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From Mahalanobis to AI: Why Data Will Shape India’s Development Story

PM Narendra Modi on Thursday chaired the 11th Governing Council meeting of the Niti Aayog in New Delhi.

PM Narendra Modi on Thursday chaired the 11th Governing Council meeting of the Niti Aayog in New Delhi. (Image Modi on X)

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By Prof. S.S. SOMRA

India’s next economic leap may depend less on natural resources and more on how intelligently it uses data. On National Statistics Day, Prof. S.S. Somra explains why administrative data, evidence-based policymaking, and the legacy of P.C. Mahalanobis are central to achieving Viksit Bharat 2047.

Jaipur, June 29, 2026 — “Development and policymaking can only succeed if they are based on data and logic.” This is not just an idea, but the fundamental philosophy of India’s development, established decades ago by the great statistician Professor P.C. Mahalanobis. Today, as India moves towards the goal of a developed India by 2047, this idea has become more relevant than ever. Not coincidentally, the theme of the 20th National Statistics Day in 2026 is “Unlocking the Potential of Administrative Data.”

This theme suggests that the future economy will be driven not by resources alone, but by quality data and its scientific use. Prof. Mahalanobis not only gave India the science of statistics but also instilled in us the belief that policymaking should be based on evidence, not guesswork.

He laid the statistical foundation for the Five-Year Plans, played a key role in the establishment of institutions like the National Sample Survey (NSS) and the Central Statistical Organization (CSO), and laid the foundation of the Indian Statistical Institute (ISI).

His famous Mahalanobis Distance is still widely used in data science and machine learning. This demonstrates that his contributions were not limited to his time, but extended to the modern digital economy.

This year’s theme provides an opportunity to examine the utility of administrative data from a new perspective. Until now, the vast data routinely collected by governments during the implementation of tax collection, healthcare, education, social security, agriculture, banking, and welfare schemes has been largely limited to administrative needs.

However, if this data is scientifically analyzed and integrated, it can become a powerful basis for policymaking, efficiency of public expenditure, targeted welfare schemes, and real-time decision-making.

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Indeed, India’s governance system is now moving in this direction. The concept of “synergy from silos” is rapidly emerging in administrative functioning. This means that various ministries, departments, and institutions should make coordinated decisions based on shared goals and shared data, rather than working in isolation.

This shift is not merely an administrative reform, but a new approach to economic governance. Many examples of this are visible in India today.

The Aspirational Districts Program integrates data from multiple sectors, such as health, education, agriculture, nutrition, financial inclusion, and infrastructure, to continuously evaluate districts’ progress.

The PM Gati Shakti National Master Plan has coordinated project implementation by connecting ministries related to roads, railways, ports, airports, and logistics on a common GIS platform. Similarly, the JAM (Jan Dhan-Aadhaar-Mobile) triad has made Direct Benefit Transfer (DBT) more transparent and effective by linking Aadhaar, banking, and digital payment systems.

The Production Based Incentive (PLI) scheme, Startup India, the Green Energy Transition, and the Electric Vehicle Policy are also examples of this integrated approach, where partnerships between multiple institutions have yielded better results.

Effective use of administrative data can give India’s economy a boost at many levels. It will make monitoring of public schemes more accurate, improve tax compliance, reveal a true picture of the labor market, make agricultural and industrial policies more targeted, and increase the efficiency of government spending.

Furthermore, in this era of artificial intelligence (AI), big data, and digital governance, administrative data can propel India towards data-driven governance.

However, this approach faces some serious challenges. The full potential of administrative data will not be realized without addressing issues such as disparities in data formats across departments, data quality, lack of interoperability, privacy, and cybersecurity.

Therefore, a robust data governance framework, shared standards, and protection of citizens’ privacy are equally essential.

National Statistics Day is not only an occasion to pay tribute to Prof. P.C. Mahalanobis, but also an opportunity to introspect on whether India is truly moving towards data-driven governance.

The dream of a developed India will not be realized solely through large investments, modern infrastructure, or rapid economic growth. Its success will depend on the scientific, transparent, and evidence-based policies of governments.

Today, there is a need to put into practice the visionary thinking of Professor Mahalanobis, who believed that the true foundation of development should be facts, logic, and reliable data. If administrative data is used in a quality, secure, and coordinated manner, India will not only be able to formulate better policies but will also set a global example of more inclusive, transparent, and sustainable economic development. This will be the most meaningful tribute of National Statistics Day.

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