District Domestic Product (DDP) represents the total value of all goods and services produced within the geographical boundaries of a district over a specific timeframe.
- They serve as a disaggregated counterpart to the Gross State Domestic Product (GSDP) at State level and the GDP at the national level, providing granular insights into the local economic structure and performance of districts.
- Methodology: It follows two approaches:
- Income originating: Measurement corresponds to income originates with reference to the factors of production located within a district.
- Income accruing: Measures the income received by the normal residents of a district (includes income originated outside the region).
- Estimation Approaches:
- Top-Down Approach: State-level aggregates are first estimated and then distributed among districts using suitable indicators.
- Bottom-Up Approach: Direct estimation at the district level by collecting data from households, enterprises/establishments and administrative records within each district.
- Mixed Approach: Combination of top-down and bottom-up methods.
- Status: Currently, 26 States/UTs are preparing DDP estimates mainly using Top-down Approach. However, the indicators used vary across States and across sectors, which limits the comparability of DDP estimates.
- Due to difficulty of tracking cross-district income flows, most states currently follow originating approach.
Need of District Domestic Product (DDP)
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