Economists Call For Reduction In Time Lag For Release of Macro Economic Data Like GDP

Economists have suggested the Ministry of Statistics and Programme Implementation (MOSPI) to reduce the time lag for release of macro economic data like GDP, as this is a key factor for investment, business and policy decisions. Officials from the ministry of statistics and programme implementation met with forecasters and economists of GDP and CPI on September 24, 2024 in Mumbai to seek their suggestions for making the key macroeconomic data more robust.

Nilesh Shah, Member, EAC-PM, MD Kotak Mahindra Asset Management Company Ltd suggested that MoSPI should look for avenues of improvement to ensure data accuracy and reduce time lag of release. Echoing similar sentiments, Ajay Seth, Secretary, Department of Economic Affairs, suggested availability of timely and consistent data for better clarity, investing, business and policy decisions.

He emphasized use of advanced technologies for better data governance. "Lag for GDP data release may be reduced. Release time of these indices may be changed to provide sufficient time for analysis by the users on the same day," a ministry statement said.

The open house discussion witnessed enthusiastic participation from the forecasters and economists. Based on the discussion, major suggestions emerged. It was suggested that to have a uniform understanding of core inflation, MoSPI may explore compilation of Core Inflation. They also suggested that frequent Household Consumption Expenditure Surveys may be conducted to ensure frequent base revision of Consumer Price Index and other macro-economic indicators.

Availability of old indices for chain-linking was also requested by users. Attempts may be made to reduce discrepancy in estimation of GDP from two approaches, they suggested. Possibility of better coverage of services in the revised series of CPI can be explored, they said. Request for frequent such interactions, to understand the methodologies of data collection of education, health services and data for housing index, was also made, the ministry said.