India revamps national accounts methodology with enhanced price data

The Ministry of Statistics and Programme Implementation (MoSPI) has unveiled modifications to India's national accounts methodology designed to strengthen the accuracy of economic data collection and analysis.

Under the revised framework, the ministry is integrating data from the Annual Survey of Industries (ASI) with item-level output Producer Price Index (PPI) figures to measure input prices more precisely. This dual-source approach aims to capture a more comprehensive picture of price movements across India's industrial sector.

The methodology changes reflect efforts to align India's statistical practices with international standards while addressing data gaps that existed under the previous framework. By leveraging the granular output PPI data alongside established ASI information, MoSPI seeks to improve the reliability of inflation measurements and sectoral growth estimates that feed into broader national accounts calculations.

These revisions are part of ongoing efforts to enhance the quality and transparency of India's economic statistics, which serve as critical benchmarks for policymakers, investors, and analysts monitoring the country's macroeconomic performance. The changes are expected to provide a more nuanced understanding of price dynamics across different industrial segments.