Capital formation is one of the important indicators for assessing the growth
potential of the economy. For policy making at the state level and balanced regional
development, estimates of gross capital formation are required. It assesses the
investments made in the state in public and private sector. The first attempt to
examine the data availability at state level and to suggest compilation of capital
formation at state level was made by the Regional Accounts Committee (RAC), set
up in May 1972 under the chairmanship of Prof. M. Mukherjee. The state level
estimates need to be compiled by the State DESs as suggested by the RAC. Presently
only few states are compiling estimates of GFCF fully/partly. The National
Statistical Commission (NSC) in its report have also recommended that all the States
should prepare estimates of capital formation. Most of the states prepare estimates
of GFCF for public sector only as most states are already analyzing the budget
documents and reports of public enterprises. GFCF of supra-regional sectors like
railways, communication, Banking and Insurance and Public administration and
Defence are prepared by the CSO and supplied to states annually. But the main
concern is private corporate sector and to some extent household sector. CSO has
taken initiatives to compile the estimates of GFCF at state level, particularly for the
private sector using various sources of data. Recently, CSO compiled State wise
estimates of GFCF for the year 2004-05 and the same were discussed with the states
during the regional workshops. In the present paper, estimates of GFCF at state
level have been prepared for the private sector by different industry of use for the
years 1999-2000 to 2005-06.