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
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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.
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3. States in India- Map
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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…
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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.
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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
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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16. THANKS
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