National Council of Applied Economic Research (NCAER)

The National Council of Applied Economic Research (NCAER) is one of India’s oldest and most respected independent economic policy research institutions. Established in 1956, it plays a crucial role in conducting applied economic research, providing empirical data, and influencing public policy through rigorous analysis. Based in New Delhi, NCAER bridges the gap between academic research and policy formulation, contributing to India’s economic planning, development, and reform processes.

Historical Background and Establishment

The NCAER was founded at a time when India was embarking on planned economic development following independence. Recognising the need for a non-governmental institution dedicated to high-quality economic analysis, the Government of India, in collaboration with industry leaders and international agencies, initiated the formation of NCAER.
The council was formally registered as a society under the Societies Registration Act, 1860, in December 1956. It was established with the support of the Government of India, the Ford Foundation, and Indian industry represented by the Tata Group and other leading corporate houses.
The founding vision was to promote evidence-based policymaking and provide a platform for systematic economic research that could assist both the government and the private sector. The first chairman of NCAER was Mr. John Matthai, former Union Finance Minister, while Malcolm S. Adiseshiah was among its early influential figures.

Objectives and Mission

The primary objective of NCAER is to undertake, promote, and disseminate policy-oriented research on applied economic issues relevant to national development. Its mission is to generate credible data, conduct independent analysis, and contribute to the design and evaluation of public policies in India.
The council’s key aims include:

• Conducting empirical research on economic and social development.
• Providing analytical support to policymakers and government institutions.
• Generating and maintaining large-scale economic and household databases.
• Encouraging collaboration among researchers, economists, and international organisations.
• Disseminating findings through publications, reports, and seminars for broader public engagement.

Organisational Structure and Governance

NCAER functions as an autonomous non-profit organisation. It is governed by a Governing Body comprising eminent economists, policymakers, academics, and industry representatives. The Director General acts as the executive head, overseeing research operations and institutional management.
The council also receives guidance from an Advisory Committee, which ensures the alignment of research with national and global priorities. Its funding comes from a mix of endowment income, research project grants, and institutional collaborations with domestic and international partners such as the World Bank, United Nations agencies, and various ministries of the Government of India.

Major Research Areas

NCAER’s research portfolio spans diverse fields of applied economics. Its work focuses on both macroeconomic and microeconomic dimensions of development. The principal research areas include:

• Agriculture and Rural Development: Studies on agricultural productivity, rural employment, and the impact of agricultural policies.
• Human Development: Analysis of education, health, and poverty reduction programmes.
• Industry and Trade: Research on industrial policy, global trade competitiveness, and sectoral performance.
• Infrastructure and Energy: Examination of infrastructure financing, power sector reform, and sustainable development.
• Investment and Economic Growth: Studies on domestic and foreign investment flows and growth determinants.
• Household Surveys and Data Analytics: Conducting large-scale surveys on consumption, savings, and income distribution, such as the India Human Development Survey (IHDS).

Notable Contributions and Projects

Over the decades, NCAER has produced numerous landmark studies that have shaped economic policy in India. Some of its most notable contributions include:

• The Market Information Survey of Households (MISH), one of India’s first comprehensive household surveys, which provided insights into income, expenditure, and consumption patterns.
• The India Human Development Survey (IHDS), conducted jointly with the University of Maryland, offering detailed data on health, education, employment, and gender.
• Research support for the Five-Year Plans and studies for the Planning Commission and NITI Aayog.
• Evaluations of flagship government schemes such as Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), Pradhan Mantri Gram Sadak Yojana (PMGSY), and Smart Cities Mission.
• Studies on the impact of foreign direct investment (FDI), tax policy reforms, and globalisation on India’s economy.

NCAER has also played a pivotal role in forecasting national income and economic growth, aiding the government in budgetary and fiscal planning.

Publications and Dissemination

The council regularly publishes research reports, working papers, and policy briefs. Among its flagship publications are:

• The Quarterly Review of the Economy, providing updates and analysis of India’s macroeconomic trends.
• The State Investment Potential Index, assessing the investment environment across Indian states.
• The NCAER Annual Report, summarising institutional achievements and financial performance.

In addition, NCAER organises seminars, workshops, and public lectures, serving as a forum for dialogue among economists, policymakers, and industry stakeholders.

Infrastructure and Facilities

NCAER operates from its modern research campus on Parthasarathi Shome Road, New Delhi, which houses the NCAER India Centre—a state-of-the-art research facility inaugurated in 2019. The building is designed to foster collaborative research and policy engagement, with data laboratories, conference halls, and digital archives.
Its National Data Innovation Centre (NDIC), launched in 2017, is dedicated to developing innovative survey methodologies and improving data quality for policy research. The centre also trains researchers in modern statistical and data management techniques.

Collaborations and Global Linkages

NCAER maintains strong ties with international research institutions, universities, and development agencies. Its collaborations include partnerships with the World Bank, International Monetary Fund (IMF), UNDP, Asian Development Bank (ADB), and leading global universities. These linkages enhance the methodological rigour of its studies and align them with global best practices.
It also collaborates with Indian ministries, such as the Ministry of Finance, Ministry of Commerce and Industry, and Ministry of Rural Development, providing empirical inputs for economic policymaking.

Significance and Impact

NCAER has played a vital role in shaping India’s economic thought and policy direction. By providing objective and data-driven analysis, it has influenced major reforms in areas such as trade liberalisation, rural development, and industrial competitiveness. Its surveys and projections form the empirical foundation for many official statistics and reports.
As an institution, NCAER exemplifies the synergy between research and policy, ensuring that economic decisions are grounded in sound evidence. It has contributed to capacity building by nurturing generations of economists, statisticians, and policy analysts.

Contemporary Role and Future Outlook

In the 21st century, NCAER continues to adapt its research priorities to address emerging challenges such as digital transformation, climate change, inequality, and global economic volatility. Its ongoing projects focus on inclusive growth, technology adoption, and the evolving structure of the Indian economy.
Under its recent leadership, the council has expanded its use of data analytics, econometric modelling, and digital tools to provide real-time policy insights. With India’s growing emphasis on evidence-based governance, NCAER’s role as an independent and credible knowledge institution remains indispensable.