Why in news?
The United Nations Statistical Commission adopted the System of National Accounts (SNA) 2025, a new framework that broadens the way countries measure economic progress. Economists and policymakers discussed how India could adopt the changes.
What is SNA 2025?
The SNA provides internationally agreed standards for compiling national income and product statistics. The 2025 update expands beyond measuring the size of the economy to include sustainability, distribution and unpaid work.
Key innovations
- Natural capital accounting: Depletion of minerals, coal and oil will be treated as a cost of production, while renewable resources such as solar and wind will be recognised as assets.
- Distributional accounts: New tables will show how income, consumption and wealth are distributed across households, genders and regions.
- Unpaid work: Household work and care‑giving, mostly done by women, will be measured to reflect their contribution to the economy.
- Policy relevance: The framework links growth with fairness, sustainability and inclusiveness, helping governments craft better policies.
Is India ready?
- Existing groundwork: India already publishes “EnviStats”, a set of green accounts, and has conducted time‑use surveys that capture unpaid labour.
- Data sources: Surveys such as the Periodic Labour Force Survey (PLFS), All‑India Debt and Investment Survey (AIDIS) and the Consumer Expenditure Survey can feed into distributional accounts.
- Base revision: The National Statistical Office is preparing to rebase GDP estimates. This presents an opportunity to incorporate elements of SNA 2025.
Opportunities
- Sustainable resource use: Accounting for natural capital will encourage conservation and efficient extraction.
- Gender‑sensitive data: Recognising unpaid care work shines light on gender disparities and can guide policy on childcare and eldercare.
- Targeted welfare: Distributional statistics help identify which groups benefit from growth and which need support.
Challenges
- Data integration: Combining economic, environmental and social data requires coordination across agencies.
- Capacity constraints: Statistical offices at the state level may need training and resources to compile new accounts.
- Political resistance: Resource‑rich states might oppose accounting methods that show depletion costs as a loss.
- Communication: Explaining statistical changes to policymakers and the public will be critical to avoid misunderstanding.
Way ahead
- Roadmap: Prepare a phased plan to incorporate SNA 2025 elements into national accounts during the next base revision.
- Build capacity: Train statisticians and invest in digital infrastructure for data collection and analysis.
- Institutionalise surveys: Regularly conduct time‑use and distributional surveys and integrate them into official statistics.
- Public engagement: Communicate clearly with citizens about why changes are being made and how they will improve policymaking.
Conclusion
SNA 2025 marks a shift from GDP‑centric measurement towards a holistic view of economic well‑being. By embracing this framework, India can ensure that growth is sustainable, equitable and reflective of people’s real lives.