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The Union Government is reviving the Gross Domestic Knowledge Product (GDKP) to measure the impact of knowledge on economic and social development.

About Gross Domestic Knowledge Product (GDKP)

It is a proposed metric to measure the impact of knowledge on economic and social life.

It captures the contributions of knowledge-driven sectors, innovation, and intellectual assets to a country’s growth, which supplement conventional economic indicators like GDP.

How does GDKP differ from GDP?

GDP measures the total monetary value of goods and services produced in a country. GDKP focuses on capturing the economic and social impact of knowledge, innovation, and intellectual assets.

While GDP includes expenditures on Intellectual Property Products (IPP) under Gross Fixed Capital Formation (GFCF), GDKP aims to provide a more comprehensive assessment of the knowledge economy.

Satellite account

A satellite account is a supplementary framework that extends traditional economic accounts to measure specific sectors like tourism, culture, or the knowledge economy.

Government highlighted that GDKP could be developed as a satellite account to measure the knowledge base of the economy, similar to existing accounts for tourism and the blue economy.

What challenges were identified in measuring GDKP?

The NITI Aayog proposed GDKP in 2021, but the National Statistical Commission and Ministry of Statistics and Programme Implementation (MoSPI) identified several challenges:

• Lack of a clear methodology for capturing data or computing GDKP.
• High subjectivity in parameters.
• Data unavailability, requiring perception-based surveys.
• Overlap with GDP, as some GDKP components are already captured in GDP.

Union government reviving the GDKP idea

Government is reviving the GDKP idea to better reflect the role of knowledge in economic and social development. The Ministry of Statistics and Programme Implementation (MoSPI) held a session on February 10, 2024, to explore a framework for measuring GDKP. 

The Government is forming a technical committee to evaluate the GDKP proposal and provide guidance on measuring the knowledge economy.

The committee will address challenges like data collection, methodology, and integration with GDP, ensuring GDKP complements existing economic indicators.

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Source:

INDIAN EXPRESS

https://t.me/+hJqMV1O0se03Njk9