This refers to the aptly headlined edit “Death of data discipline” (April 13). Policy decisions based on inaccurate data can only yield bad results. This has been highlighted by none other than Reserve Bank of India Governor D Subbarao when he stated, in one of his speeches in 2009, that the weakness in the country’s data system are posing challenges to monetary policy formulation. The expression “garbage in, garbage out” seems to apply to statistics relating to almost every aspect of the Indian economy — be it exports, imports, inflation, poverty levels or employment levels.
The transmission of monetary and economic policies will continue to be ineffective as long as the database remains weak. It is time for the authorities to improve data collection with respect to all economic activities and strengthen the existing database with accuracy and timely reporting.
T.V.Gopalakrishnan,
Mumbai
(This letter appeared in Business Standard dated 16/04/12).
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