1. 1 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

2. 2 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.

3. 3 States in India- Map

4. 4 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 subject- specific areas, like agriculture, labour, commerce, industry, health and education etc. rests with the corresponding administrative ministries. Contd…

5. 5 Statistical System in the States 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 all- India level.

6. 6 Regional Accounts in India 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

7. 7 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.

8. 8 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.

9. 9 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.

10. 10 Methodology for Compiling the Estimates of State Income 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.

11. 11 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.

12. 12 Methodology for Compiling the Estimates of Supra Regional Sector 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 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.

13. 13 Methodology for Compiling the Estimates of CFC 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.

14. 14 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.

15. 15 Reconciliations of Regional Accounts contd … 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.

16. 16 THANKS