THE TRIBUNE EXCLUSIVE: Centre to quantify ancient wisdom in GDP alternative

Amid growing global debate on the adequacy of Gross Domestic Product (GDP) as the sole measure of economic performance, India has embarked on an ambitious plan to measure the Gross Domestic Knowledge Product (GDKP) to put a value to major pillars of its informal knowledge economies.

A Technical Advisory Group (TAG) established under the Ministry of Statistics and Programme Implementation to guide the creation of India’s knowledge economy measurement framework has invited research proposals to develop a comprehensive taxonomy for knowledge items to be included in the GDKP framework.

TAG’s terms of reference include developing a framework and strategy to capture knowledge items at both the regional and national levels and defining the coverage of intangible assets under the framework.

Government leaders believe if India can quantify traditional wisdom and knowledge, it can quickly outpace others in the race to becoming the world's largest economy. India this year overtook Japan as the world's fourth largest economy valued at $4.5 trillion.

Speaking exclusively to The Tribune today, R Balasubramaniam, chairman of TAG said the attempt is to measure India's civilisational wisdom. "The question is can you put a value to the wisdom contained in the Bhagwad Gita or the Upanishads, the knowledge of India's medicinal herbs, art, architecture? While the knowledge produced and consumed in formal economies, such as R&D in industries and Intellectual Property Products (IPPs) such as patents, copyrights, software, is easier to measure, covering knowledge items from informal knowledge economies is challenging. To thoroughly cover the knowledge economy of India, we must include these knowledge components in the framework. Success could mean the Indian economy’s quick surge to 20 to 30 trillion dollars," Balasubramaniam said, adding that past attempts by the OECD and the World Bank to define GDKP didn’t succeed.

The Government's concept note on the subject (accessed by The Tribune) says the classification of knowledge assets in India must be rooted in the country’s civilizational depth, cultural richness and diverse epistemological traditions.

“India’s knowledge economy cannot be viewed through western lens. It must reflect the blend of modern scientific advancement and time-tested traditional knowledge systems that coexist within its socio-economic fabric," the note adds.

The guidance for TAG is to measure five components including Indigenous and Traditional Knowledge which includes traditional ecological and medicinal knowledge, Ayurveda, Yoga, local water management practices, oral histories, cultural activities, crafts, and agricultural know-how passed down through generations.

“These practices and systems, though difficult to capture and monetise, embody tacit knowledge and are crucial to a holistic understanding of knowledge-based productivity and sustainability," says the guidance.

Other components to be measured are Research and Development; IPPs, Digital Economy and Knowledge Process Outsourcing. Under the R & D head, the plan is to capture the diversity of sectors from science, space to pharmaceuticals. Digital economy measurement seeks to harness digital knowledge spheres including digital infrastructure, digital payments and e-governance platforms. Under the Knowledge Process Outsourcing segment, the proposal is to measure India’s global footprint in high-skill service exports like data analytics, legal processing, financial services, education technology and intellectual consulting that marks it as a key global knowledge hub.

Speaking to The Tribune about the plan, Secretary, Ministry of Statistics Saurabh Garg, said India was an invaluable storehouse of knowledge and wisdom. “We know that knowledge contributes significantly to our national output and well-being. It is in this context that the Ministry has taken the unparalleled initiative of conceptualising and measuring the contribution of knowledge to the economy. It is by no means a simple task,” Garg said.

He said the government needed to develop fresh and unconventional concepts, frameworks, methods of data handling and estimation. “We will approach the task systematically, with a comprehensive framework paper and draft methodologies which will be widely discussed before final deployment. The idea is to add value to the analysis of causal factors that define the progress of the economy to the eventual realization of our Viksit Bharat goal,” Garg said.