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© 2004 International Monetary Fund

April 2004

Revised

IMF Country Report No. 04/96

India: Report on Observance of Standards and Codes—Data Module, Response by the Authorities, and Detailed Assessments Using Data Quality Assessment Framework

This Report on the Observance of Standards and Codes on Data Module for India was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on information provided by Indian authorities and data users prior to and during a staff mission from May 13–30, 2002 as well as publicly available information. The views expressed in this document are those of the staff team and do not necessary reflect the views of the government of India or the Executive Board of the IMF.

The response by the Authorities on this report, and the Detailed Assessment Using the Data Quality Assessment Framework (DQAF) are also included.

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Front Matter Page

INTERNATIONAL MONETARY FUND

INDIA

Report on the Observance of Standards and Codes (ROSC)—Data Module

Prepared by the Statistics Department

Approved by Carol S. Carson and David Burton

March 29, 2004

Contents

• Acronyms

• Executive Summary

• I. Introduction

• II. Data Dissemination Practices and the Special Data Dissemination Standard

  • Data dimension: coverage, periodicity, and timeliness

  • Access dimension

  • Integrity dimension

  • Quality dimension

  • Monitoring of data

• III. Summary Assessment of Data Quality

  • Prerequisites of quality

  • Integrity

  • Methodological soundness

  • Accuracy and reliability

  • Serviceability

  • Accessibility

• IV. Staff’s Recommendations

  • General Recommendations

  • National Accounts

  • Consumer Price Index

  • Wholesale Price Index

  • Government Finance Statistics

  • Monetary Statistics

  • Balance of Payments Statistics

• Text Tables

• 1. Overview of Current Practices regarding Coverage, Periodicity, and Timeliness Compared to the SDDS

• 2. DQAF: Summary Presentation of Results

Acronyms

Executive Summary

This Report on the Observance of Standards and Codes (ROSC) data module provides a review of India’s data dissemination practices against the IMF’s Special Data Dissemination Standard (SDDS), complemented by an in-depth assessment of the quality of the national accounts, consumer price index, wholesale price index, and government finance, monetary, and balance of payments statistics. The agencies that compile statistics assessed in this report are the Ministry of Statistics and Programme Implementation (MOS), Ministry of Labour, Ministry of Commerce and Industry, Ministry of Finance (MOF), Reserve Bank of India (RBI), and the Office of the Registrar General of India. The assessment was carried out by a mission from the IMF Statistics Department that visited New Delhi, Mumbai, and Chandigarh during May 13–30, 2002.

The mission reached the following main conclusions:

• SDDS observance: India is in observance of the SDDS. It meets the specifications for coverage, periodicity, and timeliness in all data categories, except for (1) the timeliness of data on general government operations, for which it takes a flexibility option, and (2) the periodicity and timeliness for the labor market, for which it takes “as relevant” flexibility options. It has not yet developed a single, comprehensive, National Summary Data Page containing all SDDS data categories, as called for by the SDDS.¹

• Prerequisites of quality: Indian statistical agencies demonstrate awareness of quality as the cornerstone of statistical work. In the main, they have an institutional framework that supports statistical quality. However, no single government unit has the authority and responsibility to compile, and disseminate nationally and internationally, an integrated comprehensive statement of government finance statistics, thereby complementing existing accounting and specialized reports. Also much of the basic data for the national accounts originate from a strongly decentralized administrative system comprising various ministries, state departments, and local agencies, and there are indications that the coordination between these units has deteriorated as the economy has liberalized. India’s ongoing liberalization will require substantial modernization of the statistical system, and a strengthening of the legal foundations of data collection, along the lines of the recommendations of the 2001 Report of the National Statistical Commission.²

• Integrity: India’s macroeconomic statisticians display a high degree of integrity. Agencies demonstrate professionalism and high ethical standards, and in the main have transparent policies and practices.

• Methodological soundness: India’s macroeconomic statistics, on balance, follow international statistical recommendations, although there are deviations. Monetary statistics broadly conform with the guidelines set out in the IMF’s Monetary and Financial Statistics Manual (MFSM). National accounts and balance of payments statistics largely, but not entirely, follow the recommendations of the System of National Accounts 1993 (1993 SNA) and the IMF’s Balance of Payments Manual, fifth edition (BPM5) respectively. Nationally-developed concepts for government finance statistics are only partially related to the IMF’s A Manual on Government Finance Statistics 1986 (GFSM 1986) and many linkages are not transparent. No migration path has been considered for implementing over time the compilation of government finance statistics according to the IMF’s Government Finance Statistics Manual 2001 (GFSM 2001) methodology. All official consumer price indexes compiled in India are for specific segments of the population and none represents a broad measure of general consumer price inflation.

• Accuracy and reliability: India’s macroeconomic statistics are broadly accurate and reliable, although the national accounts are adversely affected by the absence of a good quality business register for the larger producing units, the lack of current sources on services production and private consumption expenditure, and the use of imperfect techniques to derive part of the constant-price data. The outdated weights cast doubt on the accuracy of the consumer price indexes. Source data for the wholesale price index could be usefully strengthened such as by expanding the sample of respondents and products.

• Serviceability: On the whole, India’s macroeconomic statistics are frequent, timely and relevant, although there is scope to improve the timeliness of data on general government operations. Macroeconomic statistics appear broadly to meet users’ needs, as indicated by the results of a user survey conducted by the mission, but users have various concerns and additional needs. They require, for example, more information on the emerging services sector. Several agencies could usefully conduct, on a regular, comprehensive basis, user surveys similar to that conducted by the mission.

• Accessibility: Most macroeconomic statistics and related metadata are widely available in various forms. There is some scope to improve access to national accounts and government finance data and metadata, to improve access to the metadata of the wholesale price index and balance of payments, and to improve the assistance provided to users of national accounts and government finance statistics.

Front Matter Page

INTERNATIONAL MONETARY FUND

INDIA

Report on the Observance of Standards and Codes (ROSC)-Data Module

Response by the Authorities

January 15, 2004

Contents

• Response by the authorities

• Annex A

Front Matter Page

INTERNATIONAL MONETARY FUND

INDIA

Detailed Assessments Using the Data Quality Assessment Framework (DQAF)

Prepared by the Statistics Department

Approved by Carol S. Carson and David Burton

March 29, 2004

Contents

• Acronyms

• I. National Accounts

• II. Price Statistics (Consumer Price Index)

• III. Price Statistics (Wholesale Price Index)

• IV. Government Finance Statistics

• V. Monetary Statistics

• VI. Balance of Payments Statistics

• Text Tables

• 1. Main Sources for the Annual National Accounts

• 2. Main Sources for the Quarterly National Accounts

• 3. Overview of all-India Consumer Price Indexes

• 4. Weights, Number of Commodity Groups, and Price Quotations in the Wholesale Price Index

• Appendices

• I. Summary of the Special Data Dissemination Standard

• II. Data Quality Assessment Framework—Generic Framework

• III. Data Quality Assessment Framework—Summary of Results

• IV Results of India’s User Survey

• Appendix Tables

• 5. Data Quality Assessment Framework—Summary of Results for the National Accounts Statistics

• 6. Data Quality Assessment Framework—Summary of Results for Consumer Price Index for Industrial Workers

• 7. Data Quality Assessment Framework—Summary of Results for Wholesale Price Index

• 8. Data Quality Assessment Framework—Summary of Results for Government Finance Statistics

• 9. Statistics Data Quality Assessment Framework—Summary of Results for Monetary Statistics

• 10. Data Quality Assessment Framework—Summary of Results for Balance of Payments Statistics

Acronyms