New framework in works to put a number on knowledge economy

New Delhi: The statistics ministry is examining a proposed framework to measure India's expanding knowledge economy, with a committee recommending separate statistical accounts for areas such as artificial intelligence (AI), research and development (R&D), and human capital.

The exercise aims to strengthen India's ability to measure how knowledge, innovation and technological capabilities contribute to economic growth. The Committee on Knowledge Systems, chaired by former finance secretary Ratan P Watal, has proposed developing a family of thematic statistics and accounts aligned with the System of National Accounts (SNA) 2025.

The recommendations are part of an actionable policy paper submitted to the statistics ministry, which has invited feedback from stakeholders until December 12. The seven priority areas identified are human capital, R&D, creative economy, AI systems, data and databases, high-tech products and frontier technologies, and the digital economy.


"Understanding the contribution of knowledge to the economy is therefore essential for identifying existing strengths, recognising capability gaps and setting priorities to guide India's future development," the ministry said in a statement. The proposed framework seeks to address a gap in conventional economic measurement: the inability of existing statistics to fully capture how knowledge, specialised skills, research, intellectual property, data and digital capabilities contribute to productivity and economic value creation.

For implementation, the paper proposes a federated architecture based on three roles: system integrators, which provide the common framework; domain institutions, including sectoral ministries and departments, which handle specialised measurement; and key partners, such as state governments, regulators, and research and academic institutions.

"Much of the contribution of knowledge to growth is invisible in the national accounts," the report said, pointing out that knowledge is embedded in people, firms, capital, products and production processes, cutting across conventional industry and product classifications. The report therefore proposes a broader conceptual framework comprising eight interrelated components: knowledge; capabilities and assets; enabling infrastructure; knowledge creation activities; knowledge products; knowledge-embedded products; knowledge-intensive entrepreneurship; and knowledge application.