To measure the output of services is significant for India when it contributes more than half of the national income.The GoI is preparing on this to have a methodology to release data on a few sectors, to begin with, like road-transport, ports, aviation, telecom, post & telegraph and banking(For a full-fledged index, it would take some more time).
Measuring the services has become important for India at this stage of its growth when the services contributes more than half of its national income.India has come to the level of having 57% of contribution in 2009-10 where it had contribution to 29% in 1950.An increased contribution from the services is clearly an indication of moving an economy from its nascent stages to a developed one.At this level of growth of Indian economy it would help policy makers and analysts to have a better understanding of our economy.
The issues that are concerned with the preparation of an index in this regard are many, to enumerate a few it would be of the availability and the measurement of data.C.P. Chandrasekhar who is heading the committee to develop an index for services opines that the construction of an index is not easy given that there is a difficulty in measuring many of them.Adding to this concern, TCA Anant, the chief statistician of the country, says that each service is unique in their concept as also their transaction differ.The lack of uniformity, in the case of services to have a methodology, is resulting from the difference in parameters for there is no uniformity in the transaction of servces.Availability of data is important to have a measure but unlike industrial sector, services do not have a (common)source to depend on regular data(for various services data gets released in different time intervals, ranging from monthly to quarterly to half-yearly) and the issue deepens more in the case of private sector.
Measuring the services has become important for India at this stage of its growth when the services contributes more than half of its national income.India has come to the level of having 57% of contribution in 2009-10 where it had contribution to 29% in 1950.An increased contribution from the services is clearly an indication of moving an economy from its nascent stages to a developed one.At this level of growth of Indian economy it would help policy makers and analysts to have a better understanding of our economy.
The issues that are concerned with the preparation of an index in this regard are many, to enumerate a few it would be of the availability and the measurement of data.C.P. Chandrasekhar who is heading the committee to develop an index for services opines that the construction of an index is not easy given that there is a difficulty in measuring many of them.Adding to this concern, TCA Anant, the chief statistician of the country, says that each service is unique in their concept as also their transaction differ.The lack of uniformity, in the case of services to have a methodology, is resulting from the difference in parameters for there is no uniformity in the transaction of servces.Availability of data is important to have a measure but unlike industrial sector, services do not have a (common)source to depend on regular data(for various services data gets released in different time intervals, ranging from monthly to quarterly to half-yearly) and the issue deepens more in the case of private sector.
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