Chapter-7 : Basic Economic Data
Short Notes or Revision Notes
GIST of India Year Book 2024
Understanding Economic Indicators
- Base Year:Reference year for measuring changes (e.g., inflation compared to base year prices).
Inflation Measurement
- Consumer Price Index (CPI):Tracks average price changes.
- CPI (Urban): Reflects trends in urban goods and services consumption.
- CPI (Rural): Reflects trends in rural goods and services consumption.
Government’s Financial Management
- Fiscal Policy:Government spending and taxation strategies to influence the economy.
- Expansionary (increases spending) vs. Contractionary (decreases spending) policies.
- Public Finance:Management of government revenue, expenditure, and debt.
- Includes budgeting, taxation, and fiscal policies for economic stability.
Other Important Economic Terms
- Inflation:Rate of increase in general price level, reducing purchasing power (measured by CPI).
- Public Debt Management:Government’s strategy for sustainable borrowing.
- Capital Market:Facilitates investment flow from investors to businesses (stocks & bonds).
- Backstop Facility:Financial safety net to prevent crises in a particular sector.
- Infrastructure Debt Funds:Investment vehicles for infrastructure projects, attracting long-term investors (regulated by SEBI).
- Treasury Single Account (TSA):Unified government bank account for improved transparency and fiscal management.
Ministry of Statistics and Programme Implementation (MoSPI)
- Established in 1999 through merger of Department of Statistics and Programme Implementation.
Wings of MoSPI
- National Statistics Office (NSO):
- Central Statistics Office (CSO) – standards, national accounts, industrial production, consumer price indices.
- National Sample Survey Office (NSSO) – large-scale sample surveys for socio-economic data.
- Programme Implementation Wing:
- Twenty Point Programmes
- Infrastructure and Project Monitoring
- Members of Parliament Local Area Development Scheme (MPLADS)
Other Important Statistical Bodies
- National Statistical Commission (NSC):Established in 2005, nodal body for core statistical activities.
- Indian Statistical Institute (ISI):Autonomous institute.
Key Functions of MoSPI
- Central Statistics Office (CSO):
- Index of Industrial Production (IIP):Monthly data on industrial production (mining, manufacturing, electricity).
- National Sample Survey Office (NSSO):
- Price Statistics:Compiles Consumer Price Index (CPI) for rural, urban, and combined sectors.
- Monitoring:
- Project Monitoring (merged with DPIIT)
- Infrastructure Performance Monitoring (power, railways, telecom)
- Environmental Monitoring (EnviStats India)
Additional Initiatives
- Statistics Day:Celebrated annually on June 29th.
- Multi-Domain Statistics:Gender, population, poverty, health statistics (e.g., “Women and Men India”).
- 2030 Agenda for Sustainable Development:Aligning National Indicator Framework with India’s SDG priorities.
- Members of Parliament Local Area Development Scheme (MPLADS):Launched in 1993 for MPs to recommend development projects.