Discussion Paper - 2...i Discussion Paper - 2 Estimates of District Domestic Product The analysis and policy recommendations of this Paper do not necessarily reflect the views of the

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Discussion Paper - 2

Estimates of District Domestic Product

The analysis and policy recommendations of this Paper do not necessarily reflect the views ofthe United Nations Development Programme, its Executive Board or its Member States.

United Nations Development Programme

55, Lodi EstateNew Delhi - 110003

India

2001

R. P. Katyal, M. G. Sardanaand J. Satyanarayana

Socio-Economic Research Centre,

New Delhi

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ProloguePrologue

The central and state authorities and research institutions often require data on economic activities and levels ofliving of people at the district level for planning and policy purposes. Income of a district is considered one ofthe most important indicators/barometers to measure the economic growth/development of a district vis-à-visothers. Preparation of District Income estimates has recently gained added importance, since it is one of thethree indicators to construct a composite Human Development Index (HDI) for inclusion in the Human Devel-opment Reports (HDR) being prepared by several states in India.

The present paper has been written in a scenario where the national level data system is rigorous and welldesigned, with matching state data but very little information at the district level. The 73rd and 74th constitutionalamendments have brought in a third tier of government – the Panchayats – into India. How does this majorchange impact on data systems? The need thus is for district level indicators not only to make the state HDRmore relevant, but also to improve local understanding of the development process.

This background paper was presented at the National Workshop on State HDRs and the Estimation of DistrictIncome & Poverty under the State HDR Project that is executed by the Planning Commission, GOI, with UNDPsupport held in Bangalore in July 2001. It is the second in the HDRC’s Discussion Paper Series.

Dr. M.G. Sardana is the Chairperson and Dr. R.P. Katyal and Dr. J. Satyanarayana are Directors at the Socio-Economic Research Centre, New Delhi

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AIDIS All India Debt and Investment Survey

ASI Annual Survey of Industry

CCS Cost of Cultivation Studies

CIF Chief Inspector of Factories

CSO Central Statistical Organisation

DDP District Domestic Product

DES Directorate of Economics and Statistics

DPD Data Processing Division

DTE Directory Trade Establishment

FISIM Financial Intermediary Services Indirectly Measured

FOD Field Operation Division

GVA Gross Value Added

HDI Human Development Index

ISS Integrated Sample Survey

NIC National Industrial Classification

NAD National Accounts Division

NSSO National Sample Survey Organisation

ONGC Oil and Natural Gas Corporation

PPP Purchasing Power Parity

SDP State Domestic Product

GLOSSARY

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CONTENTSCONTENTS

1. INTRODUCTION 1

2. METHODOLOGY FOR DISTRICT INCOME ESTIMATES 3

Commodity Producing Sectors 4

Non-Commodity Producing Sectors 4

3. COMMODITY PRODUCING SECTORS 5

Agriculture including Animal Husbandry 5

Value of Output of Crop Husbandry 5

Value of Output of Animal Husbandry 6

Value of Inputs for Crops and Animal Husbandry 7

Operation of Government Irrigation System 9

Forestry and Logging 9

Fishing 10

Mining and Quarrying 10

Manufacturing 10

Construction 12

Electricity, Gas and Water Supply 12

4. NON-COMMODITY PRODUCING SECTORS 13

Trade, Hotels and Restaurants 13

Transport, Storage and Communication 14

Banking and Insurance 15

Real Estate, Ownership of Dwellings and Business Services 15

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Public Administration 16

Other Services 16

Estimates at Constant Prices 17

5. ISSUES FOR DISCUSSION 18

Income Originating vs. Income Accruing Approach 18

Frequency of Estimates 18

Purchasing Power Parity and HDI 18

DDP and SDP 18

Prices 19

Yield Rates 19

Forest Boundaries 19

Inputs in Forestry and Fishing 19

Manufacturing - Registered 19

Unorganised Segments of Economic Activity 20

Workforce 20

Value Added per Worker 20

BIBLIOGRAPHY 21

ANNEXURE 22

1

Introduction

For planning and policy purposes, thecentral and state authorities and researchinstitutions often require data on eco-nomic activities and levels of living ofpeople at the district level. Income of adistrict is thought to be one of the mostimportant indicators/barometers to mea-sure the economic growth/developmentof a district vis-à-vis others. Preparationof District Income Estimates has re-cently gained added importance, since itis one of the three indicators to constructa composite Human Development Index(HDI) for inclusion in the Human De-velopment Report being prepared bymany State Governments in India. Theother two indicators for calculating HDIare life expectancy and educational attain-ment.

Some of the State Governments havestarted preparing estimates of district in-come to measure income disparity andto plan for the development of backwarddistricts during the 1970s and early 1980s.For example, the state of Uttar Pradeshcompiled district income estimates for allsectors for 1968-69 but later restrictedthe preparation of these estimates tocommodity producing sectors only.

The estimation of income at district levelis beset with the problems of availabilityof data as well as collection and analysis

of information. The Seventh Conferenceof Central and State StatisticalOrganisations which was held atHyderabad in December 1985, discussedissues relating to the estimation of in-come at district as well as at rural andurban levels. Keeping in view the demandfrom the Planning Commission and thestate governments for income estimatesat the district and rural/urban levels, theConference recommended constitutionof a Technical Group to examine the re-quirements of data and recommend ap-propriate methodology for compilationof these estimates. In pursuance of thisrecommendation, the Department ofStatistics constituted a Technical Groupfor Estimation of Income at District andRural/Urban Levels in January 1987. TheGroup in its Report, which was submit-ted in September 1988 made the follow-ing observations (CSO, 1988):

l To begin with, attempts should bemade to compile district income es-timates following the standard meth-odology, which is based on the in-come originating approach. Thismethod is similar to the one used forcompilation of state income esti-mates. Due to the free flow of goodsand services across district bordersand the non-availability of net factorincome earned by the residents of

Income of a district isthought to be one ofthe most importantindicators/barometersto measure theeconomic growth/development of adistrict vis-à-visothers.

Introduction

2 ESTIMATES OF DISTRICT DOMESTIC PRODUCT

other districts/states/countries, theincome accruing approach is not fea-sible.

l Even to compile estimates followingthe income approach, considerableadditional data, as detailed in the Re-port, needs to be collected.

l For district income estimates, a largeamount of information would needto be collected and compiled at thedistrict as well as at state level. TheGroup felt that the state governmentsshould assess the precise require-ments for additional resources forimplementing the recommendationsof the Group and make necessaryprovisions in their core schemes.

l Since estimates at the district levelwould be utilised for the purpose of

determining the backwardness/de-velopment of a district, and as a con-sequence for allocating resources, itwould be necessary to make essen-tial adjustments in these estimateswith regard to significant flow of in-come across the territories of dis-tricts which are rich in minerals and/or forest resources or where flow ofdaily commuters, migration of labourand cattle are involved.

l With the present availability of dataat the district level, it would be suffi-cient to compile these estimates atan interval of five years.

The Group also detailed the data require-ments for compilation of district incomeestimates and annexed the essential itemsfor which data need to be maintained atthe district level.

With the presentavailability of data atthe district level, itwould be sufficient tocompile theseestimates at aninterval of five years.

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Methodology for District Income Estimates

With a view to giving impetus to thecompilation of district income estimatesby the state governments and tostandardise the methodology of the Na-tional Accounts Division (NAD), theCentral Statistical Organisation (CSO)convened a meeting with the State Di-rectorates of Economic and Statistics(DES) in 1995. The Meeting entrustedthe development of the methodology ofcompilation of District Domestic Prod-uct (DDP) jointly to the DES of thestates of Karnataka and Uttar Pradeshwhich was completed in August 1996.The state governments have been fol-lowing this methodology for preparationof district income estimates.

A number of state governments have al-ready initiated the process of prepara-tion of DDP. While Andhra Pradesh,Bihar, Haryana, Karnataka, Kerala,Madhya Pradesh, Maharashtra,Rajasthan, Tamil Nadu and UttarPradesh are compiling estimates for allthe sectors of the economy, ArunachalPradesh and Assam have restricted thisto the commodity producing sectors.Specific comments on the methodologyadopted for compiling the estimates ofDDP by Karnataka, Maharashtra, andTamil Nadu are given in the Annexure.

The methodology for compiling theDDP, given in the following paragraphs,takes into consideration the broad guide-lines given in the Report of the Techni-cal Group on District Income and alsoits recommendations and the methodol-ogy which was developed jointly by theDES of Karnataka and Uttar Pradesh inAugust 1996. The proposed methodol-ogy takes into account the available dataat the district level for the commodityproducing sectors and the results of thesurveys, both relating to socio-economicaspects and unorganised sectors of theeconomy, conducted by the NationalSample Survey Organisation (NSSO) andstates DES. For many sectors of theeconomy, the proposed methodologyavoids allocation of state estimates todistricts in proportion to the districtwiseworkforce, as this does not take into ac-count the income disparity at the districtlevel.

Broadly, the methodology of computa-tion of sectoral estimates is the same asadopted for estimates of State DomesticProduct (SDP). The database for estima-tion of DDP is still not satisfactory forany of the states. Data for compilationof DDP for commodity producing sec-tors viz., primary sector and manufactur-ing (registered) sector, are mostly avail-


Broadly, themethodology ofcomputation ofsectoral estimates isthe same as adoptedfor estimates of StateDomestic Product(SDP).



able on a regular basis but are very scantyin respect of the remaining sectors. Assuch, wherever districtwise basic data areavailable, they may be utilised to computethe DDP estimates, following the meth-odology adopted at the state level. In thecase of non-commodity producing sec-tors, where districtwise basic data are notavailable, the state level estimates may beallocated to the districts on the basis ofsuitable districtwise indicators. Further,in some of the commodity producingsectors, though districtwise productiondata are available, the correspondingprices are not available. In such cases,districtwise production may be evaluatedusing prices prevailing in the adjoiningdistrict/region.

For the commodity producing sectors,the estimates of DDP may be preparedusing the production approach i.e., grossvalue added is equal to value of outputminus value of inputs, whereas for ser-vice sectors income approach i.e., grossdomestic income is equal to compensa-tion of employees plus gross operatingsurplus, may be used.

For compiling DDP, the economy maybe divided into following 14 broad sec-tors (8 commodity producing and 6 non-commodity producing sectors) as donein the case of SDP.

Commodity Producing Sectors

l Agriculturel Forestry and Loggingl Fishingl Mining and Quarryingl Manufacturing – Registeredl Manufacturing – Unregisteredl Constructionl Electricity, Gas and Water Supply

Non-Commodity ProducingSectors

l Trade, Hotels and Restaurantsl Transport, Storage and Communicationl Banking and Insurancel Real Estate, Ownership of Dwellings

and Business servicesl Public Administration and Defencel Other services

A detailed sector-wise methodologyfollows.

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Agriculture including AnimalHusbandry

As in the case of SDP, the estimates ofvalue of output of agriculture and ani-mal husbandry may be prepared sepa-rately. Since farmers feed the animals to-gether and do not keep separate accountof inputs for agricultural crops and ani-mal products, the estimates of inputs can-not be prepared separately. As such, thevalue added estimates may be preparedfor the overall activity of agriculture.

Value of Output of CropHusbandry

As in the case of SDP, the estimates atdistrict level can also be worked out us-ing the ‘production approach’. But dis-trict level data on production and pricesare generally not available uniformly forall the crops. Data is compiled by Statedirectorates for “Major Crops” as listedby CSO. However the category “MinorCrops” varies according to specific states.Hence, for estimation purposes, cropsmay be classified in the followingcategories:

l Crops for which districtwise data onproduction and prices (primary mar-ket or farm harvest prices) are avail-able. In such cases, districtwise valueof output for each crop may be

worked out by using districtwiseproduction and prices.

l Crops for which districtwise data onproduction is available but corre-sponding districtwise prices are notavailable. For this category of crops,districtwise value of output may becomputed by using production dataof the district and available price datafrom a neighbouring district. In caseneighbouring district prices are alsonot available, regional prices may beused. If these are also not available,the only alternative is to use stateprices. Efforts should be made tocollect prices in respect of all suchcrops for which area and yield esti-mates are available.

l Crops for which districtwise data,both on production and prices, arenot available but crop area figuresare available. In such cases,districtwise value of output of thesecrops may be worked out by allocat-ing the state level value of output onthe basis of districtwise crop area.

l Miscellaneous and unspecified cropsfor which production and price dataare not available even at the statelevel but districtwise crop area isavailable. In these cases, the valueof output may be worked out by mul-




Value addedestimates may beprepared for theoverall activity ofagriculture


tiplying the districtwise crop areawith state level value per hectare ofrespective crops.

For by-products or miscellaneous typeof products, wherever possible, Cost ofCultivation Studies (CCS) data on yieldrates, inputs, etc .may be used. In the ab-sence of data of CCS for the district, at-tempts may be made to undertake typestudies to fill this gap. Till such time asthe results of studies or data from othersources at the district level become avail-able, state level ratios, whether in rela-tion to output or in relation to crop area,as used in current series of estimates ofSDP, may be adopted uniformly for allthe districts.

For the quantity of food grains procuredon Government account, the prices aredifferent from the prevailing marketprices. As such, the quantity procured bythe Government may be evaluated at pro-curement prices and the rest of the pro-duce at the primary market/farm harvestprices.

Value of Output of AnimalHusbandry

A procedure similar to the one adoptedfor compiling SDP may be followed toestimate the value of output from ani-mal husbandry for the district.Districtwise estimates of a number ofdifferent categories of animals and poul-try may be worked out using the resultsof the latest two/three livestock cen-suses, assuming linear/compoundgrowth rates. These may be used alongwith relevant yield rates to obtain theestimates of production of various live-

stock products and by-products andpoultry meat.

In general, the results of IntegratedSample Survey (ISS) conducted by StateAnimal Husbandry Department providestate/district level data on production ofmilk, meat, wool and eggs. The surveyalso provides estimates of the numberof slaughtered animals category wise.Wherever, ISS results are available onlyfor the state, the estimates for districtsmay be obtained by allocating the stateestimate to the districts on the basis ofrelevant livestock population. To esti-mate districtwise production of all otheritems (i.e. other than milk, meat, eggs andwool), state level yield rates and ratiosmay be utilised along with district esti-mates of the number of relevant ani-mals/poultry.

Districtwise value of output may then beworked out by multiplying the produc-tion obtained as above, by the corre-sponding district prices, wherever avail-able. In the absence of region or districtlevel prices, state prices may be utilisedfor evaluating district production. Totalvalue of output thus worked out maythen be adjusted to the state level esti-mates.

With regard to the items for which pricedata are not available, wholesale/retailprices of allied items should be utilised.The price data can be used in variouscases as indicated in the table.

In the case of other animal products, forwhich neither the yield rates nor theprices are available at the district level,the state level value may be allocated to

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the districts in proportion to the numberof animals of each category separately.

Districtwise increment in stock for eachcategory of animal/poultry may beworked out as at the state level and thesemay be evaluated by corresponding dis-trict prices.

The value of silkworm cocoons compiledfor the SDP may be allocated to districtsin proportion to the area under mulberryin each district, after adjusting for the costof rearing silkworm cocoons.

Keeping in view the data gaps, it is sug-gested that the coverage of ISS may beenlarged by the respective state govern-ments so as to generate the estimates ofproduction of each of the animal prod-ucts at the district level. Further, pricesof agricultural and animal products at thedistrict level need to be collected andcompiled from representative centres sothat for each of the products price dataare available and utilised for district in-come estimates.

Value of Inputs for Crops andAnimal Husbandry

To arrive at the districtwise gross valueadded (GVA) from agriculture, including

the Animal Husbandry sector, the valueof various input items are to be first de-ducted from the gross value of outputof these sectors to which the gross prod-uct from operation of government irri-gation system is added. The deductibleinputs are the same as used in compila-tion of SDP viz.

l Seed

l Organic manure (cattle and buffalodung)

l Chemical fertilisers

l Feed of livestock

l Pesticides & insecticides

l Diesel oil consumption

l Electricity

l Irrigation charges

l Market charge

l Repairs and maintenance of fixedassets and other operational costs and

l Financial intermediary servicesindirectly measured (FISIM).

To work out the value of these input items atthe district level, the state level estimates ar-rived at independently under the currentseries of state income estimates may be dis-tributed to the districts on the basis of theprocedure indicated below:

Item Price to be used

l Milk Rural price/cooperative’s collection price

l Meat (buffalo) Slaughter house price

l Goat, sheep and pig meat Slaughter house price

l Hides (cow and buffalo) Slaughter house price

l Skins (goat and sheep) Urban wholesale price of goat skin

l Bones (of various animals) Urban wholesale price of bone

l Dung Rural prices of dung cake

l Eggs (hen and duck) National Egg Coordination Committee prices


To arrive at thedistrictwise grossvalue added (GVA)from agriculture,including the AnimalHusbandry sector, thevalue of various inputitems are to be firstdeducted from thegross value of outputof these sectors towhich the grossproduct fromoperation ofgovernment irrigationsystem is added


l Seed: Seed rates and area sown foreach of the important crops at thedistrict level are generally availablewith the district agricultural depart-ments. These data should be col-lected and the quantity of seed foreach of the crops may be workedout as a product of seed rate andarea under each crop. This may bemultiplied by the respective pricesat the district level to arrive at thevalue of seed input. For other cropsfor which seed rates are not avail-able at the district level, the inputof seed for each of the crops maybe worked out by allocating thevalue at state level in proportion tothe area under each crop at the dis-trict level.

l Organic manure: State level valueof output may be allocated to thedistrict in proportion to thedistrictwise estimates of value ofoutput of dung manure, as workedout in the Animal Husbandry sec-tor.

l Chemical fertilisers: State levelvalue may be distributed to districtsin proportion to total quantity ofchemical fertilisers distributed, asobtained from the Agriculture De-partment.

l Feed of livestock: Districtwise valueof roughage may be estimated byadopting the same methodology asfollowed for estimating the rough-age in the case of SDP. For estimat-ing the quantity of concentratesconsumed, the returns of CCS maybe collected from the agricultural

universities that are engaged in suchstudies in the State and analysed. Inthe absence of such study results,the rates of concentrates as adoptedfor state level estimates for differ-ent types of animals and poultrymay be used for working out dis-trict level estimates.

l Pesticides and insecticides: Statelevel value may be allocated to thedistricts in proportion to areatreated by chemical pesticides indifferent districts. Efforts may bemade to obtain the results of CCSin a state at the district level and thevalue of pesticides and insecticidesdistrictwise may be worked out.

l Diesel oil consumption: State levelvalue of consumption by tractorsand oil engines may be distributedto districts in proportion to the dis-trict weighted totals of number oftractors and oil engines/oil enginepumps used for irrigation as per lat-est livestock census, weight beingthe per unit consumption of dieseloil based on the data collected fromthe schedules of CCS. If districtlevel consumption of diesel per unitis not available, then state levelnorms may be adopted.

l Electricity: State level value may bedistributed on the basis ofdistrictwise number of private andgovernment electric tube-wells andenergised pump-sets.

l Irrigation charges: Districtwise ir-rigation charges, as collected fromthe district administration may be

State level value ofconsumption bytractors and oilengines may bedistributed to districtsin proportion to thedistrict weightedtotals of number oftractors and oilengines/oil enginepumps used forirrigation as per latestlivestock census

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used for this purpose. In the ab-sence of such data, the state levelvalue may be distributed to the dis-tricts in proportion to the area irri-gated by government canals.

l Market charges: Market chargesmay be ascertained from the pri-mary markets within the district andused. In the absence of such data,state level norms may be used fordistrict income estimates also.

l Repair and maintenance of fixedassets and operational costs:Districtwise data on fixed assets asavailable from latest All India Debtand Investment Survey (AIDIS)/Livestock Census may be used toallocate the state total to the districts.Alternatively, the districtwise valueof output may be multiplied withthe state level ratios of repairs andmaintenance etc. to the value ofoutput.

l FISIM: State level value of FISIMmay be distributed on the basis oftotal value of output of the district.

Operation of GovernmentIrrigation System

Data on salaries and wages are likely tobe available with the district agriculturedepartments. These should be collectedand used for allocation of the state levelvalue of contribution by governmentirrigation system to the districts in pro-portion to the districtwise salaries andwages/area irrigated by governmentcanals.

Forestry and Logging

Major Forest Products

The forest circles/divisions/sub-divi-sions are generally not coterminous withdistrict boundaries. The records of theforest/revenue departments at the divi-sion/sub-division/forest range/forestcoupe levels will have to be looked into,so as to demarcate forest areas within adistrict. For example, in case of MadhyaPradesh, the boundaries are now cote-rminous with one or more forestdivisions.

Districtwise value of output of timbermay be worked out using districtwise pro-duction and prices for different varieties.

In the case of firewood, consumption offirewood may be estimated at the districtlevel using the pooled results of centraland state samples of the latest availabledata (55th Round) of NSSO relating tohousehold consumer expenditure. Thevalue of firewood at the state level maybe allocated to the districts in propor-tion to the districtwise consumption offirewood.

Minor Forest Products

Districtwise value of output may beworked out using the districtwise produc-tion and prices of different productswherever available from the Minor For-est Products Corporation etc. For otherproducts, in the absence of districtwisedata, the state level value of other minorforest produce may be allocated to dis-tricts in proportion to the forest area inthe districts.


Districtwise value ofoutput may beworked out using thedistrictwiseproduction and pricesof different products


Repairs, Maintenance and otherOperational Costs

State level ratio may be utilised for work-ing out districtwise estimates of repairs,maintenance and other operational costs.

Fishing

In the case of marine fishing, thedistrictwise value of output may beworked out by multiplying thedistrictwise production by the corre-sponding district prices. A similar pro-cedure may be followed in the case ofinland fish also. The district wise dataon production of marine and inland fishis likely to be available from the districtfishery officer. In case the districtwiseprices are not available, then districtwisevalue may be worked out usingdistrictwise production and adjoiningdistrict/region prices. Data on opera-tional costs, including repairs and main-tenance are not available even for esti-mating SDP and the national level normsare used for SDP. Thus, there is no otheralternative but to use the state levelnorm/ratios for DDP estimates also.

Mining and Quarrying

For major minerals including petroleum(crude) and natural gas (utilised), thedistrictwise value of output as availablewith Indian Bureau of Mines, Nagpurmay be used. District wise value of pro-duction of coal can also be obtainedfrom Coal India Ltd. and that of naturalgas and crude oil from Oil and NaturalGas Corporation (ONGC). For minorminerals, the districtwise value of out-put may be collected from the State

Mines and Geology Department. If thedata are not available, the value of out-put of minor minerals may be workedout in proportion to the royalty value. Forworking out input costs, the state levelproportions may be adopted.

Manufacturing

Registered

The Annual Survey of Industry (ASI)being conducted by the Field OperationDivision (FOD) of the NSSO providesthe requisite data for compiling estimatesof GVA for manufacturing-registeredsector (units registered under the Facto-ries Act, 1948) both at the national andstate levels. The sampling strategyadopted by ASI till 1996-98 aimed at pro-viding data to generate district level esti-mates by the DES.

On the recommendation of a SteeringCommittee constituted by the Depart-ment of Statistics and Programme Imple-mentation, Government of India in May1999, a revised sampling strategy has beenput into operation from ASI 1998-99 soas to enable the FOD of the NSSO tomanage the field work of about 45000units with the sanctioned field resources.Under the new sampling strategy, ASIwould cater to the generation of estimatesonly at all-India and State levels. All fac-tories engaging 200 or more workers arebeing covered on a complete enumera-tion basis (called census sector) and theremaining factories on a sample basis(called sample sector). However, in thecase of the small states /union territo-ries of Manipur, Meghalaya, Nagaland,Tripura and Andaman and Nicobar

In case thedistrictwise prices arenot available, thendistrictwise value maybe worked out usingdistrictwiseproduction andadjoining district/region prices

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Islands, all factories are being covered ona complete enumeration basis.

At present, the states of Assam, Orissa,Rajasthan, Uttar Pradesh, and West Ben-gal cover the residual units belonging tothe sample sector of their states with theirown resources. Districtwise estimates canbe computed for these states by appro-priately pooling the results of units cov-ered by the state field staff and the ASIfield work (census sector and sample sec-tor) conducted by FOD of the NSSO.Other state governments who are inter-ested in generating district level estimatesmay take steps to cover additionalsamples with their own resources. Tillsuch time the states DES are able tomount resources to participate in the ASIprogramme, the GVA for the sample sec-tor may be allocated to the districts us-ing an appropriate indicator. The valueadded per worker derived from the re-sults relating to the census sector of theASI for the district multiplied by an esti-mate of the workforce engaged in thesample sector of ASI from the districtmay be taken as the indicator for allocat-ing the GVA for the sample sector ofthe ASI for the state to the districts. Thedata collected under the Fourth Eco-nomic Census 1998-99 can be utilised towork out an estimate of the workforceengaged in the sample sector of facto-ries covered in the ASI of the district.

It is understood that the Chief Inspec-tor of Factories (CIF) in most of thestates maintains an up-to-date comput-erised list of factories registered underthe Factories Act, 1948. The field staffof FOD of NSSO is using it as a framefor ASI fieldwork. The list available with

the CIF contains information relating tothe number of workers in each registeredfactory. This list can be used for estimat-ing the workforce engaged in the samplesector of factories covered in the ASI inany of the districts, as an alternative tousing the data collected under the FourthEconomic Census.

Unregistered

For the manufacturing unregistered andthe unorganised segments of the remainingsectors of the economy i.e. unorganisedtrade, unorganised hotels and restaurants,unorganised road transport,unrecognised educational institutions,unorganised medical and health services,etc. the estimates of GVA are worked outas a product of workforce and GVA perworker. While the GVA per worker isderived from the follow-up surveys ofeconomic censuses carried out by theNSSO, the workforce is estimated fromthe quinquennial surveys of employmentand unemployment of the NSSO.

The Fifty-sixth round (2000-01) of theNSS covered the unorganised manufac-turing sector, (i.e. not registered underthe Factories Act, 1948). Central and statesamples may be pooled to generate thedistrictwise GVA per worker at 2-digitlevel of National Industrial Classification(NIC) as done for the SDP. GVA perworker may be multiplied by the corre-sponding estimates of workforce (dis-cussed in the following paragraphs) toarrive at the GVA at 2-digit level of NIC.The total GVA for the sector at thedistrict level may be arrived at byaggregation.


State governmentswho are interested ingenerating districtlevel estimates maytake steps to coveradditional sampleswith their ownresources


The estimates of the workforce for 1993-94 at the state level, based on the 50th

round (1993-94) Survey of Employmentand Unemployment of NSS, along withthe methodological note, at 3-digit levelof NIC were supplied by the NationalAccounts Division (NAD) of the CSOto the states for use in the state incomeestimates in March 1999. In what follows,the estimates of workforce will refer tothe workforce based on the surveys ofNSSO mentioned above.

For any activity (2-3 digit level of NIC),the estimate of workforce as providedby the NAD of the CSO, may be esti-mated by allocating the state total to vari-ous districts in proportion to districtwiseworkforce, in that activity, as availablefrom the latest population census.

From the total workforce for manufac-turing at the district level the correspond-ing workforce of manufacturing - regis-tered based on ASI may be subtracted toarrive at the workforce for the manufac-turing - unregistered sector at 2-digit levelof NIC.

Construction

Data on wage rates of constructionworkers can be easily collected at the dis-trict level. The estimates of state incomefrom this sector may be allocated to thedistricts on the basis of indicator ofworkforce engaged in construction ac-tivity multiplied by the wage rate of con-struction workers at the district level. Inrespect of local bodies, direct districtwisedata may be collected and utilised.

Electricity, Gas and Water Supply

Electricity

Districtwise data on salaries and wagespaid to employees are available with theState Electricity Boards (SEBs). Specialefforts may be made to collect/extractdata from the administrative records avail-able with SEBs. The state level valueadded from this sub-sector may be dis-tributed to the districts in proportion todistrictwise salaries and wages. The useof workforce alone as an indicator willnot take into account the disparity inwages and salaries at the district level.Although the pay scales are the same forall districts, the distribution of workersby different pay scales may vary signifi-cantly for developed and under developeddistricts. Thus, to capture this disparity,the indicator based on salaries and wageswill be more meaningful.

Gas

State level value added from biogas maybe distributed in proportion to the num-ber of biogas plants in each district. Forthe remaining gas sector, the state levelestimates may be allocated to the districtson the basis of workforce engaged in thisactivity.

Water supply

State level value added may be allocatedto districts in proportion to thedistrictwise salaries and wages collectedfrom local bodies in the district.

For any activity (2-3digit level of NIC), theestimate of workforceas provided by theNAD of the CSO, maybe estimated byallocating the statetotal to variousdistricts in proportionto districtwiseworkforce, in thatactivity

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For the unorganised segments of thenon-commodity producing sectors,districtwise GVA for a particular activ-ity, may be estimated as a product ofworkforce and the GVA per worker. Forthe non-commodity producing sectors,districtwise total workforce at two orthree digit of NIC may be based on theNSS surveys of employment and unem-ployment as discussed under manufac-turing–unregistered sector. For publicsector undertakings or for the organisedsegments, the workforce will be based onthe administrative records of the under-takings/enterprises. The workforce forthe unorganised segments or for the pri-vate sector may be derived by subtract-ing from the total workforce of an activ-ity, the corresponding workforce in theorganised segment or in the public sec-tor as the case may be. The value addedper worker may be derived from thepooled results of central and statesamples of quinquennial surveys ofNSSO for the unorganised activities.

Trade, Hotels and Restaurants

Trade

Public Sector

SDP relating to public sector may be al-located to districts on the basis of dataon salaries and wages available from the

Non–Commodity Producing Sectors

administrative records of the relevantpublic sector undertakings engaged intrading activity.

Private Sector

The 53rd round (1997) NSS survey cov-ered unregistered trading activities bynon-directory establishments (enter-prises engaging not more than five work-ers including at least one hired worker)and own account enterprises and thestates participated in this programme asin any other round of NSS. The direc-tory trading establishments (enterprisesengaging six or more workers includingat least one hired worker) were surveyedby special staff of FOD of NSSO of thesame rank as those engaged for conduct-ing the field work of ASI during the sameyear. The survey is called Directory TradeEstablishment (DTE) Survey. The statesdid not participate in the DTE survey.The estimates at the district level for thebenchmark year 1997 may be worked outby pooling the results of central and statesamples relating to non-directory enter-prises and own account enterprises. Forother years, SDP relating to the privatesegment of the economy relating to thissector may be allocated to each districtin proportion to the gross value of out-put of commodity producing sectors inthe district.

Non-Commodity Producing Sectors

Non–Commodity Producing Sectors

SDP relating to publicsector may beallocated to districtson the basis of dataon salaries andwages available fromthe administrativerecords of therelevant public sectorundertakingsengaged in tradingactivity


Hotels and Restaurants

The Fifty-seventh round (2001-2002) ofthe NSS is the first attempt to cover com-prehensively all the unorganised servicesexcept trade and finance. In particular itcovered the unorganised segments ofhotels and restaurants; transport, storageand communications; real estate, rentingand business activities; education; healthand social work; and other community,social and personal service activities. Forthe purpose of the survey, theunorganised segment of any sector of theeconomy is defined to comprise thoseenterprises whose activities or collectionof data are not regulated under any legalprovision and/or which do not generallymaintain any regular accounts.

Public Sector

SDP relating to public sector may be al-located to districts on the basis of dataon salaries and wages available from theadministrative records of the relevantpublic sector undertakings engaged inhotel and restaurant activities.

Private Sector

The SDP relating to these activities in theprivate sector may be allocated to districtson the basis of district wise privateworkforce and the value added per workeras obtained from the pooled results ofcentral and state samples of 57th roundof NSS for the unorganised sector.Districtwise private workforce may beestimated by subtracting from the totalworkforce for this activity, the corre-sponding workforce in the public sectorundertakings.

Transport, Storage andCommunication

Railways

State level estimates, as provided by CSO,may be allocated to districts in propor-tion to the track length located within thedistrict.

Mechanised Road Transport

Public Sector

SDP relating to the public sector may beallocated to districts on the basis of dataon salaries and wages available from theadministrative records of the relevantpublic sector undertakings engaged inthis activity.

Private Sector

The SDP relating to these activities inthe private sector may be allocated to dis-tricts on the basis of district wise privateworkforce and the value added perworker as obtained from the pooled re-sults of central and state samples of 57th

round of NSS for the unorganised sec-tor. Districtwise private workforce maybe estimated by subtracting from the to-tal workforce for this activity, the corre-sponding workforce in the public sectorundertakings.

Non-Mechanised Road Transport andOther Unorganised Transport

The value added from this activity maybe derived at the district level as a prod-uct of district wise workforce engagedin this activity and the value added perworker for this activity obtained from thepooled results of central and state

The Fifty-seventhround (2001-2002) ofthe NSS is the firstattempt to covercomprehensively allthe unorganisedservices except tradeand finance

15

samples of 57th round of the NSS forthe unorganised sector. Till such timethe bench mark estimates of value addedfrom 57th round are derived by poolingthe central and state samples, the SDPrelating to the private segment of thissector may be allocated to districts in pro-portion to districtwise gross value ofoutput of commodity producing sectors.

Water Transport

Districtwise estimates may be derivedusing the same procedure as for the non-mechanised road transport.

Air Transport

The SDP from this sub-sector may beallocated to the districts in proportionto data on salaries and wages collectedfrom the local offices of the airlines.

Storage

Warehousing (State and Central)

State level estimates may be allocated tothe districts using the same procedure asfor the mechanised road transport.

Cold Storage

Cold Storage is covered under ASI. Thesame procedure as used for manufactur-ing (registered) may be adopted.

Storage not elsewhere classified

Districtwise estimates may be preparedusing the same procedure as for the non-mechanised road transport sector.

Communication

Public Sector

Data on salaries and wages may be col-lected from the public sector units locatedwithin the district to allocate the SDPfrom this activity. Alternatively SDP maybe allocated using indicators ofdistrictwise revenue generated by postand telegraph offices, telephones, etc.,data for which may have to be collectedfrom administrative records of the con-cerned offices.

Private Sector

Districtwise estimates may be preparedusing the same procedure as formechanised road transport sector.

Banking and Insurance

Data on salaries and wages can be col-lected from the regional/district officesof banks and insurance companies. TheSDP of this sector may be allocated todistricts on the basis of districtwise sala-ries and wages.

Real Estate, Ownership ofDwellings and BusinessServices

Real Estate and Business services

Districtwise estimates may be preparedusing the same procedure as for non-mechanised road transport sector.

Ownership of Dwellings

State level estimates may be allocated todistricts in proportion to number of


Data on salaries andwages may becollected from thepublic sector unitslocated within thedistrict to allocate theSDP from this activity


dwellings (Rural/Urban) in each districtbased on census data multiplied bydistrictwise rent per dwelling workedfrom the 55th round of NSS by poolingthe results of central and state samples.Till such time districtwise rent per dwell-ing is estimated from 55th round survey,rent per municipal house may be ascer-tained from the municipalities within thedistrict.

Public Administration

In the case of central government admin-istration, data on central governmentemployees are being collected by the Di-rectorate General of Employment andTraining (DGET). Efforts may be madeto collect similar data at the district levelto allocate the state totals. Alternately, tillsuch time these data are collected, statetotal may be allocated in proportion todistrictwise workforce. In the case of stategovernment employees, data on salariesand wages at the district level may be col-lected from concerned departments toallocate the state total. For local bodies,district wise data may be collected fromlocal bodies and used

Other Services

Education, Research and Scientific Services

Recognised Institutions

Data on salaries and wages of teachingand non-teaching staff are being com-piled by the state education departmentsfor recognised institutions, universitiesetc. in connection with their publication“Education in States” by aggregating thedata at the district level. These data should

be collected and may be used to allocatestate totals to districts.

Unrecognised Institutions

For this activity the district wise estimates maybe prepared using the procedure used forprivate mechanised road transport. Insteadof public sector, the workforce for therecognised institutions may be subtractedfrom the total workforce for education toderive the workforce for the unrecognised in-stitutions. Till such time the bench mark esti-mates of value added from 57th round sur-vey are derived by pooling the central andstate samples, the SDP relating to this sectormay be allocated to districts in proportion todistrictwise workforce multiplied by averagetuition fees. Average tuition fees may be as-certained from a few unrecognised institu-tions and private tutors.

Medical and Health Services

Public Sector

Data on salaries and wages may be col-lected from the concerned units withinthe district and used to allocate State levelestimates to districts.

Private Sector

Districtwise estimates may be preparedusing the same procedure as for themechanised road transport.

Legal Services

Districtwise estimates may be preparedusing the same procedure as for the non-mechanised road transport.

In the case of centralgovernmentadministration, dataon centralgovernmentemployees are beingcollected by theDirectorate Generalof Employment andTraining (DGET).Efforts may be madeto collect similar dataat the district level toallocate the statetotals

17

Sanitary Services

District wise data (Rural/Urban) on sala-ries and wages may be collected from thelocal bodies and used to allocate the statelevel estimates.

Rest of Other Services

Districtwise estimates may be preparedusing the same procedure as for the non-mechanised road transport.

Estimates at Constant Prices

The methodology for working out esti-mates at constant prices will be more orless the same as that for current prices inthe sectors of Agriculture and AnimalHusbandry, Forestry and Logging,Fishing, Mining and Quarrying, Manu-

facturing (unregistered), Construction,Real Estate, Ownership of Dwellings andBusiness services and Trade, Hotels andRestaurants.

In the sectors where estimates are workedout by ‘Production Approach’, the cur-rent year production may be evaluated onthe basis of base year prices to obtainthe value of output. For the remainingsectors, the District Income estimates atconstant prices may be worked out usingthe state level deflator of current to con-stant prices. In the Mining and Quarry-ing sector, the districtwise price differ-entials may be introduced by multiplyingthe district wise gross value added at cur-rent prices by the ratio between the wagesof non-agricultural and rural labour forthe base year and for the current year.


In the sectors whereestimates are workedout by ‘ProductionApproach’, thecurrent yearproduction may beevaluated on thebasis of base yearprices to obtain thevalue of output. Forthe remainingsectors, the DistrictIncome estimates atconstant prices maybe worked out usingthe state level deflatorof current to constantprices


Income Originating vs. IncomeAccruing Approach

For capturing the disparity in income anddevelopment, income accruing to theresidents needs to be captured. Due tofree flow of goods and services acrossthe borders of the districts and the non-availability of net factor income earnedby the residents from other districts/states/countries, the income accruingapproach is not feasible. Thus, the in-come originating approach is used forcompilation of estimates of state in-come/district income.

The district level estimates would beutilised for the purpose of determiningthe backwardness/development of a dis-trict, and as consequence for allocationof resources by the planners and policymakers as well as for construction of acomposite index HDI in connection withthe Human Development Report. Itwould be necessary to make adjustmentsin these estimates in regard to significantflows of income from and to, across theterritories of typical districts which arerich in minerals and/or forest resourcesor where significant flow of daily com-muters (particularly the districts havingstate capitals or concentration of indus-trial units), migration of labour, cattle andnet factor income from abroad areinvolved.

Issues for Discussion

Frequency of Estimates

Since the main purpose of the estimatesis for planning purposes and also in viewof the present availability of data for theunorganised sectors at an interval of fiveyears, it would be sufficient to compilethese estimates at an interval of 5 years.

Purchasing Power Parityand HDI

Per capita DDP in real terms expressedin purchasing power parity dollars (PPP$)is used for construction of HDI. PPP$are not available for the states/districts.Hence use of all India PPP$ is resortedto. The purchasing power of the rupeevaries from state to state, district to dis-trict and within districts in rural and ur-ban areas. Work on the estimation ofpurchasing power of rupee was initiatedfor the state of Maharashtra and twoother states under the plan schemes dur-ing the 1980s but not much progress wasmade. If the HDI at the district level hasto have some meaning, then studies onpurchasing power of the rupee need totaken up.

DDP and SDP

The estimates of SDP for the commod-ity producing sectors are generally builtup by aggregating the DDP of all dis-tricts by the state DES using data on pro-

For capturing thedisparity in incomeand development,income accruing tothe residents needs tobe captured.


19

duction, inputs and prices at the districtlevel. However, for the non-commodityproducing sectors, SDP is compiled us-ing state level data from public sector/private corporate sector and GVA perworker and workforce for theunorganised segments of the economy.For proper synchronisation, it is neces-sary that the SDP estimates are aggre-gated from the DDP estimates for all thesectors. This requires generation of req-uisite districtwise data for the non-com-modity producing sectors at least to be-gin with, on a quinquennial basis. StateDES have to evolve a suitable samplingstrategy for the state sample so thatdistrictwise estimates could be generatedwith adequate precision from the followup surveys of economic censuses.

Prices

Producer prices prevailing in the primarymarkets/farm gates for agricultural prod-ucts/collection centres for forestry prod-ucts and at the landing centres for thefishery products at the district level arebeing collected through market surveys.However these data are not available formany of the products. For example incase of Karnataka, state level prices areused to value the district production foranimal husbandry, forestry and fishing.

The price data for all products, which areimportant for a particular district, needto be collected and compiled on a regu-lar basis for use in district income esti-mates. In this regard, it would be neces-sary for the state income estimation unitsto first draw up specific lists of suchproducts for each of the districts beforeinitiation of collection of prices.

Yield Rates

Yield rates for some of the agriculturalproducts are neither available at the state/district levels in the publications on agri-cultural production. The agricultural de-partments at the district/state levels areexpected to have these yield rates basedon eye estimates in their records. Thesedata need to be collected from theirrecords.

Forest Boundaries

The forest circles/divisions/sub-divi-sions are generally not coterminous withdistrict boundaries. The records of theforest /revenue departments at the divi-sion/sub-division/forest range/forestcoupe levels will have to be looked into,so as to demarcate forest areas within adistrict. For example in the case ofMadhya Pradesh, the district boundariesare now coterminous with one or moreforest divisions.

Inputs in Forestry and Fishing

Data on inputs for forestry and loggingand fishing are not available even at thenational/state level. Ratios developed inthe past are being used. Suitable studiesin this regard need to be initiated.

Manufacturing - Registered

The sampling strategy in operation fromASI 1998-99 provides serviceable esti-mates at the all-India and state levels. Thestates of Assam, Orissa, Rajasthan, UttarPradesh and West Bengal, which are par-ticipating in the programme of ASIshould take steps to augment the size ofthe sample for the sample (non-census)


The price data for allproducts, which areimportant for aparticular district,need to be collectedand compiled on aregular basis for usein district incomeestimates.


sector, so that by pooling the data fromthe two samples districtwise estimates aregenerated. For this purpose, the Indus-trial Statistics Wing of the CSO and theFOD of the NSSO should extend fullcooperation to these states in the selec-tion of the sample, collection of field dataand processing of data of pooledsamples. Other states, that are not pres-ently participating in the ASI programmeand are interested in generatingdistrictwise estimates for the registeredmanufacturing sector to meet the needsof state HDR, may take steps to createresources for augmenting the size of thecentral sample for the sample sector ofASI.

Unorganised Segments ofEconomic Activity

Pooling of central and state samples is amust if the states have to producedistrictwise estimates of value added forthe unorganised segments of differentsectors of non-agricultural economy. Thestate DES and the Data Processing Divi-sion (DPD) of NSSO need to developand maintain an excellent working rela-tionship. This would help the DPD andthe state DES to devise efficient identi-cal data processing procedures for thecentral and state samples so that poolingof the two samples can be undertakenon a scientific basis.

Workforce

In the case of Karnataka, districtwiseworkforce (as suggested in the joint meth-odology developed for DDP by DES

Karnataka and DES Uttar Pradesh) hasbeen used to allocate state totals to dis-tricts in respect of firewood, unregisteredmanufacturing, construction, road trans-port, real estate and business services andother services except education, medicaland health and sanitation. Thus the DDPof Karnataka and the HDI for the dis-tricts constructed on the basis of thesame, ignore the disparity at the districtlevel and do not reflect the extent ofdevelopment/under-development of thedistricts of Karnataka.

The allocation of state domestic prod-uct for a particular sector in proportionto workforce has the implicit assumptionthat the value added per worker is thesame for all the districts. Such a proce-dure makes the rich districts less rich andthe poor districts less poor. Thus the dis-parity in income gets reduced and doesnot reflect the proper picture. As such,its use, to the extent possible, may beavoided.

Value Added per Worker

As in the case of SDP, for compilationof DDP for a particular year, the districtlevel value added per worker, derivedfrom the pooled results of central andstate samples of the bench mark surveysof NSSO for manufacturing – unregis-tered (56th round), unregistered trade(53rd round), informal non-agriculturalenterprises (55th round), and unorganisedsegments of various sectors (57th round),will have to be carried forward orbackward using appropriate district levelprice indices.

The allocation of statedomestic product fora particular sector inproportion toworkforce has theimplicit assumptionthat the value addedper worker is thesame for all thedistricts.

21

Central Statistical Organisation (CSO),1974, First Report of the Committee onRegional Accounts, CSO, New Delhi.

_________________________, 1976,Final Report of the Committee on RegionalAccounts, CSO, New Delhi.

_________________________, 1988,Report of the Technical Group for Recom-mending Methodology for Estimation ofIncome at the District and Rural/UrbanLevels, September, CSO, New Delhi.

_________________________, 1996,Methodology for Preparation of Estimatesof District Domestic Product, preparedjointly by Directorate of Econom-ics & Statistics, Karnataka and UttarPradesh, August, CSO, New Delhi.

Bibliography

Centre for Research and Development, 1999,“Estimation of Regional Income-Esti-mate of NDP of Greater Mumbai”, pub-lished in The Journal of Income and Wealth,Vol. 21, No. 1, January.

Prabhu, K. Seeta and Suraj Kumar, 2001,Data Base for Human Development As-sessment: Some Key Issues, Seminar onHuman Development Through Na-tional Surveys, NSS Golden JubileeCelebration, 6-7, April, NationalSample Survey Organisation, Pune.

Viswanathan, Renuka, 2001, Preparation ofHuman Development Report for Karnataka,Seminar on Human DevelopmentThrough National Surveys, NSS GoldenJubilee Celebration, 6-7 April, NationalSample Survey Organisation, Pune.

Bibliography


Main comments on the methodologyadopted for compiling the estimates ofDDP by the DES of Karnataka,Maharashtra and Tamil Nadu are set outbelow.

Agriculture, Forestry and Fishing

Districtwise Prices

In the absence of district level prices DESKarnataka uses state level prices to valuethe district production for animal hus-bandry, forestry and fishing sectors. Sucha procedure does not take into accountthe variation in prices across districts.

Price data for all products, which are im-portant for a particular district, need tobe collected and compiled on a regularbasis for use in district income estimates.In this regard it would be necessary forthe state income estimation units at thestate levels to first draw up specific listsof such products for each district beforeinitiation of collection of prices.

Yield Rates

For crops for which yield rates are notavailable for Karnataka, Maharashtraand Tamil Nadu, state level estimatesare allocated to districts in proportion to

ANNEXURE

Comments on Methodology Adopted by Karnataka, Maharashtraand Tamilnadu for Compiling Distict Domestic Product

area. For Tamil Nadu, state level esti-mates of forestry are allocated to dis-tricts in proportion to districtwise areaunder forest. Such a procedure doesnot take into account the variation inyield rates as well as prices.

The agricultural departments at the dis-trict/state levels are expected to havethese yield rates based on eye estimatesin their records. These data need to becollected from their records. Data on for-est products also need to be collected atdistrict level

Eye estimates are no doubt subjective butin the absence of yield rates based onobjective criteria, these may be goodenough for allocation purposes.

Fuelwood

State level estimates are allocated todistricts in proportion to rural workforcefor Karnataka and in proportion torural/urban population for Tamil Nadu.

Inputs in Forestry and Fishing

Data on inputs for forestry and loggingand fishing even at the national/statelevel are not available. DES ofKarnataka, Maharashtra, Tamil

Price data for allproducts, which areimportant for aparticular district,need to be collectedand compiled on aregular basis for usein district incomeestimates.

Comments on Methodology Adopted by Karnataka, Maharashtraand Tamilnadu for Compiling Distict Domestic Product

23

Nadu as well as DES of other states useratios developed in the past even for statelevel estimates. Input rates vary fromstate to state.

Suitable studies in this regard need to beinitiated by DES in collaboration withthe Chief Conservators of Forest.

Communication and PublicAdministration

The states of Karnataka, Maharashtraand Tamil Nadu allocated state levelincome in respect of public administra-tion using districtwise workforce. TamilNadu and Maharashtra also usedworkforce to allocate state level incomefrom communication to various districts.Such a procedure ignores disparity inincome per worker at the district level.

Manufacturing – Unregisteredand Unorganised Segments ofEconomy

In case of Karnataka, Maharashtraand Tamil Nadu, districtwise workforcehas been used to allocate state totals todistrict in respect of unregistered manu-facturing, construction, road transport,real estate and business services, andother services except education, medicaland health and sanitation. Workforce hasalso been used as an indicator byMaharashtra and Tamil Nadu fortrade, hotels and restaurants. Thus, theDDP of these states and the HDI for

the districts constructed on the basisof the same, ignore the disparity inincome per worker at the district level.

The allocation of state domestic prod-uct for a particular sector in proportionto workforce has the implicit assumptionthat the value added per worker is thesame for all the districts. Such a proce-dure makes the rich districts less rich andthe poor districts less poor. Thus the dis-parity in income gets reduced and doesnot reflect the proper picture. As suchits use to the extent possible may beavoided. Instead it should be used in com-bination with value added per worker orthe appropriate wage rate.

Ownership of Dwellings

State level estimates have been allocatedto districts in proportion to number ofdwellings by Karnataka, Maharashtra andTamil Nadu. Such a procedure ignoresvariation in rent per dwelling at thedistrict level.

Districtwise rent per dwelling fromNSSO consumption surveys needs to beestimated by pooling the central and statesamples. Alternatively, rent per munici-pal house can be collected from the mu-nicipalities.

Districtwise number of dwellings multipliedby rent per dwelling or rent per municipalhouse would be a better indicator instead ofonly number of dwellings.

Districtwise rent perdwelling from NSSOconsumption surveysneeds to beestimated by poolingthe central and statesamples.

Documents

Discussion Paper - 2...i Discussion Paper - 2 Estimates of District Domestic Product The analysis and policy recommendations of this Paper do not necessarily reflect the views of the