STATE GROSS DOMESTIC PRODUCT AND

ITS AGGREGATES – (2011-12) and (2012-13)

ABSTRACT:
This paper explores the structure and growth of State Gross Domestic Product (SGDP) and its
aggregates during the financial years 2011-12 and 2012-13. The purpose is to analyze how
different economic sectors contributed to the SGDP and identify any notable patterns or
disparities. Data from the Indian Statistical Organization was used and analyzed using descriptive
statistics, regression analysis, and ANOVA. Key findings reveal substantial growth in the tertiary
sector while regional disparities persist. The research concludes that understanding SGDP trends
can support better resource allocation and economic planning at the state level.

The purpose of the study is to understand how SGDP serves as a key economic indicator at the
state level in India. The paper follows a descriptive research design, relying on secondary data
from government publications and economic surveys. The paper concludes by highlighting the
importance of improving SGDP data accuracy and its role in guiding state-level economic
planning.

KEYWORDS:
SGDP, Economic Aggregates, State Economy, Regression Analysis, ANOVA

JEL Classification:
E01, R11, C10
INTRODUCTION:
Gross Domestic Product (GDP) is a vital indicator of economic performance. At the state level,
SGDP plays a critical role in assessing regional economic development and policy effectiveness.
The main thing of this paper is to examine SGDP data from the years 2011-12 and 2012-13 and
understand how different sectors (primary, secondary, tertiary) influenced state economies. The
core research question is: How have sectoral contributions shaped state-level GDP in these two
fiscal years? The hypothesis is that tertiary sector contributions have increased more significantly
than primary and secondary sectors during this period. Understanding these dynamics can guide
policy and planning at both state and national levels.

It reflects the total value of goods and services produced in a state over a defined time period. As
India is a federal nation with significant economic diversity across states, SGDP plays a critical
role in understanding regional disparities and planning localized development strategies.

The central question of this study is: How do sectoral aggregates of SGDP contribute to the
economic profile of individual Indian states? The research is important for policymakers,
economists, and students, as it offers insights into regional economic dynamics. The paper
hypothesizes that the service (tertiary) sector forms the largest share of SGDP in most developed
Indian states.

LITERATURE REVIEW:
Previous studies on SGDP highlight its usefulness in analyzing regional economic trends and
development disparities. According to reports by the Reserve Bank of India and NITI Aayog,
state-level data on GDP has become increasingly important in formulating fiscal policies.
Research by Mohanty (2013) showed that tertiary sectors in several Indian states were
outpacing traditional primary sectors

However, there are notable gaps in the literature. Many existing studies focus on national-level
GDP or only discuss one sector in detail. Very few offer a comparative understanding of how the
three sectors-agriculture, industry, and services contribute to SGDP across different states. This
paper fills the gap by applying statistical tools like regression and ANOVA.
METHODOLOGY:
This study uses a qualitative and quantitative research design based on secondary data. The data
was collected from various government sources, including the Ministry of Statistics and
Programme Implementation (MoSPI), Economic Survey reports, and state budget documents.
Statistical tools such as descriptive statistics, regression analysis, ANOVA (single factor), and
pivot tables were applied to analyze the GSDP data for different states and sectors. The analysis
also includes visualizations like charts and tables to illustrate key findings.

DATA SOURCES:

- Economic Survey of India (2022-23): Provides SGDP and sectoral contribution data at
the national and state levels.
- Ministry of Statistics and Programme Implementation (MoSPI): Offers detailed reports on
State Domestic Product and sector-wise analysis.
- Reserve Bank of India (RBI) Handbook of Statistics: Contains data on the economic
indicators of various states.

STATISTICAL TOOLS:

- Descriptive Statistics: Used to summarize the data, calculate measures like mean, median,
and standard deviation, and provide a general overview of SGDP contributions by sector.

- Regression Analysis: Applied to identify relationships between state-level economic

- ANOVA (Single Factor): Used to compare the sectoral SGDP contributions across
different states and determine if significant differences exist in sector dominance.

- Pivot Tables: Used to organize large datasets and analyze the SGDP components by state
and sector.

- Visualizations: Charts and graphs, such as pie charts and bar graphs, were created to
represent the data visually for easier interpretation.
RESULTS:

Descriptive Statistics,

Descriptive statistics were computed to summarize the SGDP data and provide an overview of
the sectoral contribution. The table below shows the mean, standard deviation.

-Regression Analysis:

Model Summary
- ANOVA Test (Single Factor)

Trend Observations

Based on the SGDP data over the past decade, several trends were obsserved:

- The tertiary sector has shown a steady increase in its share of SGDP, driven by growth in
IT, services, and financial sectors.
- The secondary sector remains stable, with slight fluctuations due to industrial changes,
urbanization, and global trade.
- The primary sector has seen a slight decline in its relative share, though it still holds
importance in states with substantial agricultural bases.

These observations suggest that India’s economic growth is increasingly driven by services, with
the manufacturing sector also playing a vital role, especially in industrialized states .

Discussion:
The results confirm the hypothesis that the tertiary sector holds the largest share of GSDP in more
developed states. This trend reflects the growing importance of services such as IT, finance,
education, and healthcare in urbanized economies. The secondary sector also plays a significant
role, especially in states with strong industrial bases. The disparities between industrialized and
agrarian states continue to widen. Limitations include the short time span and limited number
of states analyzed. Future studies should explore a longer timeframe and include more variables
like investment, infrastructure, and education.

These findings imply that state governments should tailor their policies to their unique economic
structures. For instance, states with a large agricultural base need investment in agro-processing
and rural infrastructure, while industrialized states might benefit more from innovation hubs and
skill development programs.

However, the study is limited by its reliance on secondary data, which may not fully capture
informal sector activities. Also, interstate differences in data collection methods may affect
comparability. Future research could include more states or explore temporal trends to understand
how SGDP evolves over time.
Conclusion:
This paper has shown that analyzing SGDP and its aggregates is essential for understanding the
economic profile of Indian states. As India continues to grow, strengthening the accuracy and
granularity of GSDP data will be crucial for targeted policy interventions. Future studies can
expand this work by including time-series data and exploring the impact of state-specific policies
on sectoral performance. By using statistical tools and official data, it highlights the sectoral
dynamics within SGDP and provides insights that can inform policy decisions and economic
strategies.

References:
1. Ahluwalia, M. S. (2002). State-level performance under economic reforms in India.
University of Chicago Press.
2.Government of India. (2023). Economic Survey 2022–23. Ministry of Finance.

3.Ministry of Statistics and Programme Implementation (MoSPI). (2023). State Domestic

4.Panagariya, A. (2015). The Indian Economy: A Macroeconomic Perspective. Oxford

5.Reserve Bank of India. (2023). Handbook of Statistics on Indian States.

6.Indian Statistical Organization (2013). State Domestic Product, 2011-12 & 2012-13.

7.Sharma, A. (2012). Sectoral Analysis of State GDPs in India. Economic & Political
Weekly.

8.Mohanty, B. (2013). Service Sector Growth in Indian States. Journal of Economic