In News:

Reliable, granular, and credible data form the backbone of effective economic policymaking. Recognising long-standing gaps in household-level economic statistics, the Ministry of Statistics and Programme Implementation (MoSPI) is preparing to undertake a set of ambitious and methodologically challenging surveys over the coming years. At the centre of this effort is India’s first-ever pan-India National Household Income Survey (NHIS), alongside two major surveys on household finances—the All-India Debt and Investment Survey (AIDIS) and the Situation Assessment Survey (SAS) of Agricultural Households. Together, these exercises aim to significantly strengthen India’s evidence base on income distribution, indebtedness, assets, and rural livelihoods.

National Household Income Survey (NHIS): A Long-Awaited Exercise

The NHIS, slated to begin in February 2026 with results expected by mid-2027, seeks to fill a critical void in India’s statistical system: the absence of a dedicated, nationwide dataset on household income distribution. According to MoSPI Secretary Saurabh Garg, income surveys are globally among the most difficult statistical exercises, and India’s own experience bears this out.

Historical Context and Challenges

India has attempted to measure household incomes multiple times:

• In the 1950s, income questions were embedded experimentally within consumer expenditure surveys.
• The 1960s Integrated Household Survey and feasibility exercises in the 1980s also explored income estimation.

These efforts were discontinued because reported incomes were often lower than the combined estimates of consumption and savings, raising serious concerns about data reliability. Household hesitancy to disclose income from multiple sources, especially informal earnings, has been a persistent obstacle.

Pre-Survey Findings: Trust Deficit

A pre-testing exercise conducted by MoSPI in August 2025 revealed the core challenge facing NHIS:

• 73% of respondents found the questionnaire relevant,
• 84% understood the purpose partially or well,
• Yet 95% considered income-related information “sensitive”,
• 95% felt uncomfortable disclosing income from different sources,
• A majority refused to answer questions on income tax paid.

These findings underline that the success of NHIS will depend less on technical design and more on public trust, awareness, and assurances of anonymity.

Institutional Safeguards

To address concerns of credibility and methodology, MoSPI has constituted a Technical Expert Group (TEG) chaired by Surjit S. Bhalla, former Executive Director for India at the IMF. The TEG will:

• Oversee survey design and implementation,
• Guide validation and finalisation of results,
• Advise on the nature of release—whether as a full national survey, pilot, or experimental dataset.

Given past controversies, such as the non-release of the 2017–18 Consumer Expenditure Survey due to data quality issues, MoSPI has emphasised that the NHIS results will be released only after rigorous expert scrutiny to ensure credibility.

Complementary Surveys: AIDIS and SAS (2026–27)

Alongside NHIS, MoSPI has announced that two nationally representative surveys will be conducted between July 2026 and June 2027, further enriching India’s household-level economic data.

All-India Debt and Investment Survey (AIDIS)

AIDIS is one of India’s most significant surveys on household finance, covering both rural and urban areas. It provides critical data on:

• Household indebtedness,
• Asset ownership and wealth distribution,
• Structure and reach of credit markets.

Its findings are widely used for:

• National accounts preparation,
• Assessing inequality in asset distribution,
• Informing policy decisions of the Reserve Bank of India, MoSPI, and other institutions.

Situation Assessment Survey (SAS) of Agricultural Households

First launched in 2003, the SAS focuses on the economic conditions of farming households. It covers:

• Income and expenditure patterns,
• Indebtedness and access to credit,
• Land and livestock ownership,
• Crop and livestock production, farming practices, and technology use,
• Access to government schemes and crop insurance.

The survey informs policymaking by the Ministry of Agriculture and Farmers Welfare, NITI Aayog, financial institutions, and researchers, particularly in the context of rural distress, farm incomes, and agricultural reforms.

MoSPI has also adopted a consultative approach by placing draft concept notes and schedules of AIDIS and SAS in the public domain, inviting feedback from policymakers, researchers, farmer groups, and financial institutions.