New Delhi: An economy tracker, or a ready database on economic indicators which can influence or determine policy decisions on the fiscal front, is said to be under serious consideration by the Centre. It will also help in effective monitoring of key economic parameters.
Highly-placed sources said a suggestion on preparing a ready reckoner kind of model consisting of economic data is learnt to have come up at the first meeting of the Prime Minister’s Economic Advisory Council (EAC), which was held on October 11.
The five-member EAC, formed by Prime Minister Narendra Modi last month amid sluggish economic growth and concerns over job creation, is headed by Niti Aayog member Bibek Debroy.
Sources further said that at its deliberations, the EAC gave a lot of thought to the need to have an economy tracker, which would help in conducting future economic analyses without seeking reference of too many sources that waste a lot of time as well as precious funds.
While the government already has the Index of Industrial Production (IIP), which measures economic growth on a monthly basis by analysing the performance eight core sectors like electricity, steel, refinery products, crude oil, coal, cement, natural gas and fertilisers; sources said that an overall economy tracker would be more practical.
While the discussions are at a very preliminary stage, they added a more concrete shape could be given to the proposal when the EAC meets again next month. At the first EAC meeting on October 11, it identified 10 major areas of concern, on which it will give inputs to the PM.
These 10 themes are economic growth, job creation, informal sector, fiscal framework, monetary policy, public expenditure, institutions of economic governance, agriculture, patterns of consumption and social sector.
All five members are expected to come with a detailed report on five of these themes by next month.
Apart from Mr Debroy, the other members of the EAC are Ratan Watal (who is its member-secretary and also principal adviser of the Niti Aayog), and economists Surjit Bhalla, Ashima Goyal and Rathin Roy.
