Surjit Bhalla to Chair Household Income Survey Expert Group

SURJIT BHALLA TO CHAIR TECHNICAL EXPERT GROUP ON HOUSEHOLD INCOME SURVEY

Why in the News?

• First-ever survey: The National Statistical Office (NSO), under the Ministry of Statistics and Programme Implementation (MoSPI), is set to conduct the first All-India Household Income Survey (IHS) tentatively scheduled for 2026 to estimate income distribution.
• Guidance group: A Technical Expert Group (TEG), chaired by economist and chief economist Surjit Bhalla, has been formed to guide the methodology and sampling design.
• Policy significance: The IHS aims to bridge data gaps for structural economic understanding after 75 years of economic evolution, providing data-driven insights for policymaking.

Key Features of Household Income Survey

• Past challenges: Previous attempts since the 1950s failed due to data inconsistencies between income and consumption, highlighting the need for robust sampling design.
• Survey objectives: The IHS will assess income trends, tech adoption impact on wages, and refine income estimation techniques. It will also analyze household receipts and disbursements on an experimental basis.
• Expert involvement: The TEG includes subject matter experts and economists from the International Monetary Fund (IMF), ISI Kolkata, NCAER, JNU, NSE, and RBI, ensuring a comprehensive approach to the survey methodology.
• Data enhancement: The IHS complements existing surveys like PLFS, ASI, and Health & Social Consumption studies, providing a more complete picture of India’s economic landscape.

Significance for Economic Planning

• Bridging data gaps: The IHS is essential for accurate estimates of income inequality and welfare metrics, addressing a long-standing need in India’s economic data collection.
• Policy impact: The survey will support better targeting of subsidies, social welfare, and taxation policies, enabling more effective governance by the Union Government.
• Global best practices: The TEG will incorporate best country practices and international methodologies for robust income data collection, aligning India with global standards.