Annexure - Directorate of Economics and Statistics

3.1.Introduction:
The need to have relevant data for plan formulation at the district level has been increasingly felt with the shift of
emphasis to decentralised planning. For planned development of a region, it is necessary to have a prior knowledge
of the level of economic development of that region. In this context, the district income estimates assumes much
importance as an indicator of development. The district income estimates also bring to light the inter district variations
in the economic development and help the planners to set priority in formulating development plans for each district,
depending upon its level of backwardness.
In order to meet these requirements, attempts were made by the Directorate of Economics and Statistics as
early as in the sixties to compute the district income estimates for the year 1960-61 with available data at that point
of time. Subsequently in the seventies and the eighties, these estimates were prepared for selected years. From
1990-91 and onwards, the estimates are being regularly prepared every year at current and constant (1980-81)
prices as per provisional database. Thus, the district income estimates with 1980-81 as base are available for
1980-81, 1985-86 and 1990-91 to 1996-97. The estimates for 1997-98 & 1998-99 are prepared with 1993-94
as base at current and constant (1993-94) prices. The district income estimate were prepared for 1999-00 to
2007-08 after shifting the base year from 1993-94 to 1999-00 during 2006. At present, the estimates are prepared
for the base year 2004-05 and 2007 -08 at current & constatnt (2004-05) prices. The estimates at current prices
reflects growth in output of goods and services including the effect of change in prices, while the estimates at
constant prices reveal the actual growth in the output removing the effect of change in prices.
3.2. Concept and definition:
The district income is defined as the sum total of the economic value of all goods and services produced within
the district, irrespective of the fact whether persons inside the district or out side own the income. The estimates of
District Domestic Product (DDP) also termed as District Income is compiled in a similar manner to the one being
followed in the case of State Domestic Product (SDP). i.e., ‘Income originating’ concept is used in working out
DDP; although the estimates worked out on the basis of ‘Income accruing’ concept is relatively better one. Income
accruing concept is followed in the preparation of National Income estimates at all India level.
3.3 Measures relating to Income:
3. DISTRICT INCOME
Gross District Domestic Product (GDDP) represents the sum of economic value of all goods and services
produced within the geographical boundary of the district after deducting the necessary inputs consumed in the
process of production and Financial Intermediation Services Indirectly Measured (FISIM). From this Gross District
Domestic Product, Consumption of Fixed Capital (CFC) is deducted to arrive at the Net District Domestic Product
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