It’s known as the “next-generation consumption survey.” The current government consumer study goes beyond asking what you eat, wear, and possess.
It also wants to know how much money you spend on OTT subscriptions, how much time you spend online, how often you buy online, if you order meals from Zomato or Swiggy, and whether you own an electric Vehicle.
According to sources familiar with the situation, the Household Consumption Expenditure Survey (HCES), a critical input for government policy that has been amended for the first time in over a decade, will now include pricing information for tablets and mobile accessories such as smartwatches.
According to one of the participants, the goal is to better capture progression in consumption patterns as well as ways of spending in light of the economy’s structural changes.
According to another source, the poll aims to determine “how much is spent online” and includes questions on taxi booking using online channels and apps.
Both consumption and distribution of products and services have changed in the nation, particularly after the Covid-19 epidemic, with e-commerce now accounting for a considerable portion of delivery, according to the second source.
The second round of the study will begin in July. The first installment will conclude in June.
The administration chose to divide the survey into three phases to avoid inconsistent findings due to the large number of questions.
Every five years, the National Statistical Office (NSO) conducts the household consumer spending survey (HCES). The most recent survey, however, was canceled due to data anomalies.
The survey collects information and statistics on expenditure and is used to revise base years for GDP calculations and the composition of the inflation basket.
The new survey of consumer expenditures will also update the foundation year for calculating consumer prices.
Service sector share
The current series uses HCES from 2011 as the foundation year for computing consumer prices and inflation.
Some of the things in 2011 no longer exist. For example, the 2011 poll includes a price category for VCR/VCD/DVD players, CD/DVDs, audio/video cassettes, and so on.
According to economists, the new poll will assist reveal the true state of the economy and aid in the urgent updating of the inflation basket.
“Currently, from annual private consumption data, the share of services has stayed relatively constant at 48% of private consumption versus 52% for goods,” said Gaura Sengupta, India economist at IDFC First Bank. “With more updated surveys, the value added by the services sector could be captured better,” she said.
