Centre plans to bring out city level GDP data
- 18 Aug 2018
- 2 min read
With urban India responsible for an increasingly large share of the national GDP, the Centre now hopes to bring out city-level GDP data.
- According to the Housing and Urban Affairs Ministry, this could help cities in generating investments and help municipal bodies to raise funds for their infrastructural needs.
- The Economist Intelligence Unit (EIU) carried out a feasibility study of various models to calculate city-level GDP and submitted its report to the Ministry.
- The EIU has recommended a top-down approach based on sectoral income data for the calculation of city-level GDP as it would balance detail and resource-effectiveness in the long term.
- However, it acknowledges that the data requirements may be too challenging and a top-down approach using household expenditure data may be more feasible in the short term.
The Economist Intelligence Unit (EIU), created in 1946, is the research and analysis division of The Economist Group and the world leader in global business intelligence.
- As per the government data, The urban sector is likely to account for 75% of India’s GDP by 2020 which is an increase from 2011 when urban sector accounted for 60% of the national GDP.
- A recent study by Brookings Institution found that several Indian cities rank in the 300 global cities with the fastest GDP growth rate with Hyderabad (8.7%) and Surat (7.9%) growing at par with the fastest growing Chinese cities that dominate the list.
- The project if approved would likely to begin by the end of this year.
What is GDP?
- Gross Domestic Product (GDP) is the broadest quantitative measure of a nation's total economic activity.
- More specifically, GDP represents the monetary value of all goods and services produced within a nation's geographic borders over a specified period of time.