Technical Paper  | NCAER and IASRI

Abstract

The National Survey on Household Income and Expenditure (NSHIE) 2004-05 provides a comprehensive evaluation of household income, expenditure, and savings in India, with a focus on the reliability and quality of data collection. A re-examination of the survey from a qualitative perspective confirms that the national-level estimates are broadly satisfactory, with sampling errors largely within 2 to 3 percent, reflecting the robustness of the sampling design and the adequacy of sample sizes. At the state level, however, higher sampling errors are observed, alongside indications of overestimation in some states and underestimation in others. While non-sampling errors, such as response and non-response biases, are inevitable in large-scale surveys, the adoption of multiple income-related questions has helped improve data quality. The study underscores the need for a structured monitoring mechanism to detect and address potential data inconsistencies during the survey process. Additionally, continuous in-depth analysis of survey data should be an integral part of NCAER’s methodology to further enhance the reliability of household economic statistics for policy planning and socioeconomic research.