District Domestic Product – key insights

On 21st June 2024 the Department of Economics and Statistics, Government of Nagaland has released the very first Report on the District Domestic Product of Nagaland.
It is indeed a laudable initiative that the State has released this report making it a pioneer among the States in the North-East and among the few States of India that has come out with their own Reports on District Domestic Product.
The genesis of the process for estimation of the District Domestic Product is from the recommendations of the Committee for Sub-National Accounts that was constituted in 2018 under the Chairmanship of Prof. Ravindra. H. Dholakia by the Ministry of Statistics and Programme Implementation.
The Committee was mandated with reviewing current processes of estimation of the State Domestic Product and District Domestic Product and lay down revised guidelines along with recommendations for improving SDP and DDP in the country.
The final report of the Committee released in 2020 emphasises the importance of robust and harmonised regional statistical indicators which provide a firm foundation for policies aimed at reducing economic and social disparities among different regions of the country.
Pursuant to recommendations of the Report of the Committee for Sub-National Accounts the Nagaland State had initiated the estimation of DDP and the first estimate of the DDP has been brought out for the year 2019-20 with 2011-12 as the base year.
The seminal report of the State on the District Domestic Product assumes significance as it captures the value of goods and services produced within the geographic boundary of the district and also sheds light on the per capita income of the district.
The Report also provides a ranking of the districts of the State in terms of DDP estimates as well as Per Capita Income which would help in planning for balanced regional development and assess the key growth drivers for each district.
Some key highlights from the Report on DDP are as below:
• Dimapur district has the largest economy with a Gross District Domestic Product (GDDP) value of 5,43,611.00 lakh during 2019-20 contributing 29.42% to the Gross State Domestic Product, while Longleng is the smallest with a value of 62,112.00 lakh contributing 3.36% to the GSDP.
• Dimapur district has the highest per capita income with a value of 1,54,002.00 while Mon has the lowest amongst the districts with a value of 77,738.00.
• The tertiary sector is the most dominant sector in most of the districts as is the case in the State also and within the tertiary sector public administration contributes the largest share except Dimapur.
• Agriculture, forestry and fishing and construction activities dominate the primary and secondary sectors in all the districts.
• Among the Eastern Nagaland districts Mon and Tuensang have the largest contribution shares to GSDP at 8.66% and 7.52% respectively whereas Kiphire and Longleng have the lowest contribution shares at 3.92% and 3.36%.
• The difference in GDDP value in absolute terms between the first ranked district Dimapur and last ranked district Longleng is Rs 481499.
• In terms of Per Capita Income, Dimapur is the district with the highest PCI with a value of Rs 194514 while Mon is the district with the lowest PCI with a value of Rs 77738.
Challenges and Way forward
With the successful completion of the ULB elections and the commencement of a new era of local governance in Nagaland, the release of the DDP estimates comes at an opportune moment.
The State, District administration and the Local bodies should make use of the DDP estimates in development planning and strengthening data collection systems.
Availability of credible and reliable data on the State also facilitates a ready assessment of development gaps and availing funding under relevant Central sector schemes as well as grants from the Finance Commission.
In this era of emerging digital technologies and India also being a global pioneer of Digital Public Infrastructure, the Nagaland State should also embrace digitalisation of local data and management information systems for seamless interface of State, District and local data.
With increasing focus by the Central Government on data systems at block and village levels through initiatives such as the Aspirational Blocks Programme by Niti Aayog and the Panchayat Development Index by the Ministry of Panchayati Raj there is a need for development of indicators in blocks and villages to reflect the living standards and growth inequalities at disaggregated levels in the State.
Nationally, the Centre is planning to update the base year for GDP calculations from 2011-12 to a more recent year. Further it is expected that the commencement of operations for the new census may also begin in some time.
These will definitely have implications on the State and district domestic product estimates giving data that is more reflective of current structural changes in the State and regional economy.
Adequate focus must also be given to capacity building of the personnel involved in preparation of development data on the latest methodologies and analytical tools in vogue.
Last and but not the least, it is important to identify the roadblocks and key growth drivers of each district and chart out unique development roadmaps in tandem with the SDG 2030 targets and the long term vision of Viksit Bharat at 2047.
Policy focus must be given for diversification of activities within the service sector, incentivise private enterprise, innovation, financial services, boosting manufacturing and industrial activity for generating jobs and livelihood opportunities.
Urban planning, infrastructure and development of new cities and townships as economic centres would enable the State to usher in a new paradigm of growth and development.
Nayantara Sasikumar
Indian Economic
Service Officer
(views are personal)