Haryana achieves 19.5 % growth rate in GSDP

by Haryananewswire

CHANDIGARH, NOV 29

Haryana has achieved 19.5 per cent growth rate in Gross State Domestic Product (GSDP) to emerge as one of the top two performers among the major states in terms of economic growth during the 11th Five Year Plan.

None of the other major states including Maharashtra, Andhra Pradesh, Gujarat and Uttar Pradesh could achieve GSDP growth rate over 19 per cent.

According to a recent Planning Commission report on state finances, the GSDP growth rate of Bihar and Haryana was 21.9 per cent and 19.5 per cent respectively during the 11th Plan spread over 2007 to 2012.

The GSDP growth rate measures how fast the economy is growing. On smaller base that is less developed state’s economy, the GSDP growth reflects faster growth as smaller growth is reflected in higher rate of growth, which explains the highest growth of Bihar as it had remained comparatively backward over last decades. It is worth mentioning that except Haryana, none of the previous fast growing big states like Maharashtra, Gujarat, Karnataka and  Tamil Nadu could find a place in the top five states. The GSDP is taken as an indicator of a state’s standard of living and its economic health. Personal consumption, business investment, Government spending and exports contribute to rise in GSDP. If it’s growing, so will business, jobs and personal income.

In light of these indicators, Haryana’s growth story is being considered as perhaps the most remarkable. In the ten-year period from 1994-95, it grew annually by over 6.5 per cent. Therefore, there was no low-base effect for Haryana to bank on for its 10.1 per cent annual average growth in seven years from 2004-05. That way, Haryana has clearly emerged as the star performer among all the fast-growing states in India in the last few years.

During the 11th Plan which ended on March 31, 2012, Rajasthan is 18 per cent, Kerala at 16.9 per cent, Madhya Pradesh 16.8 per cent, Andhra Pradesh at 16.7 per cent and West Bengal at 16.4 per cent.

Gujarat is way behind and grew at 16 per cent followed by Maharashtra and Uttar Pradesh at 15.3 per cent each. Punjab, Chhattisgarh, Karnataka, Assam, Jammu & Kashmir, Manipur and Tripura remained below 15 per cent. The worst performers include Jharkhand which recorded GSDP growth rate of 9.2 per cent followed by the Puducherry, Nagaland and Manipur (all below 11 per cent).