India to Improve Economic Data Tracking with Monthly Labour Surveys, Revised IIP Release & Private Capex Reports

What’s in Today’s Article?

• Economic Data Tracking Enhancements Latest News
• Revised Factory Output Data Release Schedule
• Private Capex Survey to be Released in April
• Monthly Periodic Labour Force Survey (PLFS) to Begin in May
• Economic Data Tracking Enhancements FAQs

Economic Data Tracking Enhancements Latest News

• The Ministry of Statistics and Programme Implementation (MoSPI) is set to enhance the frequency and timeliness of key macroeconomic data releases, introducing a private sector capex survey, monthly labour force reports, and a revised schedule for the factory output data from 2025-25 (FY26).

Revised Factory Output Data Release Schedule

• To enhance timeliness, the Index of Industrial Production (IIP) data will now be released on the 28th of every month instead of the 12th, reducing the reporting lag from 42 days to around a month. 
  • The all-India IIP measures short-term changes in industrial production relative to a base period. 
  • It serves as a key indicator of industrial activity, released monthly, and is crucial for calculating the manufacturing sector's Gross Value Added (GVA) in GDP on a quarterly basis.
• This adjustment will ensure factory output data aligns more closely with other economic indicators like retail inflation, aiding better policymaking by the government and RBI.

Private Capex Survey to be Released in April

• The survey will track capex expenditure over the past three years and projected investments for 2024-25 and 2025-26. 
• It will also provide a sector-wise and asset-wise breakdown, offering insights into industries likely to attract major investments.

Importance of private capex

• Private capex can lead to economic growth by increasing demand and income over time. 
• It can also increase employment and growth by funding projects like roads, railways, and housing. 
• Private capex can also lead to higher corporate profits. 

Assessing Private Sector Investment Intentions

• MoSPI will release a new survey on April 30, 2025 to measure capital investment intentions in the private corporate sector, covering both financial and non-financial enterprises.
• The survey will track capex expenditure over the past three years and projected investments for 2024-25 and 2025-26. 
• It will also provide a sector-wise and asset-wise breakdown, offering insights into industries likely to attract major investments.

Monthly Periodic Labour Force Survey (PLFS) to Begin in May

• To meet the growing demand for timely labour market insights, MoSPI will start releasing monthly PLFS reports for rural and urban areas from May. 
• Data for the previous month will be published on the 15th of each month, while quarterly PLFS reports will be released a month after the quarter ends.
• Back Series and Data Comparability
  • A back series for at least the past 12 months will be introduced, adjusted for higher standard error due to smaller sample sizes in the monthly survey.

Significance of PLFS and Current Releases

• The PLFS, launched in 2017 by National Sample Survey Office (NSSO), provides key labour indicators such as Labour Force Participation Rate (LFPR), Worker Population Ratio (WPR), Unemployment Rate (UR). 
• Currently, rural PLFS data is released annually, while urban PLFS data is published quarterly, along with an annual combined report. 
• Other employment surveys, like survey by the Centre for Monitoring Indian Economy (CMIE), are released on a weekly and monthly basis.

Economic Data Tracking Enhancements FAQs

Q1. What is the meaning of IIP?

Ans. The Index of Industrial Production (IIP) measures short-term industrial production changes relative to a base period, reflecting economic activity.

Q2. What is the IIP index of India?

Ans. India's IIP tracks industrial production growth across mining, manufacturing, and electricity, released monthly by the Ministry of Statistics.

Q3. What is the Periodic Labour Force Survey (PLFS)?

Ans. PLFS is a survey by NSSO providing key employment indicators like Labour Force Participation Rate (LFPR) and Unemployment Rate (UR).

Q4. Who publishes the Periodic Labour Force Survey?

Ans. The National Sample Survey Office (NSSO), under MoSPI, publishes the PLFS to analyze India's employment and labour market trends.

Q5. What is private capital expenditure?

Ans. Private capital expenditure (capex) refers to investments made by businesses in physical assets like machinery, infrastructure, and technology for growth.

Source: IE | Mint | CNBC