MoSPI Hosts Brainstorming Session on Gross Domestic Knowledge Product Measurement

The session was chaired by Prof. Ajay Kumar Sood, Principal Scientific Adviser (PSA) to the Government of India, and attended by representatives from various Ministries, industry associations, and NGOs.

The National Accounts Division of the Ministry of Statistics and Programme Implementation (MoSPI) organized a half-day brainstorming session on the "Conceptual Framework of Gross Domestic Knowledge Product (GDKP) Measurement" at Dr. Ambedkar International Centre, New Delhi. The session was chaired by Prof. Ajay Kumar Sood, Principal Scientific Adviser (PSA) to the Government of India, and attended by representatives from various Ministries, industry associations, and NGOs.

The session aimed to examine the existing framework for measuring knowledge products within the Gross Domestic Product (GDP) and to deliberate on the conceptualization of a novel approach to evaluate India's Knowledge Economy.

In his keynote address, Prof. Ajay Kumar Sood emphasized the importance of transitioning from traditional economic indicators to a knowledge-centric measurement approach. He highlighted that a refined methodology for GDKP would better capture contributions from knowledge-driven sectors, innovation, and intellectual assets, thereby offering a more comprehensive understanding of India's economic growth.

Dr. Saurabh Garg, Secretary, MoSPI, opened the session by outlining the various surveys and initiatives undertaken by the Ministry. He mentioned current efforts to revise the base years of critical macro-economic indicators like GDP, the Index of Industrial Production (IIP), and the Consumer Price Index (CPI). Dr. Garg underscored the pivotal role of knowledge in economic activities and the necessity of establishing a framework to quantify its impact. He noted that MoSPI has collaborated with relevant Ministries to compile satellite accounts, such as Tourism Satellite Accounts, Culture Satellite Accounts, and Ocean and Blue Economy Accounting. The session sought to explore the feasibility of creating a satellite account to measure the knowledge base of the economy.

Presentations and Insights

A detailed presentation by MoSPI provided insights into existing definitions of GDKP and the current methods of measuring knowledge production within the framework of Gross Fixed Capital Formation (GFCF). It was noted that expenditures on Intellectual Property Products (IPP) are currently recorded under GFCF, serving as a key indicator of knowledge production. The presentation also elaborated on data sources used for compiling IPP estimates across different institutional sectors in National Accounts Statistics.

The session's knowledge partner, Pahle India Foundation, presented conceptual issues in capturing the knowledge economy. They proposed a framework based on four pillars of knowledge: knowledge items, knowledge producers, knowledge distributors, and knowledge users (consumers and enhancers). Dr. Rajeev Kumar, Chairman of Pahle India Foundation, stressed that India should lead the global effort in developing a framework for the knowledge economy.

Discussions and Deliberations

During the interactive discussions, participants shared their perspectives on the definition of knowledge and its impact on economic and social aspects of the country. The role of traditional knowledge in enhancing societal well-being was also highlighted.

Outcomes and Next Steps

The session concluded with a consensus on the necessity of formulating a framework to capture the knowledge economy, acknowledging the current absence of such a model. Secretary Dr. Saurabh Garg urged participants to support MoSPI in advancing this initiative and announced that proposals from institutions would be solicited. A technical committee will be established to evaluate these proposals and provide guidance on measuring the knowledge economy.

Concluding Remarks

Prof. Rajeeva Laxman Karandikar, Chairman of the National Statistical Commission, appreciated MoSPI's efforts to explore this uncharted territory. He expressed hope that the day's discussions would catalyze the development of a comprehensive framework for measuring the knowledge economy in India.