GDP is not enough: UN expert group proposes 31 indicators to measure a nation's progress

Amidst the controversy over the first quarter GDP growth estimates not reflecting the correct economic picture, with questions over high unemployment and low per capita income, a UN-appointed Expert Group in May this year had submitted its report recommending global norms for measuring progress beyond GDP, and a clear, practical implementation agenda.   The High-Level Expert Group on Beyond GDP has proposed a dashboard of 31 indicators structured around four components. The first is foundational principles — peace, human rights, and respect for the planet, while the second component is current well-being, measured across domains that reflect people’s lived experiences, including material conditions and work, health, education, security, subjective well-being, social cohesion, quality of institutions and environmental quality.

MUST READ |  Those who pushed India into ‘Fragile Five’ find these figures difficult to digest: PM Modi on 7.8% GDP growth   The third is equity and inclusion, and the fourth principle is sustainability and resilience. Together, these four components map the conditions a society needs not just to function today, but to hold together over time.   “At the heart of the framework lies the well-being of people and planet under one organising principle: that progress means equitable, inclusive, and sustainable well-being,” noted the report, pointing out that for decades, GDP and its growth have been treated as the closest thing the world has to a measure of progress. “Yet GDP growth has coexisted with persistent inequality, environmental degradation, and declining trust in public institutions,” it said.   The panel was set up by the UN Secretary-General in May 2025 and was co-chaired by Kaushik Basu, Carl Marks Professor of International Studies, Cornell University and Nora Lustig, Professor, Office of the Presidency, El Colegio de Mexico; Professor Emerita and Founding Director of the Commitment to Equity Institute, Tulane University.

DON'T MISS | We have been overestimating GDP growth...: Former Chief Statistician Pronab Sen   Consultations are at present currently underway at the intergovernmental level.   Official sources in India note that the report has just come in and has been taken note of but point out that it is still very early to start any work on it.   However, they note that the effort going forward would be to ensure that base revision exercises take place every five years. “This time, the base revision exercise was delayed due to the Covid-19 pandemic. But going forward, it will be the objective to update the base every five years to ensure there is better capturing of economic activities and better continuity,” sources said.

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Further, efforts would also be to move to a chain-based index mechanism for estimation of GDP that would better capture economic activity and would not require a base year. For the index of industrial production, the Ministry of Statistics and Programme Implementation had earlier this year proposed a chain-based method of compilation that would offer better accuracy by capturing changes in demand and production by allowing the increase and decrease in weights annually. This would help correctly reflect a more recent production structure.   Official GDP estimates released on August 31 had pegged economic growth at 7.8% this fiscal year despite the West Asia war. However, there were questions about whether it accurately reflected economic activity, with concerns over the new base year update exercise. On September 2, the government defended the data and underlined that all data sources used are in the public domain.

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