Gross Domestic Product etc - 36

Broad compilation procedures

3.19 The general methodology for compiling the estimates of state income
is to first compile the estimates at disaggregated level for each economic
activity and then aggregating them for the whole region/state. The estimates
for commodity producing sectors like agriculture, forestry, fishing, mining &
quarrying, manufacturing, etc. are prepared using the production approach
i.e. measuring the value of output and deducting there from the cost of
material inputs used in the process of production. In the services sectors
(non-public segment) like trade, transport, hotels & restaurants etc., the
estimates are prepared by income approach, specifically, by multiplying the
value added per worker by the number of workers, for the benchmark
estimates and extrapolating these benchmark estimates with suitable
indicators for the annual estimates. The information on value added per
worker is obtained from the relevant Enterprise Surveys conducted for the
purpose. The estimates of workforce are obtained using the results of largescale
sample surveys on employment & unemployment conducted by
National Sample Survey Organisation (NSSO) and decennial population
census carried out in the country by the Office of Registrar General of India
(RGI) and Census Commissioner. In the case of DDP, the estimates for
commodity producing sectors and for public sector, are generally compiled on
the basis of data available at district level. For other private sector segments,
the workforce data is used to allocate state level estimates across the
districts.
3.20 In the preparation of state income estimates, certain activities cut
across state boundaries, and thus their economic contribution cannot be
assigned to any one state directly. Such activities are Railways,
Communications, Banking & Insurance and Central Government
Administration, and are known as the Supra-regional sectors of the economy.
The estimates for these supra regional activities are compiled for the
economy as a whole and allocated to the states on the basis of relevant
indicators. In the case of railways, the indicators are based on the track
length and passenger/goods carried where as in other supra regional sectors
it is the number of employees posted/allocated in the state. Certain activities
like, defence, para military, border security force, high seas drilling etc. are
still kept outside the purview of the state income estimation.

3.21 The estimates of CFC are compiled at the national level using the
estimates of asset wise Net Fixed Capital Stock (NFCS) and average life of
asset, following the procedure of perpetual inventory method (PIM). The
national level estimates of CFC are allocated to states using appropriate
indicators. For example, in the case of agriculture sector, the indicators of (i)
public part, (ii) plantation and (iii) private part are the (a) capital assets and
capital outlay of irrigation departments, (b) area under crops and (c) fixed
assets of cultivator households (from AIDIS), respectively. In the case of
forestry and logging, fishing, mining & quarrying, and construction sectors,
the indicators are the respective sectors’ estimates of GSDP. For electricity,
gas & water supply sector, the indicator is the fixed assets, and for trade,
transport by other means and other services, the indicators are the state-wise
fixed assets of respective services, as available from NSS 57th Round
survey. For the manufacturing (registered) and manufacturing (unregistered)
sectors, the indicators are state-wise fixed assets data available from the ASI
and NSS 56th Round survey, respectively.[Reproduced from CSO Publication]