E-Commerce Inclusion In CPI Calculation On Cards As Households Step Up Online Spends
Statistics Ministry is contemplating collection of e-commerce data from 12 towns, and mapping items on different platforms, as per popularity.
Among the changes being mulled for the introduction of the new base for the Consumer Price Index, the Ministry of Statistics and programme implementation is also taking stock of how best to incorporate changes in retail spending patterns post the pandemic and data from e-commerce portals.
As per estimates, online purchase by households is 7% at an all-India level, with 11% by urban households and 3.6% by rural households, officials from the ministry said. Among the proposed initiatives, the ministry is contemplating collection of e-commerce data from 12 towns, and mapping items on different platforms, as per popularity.
Speaking at an interaction with forecasters and economists on gross domestic product and consumer price index, officials from the ministry said that despite the rising dependence on e-commerce portals, the exercise is fraught with challenges. Given there is no precedence of seeking data on 'regular basis' from e-commerce companies, ambiguities remain in the process of data sharing. Options such as MoUs, are being explored to ensure adherence to timelines.
Globally, too, concerns regarding identifying and measuring online purchases to develop weights and augment outlet samples is a challenge, officials said.
The process of re-basing the CPI and GDP is currently underway.
Proposed Improvements In New CPI Series
Enhanced market coverage across sectors.
Data collection using computer assisted personal interview devices.
Real time validation checks, using computer assisted personal interview devices.
Index compilation using better technology platforms.
Improvements in electricity index by capturing slab wise data.
Enhanced coverage of services data.
Rationalisation in compilation methodology of free items.
Better coverage of flight routes for airfare index.
Dissemination of state level item indices.
Inclusion of data from e-commerce platforms.
The number of services and their weights is likely to increase, along with incorporating more flight routes for the airfare index to reduce volatility and dissemination of state level item indices, officials said.
Broad Activities For CPI Base Revision
Rural-urban sample collection.
Market selection and survey.
Base price collection.
Preparation of weighing diagram.
Development of software for compilation.
Real time testing of software and compilation of trial index.
Preparation of back series and release of new series.
The first step of rural-urban sample collection is complete, along with adoption of new markets, officials said. Market surveys, that involve field officials visiting the markets, identifying the shops, item specifications and most popular shops for those items, are also complete. The ministry intends to introduce new software for compilation, given the advancements in technology over the past decade due to the gap since the selection of the current base year.
The ministry will then shift focus on real time testing and the preparation of back series, officials said.
