This paper presents estimates of capital services for manufacturing industry for the years 20, 11–12, 2012–13 and 2013–14. Estimates cover nine asset types (dwellings, non-residential buildings, other structures, land improvement, transport equipment, ICT equipment, other machinery and equipment, cultivated assets and intellectual property products (IPP) including software, mineral exploration, R&D etc.) The estimates of capital services have been compiled using an endogenous rate of return. Capital services consist of Consumption of fixed capital and Return on capital. Consumption of fixed capital represent the wear and tear of fixed capital and return to capital represents the amount that creates the profit from investment. Capital services should, therefore, be equal to gross operating surplus. Presently, estimation of factor incomes for the unorganized sector are estimated using ratios derived from NSS enterprise surveys, which are revised only when the next survey results become available. In this paper, it has been proposed that estimates of volume of capital services compiled can be used as proxy to gross operating surplus at constant prices.
Capital services, capital stocks, rate of return
