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Proposal for city-level GDP under study
Why it is in news?
- With urban India responsible for an increasingly large share of the national GDP, the Centre now hopes to bring out city-level GDP data.
- This could help both cities and investors make wise decisions, and also help municipal bodies raise funds for their own infrastructure needs
More on news
- The Economist Intelligence Unit (EIU) — the research and analysis division of the same group which brings out the UK’s The Economist news magazine recently did a feasibility study of various models to calculate city-level GDPs for the MoHUA.
- Its report was released earlier this week.
- If the project is approved, the process to calculate GDP for a pilot city is likely to begin by the end of the year.
- The urban sector is likely to account for three-fourths or 75% of India’s GDP by 2020, according to government data as well as several external reports. T
- his is a sharp spike from 1951, when the urban sector only accounted for 29% of the national GDP.
- By 1981, it was 45%, and by 2011, it had crossed the 60% mark.
- A recent study by Brookings Institution found that several Indian cities rank in the 300 global cities with the fastest GDP growth rate.
- Its Global Metro Monitor report, released in June 2018, estimated that Hyderabad’s GDP was growing at 8.7%, followed by Surat at 7.9%, comparable with the fastest growing Chinese cities that dominate the list.
Source
The Hindu