towards strengthening indian statistical system

v.k. subramanian*

Wednesday, August 03, 2005

Since independence, the Government has been taking several steps for creating a strong statistical base for economic planning including the setting up of the Central Statistical Organization in 1949 and the National Sample Survey Organization in 1970. Deficiencies in the present Indian Statistical System were examined by the Rangarajan Commission on Statistics with a view to recommending remedial measures. In line with the current requirements and the recommendations of the Commission, the Government recently notified the setting up of a National Statistical Commission through a resolution. It is expected that the Commission would be made a statutory Commission within a year. The National Statistical Commission will, among others, identify the core statistics which are critical to the development of the economy and lay down national quality standards on core statistics, evolve national policies and priorities relating to the statistical system and develop strategies for human resource development to meet the needs of the statistical system. The Commission will also monitor and review the functioning of the statistical system in the light of the laid down policies, standards and methodologies and recommend measures for enhanced performance.

Infact, the Indian Statistical System needs to gear itself to undertake technical innovations based on research. What we need is an institutional mechanism in the system to encourage research and development. The operational efficiency of the System today is questioned on aspects like credibility, timeliness and adequacy of data. Given the decentralized nature of the country’s statistical system, there is also a need for strong coordinating mechanism to generate adequate data of quality with desired timeliness. Alternate ways to collect the data required for continuous monitoring of the socio-economic structure of the country has become essential. The need to foster closer cooperation with the private sector and research institutions in developing new data sets, have to be under scored.

India was a pioneer in Statistical System in the early post-independence era with Professor Prasanta Chandra Mahalanobis at the helm of affairs. Described as a “renaissance man and scientist,” his contribution to the domain of statistics is incredibly varied. His cardinal tenet was that this knowledge must be used to help mankind and the poorest of the poor. The formulation of the D Square Statistics, derivation of its properties and its application are some of his most profound contributions. As Chairman of the United Nations Sub-Commission on Statistical Sampling, a position to which he was appointed in 1947, he tirelessly advocated the use of sampling methods to be extended to all parts of the world. As the Chairman of the UN Statistical Commission, he also helped in the spread of robust and extremely useful statistical ideas in other countries. Professor Mahalanobis was a great visionary and able administrator. His greatest achievement in this field was the establishment, in 1931, of the Indian Statistical Institute at Kolkata, one of the finest centers for statistical research in the world. His contribution to developmental planning with statistics at the core, paved the way for the formulation of five-year plans.

On June 29, 2005, at the 112th Birth Anniversary celebrations of Prof. Mahalanobis in New Delhi, the Minister for Statistics and Programme Implementation, Shri Oscar Fernandes said it is the urge to excel that drives basic research in any branch of science. While basic research is essential to the development of science, it has to be complemented with applied research, to reap the benefits of new developments. He said our statisticians should direct their research efforts to demonstrate how the application of state-of-the-art statistical techniques can be simplified to have a tremendous effect on the quality and reliability of statistical analysis. There is also a need to evolve methodologies to develop short-term indicators on the performance of socio-economic activities of the country, both at the national and the sub-national level. Areas like environmental statistics need immediate attention. The National Accounts Statistics have to be adjusted for environmental costs. The focus of applied research should be on optimizing the sample size and reducing the respondent burden in our surveys, the Minister said, as conceptualized by Prof. Mahalanobis.

With the aim of strengthening the Indian Statistical System and creating an efficient statistical base for socio-economic planning and policy formulation, the government set up the National Statistical Commission as recommended by Dr.Rangarajan through an executive order in June this year. The National Statistical Commission will be serviced by a Secretariat headed by the Secretary of the Commission, who will have the requisite autonomy to discharge its functions effectively and efficiently. In particular the Commission will have the powers to:

Require production of any document, which may serve statistical purposes, ask the statistical agencies and institutions to provide details of statistical activities, including concepts and definitions used, methodologies followed, quality standards adopted, sampling and non-sampling errors, etc. in respect of ‘core statistics’, Demand attendance of any person including any public servant on matters connected with core statistics and Issue notices for the examination of witnesses and documents or any matters connected with core statistics.

The Commission will also have the authority to formulate its short and long-term programmes as well as prepare its Annual Report. The Central Government will lay the Report together with a memorandum of action taken on the recommendations therein, along with the reasons for non-acceptance of any recommendations, before Parliament. Where any recommendation or any part thereof concerns a State Government, the Commission will forward a copy of the recommendation or part thereof to be laid before the State Legislature, along with a memorandum explaining the action taken on the recommendations and reasons for non-acceptance if any.

The Rangarajan Commission was set up by the government in January, 2000 to review the statistical system of the country. It recommended the establishment of a Statutory National Commission on Statistics to serve as a nodal and empowered body for all core statistical activities of the country, as well as evolve, monitor and enforce priorities and standards to ensure statistical co-ordination. Dr. Rangarajan also recommended that the Commission be set up initially through a Government order with a modicum of authority so as to evolve the legislation taking into account the ground realities and the emerging requirements when it becomes fully operational. In line with the above recommendations only, the Commission was set up in June this year. It is expected that the Statutory Commission would be ready within a year.

The National Statistical Commission will consist of a part-time Chairperson who is, or has been, an eminent statistician or social scientist to be nominated by the Government. It will have four part-time Members, also to be nominated by the Government from amongst persons having specialization and experience in economic statistics in such areas as agriculture, industry, infrastructure, trade or finance; social and environment statistics in such areas as population, health, education, labour and employment or environment; statistical operations in such areas as censuses, surveys, statistical information system or information technology and national accounts, statistical modeling or State Statistical Systems. The Secretary, Planning Commission will be the ex officio Member. The Secretary, Ministry of Statistics and Programme Implementation will function as ex-officio Member Secretary of the Commission till the Chief Statistician of India is selected and assumes office.

The Chairman, Members and Secretary of the National Statistical Commission (Chief Statistician of India) will be selected on the basis of the recommendations of a Search Committee constituted by the Ministry. The Search Committee consists of Deputy Chairman of the Planning Commission as Chairperson; Deputy Governor of the Reserve Bank of India as member and two eminent persons who may be distinguished statisticians or social scientists with intimate knowledge of the statistical system of the country as Members. The Search Committee will recommend names of three persons to the government for selection and one of them would be nominated as the Chairperson. It will also recommend names of two persons eligible to be appointed as Members and Chief Statistician. The Government of India will nominate them as Members of the Commission and appoint the Chief Statistician.

The tenure of the Chairperson and the Members will be three years. The status of the Chairperson would be that of a Minister of State and the Members would be equivalent to Secretary to the Government. The Commission will identify the core statistics, which are of national importance and critical to the development of the economy; constitute professional committees or working groups to assist the Commission on various technical issues; evolve national policies and priorities relating to the statistical system; project standard statistical concepts, definitions, classifications and methodologies in different areas and lay down national quality standards on core statistics; form national strategies for the collection, tabulation and dissemination of core statistics, including the release calendar for various data sets; come out with national strategies for human resource development on official statistics including information technology and communication needs of the statistical system; suggest measures for improving public trust in official statistics.

It will also strive for effective co-ordination with State Governments and Union Territory Administrations on statistical activities including the strengthening of the existing institutional mechanisms; exercise statistical coordination between Ministries, Departments and other agencies of the Central Government; energize statistical audit over the statistical activities to ensure quality and integrity of the statistical products; recommend to the Central Government, or any State government, measures to effectively implement the standards, strategies and other measures; advise the government on the requirement of legislative measures on statistical matters including the statute for the National Statistical Commission.

Along with the establishment of the National Statistical Commission (NSC) the Central Statistical Organisation (CSO) and the National Sample Survey Organisation (NSSO) will be merged into a single entity called the National Statistical Organisation (NSO). It will function as the executive wing of the Government in the field of statistics and act according to the policies and priorities, laid down by the NSC. The NSO would be headed by an Officer of the rank of Secretary to the Government, who will be designated as the Chief Statistician of India and also function as the Secretary to the Commission. He will discharge the functions of the Secretary of the Government in the Department of Statistics. The NSO will have two wings, i.e. Central Statistics Office (CSO); and National Sample Survey Office (NSSO). The Computer Centre, dealing with data storage and dissemination will form part of the CSO. Thus, there will be two Director Generals of Statistics to assist the Chief Statistician of India, one in charge of NSSO and the other CSO.

Of the, over 600 plus recommendations of Dr.Rangarajan, the government has already implemented more than 200 suggestions. Among the remaining recommendations, some are under execution, while most need statutory powers for implementations. When completed the Indian Statistical System will become one of the world’s top most set-up, providing fully reliable, credible and accurate, timely data and information for all concerned.

**Deputy Principal Information Officer, PIB, New Delhi.