International Workshop on Regional Products and Income Accounts, Country Presentation -India

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International Workshop on Regional
Products and Income Accounts,
Beijing, China, 15-17 March 2010
Country Presentation -India
By
National Accounts Division
Central Statistical Organisation
Ministry of Statistics & Programme Implementation
Government of India
1
Institutional Arrangement for
Compiling the Regional
Accounts in INDIA






India has a federal structure of Governance.
There are 35 States/UTs.
States are further divided in the Districts.
In all there are 600 Districts.
of Responsibilities are divided for administration
between the Central Government and the State
Governments.
Statistics comes under the Concurrent List, where
both the Union and State Governments can operate.
2
States in India- Map
3
Statistical System at the Centre


Ministry
of
Statistics
and
Programme
Implementation (MoS&PI) is the nodal agency for a
planned development of the statistical system in
the country and for bringing about coordination in
statistical activities among statistical agencies in
the Government of India and the States.
The collection of statistics for different subjectspecific areas, like agriculture, labour, commerce,
industry, health and education etc. rests with the
corresponding administrative ministries.
Contd…
4
Statistical System in the States

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The Statistical System in the States is similar to that at the
Centre.
At the apex level is the Directorate of Economics and
Statistics (DES), which is responsible for the coordination of
statistical activities in the State.
Departments of the State Governments, such as,
agriculture or health, have large statistical divisions for the
work of departmental statistics.
The Directorate of Economics and Statistics in the States
keep liaison with the CSO for purpose of coordination at allIndia level.
5
Regional Accounts in India

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The state accounts statistics are an extension of
the system of national accounts to the regional
level.
The most important aggregate of the state
accounts is the state domestic product (state
income).
The primary responsibility for compiling the State
Domestic Product/District Domestic Product
(SDP/DDP) estimates rests with the states.
CSO also compiles SPD estimates to assist States
6
Role of State (DESs) in Compilation
of Regional Accounts



The estimates
are prepared by the State
Income Unit of the respective State Directorates
of Economics and Statistics (DESs).
At present all the states, regularly prepare
estimates of total and per capita income both at
current and constant prices.
The Central Statistical Organisation assists the
States in the preparation of these estimates by
rendering
advice
on
conceptual
and
methodological problems.
7
Methodology for Compiling the
Regional Estimates of Income
contd…



The estimates of Regional Income (SDP/DDP )
are compiled using income originating
approach.
The
estimates
are
compiled
following
combination of Production and Income
approach. Due to non- availability of data,
estimates are not compiled using Expenditure
approach .
These estimates are compiled by economic
activity.
8
Methodology for Compiling the
Estimates of State Income
Contd…



First the estimates at disaggregated level for each
economic activity are compiled.
These are aggregated 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.
9
Methodology for Compiling the
Estimates of State Income
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
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The estimates for the services sectors like trade,
transport, hotels & restaurants etc.are prepared by
income approach, specifically, by multiplying the value
added per worker by the number of workers.
The benchmark estimates are
extrapolated 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 large-scale sample surveys on employment &
unemployment conducted by National Sample Survey
Organisation (NSSO) and decennial population census.
10
Methodology for Compiling the
Estimates of District Income


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.
11
Methodology for Compiling the
Estimates of Supra Regional Sector
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Certain activities cut across state boundaries,
and thus their economic contribution cannot be
assigned to any one state directly.
These activities are Railways, Communications,
Banking & Insurance and Central Government
Administration, and are known as the Supraregional 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.
12
Methodology for Compiling the
Estimates of CFC
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
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.
13
Reconciliations of Regional
Accounts
contd…
•
Though same set of data sources are used, the sum
total of State Products complied by the States generally
does not tally with the estimates compiled by CSO at
National level because of the following reasons;
•
•
•
•
Some of the activities like high sea drilling are not allocates to
States.
More updated data used by the States.
Difference in the Indicators/Indices due to broader coverage at
States.
Generally annual discrepancy remains lees than 5% of
the GDP.
14
Reconciliations of Regional
Accounts
contd…
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Annual workshop is organized by CSO to
reconcile these estimates.
CSO also provides support to States by
providing;
 training,
 sharing of data bases and
 software support.
These
SDP
estimates
after
reconciliation
are uploaded on our
website. “www.mospi.nic.in.
15
THANKS
16
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