Ministry of Housing and Urban Affairs (MoHUA) is planning to bring out city-level GDP data, which could help municipal bodies in raising funds for their own infrastructure needs.
About:
Economist Intelligence Unit (EIU) has done a feasibility study of various models to calculate city-level GDPs for the Ministry of Housing and Urban Affairs (MoHUA), which was released recently.
Recommendations:
It recommends a top-down approach based on sectoral income data in the long term for the calculation of city-level GDP as it would ensure resource-effectiveness.
However, since the data requirements may be too challenging, it recommends a top-down approach based on household expenditure data in the short term.
Need of City-Level GDP:
City-level GDP data could help municipal bodies to raise funds to finance their Infrastructure needs.
The urban sector is likely to account for 75% of India’s GDP by 2020. By 2011, it had crossed the 60% mark.
According to Global Metro Monitor report, 2018, Hyderabad’s GDP was growing at 8.7%, followed by Surat at 7.9%, comparable with the fastest growing Chinese cities.
Way ahead:
By the end of September 2018, Government will decide on the feasibility of the project.
If approved, the process to calculate GDP for a pilot city can begin by the end of 2018.
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