Govt to Use Amazon, Flipkart Data in Inflation Index Overhaul
India will start sourcing price data directly from e-commerce giants including Amazon and Walmart-owned Flipkart to overhaul its benchmark inflation gauge, aiming to capture shifting consumption habits and address concerns that current data is outdated, the head of the Statistics Ministry said.
E-commerce now makes up a significant portion of Indian household spending. As per the Household Consumption Expenditure Survey , this spending is significant enough to be included in the Consumer Price Index basket, Garg said.
He also noted that the goal is to make the index more representative and up-to-date.When the new CPI series launches early next year, it will use extra data sources and adjust weightages since a recent survey showed Indians now spend a smaller share of their budget on food.
The update will also add online data for things like airfares and streaming services, as these have become major spending areas.
Apart from the changes in sources and items in the new CPI, multiple other major statistical upgrades are planned in the next two years, Garg added. This includes a new GDP series with an updated base year of 2022-23, he noted.
Also Read: Jatin Shah: At The Helm Of Progress In The Aluminium Recycling Industry
Earlier this year, the government expanded its monthly employment survey sample to improve accuracy and credibility, aligning it with global standards. It is also developing a new quarterly Index of Services Production that will enhance the government's capability to track the services sector better.
Also Read: Workforce Development
This sector makes up over half of India’s GDP, and the rollout of the new index is planned for mid-next year.