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Data-Based Policymaking in India: Challenges and Recommendations

Data-Based Policymaking in India: Challenges and Recommendations

The credibility of India’s Statistical Systems has come under scrutiny, with concerns about a “decade without data” due to delays in the Census and National Sample Survey (NSS) releases.

About Data Based Policy Making in India

  • Definition: Data-based policy making refers to the process of using empirical data and statistical analysis to inform and guide government policies and decisions. 
    • This approach aims to ensure that policies are grounded in objective evidence rather than intuition or anecdotal experiences.

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Significance of Data-Based Policy Making

  • Improved Outcomes: Policies informed by data are more likely to achieve desired results, as they are based on evidence rather than assumptions.
  • Resource Allocation: Data helps identify needs and prioritise resource allocation effectively, ensuring that interventions target the most pressing issues.
  • Informed Citizenry: Engaging citizens with data enhances public understanding and support for policies, fostering a sense of ownership and participation.
  • Adaptability: Data-driven approaches allow for more agile responses to changing circumstances and emerging challenges.

Challenges of Data Based Policy Making

  • Political Nature of Data: Economists and Policymakers have advocated for more independence and neutrality in data collection, interpretation, and release. 
    • However, the creation of public statistics is influenced by political choices.
    • Without understanding the political influences and motivations behind the data, the statistics may be misleading or less effective in informing decisions and policies. 
    • Example: The way questions are framed in the Census can reflect political priorities.
  • Data Paradox: The data paradox refers to the conflicting relationship where despite having more data available than ever before, organisations and decision-makers struggle to effectively use that data for informed decision-making due to Information Overload, Quality issues of Data etc.
  • Disparity between statistical narratives and real-world experiences: 
    • Example: The Jan Dhan Yojana led India to break the Guinness World Record in 2014 for opening the most bank accounts in a week. 
      • However, banks set up camps to quickly open accounts but provided no information or passbooks to the residents. 
      • As a result, while direct benefit transfers were deposited, many poor individuals faced difficulties accessing their accounts and welfare subsidies due to illiteracy, documentation challenges, and harassment. 
    • While the Pradhan Mantri Garib Kalyan Yojana highlights foodgrain distribution, India’s rank in the Global Hunger Report dropped from 55th in 2014 to 111th in 2023.
  • Development vs. Metrics: Meeting statistical targets should not be confused with the achievement of development objectives. 
    • Example: The eShram database, created by the Ministry of Labour and Employment to collect data on migrant workers post-COVID-19, relies on self-declaration. 
      • Many ineligible individuals, such as housewives and farmers, signed up for potential benefits.
      • While it has met enrolment targets, this focus on numbers makes it unclear if it truly helps the intended population.
  • Access to Data is difficult in the Digital Era: Previously, public institutions like the National Sample Survey Organisation (NSSO) collected detailed socioeconomic data.
    • With Aadhaar, the state has more data on citizens than ever before.
    • Most eGovernance data is stored in State Data Centres accessed by government divisions and their private partners, and data is irregularly published online.
    • Data collected on citizens is not available to citizens or journalists to hold institutions accountable; only government and private actors have access.
    • However, the data collected through payment apps such as Google Pay and PhonePe are used by FinTech start-ups to create financial products to sell to citizens

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Statistical Organisations of India

  • Ministry of Statistics and Programme Implementation (MoSPI): The primary government body responsible for formulating policies and programs for the development of the statistical system in India. 
    • It oversees the collection and dissemination of official statistics.
    • The Ministry has two wings, one relating to Statistics and the other Programme Implementation
      • The Statistics Wing called the National Statistical Office(NSO) consists of the Central Statistical Office (CSO), the Computer center and the National Sample Survey Office (NSSO). 
  • The Central Statistical Organisation (CSO) is the nodal agency for a planned development of the statistical system in the country and for bringing about coordination in statistical activities among statistical agencies in the Government of India and State Directorates of Economics and Statistics
  • National Statistical Commission: It was created through a Resolution of Government of India.
  • Indian Statistical Institute: It is an autonomous Institute declared as an institute of National importance by an Act of Parliament.
  • Collecting Authority on any Subject: The Collection of statistics on any subject generally vests in the authority (Central Ministry or Department or State Government Department) that is responsible for that subject according to its status in the Union, State or Concurrent Lists.

Way Forward For Strengthening Data Systems

  • Focus on Citizen Serving Data: Shifting the focus from merely obtaining the “right” data or technical methods to determining what data best supports citizens’ well-being. 
    • For example, while statistics on newly opened bank accounts may be accurate, measuring the proportion of the poor who can access these accounts provides more meaningful insights.
  • Inclusive Data Design: Ensuring that digitally collected data is not solely designed for government and start-up use. 
    • There is a need to establish open institutional structures that allow civil society to participate in designing data infrastructure, ensuring that diverse perspectives are included.
    • Data collection should be viewed as a social and political process rather than just a technical task. 
  • Social and Political Dimension of Data: Ultimately, Statistics should serve the needs of citizens, rather than citizens being viewed as mere means to achieve statistical targets. 
    • This shift in perspective will help create more effective and responsive data systems.
  • Improve the Accessibility of Data to Citizens: Example: Strengthen the ‘Data Portal Of India’.
    • The Data Portal India is a platform for supporting an Open Data initiative of Government of India. 
    • This portal is intended to be used by the Ministries/Department/Organizations of Government of India to publish datasets, and applications for the public use.
  • Expansion of Resource base of Data: The National Statistical System needs to expand and diversify its resource base of data. 
    • It should include new and emerging sources like Big Data leverage processing through machine learning and artificial intelligence.
  • Strengthening State Statistical Systems: Dholakia Committee Report 2020 on sub-national accounts advocates a bottom-up approach, strengthening the data collection capacities of state governments. 
    • This is crucial as the strength of the national statistical system is dependent on the strength of the state statistical systems.

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Conclusion

Effective data-based policymaking is essential for informed decision-making and improved governance, but it requires addressing challenges like data accessibility, political influences, and the quality of information. 

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Quick Revise Now !
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध

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