In a major statistical reform, the Indian government is set to track the informal economy on a quarterly basis to enhance the accuracy of Gross Domestic Product (GDP) estimates, especially in sectors traditionally underrepresented in official data. The move is part of a broader effort by the Ministry of Statistics and Programme Implementation (MoSPI) to modernize economic measurement tools ahead of the upcoming GDP base year revision to 2022–23.
📊 What’s Changing?
- The Annual Survey of Unincorporated Sector Enterprises (ASUSE), which currently provides yearly data on the non-agriculture informal sector, will now be conducted quarterly
- This shift aims to capture real-time trends in capital expenditure, employment, and output from small-scale and unregistered enterprises
- The first quarterly data release is expected 45 days after survey completion, significantly reducing the lag in informal sector insights
“With quarterly ASUSE data, the first and second advance GDP estimates will better reflect the informal sector’s contribution,” said Minister Rao Inderjit Singh
🧠 Why It Matters
- The informal sector contributes around 45% to India’s GDP and employs a large share of the workforce
- Until now, GDP estimates relied heavily on proxy indicators from the formal sector, leading to underrepresentation of informal activity
- The new approach will improve policy targeting, especially in areas like employment, MSME support, and rural development
🛠️ Supporting Tools and Data Sources
- MoSPI is also piloting the Annual Survey of Service Sector Enterprises (ASSSE)
- Plans are underway to integrate GST data, UPI transactions, and vehicle registration records to enhance data granularity
- A Statistical Business Register is being developed to consolidate administrative and survey-based data
📌 Looking Ahead
- The quarterly tracking aligns with India’s broader push for data-driven governance
- It will also support more frequent GDP base revisions, ensuring economic indicators remain relevant in a rapidly evolving digital economy
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