Niti Aayog asks if think-tanks should work on new data as MoSPI says alternative data can be used in official stats

By | June 6, 2025
Think-tanks collaborating on NITI Aayog alternative data initiatives
Think-tanks collaborating on NITI Aayog alternative data initiatives

In a notable move toward modernizing India’s data infrastructure, the NITI Aayog has sparked debate on whether think-tanks should take a more proactive role in utilizing and developing alternative data sources, particularly as the Ministry of Statistics and Programme Implementation (MoSPI) indicates a willingness to integrate such data into official statistics. This evolving conversation could reshape how economic, social, and developmental data is collected, analyzed, and applied in policymaking.

A Shift in Thinking: The Rise of Alternative Data

Alternative data — which refers to non-traditional sources such as satellite imagery, administrative records, mobile data, social media feeds, and even e-commerce transaction logs — is gaining global recognition as a supplement or substitute for conventional data collection methods like surveys and censuses.

MoSPI recently acknowledged that alternative data can serve as a legitimate input in compiling official statistics. This marks a potential shift in India’s traditionally conservative approach to data credibility and transparency. In this context, NITI Aayog’s query on the possible leadership role of think-tanks is both timely and consequential.

NITI Aayog’s Position: A Call for Innovation?

During a recent internal review and consultation session, NITI Aayog reportedly asked: Should Indian think-tanks be more involved in using or generating alternative data sources to support government policy and planning? The question underscores the organization’s broader interest in enhancing the use of data analytics and evidence-based governance.

NITI Aayog, as the country’s premier policy think-tank, has long advocated for innovation in governance. However, its latest stance signals a desire to crowdsource and decentralize data innovation—possibly hinting at a new partnership model between the state and civil society institutions.

MoSPI’s Changing Outlook

MoSPI’s evolving approach toward alternative data stems from global practices and the increasing lag between fast-moving economic activity and slow survey-based data collection. The COVID-19 pandemic especially highlighted the need for real-time data tools to guide crisis response and planning.

A senior MoSPI official remarked, “There’s growing acceptance internationally that alternative data, when validated and responsibly used, can complement official datasets. We are exploring frameworks for integrating such sources while maintaining transparency and methodological rigor.”

This acknowledgment is critical. Historically, India’s statistical infrastructure has faced criticism for delays, underreporting, and political interference — issues that alternative data, if correctly harnessed, could help mitigate.

What Role Can Think-Tanks Play?

The question posed by NITI Aayog goes beyond mere academic curiosity. India has a rich ecosystem of public policy think-tanks like the Centre for Policy Research (CPR), Observer Research Foundation (ORF), and Indian Council for Research on International Economic Relations (ICRIER), among others. Many already use data-driven methods to influence public discourse and policy.

However, with official endorsement, these institutions could play a more structured role in:

  • Developing Data Infrastructure: Think-tanks could help build repositories of real-time data and foster collaborations with tech firms or universities.
  • Methodology Development: They could pilot and validate new data collection and analysis techniques, providing frameworks for official adoption.
  • Capacity Building: Training bureaucrats and researchers on big data, AI analytics, and geospatial intelligence could be a natural extension of their work.
  • Policy Experimentation: Think-tanks can serve as ‘labs’ for experimental policymaking using real-time, localized data.

Potential Challenges and Concerns

Despite the enthusiasm, several roadblocks remain. First, data quality and validation remain crucial issues. Alternative data is often unstructured, noisy, and biased, which could lead to faulty conclusions if not handled carefully.

Second, questions of data privacy, surveillance, and ethical use loom large. Unlike traditional surveys, which operate under strict legal frameworks, alternative data collection (such as location tracking or scraping social media) can easily violate individual rights if left unchecked.

Lastly, institutional barriers within government agencies may slow down adoption. India’s bureaucratic structure tends to resist rapid innovation, and the fear of misuse or misinterpretation may prevent officials from fully embracing new methods.

A Middle Path: Collaboration, Not Replacement

Experts believe the best way forward is to blend traditional and alternative data sources rather than replace one with the other. “The government doesn’t need to reinvent the wheel. It should focus on setting standards, ensuring transparency, and providing regulatory clarity, while letting think-tanks and startups take the lead in innovation,” said a senior economist at ICRIER.

Such collaboration could be mutually beneficial — allowing the government to gain access to rich, timely datasets while giving think-tanks more influence and responsibility in shaping data policy.

Global Context and Lessons

India isn’t alone in exploring this path. Countries like the UK, Australia, and Canada are already integrating alternative data into national statistics. The UN’s Global Working Group on Big Data for Official Statistics has encouraged countries to experiment with new methodologies, particularly in emerging areas like urban planning, disaster response, and agricultural productivity.

India’s unique demographic and digital landscape — from the Aadhaar ecosystem to UPI transactions — positions it well to become a leader in data innovation, if supported by robust frameworks and ethical safeguards.

Conclusion

As MoSPI signals its readiness to include alternative data in official statistics, NITI Aayog’s query about the role of think-tanks could become the starting point for a new era of public-private-academic partnerships in policymaking. By encouraging innovation while maintaining transparency and accountability, India could reimagine its entire data ecosystem — turning think-tanks into catalysts for a smarter, more responsive governance model.