MoSPI proposes framework to measure India's knowledge economy contribution

The Ministry of Statistics and Programme Implementation (MoSPI) has released a base paper proposing a framework to measure the contribution of the knowledge ...

What Happened

The Ministry of Statistics and Programme Implementation (MoSPI) has released a base paper proposing a framework to measure the contribution of the knowledge economy and knowledge products to India's GDP.
The framework was developed by a Technical Advisory Group (TAG) constituted under the chairmanship of Dr. R. Balasubramaniam, with members from think tanks, academic institutions, industry bodies, and Central Government ministries.
A brainstorming workshop held in September 2025 helped develop a taxonomy of knowledge products and identify quantitative indicators and data sources.
The base paper has four components: (i) conceptual considerations on knowledge and the knowledge economy; (ii) available methodologies and quantitative measures; (iii) India's traditional knowledge and its dimensions; (iv) a framework primer for valuing knowledge contributions.
MoSPI invited public feedback on the base paper by June 15, 2026.
A "Committee on Knowledge Systems," chaired by Shri Ratan P. Watal, has been constituted to prepare an Actionable Policy Paper based on the framework.

Static Topic Bridges

Ministry of Statistics and Programme Implementation (MoSPI)

MoSPI is the nodal ministry responsible for the collection, compilation, and dissemination of India's official statistics. It produces key data products including the National Accounts Statistics (GDP estimates), Consumer Price Index (CPI), Index of Industrial Production (IIP), and the Periodic Labour Force Survey (PLFS). The ministry also houses the National Statistical Office (NSO) and the Central Statistics Office (CSO — now merged into NSO).

MoSPI operates under the National Statistical Commission (NSC), a statutory body established in 2005 following the Rangarajan Commission recommendations (2001).
India's GDP is estimated using the expenditure approach, production approach, and income approach, with base year currently 2011-12. A rebasing exercise to 2022-23 base year is underway.
MoSPI releases advance estimates, second advance estimates, provisional estimates, and first/second revised estimates of GDP annually.
The ministry coordinates India's compliance with the IMF's Special Data Dissemination Standard (SDDS) and the UN System of National Accounts (SNA 2008).

Connection to this news: The knowledge economy framework represents a new statistical frontier; measuring intangible assets (knowledge, data, intellectual property) requires updating the National Accounts framework, which is MoSPI's core mandate.

Knowledge Economy: Concept and Global Context

The knowledge economy is an economic system in which the production and use of knowledge is the primary driver of growth, wealth creation, and employment — as distinguished from economies centred on physical inputs and manufacturing. The Organisation for Economic Co-operation and Development (OECD) has been a pioneer in frameworks to measure knowledge-based activities, including R&D expenditure, intellectual property products, and human capital.

The UN System of National Accounts (SNA 2008) classifies Research and Development (R&D) as capital investment (not intermediate expenditure), enabling countries to measure knowledge assets in GDP.
Knowledge products include software, databases, R&D outputs, original works of art (entertainment, literary), and traditional knowledge codified into products or services.
India's Gross Expenditure on R&D (GERD) as a share of GDP is approximately 0.6–0.7%, significantly below the OECD average of ~2.5% and China's ~2.4%.
The knowledge economy concept is central to India's transition to a $5 trillion then $10 trillion economy target, as manufacturing and services increasingly require embedded knowledge content.

Connection to this news: MoSPI's framework will allow India to quantify, for the first time, how much of its GDP originates from knowledge activities — including traditional knowledge systems, software services, R&D, and education — enabling evidence-based policy for the digital and innovation economy.

India's Traditional Knowledge and Its Economic Value

India possesses a vast repository of traditional knowledge (TK) in areas such as Ayurveda, Unani, Siddha, yoga, and traditional agricultural practices. The legal protection and economic valuation of traditional knowledge involves the Traditional Knowledge Digital Library (TKDL), managed by the Council of Scientific and Industrial Research (CSIR) and the Ministry of Ayush.

TKDL, established in 2001, is a database of 0.9 million documented traditional medicine formulations converted into patent-friendly format in five languages, used to prevent bio-piracy by opposing invalid patent claims at international patent offices.
The Protection of Plant Varieties and Farmers' Rights Act, 2001 (PPVFRA) protects farmers' rights including their traditional knowledge in plant varieties.
The Biological Diversity Act, 2002 mandates benefit-sharing with local communities when their traditional biological resources are commercially utilised (Articles 6 and 21).
Incorporating TK valuation into the national accounts requires methodologies to impute market values to non-market knowledge.

Connection to this news: The MoSPI framework explicitly includes traditional knowledge as a dimension, addressing a long-standing statistical gap and policy demand for recognising TK's economic contribution.

Key Facts & Data

Ministry initiating framework: MoSPI (Ministry of Statistics and Programme Implementation)
TAG Chairperson: Dr. R. Balasubramaniam
Committee on Knowledge Systems Chair: Shri Ratan P. Watal
Public feedback deadline: June 15, 2026
Base paper chapters: 4 (conceptual framework; methodologies; traditional knowledge; valuation primer)
India's GERD as % of GDP: ~0.6–0.7% (compared to OECD average ~2.5%)
Current GDP base year: 2011-12 (rebasing to 2022-23 in progress)
National Statistical Commission established: 2005 (following Rangarajan Commission, 2001)
UN accounting standard used: SNA 2008 (System of National Accounts 2008)
TKDL (Traditional Knowledge Digital Library) established: 2001
TKDL formulations documented: ~0.9 million
Biological Diversity Act benefit-sharing provisions: Sections 6 and 21