On the Validity of NSS Estimates of Consumption Expenditure

We propose to examine here the NSS estimate of consumption expenditure as a measure of the aggregate private consumption expenditure. Private consumption expenditure, today, is of the order of 80 per cent of the net national product (NNP) at market prices. The estimate of NNP in India does not depend on survey consumption data, and is based largely on information on output. A substantial part of the aggregate NNP in a particular year is based on projections and surmises and does not depend on direct information pertaining to the year. Consequently, corroboration of a sizable part of it by a completely independent survey estimate will be welcome provided we are satisfied about its validity and accuracy.