CPR Insights | (Crudely) Estimating Domestic Product for ‘City-Regions’

Figure 1: Estimated Share of Gross Domestic Product for ‘City-Regions’ (2022-23)

Source: Various reports of State Departments of Economics and Statistics. Anmol Patlan assisted in compiling the data

Figure 1 shows the relationship of the share of ‘city-region’ in the gross domestic product (GDP) with its population share. Kolkata is an outlier, as the only ‘city-region’ whose share in GDP is less than its share in population. For the ten ‘city-regions’, the aggregate share of ‘city-region’ domestic product in GDP was 21.1%, which is more than double that of its population share in 2011, which was 9.6%, reflecting the higher per capita domestic product, compared to the national average, associated with these large ‘city-regions’. Note that this is not all urban, as the ‘city-region’ as defined here, includes both urban and rural populations. 

But, unlike China, India does not estimate economic activity at the city level, except Delhi, which is a state-level entity, so, its gross state domestic product (GSDP) is available along with all other states. So, how was this ‘city-region’ domestic product generated? In this situation, the following simple but crude exercise was conducted.

There has been some effort to generate district domestic product estimates (DDP) but these vary widely by state, with some states providing recent updated estimates and others that have not provided estimates for over a decade. The top ten cities by population in 2011 were considered. Each of these ‘city-regions’ were associated with a district or set of districts (for Bengaluru, Chennai, Hyderabad and Kolkata). The Appendix gives the details of the districts that each ‘city-region’ were associated with. For each of these districts (except Jaipur, for which the estimate was directly available), the 2022-23 DDP estimate was calculated in the following manner. For each district, the share of DDP to the state’s GSDP was calculated for the latest two years for which data was available (except the years 2020-21 and 2021-22, which were excluded due to the pandemic). The average share of these two years was then multiplied into the state’s GSDP for 2022-23 to generate the estimated DDP for 2022-23. For ‘city regions’ associated with only one district, the DDP is considered the domestic product for the ‘city-region’ and for ‘city regions’ associated with a set of districts, the sum of the DDP for those districts were taken as the estimate. The specific calculations are given in the Appendix.

Appendix:

Indian Small Towns’ Romance with Pizzas: A Slice of New Aspirations in Dhampur

In March 2024, my colleagues Shubham Kashyap, Aena Rawal and I were on the road to Dhampur again to resume the field work for our study titled Forty Years’ Development Saga of Dhampur: Growth Dynamics and Regional Transformation of an Indian Small Town. While I was busy introspecting about how we will go about our work in Dhampur, I was also noticing everything passing by, the towns and villages, factories, and green fields lush with sugar cane, wheat and mustard crops. Also, the towns and villages we passed through had the string of familiar roadside shops and services that straddle between rural and urban life styles, ranging from fancy clothes and shoe stores, fruit and vegetable stalls, chemists, mobile phone repairs, barbers and beauty salons, construction materials, furniture, household goods, agricultural implements, sweet shops, tea shops, biryani joints, and restaurants also displaying pictures of fast food (burgers, momos and noodles) along with the usual Indian dishes on their boards. 

As we approached Gajraula town, I started noticing a few pizza places. Having looked closely, I found that none of these were popular pizza brands I was familiar with, such as: Domino’s, Pizza Express, Pizza Hut, La Pino’s, US Pizza, Chicago Pizza, Papa John’s, Oven Story and Slice of Italy. There were names like Pizza Slice, Pizza Nagari, ONO Pizza, Roms Pizza, etc. Going around Dhampur town, we came across several more such as: Biggies Pizza, Pizza Uncle, Pizza Point, Pizza Universe, Friends’ Zone Pizza, Hunger Pizza, Delicious Pizza and Shambhu Pizza.

We preferred to have lunch in a restaurant while being out and about the town as we always had dinner at the Eurasia Palace hotel where we were staying. The numerous street food carts selling popular foods like Parathas, Biryani, Chhole Bhature, Momos and Burgers didn’t appeal to us. There were only two multi-cuisine restaurants in the town that could meet our expectations of hygiene, ambience and choice of dishes, namely the Indian Corner and Gulmohar. Hence, we often ended up in one of the pizza places for a change. To our surprise, we found that the pizza toppings were very similar to what we would find in pizzerias in Delhi and other large cities, and not drastically customised to better suit  an Indian small-town palate. Some of the larger pizza places also had home delivery services, such as Biggies Pizza, Pizza Uncle and The PizzaBite. The only difference was that none of these restaurants offered thin crust pizzas. However, the price of pizzas was about half the price of what one would pay in well-known pizza joints like Dominos in larger cities, which is understandable keeping in mind the local affordability levels.

Remembering my student days, when going out to eat always meant going to a Chinese restaurant, I wondered what would explain the penetration of pizzas into the Indian small towns and the countryside, as the only international cuisine that is so visible?

After trying out several pizza places and talking to some of the restaurant owners, I came to understand that there are a number of explanatory factors for the popularity of pizza places in a small town like Dhampur.

First, Pizza joints have not replaced the conventional food outlets. As is the case in many smaller towns and cities in India, sweet shops also offering a range of savory delicacies continue to be the go-to places for take-aways in Dhampur as well. Khairati’s sweet shop located in Bhagat Singh Chauk is about two hundred years old and is the most popular of such sweet shops. Bhagat Singh Chauk in the center of the town also has many snack vendors, where people stop to take a bite while shopping in the market, or just go there for a quick snack. The most well-known of these is about a hundred years old Jain Kachari Wala who specialises in selling singhada (water chestnut), lobia beans and moong dal kachari (A slow cooked creamy paste served with a chunk of butter, green chutney and sweet chutney). Virendra Saini, the third-generation owner of this business, opens this shop at 6.00 am and closes by mid-day. Other food carts continue to serve this dish along with other snacks like chaat, samosa, kachori and aloo tikki through the day. In addition, there are several well-known samosa, pakora and kachori shops in the main bazaar street and at key points such as: near the railway station, bus terminal and Nagina Chauraha. But none of these joints offer dine-in facility for a relaxed eating out experience.

Second, With economic development and more disposable incomes in hand, particularly in India’s urban areas, eating out has become the most prominent lifestyle changes. Newer and more eating out options are coming to meet the preferences of the clientele of different income groups.

Third, There is also an undeniable role of media and advertising in promoting various kinds of cuisines that prominent social influencers in large cities are preferring to eat. Easy access to the internet also makes it possible for young people in small towns to learn more about these new kinds of cuisines.

Fourth, Pizza joints meet the aspirations of the younger generation, who think it is fashionable to eat in a fancy restaurant where they can chill out with friends and take pictures. These restaurants also provide a safe space to young men and women who can spend time together without social scrutiny.

Fifth, Easy acceptance of its structure and taste, as in a way it is similar to the most widespread North Indian staple roti-sabzi, albeit with a bit of tomato sauce and cheese. And, you can make it spicier to match your taste by adding jalapeno toppings and chili flakes. Pragmatism of eating it with hands with no fear of being frowned upon for not using unfamiliar cutlery like fork and knife is an additional appeal.

Sixth, As mostly vegetarian pizzas are being offered in Dhampur, there is no risk of not knowing what kind of meat one is eating, which makes these places equally popular with people from both of Hindu and Muslim communities.

Finally, we can say that the popularity of pizzas is one of the indicators of the widespread lifestyle transformation taking place in an aspirational small town like Dhampur.

Pictures by Pushpa Pathak

From the Archives | 2nd Edition

 

For over half a century, the Centre for Policy Research has been at the heart of some of the most significant policy discourses in India.

From the Archives is an attempt to tell CPR’s history from its archival records and trace its journey. The series will revisit CPR’s research initiatives, publications, and interactions with national and global policymakers that have helped it mount the challenge of inclusive, actionable change.

CPR During 1984 – 88

The years of 1984-88 were marked by crucial turning points in India’s polity and the world at large. Northern India was engulfed in a series of anti-Sikh riots following Indira Gandhi’s assassination, and an agrarian crisis riddled the countryside. As for geopolitics, a protracted Cold War necessitated an ever-evolving foreign policy for a Non-Aligned country like India. Diplomatic ties with NAM nations—famously recovering from the ravages of colonialism—were crucial in this period.

During this time, CPR continued to develop research on the projects it had initiated in preceding years and introduced new areas of study in keeping with the times. The Centre pursued uninterrupted research on the themes of industrialisation, national integration and regional

cooperation in South Asia, and contributed to topical discourses of national importance with renewed energy. This research was communicated to the public through seminars, workshops, books, academic papers, surveys and newspaper articles.

Geopolitics

 

The Centre approached relationships between South Asian countries vis-à-vis the Superpowers in a manner that would protect the sovereignty and collective interests of India and its regional neighbours. To this end, CPR collaborated with the International Development Research Centre, Canada on a five-year-long research project. CPR also organised a SAARC-ASEAN cooperation workshop in New Delhi in 1987.

Banking and Economy

The State Bank of India instituted a Chair in International Banking and Economy at the Centre in 1984. The Chair grappled with crucial economic questions regarding the proposed establishment of Mumbai as an International Financial Centre, overseas operations of Indian banks and India’s foreign commercial borrowings.

The studies aimed to identify avenues for enhancing economic cooperation and trade potential within South Asia and between India and SouthWest Asia or the Persian Gulf.

 

Society and Politics

 

The Centre also conducted studies on sociological issues in India. The research on violence, with emphasis on communal violence and riots, examined the socio-economic and institutional factors behind violence and suggested policy changes to mitigate and avoid violent upheavals in India. Studies on reservation policies in the country were introduced during this time. The  research looked at the impact of reservations on the lives of Dalits and Adivasis (SCs/STs) and OBC communities, as well as the politics of anti-reservation movements in the country.

Food Security and Health

Two allied research areas, food security and health and nutrition policy, were also advanced. These studies remain relevant today. Research on food security looked at the endemic problems of rural poverty, unemployment, and sluggish growth in the agricultural sector, largely addressing the question of availability. Research on health policy dealt with qualitative and quantitative aspects of implementation to address the question of access.

Other Engagements

Senior Fellow Mr. B.G. Verghese led the Ganga-Brahmaputra-Barak Basin Project at the Centre, researching transboundary river water management and conflict resolution in the basin. CPR also continued its engagement with the themes of federalism and problems of governance in India.

Founder-Director Dr. V. A. Pai Panandikar led a survey on public administration supported by the Indian Council of Social Science Research (ICSSR) covering the period from 1979 to 1988.

This is the second edition in this series. Stay tuned for more!