Parliamentary Panel Calls for Statutory Authority for National Statistical Commission Amid Data Quality Concerns

A Parliamentary Standing Committee report on the National Statistical Commission (NSC) has brought into sharp focus the challenges facing India's statistical infrastructure, highlighting concerns about data quality and institutional authority that could impact policy formulation and public trust.

Critical Data Quality Concerns

The timing of the Parliamentary Standing Committee on Finance report, presented in December 2025, coincides with growing scrutiny of India's statistical system. Recent developments have underscored the gravity of data reliability issues facing the country.

The International Monetary Fund recently assessed India's national accounts, identifying three main concerns: the old GDP base, absence of double-deflation to compute real GDP, and statistical discrepancies. The Government has acknowledged these issues and committed to addressing them in the new data series.

NSC's Critical Functions and Mandate

Established in 2000, the National Statistical Commission serves as the nodal body for core statistical activities in India under the Ministry of Statistics & Programme Implementation (MoSPI). The Committee outlined NSC's varied and critical functions across multiple survey mechanisms:

These surveys form the backbone of India's economic data collection, directly influencing policy decisions and budget formulations.

Institutional Weaknesses Identified

The Committee highlighted a fundamental gap between the NSC's intended role and its current operational capacity. The Rangarajan Commission in 2000 had recommended establishing NSC as an autonomous body with statutory backing, but this recommendation remains unimplemented.

Key institutional challenges identified include:

• Lack of Legislative Authority: NSC operates without statutory support, weakening its effectiveness
• Limited Audit Mechanisms: No formal system for conducting regular statistical audits across agencies
• Data Inconsistencies: Overlapping surveys by multiple agencies leading to conflicting information
• Private Data Competition: Growing role of private data providers creating credibility challenges

Committee Recommendations for Reform

The Parliamentary panel emphasized that complete and accurate data are indispensable for policy formulation, noting that deficiencies can create policy voids and harm the economy. The Committee's recommendations focus on strengthening NSC's institutional framework:

Immediate Reforms:

• Grant NSC statutory authority and autonomy with accountability to Parliament
• Formalize statistical audit mechanisms for regular review of data collection processes
• Harmonize overlapping surveys to ensure data uniformity across agencies

Long-term Improvements:

• Integrate artificial intelligence into the statistical system
• Strengthen capacity building initiatives
• Enhance international collaboration and research capabilities
• Refine GDP data collection to better capture informal sector activity

Implications for Policy and Governance

The Committee stressed that reliable data is vital for effective policymaking and maintaining public trust in government statistics. The current challenges extend beyond technical issues to fundamental questions about the credibility of official data.

As the report notes, even the Union Budget relies heavily on NSC data, making the accuracy and reliability of statistical information crucial for informed governance. The stark contrast between official inflation figures and public perception, as highlighted by RBI's inflation expectations survey, demonstrates the real-world impact of data quality concerns.

The Parliamentary Committee's emphasis on establishing a robust, reliable, and independent statistical system reflects the critical importance of trustworthy data infrastructure for effective governance and policy implementation in India's complex economic landscape.