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India has 29 States, each of which is further sub-divided into smaller administrative Districts of varying size and population. I need to download micro (firm-level) data from each state, but I do not need to choose all the districts.

How do I choose the Districts?

The conditions are the following:

  1. Since I want data that is representative of India, I was thinking that if I obtain 30-40 per cent of all data from India with a suitable sampling method, this should be more than sufficient.
  2. I need data for all the firms in each district.
  3. I need data from all states.
  4. The number of firms in the dataset from each State should be proportionate to the proportion of firms from that State in the whole of India. Since I want 30-40% of the whole population of firms in India, would it be appropriate to simply select 30-40% of those in each State?

My proposed solution - Since I need data from all States,I can treat each State as a population. I then treat each District within a State as a cluster, and select Districts at random (without replacement), with the probability of selection being proportionate to the proportion of all firms in that State that come from that District. I keep selecting entire Districts until I have say, 35% of all the firms in that State.

Would this work? Is their a better alternative given the conditions that have to be met?

EDIT: added "(without replacement)"

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