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30 The journal of income and wealth However, the ownership pattern as well as value is not available, as such this information could not be utilized. Mining and Quarrying The GFCF estimates have been prepared on the basis of Gross Value of Output (GVO) of the Minor and Major Minerals for household sector and private corporate sector respectively. www.IndianJournals.com Members Copy, Not for Commercial Sale Downloaded From IP - 115.248.73.67 on dated 29-Nov-2010 Manufacturing Annual survey of Industries (ASI) provides state wise estimates of GFCF in the registered manufacturing sector. The national level GFCF estimates of the private sector have been allocated on the basis of state wise GFCF as available from ASI. GFCF estimate for unorganized manufacturing sector have been prepared on the basis of survey results on unorganized manufacturing sector (NSS 56 th round for the years 1999-2000 to 2004-05 and 62 nd round for 2005-06). Information on GVA and net additions in fixed assets available in the 56 th round survey have been utilized to prepare the estimates for 2000-01 and moved forward to 2004-05 on the basis of growth on GVA. For the year 2005-06, the information available from the 62 nd round survey have been used. Electricity, Gas and Water Supply Under this sector capital investment made in the biogas plants and wind energy systems are covered under household sector. The estimates of national level GFCF in gas sub sector have been allocated over the states on the basis of number of gobar gas plants constructed during the year. The data on state level capacity of wind energy has been utilized to allocate the all India estimates of GFCF in wind energy over the states. Information available on cumulative achievement of the corresponding year from the Annual Report of Ministry of New and Renewable Energy has been used for this purpose. The GFCF estimates relating to electricity in the private sector have been allocated on the basis of GSDP estimates. Construction The estimates of private sector GFCF in construction industry at all India level has been distributed among the states on the basis of state level information available on new constructions of NDCUs. Firstly, the new construction component of this sector has been allocated over states on the basis of statewise data on new constructions of NDCUs. As all India estimates under this sector includes investment in plants and machinery, the construction estimates so obtained have been blown up to arrive at state wise GFCF assuming that investment in new construction constitutes only thirty percent. This ratio is based on all India estimates of private corporate sector. Trade, Hotels & Restaurants, Transport by other means, Storage, Communication, Real Estate, Business Services & Other Services The survey on informal sector in India conducted by the NSSO in the 55 th round provides the state level information on net additions to fixed assets and gross value added of these industries during the year 1999-2000.On the basis of ratio of fixed capital to valued added, GFCF for the
ESTIMATION OF CAPITAL FORMATION AT STATE LEVEL 31 year 1999-2000 have been worked out using respective GSDP estimates. Thereafter, index of value added for the years 2000-01 to 2005-06 with base 1999-2000 has been worked out for each state and the estimates of GFCF worked out for 1999-2000 has been moved forward till the year 2005-06. Ownership of Dwellings The estimates of GFCF in respect of Ownership of dwelling as published in the NAS 2008 have been allocated using state level information available in AIDIS 2002-03. www.IndianJournals.com Members Copy, Not for Commercial Sale Downloaded From IP - 115.248.73.67 on dated 29-Nov-2010 Supra regional sectors In the case of Banking and Insurance state wise data on construction and machinery and equipment for private sector banks, Banking Department of RBI, Insurance corporations and Central Financial corporations, state-wise data on paid up capital for financial investment companies, annual reports of State financial corporations, data supplied by NABARD in respect of regional rural banks and cooperative credit societies are used. In the case of communication, the all India total private sector GFCF of this sector has been distributed over states on the basis of statewise estimates of public sector. IV. Conclusions It may be seen that the estimates of GFCF has been prepared entirely for the private sector, rather than distinguishing between private corporate sector and household sector. Although the enterprise surveys are the ideal source, unfortunately the quality of capital formation data in these surveys is not good. Hence the data available from various surveys has been used as indicators for allocating the all India totals. The alternative to this is to use capital output ratios of public sector or capital output ratios of private sector at all-India level. The SDP and GDP data is available separately for public and private sectors and so is the estimates of GFCF at all India level. The quality of the estimates particularly for private sector needs to be improved upon gradually. Once the state level data of GFCF in respect of private corporate sector based on Studies of Company Finances conducted by the RBI becomes available, the quality of GFCF estimates would improve to a great extent. References Central Statistical Organization, India (2008), National Accounts Statistics 2008. Central Statistical Organisation, India (2007), National Accounts Statistics: Sources and Methods. Commission of European Communities, International Monetary Fund, Organisation for Economic Cooperation and Development, United Nations and World Bank (1993), System of National Accounts, 1993. National Sample Survey Organization, India (2002-03), Report No- 504: Household Capital Expenditure; All India Debt and Investment Survey, 2002-03. Central Statistical Organization, India (2000), Annual survey of India (ASI). Central Statistical Organization, India (2001), Annual survey of India (ASI). Central Statistical Organization, India (2002), Annual survey of India (ASI). Central Statistical Organization, India (2003), Annual survey of India (ASI). Central Statistical Organization, India (2004), Annual survey of India (ASI).
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