Introduction: Gross State Domestic Product (GSDP)

The Gross State Domestic Product (GSDP) is a crucial economic indicator used to assess and analyze the economic performance of individual states within a country. It serves as a comprehensive measure of the total economic output generated within a state's boundaries over a specified period, typically a fiscal year. Understanding the GSDP is essential for policymakers, economists, and investors, as it provides insights into the economic health, growth trends, and overall prosperity of a specific region.

Main Activities of State Income Division:

(i) Collection of data from different departments for GSDP estimation.

(ii) Collection, compilation and Analysis of Govt. Budget Analysis, Local Bodies.

(iii) Collection & compilation of Annual Survey of Industries (ASI).

(iv) Analysis of All India Index of Industrial Production (IIP) with respect to our state.

Publication: State Income division of DES (Directorate of Economics & Statistics, Chhattisgarh) publishes a yearly publication “Estimate of State Domestic Product of Chhattisgarh” at current and constant prices.

Working Procedure::

The calculation of GSDP involves a systematic procedure that integrates various economic activities within a state. The following steps outline the working procedure:

1. Data Collection: The first step involves collecting extensive data on economic activities within the state. This includes information on agriculture, manufacturing, services, and other sectors.

2. Sectorial Analysis: The collected data is then segmented into different sectors, such as agriculture, industry, and services. This segmentation enables a detailed analysis of the contributions of each sector to the state's economy.

3. Methodology for compilation: State Income Division prepares the Estimates of GSDP for Agriculture, Industry and Service sectors according to the guidelines provided in SNA (System of National Accounts) 2008 and by the National Statistical Office (NSO), New Delhi. The Sources & Methodology is mentioned in the publication “Estimate of State Domestic Product of Chhattisgarh” appearing in homepage of this website.

After collection and verification of the data from time to time, state income division prepares estimates at factor cost usually in the month of January-February every year. These estimates are discussed and verified by NSO during comparable discussion generally in the month of April-May every year.

Advance estimates prepared in the current year is finalized in the forthcoming third year after discussion with NSO. For instance, an Advance GSDP estimate for the year 2023-24 has been prepared in the month of January 2024. In January 2025, a Quick estimate will be prepared for the same year. Similarly, In January 2026, a provisional estimate will be prepared for the year 2023-24 and finally In July 2026, GSDP estimates for the year 2023-24 would be finalized after discussion with NSO. In short,

2023-24 (AE)	Prepared in the month of January 2024
2023-24 (QE)	Quick estimates will be prepared in the month of January 2025 & will be discussed with NSO in April-May 2025.
2023-24 (PE)	Provisional estimates will be prepared in the month of January 2026
2023-24 (FE))	Estimates prepared in Jan-Feb 2026 will be discussed with NSO in April-May 2026 and finalized thereafter.
AE-Advance Estimates, QE-Quick Estimates, PE-Provisional Estimates, FE-Final Estimates

Terminology to Be Known

1. Base Year Prices: GSDP is usually measured at constant prices to eliminate the impact of inflation. Base year prices are used to provide a consistent comparison over time. At Present base year is 2011-12.

2. Nominal and Real GSDP: Nominal GSDP represents the economic output at current market prices, while real GSDP adjusts for inflation, providing a more accurate reflection of actual economic growth.

3. Growth Rate Calculation: The growth rate of GSDP is calculated by comparing the current year's GSDP with that of the previous year. This percentage change indicates the economic growth or contraction experienced by the state.

4. Per Capita Income: per capita state income obtained by dividing the net state domestic product by midyear projected population of the state. Per capita income is good indicator for measuring economic status of state

Broad Use of State Income Data:

The main activity of GSDP is to quantify the economic performance of a state by considering its production, consumption, and income-generation activities. It serves as a valuable tool for policymakers in the following ways:

1. Policy Formulation: : GSDP data guides the formulation of economic policies at the state level. Policymakers use this information to identify areas of strength and weakness, enabling them to implement targeted measures for economic development.

2. Resource Allocation: GSDP helps in the allocation of resources by identifying sectors that contribute significantly to the state's economy. This information assists in directing investments and resources towards areas with growth potential.

3. Comparative Analysis: States can compare their GSDP with others to assess their relative economic positions. This comparative analysis facilitates healthy competition and encourages states to adopt best practices for economic development.