MACRO ECONOMIC
AGGREGATES
2Chapter
Gross State Domestic Product
Outcomes on sustained human development depend
on several factors such as macroeconomic policies
and strategies of the Central and State Governments,
particularly relating to health, education and economic
growth. The State Domestic Product (SDP) and its
related aggregates are important indicators of state
economy. Improvement in availability of basic data over
the years has helped in reviewing the methodology from
time to time for estimating the State Domestic Product,
also known as State Income. Updating data from time
to time and shifting base year to a more recent year is
undertaken regularly so that the structural and sectoral
shifts likely to take place in a developing economy can be
properly gauged and captured.
The Central Statistics Office (CSO) introduced a new
series of National Accounts Statistics with base year
2004-05 in place of the previous series with 1999-
2000 base year. This was done to incorporate latest
data from various surveys and censuses conducted by
State / Central Governments as per latest international
standards and to capture the structural changes taking
place in the economy. Accordingly, the base year for the
state has also been revised and information on State
Domestic Product presented in the new series of 2004-
05 base year.
The 4th meeting of the Advisory Committee on
National Accounts Statistics approved and modified
the nomenclature of GDP estimates released at various
points of time in a year to alert users about revisions
of various estimates of GDP. The changes in the
nomenclature are given at the end of the chapter.
The State Domestic Product (SDP) is usually estimated
by ‘Income originating approach’, wherein income
generated by the factors of production physically
located within the geographical boundaries of the state
are aggregated. It represents the value of goods and
services produced within the state, counted without
duplication during a specific period of time, usually a
year. The estimates of SDP and related aggregates are
generally prepared both at current and constant prices.
These estimates of economy over a period of time
reveal the extent and direction of changes in the level of
economic development. Sectoral composition of SDP
gives an idea of the relative position of different sectors
in the economy over a period of time which not only
indicates the real structural changes taking place in the
economy but also facilitates formulation of plans for
overall economic development. These estimates when
studied in relation to the total population of the state
indicate the level of per capita net output of goods and
services available or the standard of living of the people
in the State. These are referred as estimates of Per Capita
Income (PCI).
During the 11th Five Year Plan (2007-08 to 2011-12),
Andhra Pradesh registered an average growth rate of
8.18% against the Nation’s GDP growth rate of 8.02%
(at constant prices).
The GSDP at constant (2004-05) prices for the year
2012-13 (Advance Estimates) is estimated at Rs.4,26,470
crore as against Rs.4,05,046 crore for 2011-12 (First
Revised Estimates) indicating a growth of 5.29%.
The corresponding sectoral growth rates are 1.96% in
Agriculture sector, 0.73% in Industry sector and 8.45%
in the Services sector.
Sectoral Composition of GSDP
The sectoral composition of GSDP both at current and
constant (2004-05) prices has undergone considerable
change during the past few years with the shift happening
essentially from Agriculture sector to Services sector.
In 2004-05, the share of Agriculture in the GSDP at
constant (2004-05) prices was 25.1%, Industry 24.3%
and Services sector 50.6%. In 2012-13, the share of
agriculture in the GSDP declined to 18.7% and Services
sector was the gainer whose contribution moved up
to 57.7%. The Industry sector has not shown much
variation and continues to hover around 24% mark.
12Chart 2.1 : Sectoral composition of GSDP at
constant (2004-05) prices in 2004-05
Agriculture 25.1
Industry 24.3
Services 50.6
100.0
Agriculture
25.1%
Industry
24.3%
Services
50.6%
Sectoral Composition of GSDP at Constant
(2004-05) Prices in 2004-05
Agriculture
18.7%
Industry
23.6%Services
57.7%
Sectoral Composition of GSDP at Constant
(2004-05) Prices in 2012-13(A)
Source: Directorate of Economics & Statistics Department
The Agriculture sector, showed great resilience
witnessing impressive growth rates in recent past. As per
the Advance Estimates of GSDP for 2012-13, this sector
posted a growth of 1.96%. Increase in the production
of milk and meat under Livestock sub-sector helped the
Agriculture sector to put up this modest growth, despite
the Crop sector(agriculture including horticulture)
registering a negative growth rate of 2.69% due to
decline in food grains production from 184 lakh tonnes
in 2011-12 to 171 lakh tonnes estimated for 2012-13.
Unfavourable/adverse seasonal conditions prevailing
in most parts of the state was largely responsible for
the slide. Among the sectors allied to Agriculture, the
Livestock and Forestry & Logging sub-sectors registered
growth rates of 6.31% and 2.51% respectively, while
substantial increase in the production of Inland fish and
brackish water prawns helped the Fishing sector post an
impressive growth rate of 10.65 % during 2012-13.
Chart 2.2 : Sectoral composition of GSDP at
constant (2004-05) prices in 2012-13(A)
Agriculture 25.1
Industry 24.3
Services 50.6
100.0
Agriculture
25.1%
Industry
24.3%
Services
50.6%
Sectoral Composition of GSDP at Constant
(2004-05) Prices in 2004-05
Agriculture
18.7%
Industry
23.6%Services
57.7%
Sectoral Composition of GSDP at Constant
(2004-05) Prices in 2012-13(A)
Source: Directorate of Economics & Statistics Department
Industry sector, comprising Mining & Quarrying,
Manufacturing (Registered and Unregistered), Electricity,
Gas & Water Supply and Construction, registered a
growth rate of 0.73% during 2012-13. Shortage in
electrical power availability adversely impacted the
Manufacturing and Electricity, Gas and Water Supply
sectors which have respectively registered negative
growth rates of 3.69% and 2.07%. The Construction
sector registered a growth rate of 6.85% Mining and
Quarrying sector registered a growth rate 5.50%.
Services sector, with its consistently surging share in the
GSDP, continued to be the engine for pushing overall
growth in the state. Services sector comprising Trade,
Hotels & Restaurants, Transport by other means &
Storage, Communications, Banking & Insurance, Real
Estate & Business Services and Community, Social &
Personal services registered a growth rate of 8.45%
during the year 2012-13. Among the sub-sectors,
Communication, Banking & Insurance and transport by
other means & storage have shown impressive growth.
Sector wise growth rates of GSDP at constant (2004-
05) prices from 2008-09 to 2012-13 are depicted below
to envision the sectoral growth scenario during the last
5 years.
Chart 2.3 : Sectoral GSDP growth rates
at constant (2004-05) prices
Industry 2008-09 2009-10 (TRE) 2010-11 (SRE)2011-12 (1st R)2012-13 (A)
Agricultu
re
0.8 0.2 7.3 0.8 2.0
Industry 7.2 3.0 7.5 7.7 0.7
Services 9.5 7.1 11.6 10.5 8.5
0.8 0.2
7.3
0.8
2.0
7.2
3.0
7.5 7.7
0.7
9.5
7.1
11.6 10.5
8.5
0
2
4
6
8
10
12
14
2008-09 2009-10
(TRE)
2010-11
(SRE)
2011-12
(1st R)
2012-13
(A)
Growth Rate
Agriculture Industry Services
200
Source: Directorate of Economics & Statistics Department
Estimates of GSDP/GDP and growth rates both
at current and constant (2004-05) prices of Andhra
Pradesh and all India from 2004-05 to 2012-13 (A) are
shown in Annexures 2.1 to 2.12.
13GSDP of Andhra Pradesh and GDP of
All India
GSDP of Andhra Pradesh at constant (2004-05) prices
and GDP of All India at constant (2004-05) prices are
shown in Table 2.1.
Table 2.1 : GSDP of A.P. and GDP of
All India at constant (2004-05) prices
Year
Andhra Pradesh All India
GSDP
(Rs.Crs)
Growth
Rate
(%)
GDP
(Rs.Crs)
Growth
Rate
(%)
2004-05 2,24,713 - 29,71,464 -
2005-06 2,46,210 9.6 32,53,073 9.5
2006-07 2,73,730 11.2 35,64,364 9.6
2007-08 3,06,645 12.0 38,96,636 9.3
2008-09 3,27,731 6.9 41,58,676 6.7
2009-10* 3,42,571 4.5 45,16,071 8.6
2010-11# 3,75,664 9.7 49,37,006 9.3
2011-12$ 4,05,046 7.8 52,43,582 6.2
2012-13@ 4,26,470 5.3 55,03,476 5.0
Source: Directorate of Economics and Statistics, Andhra Pradesh and C.S.O., New Delhi.
Note: *Third Revised Estimate, # Second Revised Estimate, $ First Revised
Estimate, @ Advance Estimate.
Andhra Pradesh GSDP and All India GDP growth
rates accelerated since 1980s breaking the earlier average
growth rate ranging between 3 to 5%. The national
economy as well as state economy moved to high growth
rates as a result of economic reforms that were initiated.
The decadal average annual growth rates of GSDP of
AP and GDP of All India at 2004-05 Prices are given in
Annexures 2.6 and 2.12.
Chart 2.4 : Decadal average annual growth rates of
GSDP of AP and GDP of All India at 2004-05 prices
3.16
3.49
5.91
5.86 7.54
3.75
3.16
5.40 5.70
7.75
2
3
4
5
6
7
8
1961-62 to
1970-71
1971-72 to
1980-81
1981-82 to
1990-91
1991-92 to
2000-01
2001-02 to
2010-11
Gowth Rate
A.P. All India
Source: Directorate of Economics & Statistics Department
Per Capita Income
Per Capita Income is a pointer for the standard of living
of people. As per the Advance estimates of 2012-13,
the Per Capita Income of Andhra Pradesh at current
prices increased to Rs.77,277 from Rs.68,970 in 2011-12
registering a growth of 12%. The Per Capita Income at
constant (2004-05) prices, also gone up from Rs.42,119
in 2011-12 to Rs.44,110 in 2012-13, a growth rate of
4.7%. Year wise details of Per Capita Income of A.P and
All India at current prices are given in Table- 2.2.
Table 2.2 : Per Capita Income of A.P. and
All India at current prices
(in Rupees)
Year
Andhra Pradesh All India
Per Capita
Income
Growth
Rate (%)
Per Capita
Income
Growth
Rate (%)
2004-05 25,321 - 24,143 -
2005-06 28,539 12.7 27,131 12.4
2006-07 33,135 16.1 31,206 15.0
2007-08 39,727 19.9 35,825 14.8
2008-09 46,345 16.7 40,775 13.8
2009-10* 51,114 10.3 46,249 13.4
2010-11# 60,703 18.7 54,151 17.1
2011-12$ 68,970 13.6 61,564 13.7
2012-13@ 77,277 12.0 68,747 11.7
Source: Directorate of Economics and Statistics, Andhra Pradesh and C.S.O., New Delhi.
Note: *Third Revised Estimate, # Second Revised Estimate, $ First Revised Estimate,
@ Advance Estimate.
Details about the Net State Domestic Product (NSDP)
and Per Capita Income (PCI) of Andhra Pradesh and
Net Domestic Product of All India at current and
constant (2004-05) prices from 2004-05 to 2012-13 are
presented in Annexure 2.13.
Gross District Domestic Product:
District Income is defined as the sum total of economic
value of goods and services produced within the
geographical boundaries of the district, irrespective of
whether the person owning that income resides inside
or outside the district.
Details about the Gross District Domestic Product from
2004-05 to 2010-11 (SRE) both at current and constant
(2004-05) prices are given in Annexures 2.14 and 2.15.
Details about District Per Capita Income at factor cost
both at current & constant (2004-05) prices are given in
Annexures 2.16 and 2.17 respectively. The Gross Value
Added by Agriculture, Industry and Services sectors
at current and constant (2004-05) prices are given in
Annexures 2.18 to 2.23.
14Gross Fixed Capital Formation
The growth of productive capacity of the economy of
a state depends on its rate of capital accumulation and
is assessed by estimating the capital formation of that
state. The higher the rate of capital accumulation, the
higher would be the growth of the productive capacity
of the economy, where as its paucity leads to low level
of production with higher cost. Thus Capital Formation
assumes paramount importance in the context of policy
making by the State and Central Governments. It reveals
the potentiality of the investments in the public as well
as the private sectors and gives the net addition of assets
created during the year.
Estimates of Gross Capital Formation (GCF) consists
of Gross Fixed Capital Formation (GFCF) and changes
in stock. GFCF is a better indicator than GCF since
changes in stock is subject to more fluctuations and also
because of the non-availability of information on stocks
in most of the private sector industry groups. Hence,
the estimates are confined to GFCF rather than GCF
at current prices. For measurement of GFCF at State
level, expenditure approach is followed as the data on
imports and exports of capital goods across the state
boundaries and net inflow of resources from outside
the State are not available. The GFCF by industry
group has been revised from 2004-05 to 2009-10 due
to the revision of supra-regional sub-sectors data by the
Central Statistics Office.
Gross Fixed Capital Formation in Andhra Pradesh for
the year 2010-11 (SRE) at current prices is Rs.1,54,586
crore as against Rs.1,31,333 crore in 2009-10 reflecting
a growth rate of 17.71%. During 2010-11, the GFCF
at national level was Rs.24,74,464 crore as against
Rs.20,55,772 crore in 2009-10 showing a growth rate of
20.37%. Details of GFCF of A.P and All India from
2004-05 to 2010-11 (SRE) at current prices are shown
in Table 2.3.
Table 2.3 : Gross Fixed Capital Formation in
Andhra Pradesh and All India at current prices
Andhra Pradesh All India
GFCF
(Rs.Crs)
Growth
Rate
GFCF
(Rs. Crs)
Growth
Rate
2004-05 58,798 – 9,31,028 –
2005-06 72,118 22.65 11,20,292 20.33
2006-07 89,234 23.73 13,43,775 19.95
2007-08 1,09,000 22.15 16,41,673 22.17
2008-09 1,22,548 12.43 18,21,099 10.93
2009-10 (TRE) 1,31,333 7.17 20,55,772 12.89
2010-11 (SRE) 1,54,586 17.71 24,74,464 20.37
Source: Directorate of Economics and Statistics, Hyderabad and C.S.O., New Delhi.
Note: TRE: Third Revised Estimate, SRE: Second Revised Estimate.
The Gross Fixed Capital Formation as a percentage to
Gross State Domestic Product at current Prices is one
of the indicators for measuring the productive potential
of investments made during a year at state level. Details
about the pattern / trends of investments from 2004-05
to 2010-11(SRE) are shown in Table 2.4.
Table 2.4 : GFCF as Percentage of GSDP and GDP
Year Andhra Pradesh All India
2004-05 26.17 31.33
2005-06 28.18 33.04
2006-07 29.64 33.99
2007-08 29.88 35.83
2008-09 27.72 34.34
2009-10 (TRE) 27.54 33.65
2010-11 (SRE) 27.07 34.05
Source: Directorate of Economics and Statistics, Hyderabad and C.S.O., New Delhi.
Note: TRE: Third Revised Estimate, SRE: Second Revised Estimate,
Details of Gross Fixed Capital Formation by type of
institutions i.e., public and private participation in
creation of assets since 2004-05 to 2010-11 in Andhra
Pradesh is shown in Table 2.5.
Table 2.5 : Gross Fixed Capital Formation in A.P
and All India at current prices
(Rs. Crore)
Year
Andhra Pradesh All India
Public Private Public Private
2004-05
13,797
(23.47)
45,001
(76.53)
2,24,108
(24.07)
7,06,920 (75.93)
2005-06
17,940
(24.88)
54,178
(75.12)
2,71,342
(24.22)
8,48,950 (75.78)
2006-07
23,857
(26.74)
65,377
(73.26)
3,39,617
(25.27)
10,04,158
(74.73)
2007-08
32,413
(29.74)
76,587
(70.26)
4,01,326
(24.45)
12,40,347
(75.55)
2008-09
36,760
(30.00)
85,788
(70.00)
4,80,698
(26.40)
13,40,401
(73.60)
2009-10
(TRE)
38,258
(29.13)
93,075
(70.87)
5,43,883
(26.46)
15,11,889
(73.54)
2010-11
(SRE)
38,669
(25.01)
1,15,917
(74.99)
6,06,245
(24.50)
18,68,219
(75.50)
Source: Directorate of Economics and Statistics, Hyderabad and C.S.O., New Delhi.
Note: TRE: Third Revised Estimate, SRE: Second Revised Estimate.
Figures in brackets indicate percentage to total.
15As seen from the above table, it is observed that creation
of assets during the indicated years are more in Private
sector as compared to Public sector both in case of Andhra
Pradesh as well as All India during 2004-05 to 2010-11.
Details about industry group wise GFCF in A.P from
2004-05 to 2010-11(SRE) is shown in Annexure 2.24.
Nomenclature
Present Modified
Advance Estimates (AE) Advance Estimates (A)
Updated Advance Estimates
(UAE)
Provisional Estimate
(PE)
Quick Estimate (QE) First Revised Estimate (FRE)
Provisional Estimate
(PE)
Second Revised Estimate
(SRE)
Revised Estimate (RE) Third Revised Estimate (TRE)
16
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