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.

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