Chapter-7 : Basic Economic Data

Short Notes or Revision Notes

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.