Context
The Ministry of Statistics and Programme Implementation (MoSPI) stated that, from January 2025 onwards, the existing ASUSE and PLFS datasets have developed the capability to generate district-level economic estimates (DDP) in collaboration with states, enabling more accurate and ground-level data for policy planning.
About District Domestic Product (DDP)
- DDP (District Domestic Product): Measures the total value of goods and services produced within a district (like GDP at the district level).
- Importance: Helps identify regional disparities and supports targeted planning by showing which districts are growing faster or lagging behind.
- Relation: DDP → adds up to GSDP (State GDP) → which adds up to National GDP.
- Currently, India only has GDP and GSDP data – DDP will add a third, more granular layer for local policy decisions.
About ASUSE and PLFS
| Survey | Covers / Purpose | Role in DDP Estimation |
| ASUSE – Annual Survey of Unincorporated Sector Enterprises | Captures data from households, micro, small and informal enterprises in manufacturing & services. | Measures district-level enterprise output and productivity. |
| PLFS – Periodic Labour Force Survey | Collects data on employment, unemployment, and labour participation (monthly & annual). | Measures labour force structure and income trends across districts. |
Together, these surveys combine enterprise and labour data, forming a base for accurate DDP estimates.
Why the Move to Estimate DDP?
- To shift from top-down (national/state) estimates to bottom-up (district- based) calculations.
- Supports data-driven local policymaking by states and districts.
- Helps in evaluating schemes like the Aspirational District Programme and local development planning.
- Enables identification of micro-level growth trends and employment patterns.
What is Changing?
- MoSPI and states to jointly compute DDP using ASUSE (enterprise data) and PLFS (labour data).
- Frequency increased: PLFS now monthly; ASUSE being released quarterly.
- Pilot projects underway before nationwide rollout.
- Upcoming surveys like ASSSE (Annual Survey of Service Sector Enterprises) and Household Income Survey to further enhance data coverage.
Expected Benefits
- Provides granular data for district-level economic planning.
- Improves targeted policy design and public investment allocation.
- Helps monitor regional inequality and sectoral growth at micro levels.
- Strengthens evidence-based governance and fiscal devolution.
Challenges and Way Forward
| Challenges | Way Forward |
| Data quality and inconsistency across states. | Adopt uniform data collection templates and standard estimation methods. |
| Limited statistical capacity at district level. | Strengthen District Statistical Offices and provide staff training. |
| Delay in surveys and coordination issues. | Use digital tools and promote real-time data collection. |
| Integration of multiple datasets (PLFS, ASUSE, GST, etc.) | Develop a centralized data platform for seamless integration. |
Conclusion
The integration of ASUSE and PLFS to estimate DDP marks a vital move toward bottom-up, evidence-based policymaking, empowering states and districts with reliable economic data to bridge regional disparities and improve local planning.
| Ensure IAS Mains Question Q. “Accurate estimation of District Domestic Product (DDP) using ASUSE and PLFS can transform local-level economic planning in India.” Discuss the significance and challenges of this initiative. (150 words) |
| Ensure IAS Prelims Question Q. With reference to the estimation of District Domestic Product (DDP) in India, consider the following statements: 1. The DDP measures the total economic output of a district, similar to how GDP measures national output. 2. The Annual Survey of Unincorporated Sector Enterprises (ASUSE) captures data mainly from large industries and corporate enterprises. 3. The Periodic Labour Force Survey (PLFS) provides information on employment and labour participation, which can complement enterprise data in estimating DDP. Which of the statements given above is/are correct? a) 1 and 2 only b) 2 and 3 only c) 1 and 3 only d) 1, 2 and 3 Answer: c) 1 and 3 only Explanation: Statement 1 is correct: DDP is a measure of the total economic output of a district, analogous to GDP at the national level. Statement 2 is incorrect: ASUSE covers unincorporated sector enterprises, mainly small, micro, and household-based businesses, not large corporations. Statement 3 is correct: PLFS data on employment and labour can be integrated with ASUSE’s enterprise data to estimate DDP. |
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