RWAs a barrier, Government may let high-income households compile own spending data

Two years ago, the Ministry of Statistics and Programme Implementation (MoSPI) and Resident Welfare Associations (RWAs) clashed over the difficulty of government surveys and the private information they requested. High-income households living in gated communities were less responsive to these surveys. Now, MoSPI is considering allowing these households to compile their own data through a "diary-based data collection" method for the next Household Consumption Expenditure Survey (HCES) set to begin in mid-2027.

Instead of traditional door-to-door surveys, households would record their monthly expenses on goods and services, such as food and haircuts. While the "diary-based data collection" method minimizes recall errors, the Ministry must find a way to integrate the data from different collection methods. Pronab Sen, India's first chief statistician, noted that while the diary method is better, the challenge lies in combining two distinct data sets.

MoSPI held a brainstorming session with RWAs in September 2024 to address concerns over falling participation rates. RWAs worried about the sensitive nature of survey questions and the fear that personal details may be shared with other government departments. MoSPI assured that data privacy is a top priority and the data is anonymized.

The HCES provides valuable insights into household consumption behavior, standards of living, well-being, and inequality, which are crucial for informing economic policies and inflation measures.