CHAPTER II DEVELOPMENTS & HIGHLIGHTS

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1 CHAPTER II DEVELOPMENTS & HIGHLIGHTS National Statistical Commission 2.1 The National Statistical Commission constituted by the Government under the chairmanship of Dr.C.Rangarajan, Governor of Andhra Pradesh and with 11 eminent experts and professionals as part time members submitted its report to the Hon ble Prime Minister on 5 th September The report contains as many as 623 recommendations for revamping the statistical system of the country through a five fold approach as listed below: Reform the administrative structure of the Indian Statistical System and upgrading its infrastructure so as to ensure its autonomy. Improvement of the present system of collection of data, in relation to data that are currently being generated. Exploration of alternative techniques, in relation to the existing statistics, if the present system for collecting data is under strain for whatever reasons. Identification of new data series that may be generated in keeping pace with the expanding economy. Evolution of appropriate methodologies for collection of data, in relation to the new data requirements. Modernisation and Use of Information Technology 2.2 In order to achieve the ultimate objective of Plan Scheme On-Line transmission of survey data & modernization of data collection system and fulfill the requirement of e-goverance in the offices of Central Government, efforts are on to equip all the Regional Offices (RO) and the Sub-Regional Offices (SRO) of NSSO with Pentium machine as the Hardware provided earlier in 1994 and 1995 has almost become obsolete or non-functional. Consequently except 30 Sub- Regional Offices, all the offices have been supplied with necessary computer system with peripherals and software. Obsolete computer systems coupled with not so user friendly softwares in the field offices have been major bottleneck in establishing connection in the field offices. With the replacement of old computer system and supplying user friendly software, it has now become possible to have connection in 100 offices of the Field Operation Division (FOD) of NSSO. This number is expected to increase in coming months and it is planned to have the facility in all 170 offices. Productivity Year 2.3 Encouraged by the experience of the year 2000, which was declared as the Year of Productivity for the first time with identification of thrust areas such as (i) development of a computerized Management Information System (MIS) in SRO/RO for better quality of data (ii) achieving zero level of non response in on going surveys (iii) strengthening HRD aspects through specialized training programmes as also refresher courses (iv) computerised system of financial management and (v) development of personnel information management system on computers to improve the productivity of the organisation, it was felt that

2 certain key areas need to be identified for showing further improvement in the year also. The new areas so identified for the current year relate to Publicity of Survey Programmes and activities of the FOD, extended use of Information Technology in both Administrative & Technical work and Improvement in quality of data collected under different surveys with effective use of checks and balances. The field offices and Hqrs. have initiated necessary action in this regard in accordance with detailed guidelines issued to them. Incentive Scheme 2.4 The FOD gives top priority to staff oriented measures. It firmly believes that staff should be properly motivated and suitably rewarded in order to get maximum output and productivity from them. With this aim in view, FOD has introduced an Incentive scheme for the staff in the Golden Jubilee Year. A committee of Senior Officers drawn from the field office and Hqrs. have gone into various aspects of the Incentive Scheme and suggested detailed guidelines for objective evaluation of the performances of officials as also offices and award certificate of Excellence to best performers among them. The first series of the certificates are likely to be issued shortly and will cover 51 officials each in the categories of Superintendent, Assistant Superintendents and Investigators comprising one best performer in each category at Regional and Zonal Office level. Similarly one Regional Office and Three SROs in each Zone will be awarded certificate of excellence as part of the scheme. International Coordination/Cooperation 2.5 Liaison was maintained with International Statistical Organisations in different statistical matters which covered interchange of statistical intelligence, participation in International conferences, seminars, workshops for the development of statistical system capabilities and serving as clearing house for statistical matters. In this connection effective co-operation was ensured with various International agencies namely the United Nations Economic & Social Commission for Asia and the Pacific (UN ESCAP), the International Monetary Fund (IMF). An effective liaison was maintained with regard to various statistical issues with International agencies, namely the United Nations (UN), the Economic and Social Commission for Asia and the Pacific (ESCAP), the International Monetary Fund (IMF), the Asian Development Bank (ADB) and the Food and Agricultural Organisation (FAO). Officers of the Ministry of Statistics & Programme Implementation participated in various International Conferences/Seminars/Workshops and there were fruitful exchange of views and information regarding the statistical sector. 2.6 Following meetings/conferences were attended by the officers of this Ministry: - 1. Dr. A.C.Kulshreshtha, Deputy Director General, (National Accounts Division), Central Statistical Organisation, attended the Inter -Regional workshop on the System of National Accounts (SNA), organized jointly by Asian Development Bank (ADB), United Nations Statistics Division (UNSD) and National Statistical Coordination Board (NSCB) in Manila, Philippines from May 7-11, Shri Vishnu Kumar, DDG, Computer Centre and Shri A.K. Johari, Director, CSO attended the International Workshop on Consumer Price Indices jointly organized by Singapore Department of Statistics and Organisation of Economic Cooperation and Development (OECD), held in Singapore form June 4-8, Dr. G.M.Boopathy, Director, CPD/National Sample Survey Organisation and Shri S.P.Gera, Deputy Director, Central Statistical Organisation attended the IMF Price Statistics course held in Singapore from June 11-13, 2001.

3 4. Shri Jagdish Singh, Additional Director General, CSO attended the Expert Group meeting on International Economic and Social Classifications from June 18-20, 2001 and meeting of Technical Subgroup on Classification from June 21-22, 2001 held in New York, USA. 5. Shri Aloke Kar, Joint Director, CSO attended the 53 rd Session of International Statistical Institute during August 21-24, 2001 held at Seoul, Korea. 6. Shri D.S. Sastry, Assistant Director, Central Statistical Organisation attended the UNESCAP Seminar on Data Protection Technology for National Statistical Offices form August 17-20, 2001 and 53 rd Session of International Statistical Institute from August 22-24, 2001 held at Seoul, Korea. 7. Dr. G. Raveendran, Deputy Director General, CPD, National Sample Survey Organisation had gone for taking short term consultancy under UNDP/WTO Project RAS/00/088 Development of Tourism in the Tuman River Region in Beijing, China. 8. Dr. N.S. Sastry, Director General & Chief Executive Officer, National Sample Survey Organisation, attended the meeting during October 16-18, 2001 at Santiago, Chile. 9. Dr. A.C..Kulshreshtha, Deputy Director General, and Shri Ramesh Kolli, Director, National Accounts Division, Central Statistical Organisation visited INSEE (French National Institute of Statistics) Paris, France during 5-16 November, 2001 for discussion an national accounts under the Indo-French MOU. 10. Shri B.K.Mishra, Secretary, Ministry of Statistics & Programme Implementation attended the Seventh Session of the Governing Board of SIAP, Bangkok, Thailand during 3-4 December, International Training 1. Dr. S. Durai Raju and Smt. Rajeswari, Deputy Directors Central Statistical Organisation attended the IMF Training Course on National Accounts Statistics at Singapore from 16 th April to 4 th May, Shri P.K.Banerjee, Deputy Director, National Sample Survey Organisation, SDRD Calcutta attended the UNSIAP Fifth Group Training Course in Analysis & Interpretation Statistics (Economics & Statistics) at Chiba, Japan from 17 th July to 23 September, Shri Aloke Kar, Joint Director, Central Statistical Organisation attended the Training Course on Advance in Time Series Analysis during August, 2001 at Taejon, Republic Korea jointly organized by UNSIAP,IAOS & NSO of Republic Korea. 4. Shri Ramkesh, Senior Investigator, CSO is attending Training Course in Modules on Core Official Statistics from 2 nd October, 2001 to 24 th March, 2002 being conducted by SIAP in Chiba, Japan. 5. Shri Jitender Kumar attended IMF Training course on National Accounts Statistics from to at Washington USA. Visitors from abroad 2.8 An Ethiopian Delegation comprising five members visited Central Statistical Organisation for Training Course on Regional Income Accounting from 9 th July 7 th August, 2001.

4 International meetings held in New Delhi. 2.9 International Seminar on Celebration of NSSO Golden Jubilee held at Vigyan Bhavan, New Delhi from May 2001, which was inaugurated by Hon ble Prime Minister of India. The seminar was attended by the representatives from International agencies i.e. IMF, FAO World Bank etc Fifth Meeting of Delhi Group on Informal Sector held at Kanishka Hotel, New Delhi from September, The meeting was attended by the representatives from International agencies and representatives of various Ministries of the Government of India. National Sample Survey 2.11 The 55 th Round of NSS (July 1999-June 2000) was devoted to survey on household consumer expenditure, employment-unemployment and informal non-agricultural enterprises (other than those engaged in industrial categories of mining & quarrying, electricity, gas and water supply). It was the sixth quinquennial survey on Consumer Expenditure and Employment- Unemployment. For the first time, an integrated survey of households and enterprises was conducted during the period. A total of villages/blocks were covered during the survey. All the reports based on data collected during 55 th Round have been released,in the record time of less than one year after the completion of field work of the survey. Unit level data have been released to users/researchers The 56 th Round of NSS was devoted to the unorganized manufacturing sector besides consumer Expenditure. The field work was started in July 2000 and completed in June 2001.A sample of units samples were allotted for this round were surveyed. Check/Scrutiny of Trial Tables and Finalisation of tables to release the reports on a) Consumer Expenditure and b) unorganized manufacturing enterprises is being undertaken th Round of NSS (July June 2002): The fieldwork of the 57 th round of NSS started from July 2001 and will continue over a 12-months period. This Round of NSS is earmarked for collection of data on economic and operational characteristics of unorganized enterprises in service sector (excluding trade and finance). The survey is covering 9 broad activity groups namely, (i) storage and warehousing (ii) hotel (iii) post and telecommunications (iv) mechanized road transport (v) real estate, renting and business activities (vi) health and social work (vii) restaurant (viii) education, and (ix) other community, social and personal service activities & other transport. In addition, annual survey of household consumer expenditure along with some key characteristics of employment and unemployment is also being undertaken Rural and 9356 Urban Sample First Stage Units (FSUs) will be covered during the survey period of 57 th round. The fieldwork of Ist sub-round is under progress. Golden Jubilee Celebration of NSSO 2.15 As a part of the celebrations of Golden Jubilee of NSSO, a National Seminar on Understanding Human Development Through National Surveys was organized at Pune on 6-7 April, Keynote address was delivered by Prof. Nilakantha Rath, eminent Economist and President, Governing Body, Indian Institute of Political

5 Economy, Pune The yearly celebrations of Golden Jubilee of NSSO were concluded by an International Seminar on Undertaking Socio-Economic changes through National Surveys held during May,2001 at Vigyan Bhavan. The Seminar was inaugurated by Hon ble Prime Minister Shri Atal Bihari Vajpayee, addressed by Dr. Arun Shourie, the then MOS for Statistics & Programme Implementation and keynote address was delivered by Dr. C.Rangarajan, Chairman, National Statistical Commission. Renowned Statisticians from various International and Statistical Agencies viz. Statistics Canada, ABS of Australia, US Bureau of Census, Washington, Social Survey Division Office of the National Statistics London(U.K.), University of East Angila Norvich(UK),ILO, Geneva, ADB Manila, Philippines etc. along with Indian Statisticians/Experts participated in the Seminar Seminars on survey practices were also organised at Hyderabad, Jaipur, Ahemedabad, Chandigarh, Bhopal, Trivandrum, Chennai, Lucknow, Patna, Bhubaneswar and Guwahati so as to provide an opportunity to the staff and officers of FOD to participate and share their experiences in the Golden Jubilee year. The State level seminars were well attended by both retired and serving NSSO officials, besides academicians and in many places these seminars were inaugurated by dignitaries including State Governors and Ministers. Growth of the economy 2.18 The Gross Domestic Product (GDP) at constant ( ) prices registered a growth of 4.0 percent in as compared to 6.1 percent in The estimated per capita income in real terms showed a growth of 1.9 percent during During the period to , the average annual growth rates of GDP and per capita income at constant prices were 6.3 and 4.2 percent respectively. As per the advance estimates for , the GDP in real terms is expected to register a growth rate of 5.4 percent The rates of Gross Domestic Savings (GDS) and Gross Domestic Capital Formation (GDCF) in were 23.4 percent and 24.0 percent respectively as compared to 23.2 percent and 24.3 percent in The share of Private Final Consumption Expenditure (PFCE) at current prices in was 64.2 percent of GDP at market prices as against 65.6 percent during the year The pattern of saving, viz., by broad sectors of household private corporate and public sectors, has undergone a change during the period. The household sector formed, throughout, a major share in the total domestic saving. The share in was 89.3 percent compared to 81.8 percent in The relative share of private corporate sector has registered an increase from 15.4 percent in to 17.8 percent in whereas the share of public sector has shown a decline from 2.8 percent in to (-) 7.1 percent in As regards Capital Formation by industry of use, it is observed that at constant ( ) prices, the share of agriculture in total Capital formation has declined from 8.4 percent in to 7.1 percent in The share of manufacturing has increased from 32.4 percent to 38.7 percent and that of other industries marginally declined from 59.2 percent to 54.2 percent. Industrial Production

6 2.22 In order to capture the structural changes in the Industrial Sector, the Ministry has launched a revised all-india Index of Industrial Production (IIP) with base The current series of IIP with base prepared by the Ministry is the most up-to-date indicator of industrial growth in the Indian economy. The industrial production registered a growth of 9.1% during , followed by a steep rise in the rate of growth to 13.0% during Thereafter the industrial growth declined to 6.1% in However, the growth marginally increased to 6.7% in but again declined to 4.1% in The growth in improved significantly to 6.7% due to improvement in the industrial performance of manufacturing sector but again declined to 5.0% in Compilation of State level Indices 2.23 In pursuance of the assurance given by the Prime Minister in Parliament in April, 1993, the Technical Advisory Committee (TAC), constituted in June 1995 to examine all the technical aspects relating to Compilation of Comparable State level (S.L) IIPs, submitted its report in June, As a part of the implementation of the recommendations of the TAC, a set of revised guidelines on the subject have been issued to the State DESs alongwith requisite data for identification of item basket and preparation of weighting diagram. A workshop of DESs was also organised in CSO on November, 1998 to orient them on the concepts, methodology and various issues involved in the compilation of comparable State level IIPs. All the States/UTs have been asked to compile the index (base: ) after the selection of the item basket and the preparation of the weighting diagram as per the criteria decided by the government on the recommendation of TAC Follow-up action on the proceedings of the workshop is being undertaken. Six States viz., Andhra Pradesh, Tamil Nadu, West Bengal, Goa, Delhi and Haryana have already started compilation of monthly State level IIPs. Punjab have attempted quarterly indices for the year Assam has compiled monthly IIPs for January'2000. Karnataka, Pondicherey and Himachal Pradesh have released annual indices and have been advised to start compiling quarterly/monthly IIPs. Rest of the States/UTs have either identified the item basket and prepared weighting diagram or are in the process of finalization of the item baskets and weighting diagrams. Standardisation of Industrial Classification Updation of National Industrial Classification, The NIC-1998 released by CSO is a classification of economic activities undertaken by the economic units. It does not draw the distinction according to the kind of ownership, type of legal organisation, type of technology and scale/mode of operation. The NIC 1998 has followed the principles of the latest UN System of Industrial Classification for all Economic Activities, 1990 (ISIC Revision 3) and unlike in NIC 1987, the scale of operation/technology has not been used as a criteria for classifying certain activities in the manufacturing sector. It has adopted ISIC Rev. 3 upto 4-digit level in toto and has been extended to the 5 th digit to describe more detailed activities at the national level During the last two years the economy has witnessed a lot of changes, especially in the fields of Information Technology. Moreover, at the international level also the ISIC Rev. 3 is being updated and ISIC Rev. 3.1 is on the way. In this connection, DDG(ISD) and Addl. DG(JS) had attended the international meetings of Technical Sub-Group and Expert Group on International Economic & Social Classifications

7 held in New York during March and June, 2001 respectively. Thus, the updation of NIC-98 at this stage has become imperative for incorporating the changes of ISIC Rev. 3.1 to maintain international comparability. For updating the NIC-1998, the Industrial Statistics Division of CSO obtained comments/suggestions from the main users of NIC and prepared a draft NIC This draft was discussed in a meeting of Standing Committee on Industrial Statistics in which a small Sub-group has been constituted with Prof. K.L. Krishna as Chairman to discuss the matter in detail. With the 1 st meeting held on 4 th December, 2001, the subroup has started detailed deliberations on the subject. National Product Classification (Services Sector) After the development of National Industrial Classification (NIC) 1998 in December 1998, the next step was to evolve a product level classification as was done earlier following the development of NIC-1970 and NIC The task of development of uniform 8 digited Product Classification for transportable goods i.e Agriculture, hunting and Forestry; Fishing; Mining and Quarrying and Manufacturing was undertaken by the Directorate of Systems, Customs and Central Excise. To avoid the duplication of the work it was decided that CSO would take up the task of evolving the Product Classification of only nontransportable goods (Services Sector viz. Transport, Storage and Communication; Financial Intermediation; Real Estate, Renting and Business Activities; Public Administration and Defence; Education; Health and Social Work; Other community, Social and Personal Service activities; Private Households with employed persons; and Extra-territorial Organisations and Bodies) The National Product Classification 2001 for Services Sector is proposed to be eight digited, as in the case of transportable goods. First four digits describe the first four digits of NIC 1998 in toto to indicate the industry of origin; the fifth digit accommodates 3 digited groups of Central Product Classification (CPC) Version 1.0 of UNSD with extensions wherever necessary; the sixth digit represents Classes of CPC uniquely (represented by its 4 th digit); and last two digits of the code represent Subclasses of CPC in addition to the details of the categories under CPN However, wherever necessary, expanded one digit codes have been used at both 5 th and 6 th digits to accommodate description of all the items at higher level of activities. The draft National Product Classification (Services Sector)-2001 had been circulated among all the Senior Officers of this Ministry and other users like RBI, Ministry of Industry etc. for comments. These comments had been compiled and discussed in the Meeting of Standing Committee on Industrial Statistics and further follow-up action for its finalisation is in progress. Inflation Rate as measured by different Price Indices 2.29 The annual inflation rate, computed as the percent variation of the index for a month over the index for the corresponding month of previous year, using the Consumer Price Index for Urban Non-Manual Employees CPI (UNME)], CPI for Industrial Workers [CPI (IW)], CPI for Agricultural Labourers [CPI (AL)], CPI for Rural Labourers [CPI (RL)] and the Wholesale Price Index (WPI) have varied between 2.0 to 9.3, 0.0 to 9.4, -3.2 to 9.1, -2.5 to 8.7 and 2.2 to 8.7 respectively during January, 1998 to July, Table I and Chart I show comparison of the inflation rates and the trends in the inflation rates depicted from these price indices respectively.

8 TABLE I Inflation rate as measured by different price indices January 1999 to July, 2001 YEAR MONTH CPI(UNME) CPI(IW) CPI(AL) CPI(RL) WPI 1999 Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun July * Based on provisional figure of WPI.

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