State Domestic Product
An Introduction to State Domestic Product Estimation
The SDP or State Income
The estimates of State Domestic Product (SDP), generally known as State Income, are considered as the most important macro-economic aggregates to measure the economic development of the state. The SDP of a State is defined as the aggregate money value of all goods and services produced within the geographical boundary of the state, counted without duplication with reference to a specific time period, usually a year. As SDP reflects the production capacity of any State, it simultaneously reflects the outcomes of the investments made, opportunities available and the likely impact of forthcoming economic policies. Thus, in the context of planned development of the economy of a state, the estimates of state domestic product and its derivative, per capita income plays a vital role since these estimates help government in formulating the policies and programmes as per critical economic analysis.
1. To know the growth of the economy.
2. To workout per capita income.
3. For allocation of funds.
4. To study structural changes in economy.
5. For fixing the plan targets.
6. To study the inter state comparison.
Sectors of Economy
In order to estimate the SDP and State Income, the whole economy of a State is divided into 3 major sectors comprised of 13 sub-sectors as follows:
1- Primary Sector
(i) Agriculture ( including horticulture) & Livestock (ii) Forestry and Logging
(iii) Fishing (iv) Mining and Quarrying
2- Secondary Sector
(v) Manufacturing (vi) Construction
(vii) Electricity, Gas and Water Supply
(viii) Transport, Storage and Communication (ix)Trade, Hotel and Restaurants
(b)Transport by other means
(x) Banking and Insurance (xi) Real Estate, Ownership of Dwelling, Business and Legal Services (xii) Public Administration (xiii) Other Services