Formats for data collection are not standardised.
® There is a need for simplifying and standardising technical details for policy makers.
• There is no formal procedure on power position status reports from States to the Centre to
facilitate development of an authentic countrywide inter-linked data base.
Various components of establishment of user-friendly information system have been identified in
the paper, as follows:
• To start with, State-wise data be defined, specifying present and projected energy requirements,
energy shortage, sector-wise capacity - additional, present and conceived, etc.
• Data monitoring system be stepped up from the local distribution level and integrated, for
supplying level-wise filtered data details in the hierarchy of monitoring.
• System should be devised such that the data on availability of inputs for setting up of power
project is made available, along with all commercial implications.
79
8. Modernisation of the Statistical System - A Status Paper for Railways (WS 98/ G-9/ 8):
Ministry of Railways, Government ofIndia
The paper discusses the current status of data management in the Indian Railways (IR), identifies
the problem areas in the existing set-up and suggests steps to overcome these shortcomings, by the
use of modern information technology and rationalisation of data gathering methods. In the present
system, the data is collected in a dynamic environment and transited through a hierarchy, consisting
of functional Units, Zones and the Railway Board. Around 650 returns are received at various
frequencies and these add up to more than 4000 returns in a year.
Major problems in handling this data have been identified as:
Existence of too many reports, some of which are redundant, lack of accuracy,
(i)
adequacy and timeliness.
Un-structured formats.
(ii)
(iii)
No proper mechanism to transfer the data into information, for providing access to
other users.
Information sharing is practically non-existent.
(iv)
The paper advocates switching over from a predominantly manual system to a modern
computerised system of electronic data exchange between IR and outside departments/agencies/end
users. Indicating the additional data requirements of Railways, the paper identifies the following
areas for improvements:
• Rationalising data gathering methods and simplification of forms and procedures.
• Streamlining procedures and making the information more timely and reliable.
• Coordinating data gathering/sharing activities with responsible private organisations like FICCI,
CII, etc., to avoid duplication of data and providing wider access to all users.
• Benefiting from advances in Information Technology by strengthening the nodal institutions like
NIC, simultaneously, strengthening statistical wings in Ministries/Departments in terms of both
men and material, to cope with their enhanced roles.
• Human Resources Development measures for enhancing the skills of staff at all levels.
9.
Modernisation of Postal Statistical System: A Status Paper (WS 98/ G-9/ 9): Department of
Posts, Government ofIndia
The paper takes stock of the present status of postal statistics, the problem areas and the
emerging needs of the Department and suggests ways to revamp the existing system. Important areas
of Postal Statistics being maintained and analysed, include (i) un-registered traffic (through halfyearly surveys) (ii) average resource of postal articles (iii) foreign Airmail and surface mail traffic,
and (iv) registered traffic etc.
Problems faced in the collection of data etc. are the absence of the statistical units in the field
and lack of qualified statistical staff.
The paper gives the following suggestions to strengthen the statistical system for collection
of reliable and timely data".
• To provide qualified statistical staff/officers at least in major postal circles.
• To strengthen the statistical section in the postal directorate.
• To introduce latest technology for enhancing the productivity.
• To train field level staff.
10. Suggestions for improvement of Transport Statistics : L.C.Mahajan, ITC Consultant, New
Delhi.
The paper highlights the data gaps in Road Transport Statistics and suggests measures for
improving the situation. According to the author, almost 95% of passenger and freight movement in
the country is by Rails and Roads leaving only a miniscule 5% for Airways, Inland Water Transport,
Shipping, Pipeline, etc. Again, between the Rails and Roads, the ratio of traffic carried by the two
80
stands at 40:60, as compared to 80:20, some years ago. As such, roads have emerged as the prime
mover of traffic in the country.
Due to their centralised set up, generation of statistics in railways, air transport, shipping, inland
water transport, pipelines, etc., is adequate. However, the generation of statistics for Road Transport
is far from satisfactory, except for the public sector undertakings. This is so, because Road Transport,
particularly Goods Transport, is mostly in private sector and characterised by illiterate truck
operators. For proper planning and development of road transport, it is necessary to have adequate
data, for which such gaps need to be filled up.
The Transport Statistics in India gets generated as a by-product of the administration of the
Motor Vehicle Act, 1994. The author suggests proper enforcement of provisions of the Act relating
to maintenance of Log Books and their submission by the truck operators to RTOs, as an effective
means to fill up the data gap. He suggests a simplified version of Log Book, having all the necessary
details. Such data collected from the Log Books from the sample truck operators could be used to
estimate different population parameters. The author also suggests proper processing of such data at
District Statistics Offices before sending to Directorate of Economics and Statistics, Ministry of
Surface Transport and Central Statistical Organisation.
’ll. Statistical System in India - Limitations, Data Gaps and Strategy for Improvement:
Subhajit Mitra, SAIL, Ranchi.
Emphasising the need for an adequate data base on socio-economic statistics for growth-oriented
planning, the author identifies the limitations existing in the present set-up. He states that the system
is beset with problems arising out of lack of a holistic approach to the entire process of data
generation and dissemination at different levels of dis-aggregation, differences in data from different
sources, changes effected over the years for same kind of study, irregularity in frequency, etc.
To overcome such problems, the author suggests an integrated approach for improvement of the
system. The strategy suggested by the author covers both data collection and its dissemination. For
data collection, he suggests that data points may be divided into organised and un-organised
segments. Data requirement should be determined through massive nation wide surveys and, for the
organised sector, ’fill- the form' method could be followed. For the un-organised sector, he suggests
that the usual effort by the Government be further supplemented by NGOs. In order to gain from the
activities of the innumerable organisations engaged in data collection of different types, he suggests
that their compilation should be mandatorily given to the Central Statistical Organisation.
For data processing, the paper suggests that all the data collected should be stored at a central
place, which should be linked through NICNET to various institutions, individuals, organisations,
etc., having interest in such data, to enable real time availability of data to various users on payment.
Data bases at centralised places need to be developed sector-wise and such data bases need to be
updated regularly. Customised data processing could also be attempted using common statistical
packages.
Report of the Working Group 9
In the sessions of the Working Group on 14 - 15 September 1998, only four papers were
presented and based on these deliberations, a report was presented at the plenary session on 16
September 1998. As it was felt that some more discussions would be useful, the Working Group(
See Annexure-II for details) continued its deliberations by meeting three times on 5th, 9th and ZS”
October 1998 and based on the discussions, the final report has been prepared.
The two sectors considered by the Working Group, namely, Service and Infrastructure sectors,
are vital sectors of the economy and are diverse in scope and nature. Data on infrastructure sector is
important due particularly to the increasing role of private investment/foreign investment. As for
1 Papers 10 and 11 of this section were received in response to the advertisement calling for essays on
suggestions for improvement of the Statistical System
81
tourism, it is primarily a foreign exchange earning sector. Housing is a basic-needs sector.
Construction, including housing, is a labour intensive sector,
Data gaps, data requirements and
importance of modernisation of the statistical system in respect of these sectors have, therefore, to be
perceived in the light of the backward and forward linkages of these sectors among themselves, as
well as, with other sectors and with reference to the macro perspective and in order to be able to
capture their contribution to capital formation and national accounts. Data generation has to
encompass rural and urban sectors, formal and informal sectors, small and large sectors and public
and private sectors so that disaggregated accounts can be built up at these levels.
General Recommendations
1.
A large amount of data is being collected in these sectors by the Government and other agencies.
The available data can be broadly classified into four categories namely (a) administrative
statistics collected by respective Ministries/Departments, (b) information flowing from
implementation of projects (c) survey data of NSS and National Accounts Statistics and (d)
specialised studies for specific purposes. There is a need to prepare an inventory for the available
data and evaluate it in regard to coverage and reliability, and with reference to requirements for
policy and research.
2.
Focus should shift from statistical description to statistical inference, where the analysis should
be directed towards describing and interpreting a whole class of phenomena, of which
information collected is merely a sample.
3.
There is a need for strengthening data base on Socio-Economic Statistics for growth oriented
planning through a holistic approach to entire process of data generation and dissemination at
different levels of dis-aggregation and harmonisation of data from different sources collected in
different years, with due consideration for regularity in frequency, etc.
4.
An institutional arrangement needs to be developed for ensuring data sharing among various
Ministries/Departments to avoid duplication of efforts. There should be an on-line and integrated
system of data generation by all Ministries and Departments to maximise their collective efforts
in this regard.
5.
To ensure general awareness of the availability of different types of data in these sectors, the
possibility of putting up all relevant published data on web sites/ electronic media can be
examined. It will be useful if the schedules and questionnaires used in the surveys are also made
available on the website.
6.
The interaction between Government and private sector must increase as we gradually move
towards indicative planning. Private organisations/ bodies like FICCI, CH, ASSOCHAM, TERI,
SDS, etc. are generating substantial data/ information. It would be advantageous to effect co
ordination with such bodies for widening the purview of dissemination of information.
7.
With increasing private sector participation in major infrastructure sectors including transport,
power, etc., modernised statistical system must put in place a mechanism whereby data from
private producers is integrated with those of data producers in the government for getting a
holistic national picture. The governmental agency could be the nodal agency for collection of
data for this purpose.
8.
There is need to standardise the data collection system and the Department of Statistics should
play the role of guiding, supervising and acting as an overall coordinating agency among Central
Ministries and States for building an effective dissemination system. In this connection, inter
departmental coordination is to be strengthened.
82
9.
Feasibility of collaborative studies between government and non-governmental/ research
organisations may be looked into. Modalities of participation of non-governmental organisations
in data processing and dissemination could be examined. Quality of data and standardisation of
concepts should be the main concern and it is to be addressed by the DOS.
10. It is important to recognise that data should meet the requirements of diverse user groups
including those outside the government e.g. the foreign investors, private sector, financial
institutions, consultancy firms, etc.
11. Data quality and standardisation would have to be an iterative process, keeping in view the
sensitivity of data errors to the end users.
12. To improve the accessibility to and efficiency of statistical system, it is necessary to ensure
conformity/compatibility of hardwares and softwares used by statistical wings of different
Ministries and Departments, which need to be further strengthened in terms of men and material
and modernised to cope with their enhanced roles, so as to derive maximum benefit from
advances in Information Technology
13. There is a need for harmonisation of data collection by various Departments / Organisations on
the same subject, so that there is consistency of data from different sources.
14. Training of field staff for surveys is of primary importance.
15. Government Publications bringing out data on important sectors of the economy need to be
timely and regular.
16. In order that data collection system comes up to quality standards, possibility of a suitable
legislation to make it legally binding on the respondents to cooperate with the system in
collection of statistics could be examined.
Specific Recommendations
Railways
1.
For concurrent monitoring of the performance of railways and its role in transportation of
selected bulk items like coal, cement, fertilisers and iron & steel, while their production figures
are obtained from concerned ministries, timely availability of figures pertaining to their
import/export is also to be ensured. Annual production of important items like food grains,
mineral oil (POL), iron ore, limestone & dolomite, sugar, gypsum, manganese ore, sugarcane,
salt and non-ferrous metals besides information on level and changes of inventories is necessary.
2.
To facilitate comparison of costs of movement by alternative modes of transport, data on facet
wise unit cost of movement of goods and passenger traffic by other modes of transport namely
roadways, airways, coastal shipping, inland waterways, ropeways and pipelines in terms of per
passenger km. and per tonne km. would be useful. Other Statistics in respect of alternative
modes of transport which are needed include those on physical assets, performance indicators
and operating ratios.
3.
For railways to perform a useful role in promotion of business in the country, basic information
on domestic tourism and inbound international tourism is needed. This includes mode of
transport (private/public/chartered)(air, rail, road) used by tourists, new tourist destinations, and
83
origin/destination profile of inbound international tourists, operation of travel intermediaries,
etc.
Transport
(i)
Inland Water Transport
The data gaps in IWT are in respect of number of vessels operated by the State Governments
and private companies with valid certificates by type, number of passengers carried and fare
collected, volume of cargo carried and freight collected, and income and expenditure from IWT
operations. These data are required in the context of inter-modal transport, least cost options of
travel /carriage of goods, energy efficiency and relieving congestion of traffic on rail and road. It
also helps regional development through the forward and backward linkage effects with the
development of IWT.
(H)
Road Data
There is duplication or under reporting of data on rural roads due to multiplicity of agencies
involved in rural roads construction and maintenance programmes under various centrally
sponsored employment oriented / poverty alleviation programmes. There is need for road
Inventory Data. Data gaps also exist in respect of Traffic Count surveys on State Highways,
major District Roads and other District roads. Road data at District level in different categories of
roads especially on NH, SH, MDRS and ODRS are required for better development of roads,
which could carry multi-axle vehicles, fast moving traffic, etc..
(Hi)
v National Highways:
The existing data formats and collection methods are not conducive to quick computerised
analysis. The data required to be collected are road inventory data, traffic count data and data on
socio-economic characteristics.
(iv)
Road Transport Statistics
There is no institutional set up to collect the data on passenger km. (PKM), freight tonne km,
physical and financial productivity indicators, age of the vehicle, occupancy ratio, manpower
employed, km per litre of diesel/petrol consumption, revenue and expenditure, ownership pattern,
financial arrangements etc. for both passenger and freight traffic by road transport. No data is
available for non motorised road transport. Enterprise survey of NSSO on transport covers only
if the transport mode is operated as an enterprise. These data are required to determine and plan
the multi-modal transport, cost effectiveness of transport, energy efficient mode of transport, etc.
Some initiatives for effecting improvements are:
(i)
The NSSO may arrange to collect data on expenses incurred by the individuals as well as
households on travel expenses for local trips such as for office going, marketing, school,
business, etc; on buses, taxis, cars, two-wheelers, three-wheeler scooters, etc; the trip length,
travel outside the living city for purposes of pilgrimage, social, business, etc; by different
modes of transport; length of travel; trips in a month, quarter, six monthly, annual, bi-annual,
etc; local transportation of goods within the city, within the State, inter-State, type of
commodities carried, lead and load, etc.
84
(ii)
Department of Statistics may take up with State Governments to create a single agency for
planning and execution of rural roads and appoint a nodal officer to help/liase with various
agencies in the states for information.
(iii)
Relational Data Base Management Systems (RDBMS) may be developed.
(iv)
Data base needs to be linked with spatial data through Geographical Information System and
On-line Management Information System.
(v)
There is a need for procuring data acquisition equipments, computer hardware and software,
acquisition of a library of satellite images, digitised net work maps, etc.
(vi)
Collection of Transport Statistics in Enterprise Survey by NSSO should be done in
consultation with Ministry of Surface Transport so that their requirements may be met.
(vii)
State Governments may be requested to make it mandatory on motor vehicle registering
authorities at RTO/DTO level to collect the data in the format that could be designed and
transmitted to Transport Commissioners of States/UTs to be passed on to MOST. Data covered
would be registration of motor vehicles, issue of driving licences, permits, tax tokens, passenger
km and tonne km.
(viii)
Inter-connectivity among RTAs/DTAs/STAs and Transport Commissioners of States/UTs,
Ministry of Surface Transport, National Crime Record Bureau and Police Deptts. of States/
UTs with other RTAs/DTAs/STAs and Transport Commissioners of all the States/UTs.
through use of common format under common computer platform will enable regular flow of
data. Apart from collection and dissemination of operational data, it will enable the Police
Departments to trace easily the motor vehicles involved in accidents, hit and run vehicles, theft
of vehicles and crimes committed using motor vehicles. It will also enable the Transport
Departments of States/UTs to prevent procuring driving licenses from different
RTAs/DTAs/STAs once a license is cancelled, streamline the issue of National and State
Permits and curb revenue losses to the Transport Authorities due to non-payment of Motor
vehicle taxes, fees, etc., through falsification of documents. Such problems to some extent
may be solved by giving a unique identification number to individuals.
(ix)
There is a need for proper enforcement of provision of the Motor Vehicle Act relating to
maintenance of Log Book and its submission by the truck operators to RTOs. Moreover there
should be a simplified version of Log Book having the necessary details. Such data collected
from the Log-books from the sample truck operators could be used to estimate different
population parameters. There is also need for proper processing of such data at District
Statistics Offices before sending to Directorate of Economics & Statistics, Ministry of Surface
Transport and Central Statistical Organisation.
Power
The following constraints have been noted in data collection and dissemination:
(i)
The format for data collection and interpretation varies in different States as, for example on
the data determination on transmission and distribution losses.
(ii)
Data dissemination from different sources is not consistent, as no standard practice is being
followed.
85
(iii)
There is need for a formal procedure on reporting on power position from States to Centre to
develop an authentic country wide inter-linked data base.
(iv)
Data monitoring system has to be stepped up from local distribution level and integrated
from supplying level-wise filtered data details in hierarchy of monitoring.
(v)
Necessary arrangements have to be made for direct dissemination of data from Power
generating units to the Central Electricity Authority.
Energy
Taking the energy sector in a broader perspective, a number of data deficiencies exist and there is
scope for improvement. The major gaps are :
(i)
Basic indicators from primary energy data have to be developed .
(ii)
Trends of key energy utilisation have to be worked out.
(iii) In the emerging scenario of private sector participation in energy, special channels of collecting
and compiling information for both government and private sector have to be put in place.
(A) Energy Demand
(a) Agriculture
(•)
Crop wise energy consumption statistics (mainly power and fuel consumption) classified by
agro-climatic zones have to be updated on a regular basis. The available information is only for
a few States for 1985-86 based on surveys carried out at different State Agricultural Universities.
(ii)
Contribution of different energy sources to power, farm activities, both human / animal and
mechanised (tractors, tillers, diesel and electric engines) is last available for 1991-92 and only at
the All India level. This needs regular updating.
(iii)Details on change in the level of mechanisation in farms (number of bovine, tractors, power
tillers and diesel/electric engines) at the State level are available at intervals of a decade now.
The source is the NSSO, land and livestock surveys. These ought to be carried out at shorter
intervals. Apart from the statistics on population, the information on size/life of the farm
equipment, utilisation levels in different seasons etc. is essential to work out consumption of
energy in agriculture.
(b) Industry
(i) Most recent information on energy consumption by fuel type for major energy intensive sectors
is available for 1994-95 from several sources - surveys by TERI, publications of respective
industrial/manufacturers organisations, CII, FICCI, energy audit reports of BICP etc. Attempts
should be made to update this information on a regular basis. TERI's Energy Data Directory and
Yearbook serves the purpose to a certain extent; it will be very useful if an attempt is made to
bring out a comprehensive statistical document on a regular basis.
(ii) Data on number and type of machines/equipments installed, efficiency, utilisation pattern in
energy intensive industries such as steel, cement, fertilizer, aluminium, pulp and paper are
needed.
86
(c) Transport Sector
(i) There is need for continuous information on total motorised vehicles in use, at disaggregate
(state/city) level and also of the corresponding model split. Now, number of registered vehicles
is often used as proxy.
(ii) Comprehensive information on fuel efficiency and number of trips made, utilisation levels have
to be updated regularly.
(iii)There is need for data on vehicular stock, life and vintage.
(d) Domestic Sector
(i) Fuel consumption (both traditional and commercial fuels) etc. of the State level with rural-urban
break up has to be collected on a more frequent basis and at more disaggregated levels.
(ii)
Additional information on appliance ownership pattern, usage pattern, stocks, life and
efficiency could be gathered alongside.
(B) Energy Supply
(a) Coal
(i) Coal mines should have a site on the Internet.
(ii) Data on supply to small industries like glass, brick kilns etc. and to the domestic sector should be
comprehensive.
(iii) There should be uniformity in calculation of various operating and performance parameters like
OMS, PLF, plant availability.
(iv) Data from private sector mines should be published.
(v) Data on physical values of environmental degradation, deforestation, air and water quality as a
result of coal mining should be made available.
(vi) Data has to be compiled on the cost or expenditure towards back filling in open cast mines,
afforestation and monitoring of air and water quality standards in coal mining areas.
(b) Power
(i) Publications like the General Review, Thermal Review, Hydel Review brought out by the CEA
should be upgraded in their timeliness.
(ii) Data from different sources like annual reports of SEBs, CEA etc. need to be harmonised and put
on the Internet.
(iii) Data on nuclear power generation should be compiled.
(iv) The formats used by SEBs for annual reports should be made uniform.
(v) Differences in figures on rural electrification provided by REC and SEBs have to be sorted out.
87
(vi) Separate tariff notifications are brought out by SEBs, which need to be collected by a central
agency like the CEA.
(c) Petroleum and Natural Gas
(i) Data on field-wise crude/natural gas production in the country, configuration of reserves and
refinery-wise by-products have to be made available, besides refinery processing data and sector
wise / product-wise consumption figures.
HB8I
(ii) Regular publication of fuels and petroleum products will be useful.
(iii) There is need for data on types of crude oil being imported into the country, their sources, quality
etc.
(d) Renewable Energy Technologies (RETs)
(i) While official statistics are available on the progress with respect to installation of renewable
energy devices, such as bio-mass gasifiers, improved cook stoves, bio-gas plants, solar and
thermal systems, SPV systems etc, there is also need for follow up information on how many are
in operation and how effectively they are functioning.
(ii) Data base on bio-mass energy, mainly fuel wood and agricultural residues, has to be
strengthened. The existing data on straw-grain ratios, storage volumes are outdated. There do
not seem to be major detailed studies on fodder and non-fodder crops. An appropriate
methodology and sample selection for estimation of bio-mass is important.
(iii)There is need for data on consumption of bio-mass in small sector industries, such as bricks
making and food processing, etc.
Housing And Construction
(i)
Classification of data on type of houses, specifically by the material used in roof, wall & floor
and on age structure, is important for estimating replacement, maintenance and upgradation
requirements. There is need for data on building ownership and use pattern, tenure
arrangements, building materials and construction quality.
(ii)
Data is required not only to manage and monitor but to inform public policy, design
programmes, regulate land markets, private roadways and industry and to examine cross
sectoral linkages with national income, poverty, employment, land and natural resource
management and finance. Housing data is needed at more decentralised levels even below the
district level.
(iii) Gaps in the data system have to be analysed in the context of process inputs to housing namely
building material, labour, investment and finance. Reliable data on building materials prices,
labour wages and costs of new building may be generated.
(iv)
Data on production of housing stock is inadequate and largely restricted to public housing
programmes.
(v)
There is need for micro level type studies to be taken up in the areas of serious data gaps in
housing stock to supplement the information already available. Availability of data on all the
specific inputs going into the housing stock should be examined for its completeness.
88
(vi)
Data on capital formation in housing is required separately for formal and informal housings.
(vii) There is a need to develop a data base on financial flows in the housing sector from various
sources including HFIs, Public agencies and households.
(viii) Data are needed on access to housing services not only in terms of connectivity but also
effective access, quality and frequency.
(ix)
Data base on informal settlements should be developed.
(x)
Linking the collection of Housing Statistics with basic requirements like availability of
adequate water, sanitation, sewerage is to be examined. Though the data collection is to be
guided by local needs, consideration of international comparability may also be looked into.
(xi)
The possibility of a comprehensive Housing Census may be examined and required steps
taken.
(xii) The National Building Organisation collects data in respect of construction activities/projects
costing Rs. 50,000 and more through specially designed schedules/formats through local
bodies who are supposed to send the information to State Directorates of Economics and
Statistics to be transmitted to the NBO. But the response is very poor from all the States. The
Organisation often faces problem in regular flow of data from States who always complain
about lack of resources and manpower. In order to streamline flow of data to the Organisation,
it is necessary to strengthen the institutions like DES/Municipalities/housing Boards/PSUs with
suitable manpower and infrastructure. They may be connected with HOUSENET/NICNET to
the NBO to enable transmission of data on-line.
(xiii) There is need to make special efforts to collect data on construction activity through special
surveys, as the availability of data on construction, particularly in un-organised sector, is weak.
(xiv)Important data on housing activity in industrial sector is collected through Part-Ill of the
schedule used for Annual Survey of Industries. Considering the importance of the data and the
fact that no other viable source of information is available, it is necessary that Part-Ill of ASI
schedule is not discontinued, as the Department of Statistics is reportedly planning.
Communications
There are two major Departments of Govt, of India in communication services, viz. Department
of Telecommunications and Department of Posts. The Department of Telecommunications has a very
good statistical system, equipped with necessary hardware and software. The Department of Posts
also has a more or less satisfactory system for generation of necessary statistics for their use. But
some streamlining and further strengthening is necessary, which include the following:
(i) The estimated unregistered traffic based on results of half yearly enumeration of 28 days in
general is on the higher side, keeping in view the revenue earned from these articles. As such
when the same is adjusted to the revenue earned, the traffic so arrived at is usually on the lower
side. Hence, some sort of rationalisation is desired to make the estimate of traffic more reliable.
(ii) The system in Department of Posts needs to be strengthened for ensuring collection of reliable
and timely data. There is absence of statistical units in the fields i.e. in circle offices, which
results in delays and improper understanding of statistical terminology. There is, therefore, need
to provide statistical staff at least in major postal circles and the Postal Directorate, besides
introduction of Internet etc.
89
(iii)At present, the contribution of Telecom Sector is reflected in the form of telecom traffic and
revenue generated by the Department as a part of the service sector. However, the contribution
of the other vital telecom organisations, which form a substantial part of the telecom sector's
activity viz. Indian Telephone Industries (1TI), Hindustan Teleprinters Limited (EITL), Telecom
Factories, Videsh Sanchar Nigam Limited (VSNL), Telecom Consultants India Limited (TCIL),
etc., have to be reflected in the performance and contribution of the Telecom Sector in National
Accounts.
(iv) Information relating to expenditure on uses of Postal Services and subscription to Telecom
services may be collected separately in Consumer Expenditure surveys of NSSO. Information
on use of home computers may also be collected in these surveys.
Tourism
A sound data base on Tourism is necessary, considering the growing importance of the sector.
Reliable data are necessary for perspective planning, evolving marketing strategy and facilitating
investment decisions in the sector. Some statistics are available/generated by the efforts of the
Department in respect of international tourist arrivals, their profile and duration of stay, estimate of
foreign exchange earned, Indians going abroad, domestic tourist visits, hotel statistics and economic
impacts of tourism. Yet, serious data gaps are there in respect of many important areas. These relate
to statistics of non-resident Indian visits, Indians going abroad, profile and perceptions of
international tourists for developing of marketing strategies, domestic tourist visits, supply factors,
economic benefits and environmental and social impacts. There are some surveys, which are useful
in collection of such statistics. They need to be made more regular and effective besides
incorporating questionnaires relating to tourism in the surveys like Consumer Expenditure Survey of
NSSO. More specifically, the following suggestions are made:
(i)
Statistics pertaining to tourism now come only as a part of the passenger traffic between
India and other countries. However, as per UN definition, visits of Indians settled abroad should
be taken as of tourists, so long as other conditions of duration of stay etc., are satisfied. Since
these travelers form a substantial segment of passenger traffic to India, a system needs to be
introduced to assess the exact volume, distribution, periods of travel etc.
(ii)
There is no data available on the destination, purpose and duration of visits of Indians going
abroad. These details are extremely important to understand the phenomenon and for assessing
capacity constraints of the airlines and other issues. The International passenger survey taken up
during 1997-98 has for the first time included Indians going abroad also in the survey. These
surveys need to be conducted on a regular basis.
(iii)
Reliable data are needed on market trends, demographic and psychographic profiles of
tourists alongwith their motivation, buying habits, perception and experiences. Foreign tourist
survey constitutes an important source of data on these aspects. These surveys have, therefore,
to be conducted every year.
(iv)
The present system of collection of domestic tourism statistics is fraught with several
deficiencies in terms of methodology, coverage and collection procedure. The statistical
reporting system of occupancy statistics by the accommodation units needs to be streamlined and
should form part of regular statistical reporting system of State/UT Governments.
(v)
In order to plan tourism infrastructure facilities, it is also important to note the existing level
of various infrastructural facilities and their utilisation. Though the Ministry of Tourism
maintains the list of approved accommodation units and travel information, it does not have
90
information on such units which are outside the approved category. A registration system of
hotels, restaurants, travel agents, tour operators, tourist transport operators, souvenier shops and
other tourist related activities needs to be introduced.
(vi)
Statistics of economic contribution of tourism are generally not available except for the
estimates of foreign exchange earnings from tourism available from the RBI. In the case of
domestic tourists, the data available on expenditure pattern is very limited. NSSO should collect
information through the consumer surveys on expenditure on tourism activities separately with
the details of travel undertaken by the sample households. The system of National Accounts
statistics also needs to be revised to estimate the economic impact of Tourism. It would involve
the adoption of Standard International classification of tourism activities in the survey of
industries and service establishments and the tabulation of such data separately for the units
classified as tourist activities.
91
SECTION XI
Papers Received in Response to the Public Advertisement
1. Suggestions to Improve the Efficiency and Utility of Indian Statistical System : NM
Swamy
In this paper the author identifies some of the gaps in the existing statistical system and offers
suggestions for improving the credibility of the system. As the concept of sustainable development
acquires momentum, the author opines that CSO should develop a set of indicators for sustainable
development and evolve standards and concepts in this area. Regarding agricultural statistics, the
paper points out that the sample check programmes on page totalling and area enumeration can be
dispensed with considering the limited use of the data generated and the sample check on yield rates
can be carried out once in 3 or 5 years. Instead, sample checks on fruits, flowers, etc. can be
conducted.
With regard to Industrial Statistics, the paper calls for amending the Collection of Statistics Act
1953 to cover all non-agricultural activities. ASI schedule needs to be simplified with separate
schedules for corporate sector and non-corporate sector. The census sector needs to be redefined to
cover factories with 200 workers or more and sample non-census sector needs to be modified. The
author proposes that data collection for IIP may be entrusted to NSSO.
Regarding National Sample Survey, the paper calls for (i) coverage of new and relevant subjects;
(ii) simplification of survey schedules; (iii) separate samples for different schedules of a round; and
(iv) use of computers at the field level.
The paper also contains suggestions for improving the price statistics and social statistics. There
is a suggestion on commercialsing the data collection operation by undertaking collaborative
ventures with the private sector. The author also suggests use of modern information technology to
improve dissemination of official statistics and increase the accessibility for data users.
2. Improvement of Indian Statistical System- Views and Suggestions : K R Debnath
Emphasising the need for the Statistical System to gear itself to face the dawn of the new
century, the paper calls for strengthening the capabilities of the system and make it more userfriendly. As there is a need to remove the major data gaps in areas relating to infrastructure, micro
level activity, living standards and social justice, production and HRD, there is a requirement for
conducting new surveys and increasing the frequency of Economic Census and Follow-up Surveys.
Recognising that timeliness and quality are very important, the paper calls for rationalisation of
survey schedules, streamlining the supervision mechanism, use of sophisticated techniques to tackle
non-response, etc., improved HRD and use of computers to make improvements. The author notes
that there is inter-state capability gap in relation to statistical development and calls for initiation of
programmes by the CSO to bridge the gap.
The paper recognises*the need for replacing some methodologies currently followed in various
surveys with cost-effective, time saving new techniques and in this respect calls for fruitful
interaction between academics and official statisticians. The NABS may be activated to provide
better guidance for standardisation of concepts and methodologies.
With ever increasing need for data, the author opines that govt, would find it difficult to cope
with the demand on its own and calls for greater participation of private sector under the captaincy
of DOS, greater integration of scattered know-how, closer interaction between producers and users
of data, modernisation of the system and better HRD for the personnel.
3. Suggestions for Improvement of Indian Statistical System : R KSen , Calcutta
The paper identifies the data gaps in the existing statistical system, emerging areas of statistics
and suggests steps to improve the set up. The gaps have been identified to exist in the areas of
92
environment statistics, consumer expenditure data from the NSS, labour statistics, HRD, health
statistics and post-project evaluation data. The author calls for making public the methodology of
published data in order to make the data series transparent. There is a need to educate the public
about the data compilation. To improve the quality of data, the paper calls for greater coordination
among various public departments and with private organisations and avoiding computation of quick
estimates. In order to implement the suggestions made, the author proposes formation of a technical
body for coordination and inviting suggestions from the public.
4. Suggestions for Improving of Indian Statistical System : Anjali Chavan, Bhopal
The paper lists the important limitations of the system and suggests steps to improve the
situation. Lack of coverage of production of fruits, vegetables and inadequate coverage of the SSI
and cottage sector, surface transport, consumption and labour statistics need to be addressed
immediately. Lack of motivation on the part of the field staff and their inadequate training affect the
quality. A lot of data collected are not tabulated resulting in waste of resources which needs
correction. A public awareness programme has to be launched to educate the public on official
statistics. The paper points out that there is no uniformity in collection, compilation and analysis of
data and calls for standardisation in these areas. There is a need for grater coordination between the
central and state statistical organisations and effective liaison between official organisations and
universities/research institutes. The author suggests involvement of NGOs/ Voluntary organisations
in the activities of the system
5. National Statistical System : A K Verma, SDRD
Pointing out that the present National Statistical System is not properly organised and
coordinated, the author calls for converting the present data base to a National Data Base. In order to
streamline the system, the paper suggests the following steps:
(i) Formation of a National Council on Statistics on the lines of Prasar Bharati Board to
formulate overall policy, ensure periodic audit of the system and ensure coordination.
(ii) Constitution of a Methodology Research Bureau to evaluate the existing methodologies
and evolve new methodologies.
(iii) Formation of a National Statistical Standard Bureau to provide certification for
statistical methodology and processing.
(iv) A National Data Bank under DOS to function as a data dissemination centre.
(v) A National Statistical Training Academy under DOS to train statistical personnel.
(vi) Better management of system to ensure compatibility between man and machines.
(vii) Constitution of an All India Indian Statistical Service.
6. Suggestions for Improvement of Indian Statistical System : K G K Subba Rao
This paper identifies the problem areas in the compilation of NAS, compilation of the NSSO
data, coverage of the unorganised sector and suggests ways of overcoming these lacunae. With
regard to implementation of SNA 1993, the paper points out that the NPISH data is non-existent,
estimates of physical assets of the HH sector is fragile and source of data for capital formation is old.
The revised series of national accounts are released with a time lag of 7-8 years after the base period.
These issues need to be immediately addressed.
There is a need for pooling the estimates of central and state samples of the NSS. With the
increased demand for data at the district level, since the NSS sample is not sufficient for that purpose,
the states may have to increase the state sample size. There is a need for compiling rural and urban
retail price indices, for different States and All-India. Surveys for evolving methodologies for
measuring HH income should be continued.
Organised sector data collection also needs fine-tuning in the era of liberalisation. Some of the
areas like access to overseas funds, use of overseas funds need to be covered.
93
The paper makes a case for restructuring the survey schedules and introduction of strict quality
checks in data processing to improve the quality of final results. Other steps suggested to improve
the system include release of priority tabulations, compilation of long-term time series and conduct
of sample surveys in areas where traditional data collection mechanisms have broken down.
7. National Statistical System-A Case for Reengineering : C 5 Arora, New Delhi
The author takes a incisive look at the National Statistical System as a data provider for the
illumination of various socio-economic and demographic problems rather than lending data support
to the government. The author opines that the system should transform itself into a catalyst for
channelling the national data into really useful information.
Though the existing system collects and disseminates a lot of data for the state machinery, the
author notes that the system should provide all statistics based on which the government itself can be
judged. Only then will it be able to provide illumination on the state affairs, not just the support to the
govt.
The present system is decentralised involving large number of statistical organisations. The
system is not open, responsive, relevant and transparent. The author calls for the national system to
be open, transparent and free from political interference. Towards this end, the author proposes some
degree of centralisation under the nodal Department of Statistics and giving the nodal authority the
statutory status.
The author notes that in order to encourage trust among data providers and increase their co
operation, there is a need for educating them on the use of the data collected. If the expectations from
the nodal statistical agency is to be met, the system should be manned by professionally competent
and committed staff, according to the author.
8. Statistical System : Quality through Systems and Procedures : T R Sreenivas, DPD
The paper discusses the importance of systems and procedures to be in place for the collection
and analysis of survey data. Noting that the quality of the data boils down to one of accuracy of
data collection, the author discusses systems to be in place for collecting accurate data using
personal interviews. The investigator should be highly motivated and conceptually clear. These
investigators should be posted in each tehsil headquarters and provided with all the facilities.
The data processing staff should also be well aware of the problems of data collection. They
should undertake field inspections and provide intelligence on quality of data collection. The survey
schedules should be simplified without compromising on the quality.
The author also proposes that statistical activity should be projectised and proper pricing
should play a role.
9. Suggestions for Improvement of Indian Statistical System : 5 K Mathur, Delhi Univ.
The paper takes a.overview of the data gaps in the existing statistical system, steps for
improving the quality of the data and ways of evolving statistical standards. The data gaps have been
identified to exist in the areas like estimation of crop-acreages and yields, the frame used for the ASI
and the non-response from the registered units, investment done by NRIs, trading of services,
domestic service sector, urban slums, environmental pollution, participation of women, etc.
To improve the quality and timeliness of the data, the author suggests that data collection and
processing should be done strictly according to a schedule. The universe of coverage should be clear
and the questionnaire should be simple and unambiguous. The field staff should be properly trained
in data collection and their work should be properly supervised. Modern information technology
should be used for analysis and dissemination of results.
The paper proposes setting up of a decentralised system with different offices having the
responsibility for collection and dissemination of the data in their respective area under the overall
co-ordination of an agency. These decentralised offices should be linked with the central office
94
through a computer network. Remote sensing techniques may be used to improve agricultural
statistics. TRS should be strictly enforced. Village-level data base should be strengthened using the
local govt, offices. Universities and research institutes should be used to contribute to national data
base. The author calls for generation of funds by the National Statistical Agency.
10. Suggestions for Improvement of Indian Statistical System : Rajesh Jaiswal, NCAER, New
Delhi
The paper focuses on the central idea of developing a computerised management information
system with well-trained personnel to be installed at every level with a view to reduce the
inconsistency between and across the data sets compiled by various agencies. This includes accurate
data collection, establishing separate data entry modules at village and block level and electronic
data processing at all levels. To achieve this, adequate training should be given at all levels. Village
level data should be sent to District Computer Centre through NICNET so that data could be
available at state level and at the central level. The author has also suggested some incentives to
factory owners to maintain proper statistics. He is of the view that a core standardised questionnaire
combined with district and state specific questions and blended with qualitative micro-level
information should be devised.
11. Suggestions for Improvement of Indian Statistical System :
University, Mumbai
K.G. Sundaram, S.N. D.T.W.
The paper suggests measures for timely availability, reliability and usefulness of data especially
for urban unorganised/informal sector. Some basic changes are required in the statistical system to
improve it. This includes data collection at the level of local bodies under the guidance and advice of
State and Central Government. Decentralisation is a must at data collection, data dissemination and
at data analysis level. Modern techniques must be introduced with careful planning. An attempt
should be made to build data bases even if it involves large amount of resources. A start may be
made through citizenship cards for individuals and entities-details card for entities. However, the
confidentiality of data, where required, must be maintained. The system should develop in such a
way that it is transparent and has confidence of people. A strong coordination has been recommended
at state level by DES and at the centre by CSO.
12. Suggestions for Improvements of Indian Statistical System : K. Naga Jyothi
The Paper highlights the data gaps in the existing statistical system, reasons for poor quality of
data alongwith suggestions for improving the statistical system. In estimation of GDP, direct source
data for several components are not included. Non-inciusion of new rapidly growing services like
INTERNET and Cellular Phone Services in service sector, contribution by women to the household
economy, production from kitchen garden etc. are likely to cause large errors in estimation of
national income. The reason for poor quality of data include improper timings of surveys, lengthy
schedules, long reference period, etc. The measures suggested for improving the statistical system
include proper training of field investigators, transparency in the system and strong dissemination
standards. These also include use of electronic devices for data collection and introduction of new
surveys.
13. Extension of Statistical System for Metropolitan Area Planning : V.K. Phatak and V.N.
Patkar, Mumbai Metropolitan Region Development Authority, Mumbai
The paper stresses the need for the statistical system to provide information at Metropolitan
level. Information on domestic product, large and medium industry, employment and other key areas
are not available at metropolitan level. Various data sources such as ASI, NSSO, Economic Census
and Population Census should provide information at metropolitan level. Also, the distribution of
employment in newly growing areas such as IT sector is not available at metropolitan level. The
95
system should have uniformity and consistency in the concepts and definitions. Study should be
conducted to extract the information from administrative records.
14. Strengthening the Indian Statistical System :
G. C. Manna, NSSO Calcutta
The paper gives suggestions for improvement of statistical system through re-engineering of
Census operations, permanent segmentation of village/towns, unique geo-coding system, re
allocation of field staff, reviewing data gaps and increased data accuracy, timeliness and
dissemination. The survey methodologies are also required to be improved. The author is of the
view that the replacement of economic census by an Enterprise Survey scheme, as is under active
consideration of NABS, may not serve the purpose.
15. Statistical System in India: Gaps & Issues : Prem P. Talwar
The paper highlights the need for collection of relevant data keeping in view the requirement of
the data users. Duplication of data should be avoided in various publications and data dissemination
should be through two sets of publications. The publications could be of the concerned ministry,
covering exclusive information relevant for a specific programme and it could be a national
publication (those of CSO) which proposes to disseminate essential infonnation on various
programmes in the country. He has also indicated gaps in the existing data system which includes the
choice of indicators, distribution of indicators in two sets of publications (that of ministry and CSO),
lack of knowledge of data sources among data users, tendency to publish and disseminate
information in the raw form etc. The issues related to data system are - decision on the type of
information or indicators to be collected, distribution of information among different publications
keeping in mind their clientele, avoidance of duplication, giving enough information on quality,
different sources and time periods. The author has emphasised the need for two sets of committees.
The first will be a review committee, called Sectoral Review Committee for each
ministry/department. Their work would be coordinated by a Central Review Committee whose role
will be to oversee improvement in country’s statistical system. A beginning in this direction may be
made by the Department of Statistics by holding a meeting of all those who have sent suggestions
for strengthening the data system in India, senior data users and officers from Ministry of Planning.
16. Statistical System in India-Limitations, Data Gaps and Strategy for Improvement: Subhajit
Mitra Mazumdar, Steel authority of India Limited, Ranchi
The paper highlights the data gaps in the existing system. These include non-comparability of
data from two or more sources, irregular frequency of reporting of data, absence of data banks, lack
of sources and channels of information and lack of infrastructure to process the data, etc. An
integrated strategy for system improvement has been suggested in the paper. The aspects like data
collection techniques and creation of data base measurement system have also been discussed. The
idea of utilisation of the services of NGOs, researchers and students in schools, colleges and
universities for unorganised sector data generation has been included. In the area of data processing
and dissemination,
the Department should use the existing facilities like NICNET and
simultaneously develop or extend the computer network. Database should be created through
developing data banks for different sectors. Customised data processing tools should be available in
the front-end as an interactive interface.
17. Suggestions for Improvement of Indian Statistical System: Samir Chaudhary, Power Grid
Corporation ofIndia Ltd., New Delhi
The author opines that the problem of data gaps in the existing statistical system like
inadequacies in the data flow system and duplication, discrepancy in data series are mainly due to
lack of co-ordination and interaction with the users. Co-ordination and regular interaction with users
may resolve the problem to a large extent. Discrepancies between statistics relating to same subject
by different agencies are mainly on account of lack of uniformity in concepts, definitions,
methodologies, differences in the coverage, length of reference period and period of survey. The
96
quality of data can be improved by rationalising the survey questionnaires and tabulation plan and
release of advance calendar. Every statistical agency should devise a series of quick provisional
estimates and summary results. The states should be provided more resources to ensure timely
availability of state sample results. The presentation of data should also be improved. The statistical
system may be improved if the aspects like standards, methodology, data collection, and
dissemination of results are improved. The author has emphasised the need for creation of a National
Statistical Data Base Management System (NSDBMS) for implementation of the suggestions
proposed by him for effective implementation.
18. Suggestions for Improvement of Indian Statistical System: Vikas Goyal, Database Manager &
Civil Engineer, Bikaner
The author has advocated the role of private sector in improving the Indian statistical system.
The data gaps in the present statistical system can be broadly attributed to lack of definition of
objectives of data collection, improper planning of data usage, large magnitude of collection and
generation of data, manual handling of data and poor data storage system. He is of the view that the
concept of International Standardisation Organisation (ISO) norms is also applicable to data structure
as the importance of data has emerged with development. The accuracy of data can be improved by
controlling various factors associated with the collection of data. The system can be improved upon
by standardising the methodology for a particular task for different regions, by improving the data
collection and data processing techniques. The author has suggested strategy for effective
implementation of the suggestions made by him through enlarging the role of statistical department
and including it as the 5th element of constitution which would work independently alongwith the
Executive, Legislature, Judiciary, and Comptroller and Auditor General (CAG).
97
Annex I
Views expressed by the Participants at the Mid- Session Plenary7
- 15 September 1998
A meeting of the Plenary was arranged at 10.00 a.m. on 15 September, 1998, as per
the request of some of the distinguished participants, who wished to raise some general
issues about the state of the statistical system, before the discussions on sectoral issues were
resumed in the different Working Groups. The World Bank team was also asked to make a
short presentation on the status of the Modernisation Project and the Bank’s role therein.
2.
Valerie Kozel, who works for the India Country Team at the World Bank and
represents the operational side, introduced the other members of the team viz., Mr.Michael
Ward, Mr. Paul Armington, Mr. Misha Belkindas, Mr. Chandrakant Patel and Mr.Juan
Munoz, the latter two working as Consultants. She pointed out that the size of the group
reflected the importance the Bank attaches to the issues under discussion. Recent advances
in technology and changes in methodologies, made it possible to have very recent and very'
accurate statistical information in the hands of policy makers, the general public, civil
society and others in India, as well as in organisations like the Bank. Changes are required
in the way we all do business, how the organisation serves its clients, how the information is
disseminated and in how agencies organise themselves as an institution. The Bank saw this
Workshop as an important first step in opening a broader front of consultation and asking
experts regarding their information needs, their perception of the data gaps and suggestions
on how these could be filled.
3.
Mr. Michael Ward, from the Development Data Group, World Bank explained how
the Bank became interested in supporting the extremely valuable effort being made by the
Department of Statistics. The Bank wanted to act as catalyst in the formation of a concrete
proposal, which would promote development. Over a significant period of time, through
interactive discussions with all branches of Government of India, the Bank and the
authorities had begun to formulate a joint vision about the process of statistical progress in
India and to identify the technical steps that needed to be taken to push this agenda forward.
The embryonic project is seen as a technical assistance program, centered around a general
upgrading of technical skills, along with a corresponding improvement in the use and
installation of physical equipment. Mr. Ward spoke about the impact of liberalisation of the
India economy, decentralisation in administrative decision-making, and the availability' of
information technology on the needs to be fulfilled by the data system. The greater need for
focussing on household needs and the pressure to strengthen the data series and to subscribe
to the IMF’s SDDS, were other factors impacting on the system.
4.
Mr.Ward felt that the present Workshop would help to identify in some details the
problems in the system. The forum has provided, not only a unique range of ideas as to how
to deal with these problems, but has also given food for thought as to how best change
management could be organised in this area of Government. The gaps did not reflect
adversely on the professional competence of the Statistical Department, but was
representative of the structural incongmities in the system. The Bank was looking to the
Workshop to build on the on-going process of participation and was committed to
promoting the role of data in informing more effectively the whole development process, by
creating the pre-conditions for the better functioning of Government.
5.
Mr. Misha Belkindas,. Senior Statistician, World Bank, stated that the World Bank
and the Department of Statistics were now in a stage of designing a vision about where the
Statistical System should go and what it should do to get there. As a first step in designing
98
this vision, the needs had to be identified very concretely, and the system had to be forwardlooking, with the aim of introducing international standards and classification. To achieve
the objective of addressing the general needs of Government, private sector and society as a
whole, the system had to probably go through some organisational changes. There was also
perhaps a need to modify data collection processes, to introduce new techniques in
estimating some essential macro-aggregates and to upgrade the technology used for data
estimates, transmission, sharing and storing. Preparation of a World Bank project, which
was seen as an institutional building and an investment project, requires a lot of work by the
DOS, with the active participation of the World Bank team. From the present stage of the
broad vision, the next step was to pave the way to get where we wanted to go, and then to
decide how much both the partners wanted to commit in terms of resources etc. He
conveyed the willingness of the Bank to work with the Government and stated that the Bank
was ready to help in achieving the vision, jointly formulated
6.
Prof. A. Vaidyanathan informed the gathering that, in the past, the problems of data
gaps had been addressed in quite great detail in several Seminars organised by the Indian
Economics Society and by several Government Committees. He also, observed that the
policy for dissemination of data had just been announced, for which many persons like him
had been actively lobbying and for which congratulations were due to Mr. Asthana for
having seen it through. There was already a long tradition of interaction between
Government statisticians and outsiders, through various fora in which non-official experts
have been involved. This was, therefore, not the first occasion for such interaction to take
place.
7.
He stated that the problem was not in terms of lack of understanding of what was
needed to improve the system, but rather a managerial / organisational one. User
Departments tend to give long laundry lists of the data required and demand levels of
details, being oblivious to the logistical problems such as cost of data collection. Often,
nobody knows why the data is required. There also exists a lot of information, which is not
utilised at all. The delays are attributable to an imbalance in the resources allocated between
collection of data on one hand, and analyses, processing and dissemination, on the other.
There was a neglect in Government’s programmes for supporting methodological research,
which was a great weakness. There were very well-designed internal checks and validation
control systems, which had broken down over a period of time. If this problem was not
addressed, no amount of hardware, software, training etc., would help to get better data. The
integrity of the statistical system had to be preserved and any attempt at reform had to
squarely address the issue of internal institutional reform. Prof. Vaidyanathan pointed out
that all the problems mentioned were much more serious in the States. He also stated that he
was totally opposed to the idea of privatisation of data collection and would support the idea
of having more public centers of data collection and anaysis. The NSSO, for all its faults,
had proved to be one of the most lasting and enduring systems, one of its greatest virtues
being that, while it was part of the Government, it was professionally autonomous. While
Government had the right to decide the agenda for data collection, it should leave a great
deal of autonomy to the NSSO, in terms of the utilisation of the professional expertise
available, and should allocate sufficient resources for the work of the organisation. Prof.
Vaidyanathan stressed on the need of utilising the expertise available in specialised research
institutions like NCERT and Universities for reducing the burden on the NSSO. Concluding
his remarks. Prof. Vaidyanathan expressed the hope that, if there was a professional group
coming to assess the functioning of the statistical system, in which many of those present at
the Workshop had a great stake, the findings would be openly discussed in an intensive way
and in the spirit of transparency and open professional consultations.
8.
Shri Arun Ghosh said that, Change being a law of Nature, there was need for
continuously adapting and improvising, and the focus should be to strengthen and improve
the existing institutions and systems, rather than dismantling and destroying them. He
99
emphasised that, in a large country like ours, sampling was an essential element of any
system of data collection on an aggregate basis and. we should rely more and more on the
sampling techniques, as propounded by Prof. Mahalanobis. Shri Ghosh felt that the subject
of the Indian data system was too vast and the issues too complex, for specific
recommendations to be made in one and a half days. He had the feeling that he was being
rushed and stressed that the Working Group on Industry, Trade and Corporate Sector, which
he had been asked to chair, should not try to give any final concrete recommendations,
without further deliberations. Shri Ghosh felt that the focus on international commitments
like preparing quarterly estimates was misplaced, whereas the priority should actually be on
improving the data system and the annual data first. He felt that India was not ready to
prepare these quarterly data and that the Groups should not be pushed into making any
recommendations in this regard. Similarly, with regard to the Government s commitments
with regard to classification of services and payments data, he felt that the accuracy of the
data and filling up the data gaps, were more important than classifications and sub
classifications. Shri Ghosh felt that, while every country has to evolve its own system of
accounts, as also provided in SNA93, it appears that India is being rushed into preparing
accounts, strictly in conformity with a pattern, which is alien to the production system of the
country.
9.
Prof. J Roy expressed three serious concerns he had about the statistical system.
Firstly, he felt that, while the DOS had the primary responsibility for maintaining standards
and comparability of data all over the country and internationally, it had also a moral
responsibility to educate the public, create interest in statistical information and gather
public support. In this respect, there had been a big failure in the system, which should be
addressed. Secondly, as the largest employer of statistical graduates, the Department of
Statistics should ask the teaching community and the Universities to orient the teaching of
the subject more to suit its requirements. No research was being done in the official
statistical system, with regard to designing sample surveys, for which empirical
investigations and studies are essential. He felt that the DOS should set up a Training and
Research Institute, where every ISS officer, should spend at least five years, during the
course of his entire career. Thirdly, as pointed out by Frank Yetz, in a Fischer Memorial
Lecture, statisticians needed to prepare themselves for the use of computers, as otherwise,
non-statisticians would fill the vacuum, which would be the greatest calamity that the
System could face. Prof. Roy . pointed out that computers had to be used not only for data
processing, but also for designing the frames and for dissemination. Dedicated networks
were required for communication of raw, as well as, processed data between independent
specialised data bases scattered all over the country.
10.
Responding to some of the comments made, Shri M. D. Asthana clarified that the
10.
Workshop was indeed an extension of the principle of interaction with the users, but
unfortunately, the industry and NGOs, who were invited had not responded in adequate
numbers. He assured the delegates that the Department wanted to proceed only as far and, at
the pace at which the distinguished participants wanted it to go and there was no need for
anybody to feel threatened or harassed. At the same time, he felt that, if the Government had
entered into a commitment, it was the duty of all concerned to ensure that it was met. In
spite of this, he was willing to convey to the concerned Ministry the concerns expressed by
the earlier speakers in this regard. He indicated that the Finance Ministry having asked the
DOS to come out with quarterly estimates, and no inputs being available at the quarterly
level for this, the DOS had no option but to become forecasters. The DOS was doing the job
of the Government Statistical System which was about National Accounts, labour
employment and unemployment, prices, indices of health, disabilities, and information on
disabled sections of society. He wanted the sampling techniques, mentioned by Prof. Roy to
be laid down. He stated that he was not there to dismantle the system, but to construct and
restructure, to the extent the learned gathering permitted him, for which they had been
provided the platform. He assured Shri Ghosh, in particular, that he was willing to give as
100
much time as was required for further deliberations 6f the Working Groups to come up with
final recommendations. He placed on record his gratefulness to Shn Ghosh for having
agreed to associate himself with the programme. It was in fact Shri Ghosh, himself, who had
pointed out in his article that the system was crumbling and sought his help in
reconstructing the system. The Government did not w-ant to go from one distorted system to
another, on the basis of recommendations that may be made in haste. He sought solutions
from the distinguished participants to the problems about which they had already spoken.
11
Prof. Minhas observed that, if the Bank had come along to provide a fillip for
cleaning up the system, it should be welcome. However, the concerns expressed by the
previous speakers were valid and needed to be tackled. Prof. Tendulkar observed that as far
as National Accounts were concerned, as data comes from various sources, if primary'
reporting is not properly done, no amount of computerisation will help. Hence,
improvements in primary data-collection system, for example, in the area-reporting m
agriculture, needs to be addressed and sample surveys were not really the substitute. He felt
that in the sample surveys, cleaning up of data was very important. Data collection needed
to be centralised only up to a point and autonomous agencies should be set up, which would
establish the credibility of the data being generated. •
12.
Prof. Pravin Visaria, complimented the Department for being alert and concerned
about the decline in the Statistical System. However, some of the groups needed separate
Seminars and discussions. He commented on the fact that the Office of the Registrar
General of India was conspicuous by its absence and given the importance of popu.ation
data, there was a need for separate consultations with such organisations. He argued that,
given the scarcity of resources and the time required for processing and analysing, data sets
thrown up once in 3 years, by the censuses and quinqennial surveys should be adequate tor
policy planning While criticism is essential for strengthening, it will not be possible to
improve the system m a hurry. He added that it was important to disseminate the
information, especially, whenever results were published.
13
Shri R.P.Katyal agreed with Shri Ghosh that the time was not ripe for coming out
with quarterly estimates and a beginning could be made with half-yearly estimates. Prof.
Minhas intervened with the observation that, in agriculture, there were at least two quarters
in which there was no output and only input, which resulted in negative value addert To
overcome this problem half-yearly estimates could be brought out instead of quarter y
estimates, for which he was prepared to go and talk to the Finance Minister, who had,made
the commitment to come out with quarterly’ estimates. Shn Katyal also suggested that ther,
should be an element of surprise in the supervisory process in the field.
14
Dr. Viiayaditya, NIC stressed the role of standardisation and the importance of
statisticians being able to use computers as a tool. With the technology of today, it was
possible to disseminate data via the Internet, and we should see how best to improve^the
structure to achieve the objectives, while maintaining the consistency of data. He stressed
the importance of standardisation of codes and of having geo-codes, and of looking at the
contents of the information. While India had a very rich Statistical System, with world
renowned Statisticians, we should develop our own software packages, rather than
borrowing outside ones.
15.
Professor Sundaram spoke about the need for strengthening basic data collection
systems and for having an alternate system in place before destroying the existing ^mbling
system The collectors of infonnation, as well as members of the public, should be
motivated to respectively collect and supply the information. He cautioned against the
danger of overloading the system, in terms of the volume and frequency of the information
sought to be collected from the same set of people. He also questioned about the ability io
(E S- 1 C O
101
I
°n
generate value added estimates, when the allocation of specific inputs over individual crops
was not available.
16.
Prof. Abhijit Sen commented on the adverse effect of the liberalisation process on
the clout of the regulatory agencies such as RBI and SEBI, who had to collect data in the
financial sector. He also felt that a Task Force should be set up to look into the
reuquirements of the statistical system and into data communication issues.
17.
Ms. Sally Taylor, from the DFID, Government of U.K., felt that the System should
be responsive, demand driven, forward looking, and meet the demands of everybody. It
should be valued by Government, in terms of the resources it gets, and should have
credibility, integrity and authority. Thirdly, efficient use of limited resource should be made,
reducing the user burden. The system should be professional, should have intellectual
leadership, should be innovative and have research capacity. It should be integrated with the
rest of Government and look at issues such as duplication, common definitions,
comparability etc.
18.
Dr. P.H.Thakar, Director, Gujarat Government stated that the system should cater to
the requirements of planning processes. Out of a universal format, some fields should be left
open to the States to collect data according to their individual requirements. Prof. U.K.
Deshpande, felt that the system was trying to react to too many demands from various
groups, as well as, from international agencies. He questioned as to whether the Department
of Statistics should try to satisfy all these demands or whether we should draw a line
somewhere, especially in view of the limited resources of the country to meet international
commitments. Perhaps, the present discussions could help the Department to draw this line.
Prof. Deshpande felt that in the Federal System, there were a lot of problems due to lack of
data from the States. Problems of militancy in certain States often resulted in omission of
these States, which affected the validity of data.
19.
Mr. Asthana informed the gathering about the press note, which had been released
on 14 September, 1998 publishing the Government’s policy for Dissemination of Data. As
regards the time element and the need for wider consultations, he requested the Chairmen of
the Working Groups to suggest a time-frame in which the final recommendations could be
made available. In his concluding remarks, the Chairman of the Session, Prof. Minhas,
remarked that it was important to see how the private sector’s role could be enhanced in the
system. He urged that there was also a need to involve the political set-up in the effort to set
our house in order. The lack of applied research activities in the Sector in the past few years
was deplorable and the Indian Statistical Service had not quite lived up to the expectations.
There was no harm in associating outsiders in the work of the Department, even if it was for
limited periods, as this would help to utilise the expertise available outside the Government
system.
102
Annexlire - II
List of the Working Groups
1. Working Group on Data collection at the ground level - Setting up of CLICs
Chairperson
Co- Chairman
Ms Nirmala Banerjee
Mr. Paul Armington
Rapporteurs
Shri R. Bhaskaran, Director E & S, Tamil Nadu
Shri G. D. Sharma, J.D., CSO
Group Co-ordinators
Smt. C.G. Lal,
Sh. P.K.Dhamija
2. Working Group on Agriculture Statistics
Chairman
Co-Chairman
Prof. A. Vaidyanathan
Prof. Prem Narain
Rapporteurs
Dr. Rajiv Mehta,
Dr. N. Eagambaram
Group Co-ordinators
Dr. S.Ray
Shri R.C.Sethi
3. Working Group on National Accounts and Informal Sector Statistics
4.
Chairman
Co-Chairman
Prof. S. Tendulkar
Ms. Renana Jhabwala
Rapporteurs
Shri Ramesh Kolli
Shri Sanjay Kumar
Group Co-ordinators
Dr. A.C.Kulshreshtha
Dr. Gulab Singh
Working Group on Financial and Price Statistics
Chairman
Co-Chairman
Prof. Amresh Bagchi / Dr. Abhijit Sen
Dr. A.Vasudevan
Rapporteurs
Shri F. T. Mathew
Shri T. V. Raman
Group Co-ordinators
Shri Neelakantan
Dr.V.K.Malhotra
103
5. Working Group on Commerce, Industry and Corporate Sector Statistics
Chairman
Co- Chairman
Dr.Arun Ghosh
Shri Amit Mitra
Rapporteurs
Shri M.S. Maulik
Dr. G.M. Boopathy
Group Co-ordinators
Dr. N.S.Sastry
Shri Rajeev Lochan
6. Working Group on Socio-Economic Statistics and Labour Statistics
Chairman
Co-Chairman
Prof. Pravin Visaria
Dr.L.K.Deshpande
Rapporteurs
Dr. R. N. Pandey
Shri Harish Chandra
Group Co-ordinators
Shri R.L.Narasimhan
Shri P.D.Gupta
7. Working Group on Information Technology Needs of the Statistical System
Chairman
Co-Chairman
Dr. N. Vijayaditya
Shri Mahesh Vyas
Rapporteurs
Shri S. K. Nath
Shri Pravin Srivastava
Group Co-ordinators
Sh. A. K. Sharma
Sh. S. S. Shukla
8. Working Group on Statistical Systems & Statistics for Decentralised Planning
Chairman
Co-Chairman
Prof. J. Roy
Mr. Michael Ward
Rapporteurs
Dr. A. K. Yogi
Shri J.P. Mishra
Group Co-ordinators
Dr. Vaskar Saha
Shri Vijay Kumar
9. Service and Infrastructure Sector Statistics
Chairperson
Co-Chairman
Dr. R. Thamarajakshi
Prof. Arijit Choudhury
Rapporteurs
Sh. S.N. Singh
Sh. Rajiv Sharma
Group Co-ordinators
Sh. K.S.P. Rao
Sh. K.L. Taneja
104
Annexure - III
Details of the Reconstituted Working Groups
(A) Working Group No:5 - Commerce. Industry & Corporate Sector Statistics
(1)
Dr. Arun Ghosh
78 Munirka Enclave
New Delhi
(2)
Dr. Chalapati Rao, Associate Professor
Institute for Studies in Industrial Development
Narendra Niketan, IP Estate, New Delhi
Member
Shri C.P. Chandrasekhar
Centre for Economic Studies & Planning
Jawaharlal Nehru University
New Mehrauli Road, New Delhi
Member
(3)
(4)
(5)
(6)
(7)
(8)
(9)
Chairman
Dr. Biswajit Dhar
Fellow
Research & Information System for Non-Aligned Countries
India Habitat Centre, Lodi Road
New Delhi 110 003
Member
Smt Uma Dutta Roy Chaudhary
D 630 Chittaranjan Park
New Delhi 110 019
Member
Dr. N.S. Sastry
DG & CEO, National Sample Survey Organisation
Department of Statistics
Sardar Patel Bhawan, New Delhi
Member
Dr. Shravan Nigam
Economic Adviser, Deptt. of Industrial Policy & Promotion
Ministry of Industry, Udyog Bhawan
New Delhi
Member
Dr. C.S. Prasad
Add. Dev. Commissioner & Economic Adviser
O/o Dev. Commr for Small Scale Industries
7th Floor, Nirman Bhawan, New Delhi
Member
Dr. Kalyan M. Raipuria
Adviser, Economic Division
Ministry of Commerce
Udyog Bhawan, New Delhi
Member
105
(10)
(11)
(12)
(13)
(14)
Dr. R.B. Barman
Reserve Bank of India
New Central Office Building
Shaheed Bhagat Singh Marg
Post Box No: 1036, Mumbai 400 023
Member
Shri Jogesh Dash
Director (Research & Statistics)
Department of Company Affairs
Paryavaran Bhawan, CGO Complex
New Delhi
Member
Shri Pronab Sen
Adviser
Planning Commission
Yojana Bhawan, New Delhi
Member
Shri Jagdish Singh
Additional Director Genderal
Central Statistical Organisation
Deptt of Statistics, SP Bhawan
New Delhi
Shri M.S. Maulik
Director (ISD)
Central Statistical Organisation
Deptt. of Statistics
Sardar Patel Bhawan, New Delhi
Member
M em ber- Secretary
(B) Working Group No: 6 - Socio-Economic Statistics and Labour Statistics
(1)
(2)
(3)
(4)
(5)
Prof. Pravin Visaria
Institute of Economic Growth
University Enclave
Delhi 110 007
Labour Sector Statistics:
Shri S.R.S. Gill
Director General, Labour Bureau
Chandigarh
Chairman
Member
Dr. Shailendra Sharma
Adviser '
Planning Commission
Yojana Bhawan, New Delhi
Member
Shri D.K. Trehan
Labour & Employment Adviser
Ministry of Labour
Shram Shakti Bhawan, New Delhi
Member
Shri P.K. Ray
Additional Director
Directorate General of Employment & Training
Shram Shakti Bhawan
Member
106
Education Statistics
(6)
Dr. R. R. Saxena
Prof. & Head, Deptt of Educational Survey & Data Processing
NCERT, Sri Aurobindo Marg,
New Delhi 110 016
Member
(7)
Shri Champak Chatterji
Joint Secretary (Planning)
Department of Education
Ministry of Human Resource Development
Shastri Bhawan, New Delhi
(8)
(9)
(10)
(H)
Member
Shri V.P. Garg
Joint Adviser
Planning Commission
Yojana Bhawan, New Delhi
Member
Prof. B.G.K. Tilak
Senior Fellow
National Institute of Educational Planning & Administration
17 B, Sri Aurobindo Marg
New Delhi 110 017
Member
Environment Statistics
Prof. Kanchan Chopra
Institute of Economic Growth
University Enclave, Delhi 110 007
Member
Dr. D. Bandopadhyaya
Director
(12)
(13)
(14)
(15)
Ministry of Environment & Forests
Paryavaran Bhawan, CGO Complex
Lodhi Road, New Delhi 110 003
Member
Dr. Lalit Kumar
Deputy Adviser (Environment)
Planning Commission, Yojana Bhawan
New Delhi
Member
Dr. Sumeet Saxena
Fellow, Tata Energy Research Institute
India Habitat Centre
Lodi Road, New Delhi 110 003
Member
Dr. Anil Aggarwal
Director, Centre for Science & Environment
41 Tughlakabad Institutional Area
New Delhi 110 062
Member
Shri R.L. Narasimhan
Deputy Director General
Central Statistical Organisation
Sardar Patel Bhawan. New Delhi 110 001
Member-Secretary
107
(C) Participants in the extended session of the Working Group No:9
(Infrastructure and Service Sector Statistics)
1.
Dr. (Smt), R. Thamarajakshi
5/1M.S. Flats, Shahjahan Road
New Delhi 110 011
2.
Prof. G.K. Chadha,
Centre for Study of Regional Develeopment,
School of Social Sciences, JNU
New Delhi 1 10 067
3.
Dr. S. Nigam
Economic Adviser, Ministry of Industry
Deptt of Industrial Policy & Promotion
Udyog Bhawan, New Delhi
4.
Dr. C.S. Prasad
Addl. Dev. Commr. & EA
O/o Dev. Commr. for Small Scale Industries
7th Floor, Nirman Bhawan, New Delhi
5.
Shri Vinay D. Lal
Society for Development Studies, DDA Slum Wing
Multipurpose Community Complex
Opposite Pilanji, Sarojini Nagar, New Delhi 110 023)
6.
Ms Meeta Mehra
Tata Energy Research Institute
India Habitat Centre
Lodi Road, New Delhi 110 003
7.
Shri Manish Dubey
TARU Leading Edge Pvt. Ltd.
U-12(SF) Green Park Extn.
New Delhi 110 016
8.
Shri Srikant Joshi
TARU Leading Edge Pvt. Ltd.
9.
Shri M.S. Yadav
National Council for Public Cooperation in Child Development
5 Siri Fort Institutional Area, Hauz Khas
New Delhi 110 016
10.
Dr. R. R. Saxena
Prof. & Head, Deptt of Educational Survey & Data Processing
NCERT, Sri Aurobindo Marg,
New Delhi 110 016
Chairperson
108
II.
Shri M.L. Batra
Cenrtral Electricity Authority
R.K. Puram, New Delhi
12.
Shri M. Ganesan,
Ministry of Surface Transport
Transport Bhawan, New Delhi
13.
Shri Brij Bhushan
Economic Adviser, M/o Urban Affairs
201 'G' Wing, Nirman Bhawan, New Delhi
14.
Shri K. S. Prasada Rao,
Director, Deptt of Statistics
15.
Shri S.N. Singh,
Joint Director, FOD, New Delhi
16.
Shri K.L. Taneja
Joint Director, FOD, New Delhi
17.
Shri Sanjay Kumar
Deputy Director, ECD, CSO
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