Financial Daily from THE HINDU group of publications
Thursday, Jun 09, 2005

News
Features
Stocks
Port Info
Archives
Google

Group Sites

Industry & Economy - Economy


In terms of per capita GDP — Karnataka, Bengal fastest growing States

Sudhanshu Ranade

Chennai , June 8

RANKED by per capita GDP in 1993-94, the top five States were Punjab, Maharashtra, Haryana, Gujarat and Tamil Nadu, in that order.

By 2001-02, 10 years into the reforms, per capita GDP in Maharashtra was only Rs 300 per year less than per capita GDP in Punjab, as against almost Rs 700 earlier. And Gujarat had overtaken Haryana for slot number 3; no doubt only by a hundred rupees, but then it was Rs 1,300 per annum below Haryana in 1993-94.

This slide in the relative positions of Punjab and Haryana reflects the fact that reforms did more to spur the non-agricultural sectors of the economy rather than the agricultural sector.

Agriculture accounted for high proportions of the GDP in Punjab and Haryana in 1993-94; 46 per cent and 42 per cent respectively. However, agriculture in these two leading agricultural States grew only slowly over the period 1993-94 and 2001-02, by 16 per cent and 11 per cent respectively. Indeed, even slower than the national average of 17.5 per cent.

In other words, agriculture seems to have grown more rapidly than the `granary' States in other States that are thought to be relatively less important so far as agriculture is concerned. The growth recorded in the agricultural sector over the period was 33 per cent in Karnataka, 24 per cent in West Bengal, and 22 per cent in Andhra Pradesh .

The only reason why Punjab and Haryana did not slide much further, is because their industrial and services sectors grew much more rapidly than agriculture. In the case of Haryana, in fact, both these sectors grew at a rate above that of India as a whole.

In general, States that had large and dynamic industrial and service sectors grew more rapidly than those in which the agricultural sector had a large weightage in the initial year, no matter how relatively good the rate of growth of agriculture was.

The basic reason seems to be the high growth achieved by Karnataka and West Bengal in the services sector (both States recorded a 74 per cent growth over the period), and, comparatively speaking, in the agricultural sector.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page


Stories in this Section
Opening monsoon `pulse' fizzles out


Online investing in non-equity products on the rise
In terms of per capita GDP — Karnataka, Bengal fastest growing States
CII survey finds robust growth in key sectors except manufacturing
Centre's borrowing to fund Tenth Plan exceeds target
Capital goods industry not faring well
Coke scheme to clear garbage in Hyderabad
Australia hints at FTA with India
Health study in Punjab shows high pesticide residues in blood
Iraqi kids operated on at Parumala hospital
Robot for heart surgeries
ONGC commissions Mumbai-Uran trunk pipeline
Customs duty anomalies `affecting' Avi-Oil's growth
An Indian twist to Pfizer's blockbuster epilepsy drug
NLC to go ahead with Jayamkondam project on its own
AP CM's fiat to Genco
Cash transaction tax — Withdrawals from different bank branches not to be clubbed
Ambitious plan for 24-hour piped water in twin cities
MMTC bid to import coal for NTPC plant hits `rail'block
TASMAC announces new programme
Fortis healthcare plans to go national
CUSAT expertise to aid traditional industry workers
ITPO to put Coimbatore on global exhibition map
Relief for oleoresin units as ban on light berries pepper import goes
Spices export down in April, seen sliding this fiscal
Tourism sector did well despite tsunami: Survey
Kerala Tourism bids to upgrade pilgrim centres


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line