New Index of Services Production will be based on GST, admin and survey-based data
This combination of data sources would make the upcoming index a “unique blend” of multiple data sources and methodologies
Quick Revision
Prelims-testable facts
- 01The new Index of Services Production will be based on Goods and Services Tax (GST) data.
- 02The index will also incorporate administrative data and survey-based data.
- 03This combination of data sources makes the upcoming index a 'unique blend' of multiple data sources and methodologies.
- 04The new index aims to provide a more accurate representation of services production in India.
- 05Services sector accounts for a significant share of India's GDP, around 60-70%.
- 06The Index of Services Production is an important indicator of the country's economic performance.
Trap alerts
- Most people think that the Index of Services Production only uses GST data, but actually it combines three types of data: GST, administrative, and survey-based data.
- Many students assume that the services sector contributes less than half of India's GDP, but in reality, it accounts for around 60-70%.
Mains Practice Question
Critically examine the advantages and limitations of combining multiple data sources, including GST, administrative, and survey-based data, for measuring services production.
250 words
Practice this in the exam hall →Prelims Practice MCQs
The new Index of Services Production will be based on which types of data?
- A.Only administrative data
- B.Only survey-based data and GST data
- C.GST, administrative, and survey-based data
- D.Only economic indicators
The new Index of Services Production combines GST, administrative, and survey-based data to provide a comprehensive picture of services production.
What is the unique feature of the upcoming index?
- A.It uses only administrative data
- B.It combines multiple data sources and methodologies
- C.It focuses solely on urban services production
- D.It is based on a single survey
The new Index of Services Production is a unique blend of multiple data sources and methodologies, making it a comprehensive measure of services production.
What is the result of combining GST, administrative, and survey-based data in the new Index?
- A.It provides a narrow focus on urban services
- B.It offers a comprehensive picture of services production
- C.It leads to inaccurate estimates of GDP growth
- D.It reduces the reliance on survey-based data
Combining GST, administrative, and survey-based data in the new Index provides a comprehensive picture of services production, making it a valuable tool for policymakers.
Consider the following statements regarding New Index of Services Production: 1. The new index will be based on GST data. 2. The upcoming index is a unique blend of multiple methodologies and data sources. 3. The new index will replace the existing GDP calculation method. How many of the above statements are correct?
- A.Only one
- B.Only two
- C.All three
- D.None
Statement 1 is correct because the text explicitly mentions that the new index will be based on GST data. Statement 2 is also correct as it accurately describes the combination of data sources used for the new index. However, statement 3 is incorrect because there is no mention of replacing the existing GDP calculation method in the text.
Consider the following two statements: Statement-I: The new index will be based on GST data. Statement-II: This combination of data sources would make the upcoming index a unique blend of multiple data sources and methodologies. Which one of the following is correct in respect of the above statements?
- A.Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
- B.Both Statement-I and Statement-II are correct but Statement-II is not the correct explanation for Statement-I
- C.Statement-I is correct but Statement-II is incorrect
- D.Statement-I is incorrect but Statement-II is correct
Statement 1 is correct as it directly mentions that the new index will be based on GST data. Statement 2 is also correct but does not explain why statement 1 is true, so s2_explains_s1 is false.