Description:

This module provides comprehensive data sets on domestic product of states of India (SDP), based on 11 type of economic activities, broadly classified into primary sector, secondary sector and tertiary sector. The estimates of SDP are prepared both at current and constant prices. For constant prices, base years are revised from time to time and as such, data series are available for base years 2011-12, 2004-05, 1999-2000, 1993-94, 1980-81, 1970-71 and 1960-61. The coverage of states for different series may differ, however, last few base years contain data for all states. In addition, this module provides sectoral share in percentage across states and also year-on-year growth rate of GSDP and per capita GSDP. The per capita SDP for a state represents a simple measure of the states’ SDP divided by the states’ population.

Estimates of SDP are regarded as the single most important economic indicator to measure the economic development of a State. It measures in monetary terms, the volume of all goods and services produced within the boundaries of the state during a given period accounted without duplication. These estimates are prepared for various types of economic activities according to a standard methodology provided by Central Statistics Office (CSO). These estimates depict the level of development and are useful for proper planning, evaluating progress and inter-state comparisons and as such, are a valuable tool in the hands of planners and policy makers. The SDP takes into account exclusively the economic activities, whereas non-economic activities fall outside its purview. These economic activities have been classified into 11 main sectors.

The different base years used in the estimation of state income (state domestic product, SDP) are in line with the estimation of National Income (All-India). By following the methodology and the guiding principles of the CSO, base years of the SDP were shifted from 1960-61 to 1970-71 in 1978, from 1970-71 to 1980-81 in 1988, from 1980-81 to 1993-94 in 1999, from 1993-94 to 1999-2000 in 2006 and from 1999-2000 to 2004-05 in 2010 and from 2004-05 to 2011-12 in 2015.

Importance of Linked Series
Whenever a series with new base is introduced, it is important and necessary to bring old series to a new base to generate time series data over a long period with a uniform base for comparison and to arrive at meaningful conclusions. Until and unless the estimates are at the same base, they cannot be compared. The SDP is one of the most important indicators for measuring the economic health of the State and also to study the overall impact of various developmental activities carried out by the state. If these estimates are available fairly at long series, the transformation of economic scenario will be known. It could facilitate policy makers, and administrators in the formulation of policies.

Generating Linked Series using Splicing Method
As noted above, SDP data series are available for different base years: 1960-61, 1970-71, 1980-81, 1993-94, 2004-05 and 2011-12 series. Whenever a new Series of SDP is introduced within an updated base period, it is desirable to link the old series to the series on the new base period. In the absence of availability of detailed back series of SDP, the EPW Research Foundation (EPWRF) prepared the back series of Gross SDP (GSDP), Net SDP (NSDP) and Per Capita SDP with respect to all states using splicing method.

Splicing is a technique that links two or more index number series which contains the same items and a common overlapping year but with different base years to form a continuous series. Here, we have followed forward splicing method so that the data as per the latest base years are made available without any change. Thus, generated back series data sets are presented under ‘Back Series’ and this represent the estimates of GSDP, NSDP and Per Capita SDP for the years prior to 2011-12 comparable with the new series with 2011-12 base year. For the purpose of generating linked series, the basic estimates presented independently under various base years are used.

A note of caution is necessary here. For the compilation of a linked series, the available two standard concepts are: (i) the splicing method and (ii) reworking the estimates as per the current series methodology at the component or detailed item level. The major problem in compiling back series estimates is in maintaining the growth rates of earlier series (volume movements in the case of constant price estimates) at not only the component level, but also at each level of aggregation. If the growth rates are maintained at component level and at each level of aggregation, the components may not add up to the aggregate level, which means that there is loss of additivity between the components and the estimates at the aggregate level. On the other hand, if the growth rates are maintained at the component level, and the aggregate is derived as a sum of the components, the growth rates of the aggregates in the linked series will be different from those in the earlier series. This is because the weighting diagram in the new series is the prices of different components in the new base year. The growth rates of the aggregates in the back years in the new series are now influenced by the price structure of the components of the new base year. Nonetheless, generating linked series is necessary and so, the need to provide the concorded series.

For generating sector-wise linked series, we had used their respective gross state value added at basic prices (GSVA) series of 2011-12 base year and factor cost series of earlier base years and such that, GSDP at factor cost of previous series up to 2004-05 base year is linked to GSVA of 2011-12 series.