Use of Alternative Data Sources by the Indian Statistics Ministry
The Indian statistics ministry is exploring alternative data sources for the new Consumer Price Index (CPI)-based retail inflation series and other official statistics. This initiative involves leveraging data from online travel portals, OTT platforms, and administrative records for more accurate price data collection.
Details of Alternative Data Sources
- Data from online platforms for airfare and rail fare.
- OTT platforms for entertainment consumption patterns.
- Administrative records for tracking fuel prices (e.g., petrol, diesel, LPG).
- Exploring scanner data, web scraping, and price data from e-commerce websites.
In collaboration with various departments like the Ministry of Railways and the Ministry of Petroleum and Natural Gas, direct data transfer for CPI integration is being considered.
Additional Data Utilization
The Ministry is also using data from:
- Goods and Services Tax (GST)
- e-Vahan portal
- UPI transactions
- Controller General of Accounts, MCA-21, and the Reserve Bank of India
This data aids the National Statistics Office (NSO) in GDP calculations and other statistical measures.
Niti Aayog’s Perspective
Niti Aayog Vice Chairperson Suman Bery raised the question of whether the statistics ministry should prioritize alternative data sources, suggesting that think-tanks like NCAER might be better suited for some tasks. However, he acknowledged the significance of new data sources and technologies for real-time economic interventions.
Chief Economic Adviser’s Insights
V Anantha Nageswaran supported the use of alternative data, emphasizing its ability to fill gaps in the periodicity and dimensionality of existing data. He cited satellite data and night-time luminosity as valuable proxies for economic activity.
Integration of Official and Alternative Data
Nageswaran advised against replacing official statistics with alternative data, advocating for a mature integration where each type of data validates the other. The reliability of official data, built over years, should be complemented by alternative data for holistic insights.
Revision of Statistical Base Years
Secretary Saurabh Garg discussed base revision for major datasets like CPI, IIP, and GDP. The revised base year for GDP and IIP is set as 2022-23, with releases expected from 2026. For CPI, 2024 is identified as the revised base year, with updates based on the NSO's Household Consumption Expenditure Surveys.
Conclusion
The Ministry of Statistics and Programme Implementation's exploration of alternative data aims to enhance the accuracy and comprehensiveness of economic indicators, while maintaining the integrity of official statistics.
