From Table
1 it is clear that Andhra Pradesh is one of the worst performers of
all states in India in terms of aggregate economic growth over this
period. Not only is the annual rate of growth well below that of the
other southern states, but its rate of growth has been only marginally
superior to the much-maligned BIMARU states of Bihar and
Uttar Pradesh. In per capita terms the growth rate appears in a slightly
better light, largely because of the slower rate of population growth
over the period, but still is the worst among southern states.
Table 2 >>
Also, the
myth that the state of Kerala is a major laggard in terms of growth
also gets blown by the evidence. As Tables 1 and 2 show, Kerala is the
sixth most dynamic state in terms of aggregate state GDP growth, and
the fifth in terms of growth of per capita income. It is a comment on
the lack of knowledge of most analysts that the most common mainstream
discussion on Keralas economy is not on what have been the elements
and causes of such growth, but still on why the state has not grown
and has exhibited relative stagnation, even though that is not the actual
experience.
It is also
evident that West Bengal has exhibited much greater economic dynamism
than it has been given credit for. In fact, West Bengal shows up very
well in comparison to other states, with the fourth highest annual rate
of growth, after Gujarat, Karnataka and Tamil Nadu. Its growth performance
has been superior to that of states like Maharashtra, Punjab and Haryana
which are generally supposed to be high growth states.
And this
growth in West Bengal appears to have been evenly spread across the
different sectors. Thus, while certain service sectors such as communications
and trade have experienced double-digit annual rates of growth, even
the material producing sectors have performed very respectably, with
agriculture growing at 6 per cent per annum and manufacturing at 7 per
cent over this period.
However,
it is also true that some standard perceptions appear to be confirmed,
in terms of the low growth of states like Bihar, Orissa and Uttar Pradesh,
and the extremely poor economic growth in Assam. The most rapidly growing
states in economic terms over the period are Gujarat, Karnataka and
Tamil Nadu. However, Maharashtra, Haryana and Punjab, typically thought
of as high-growth states, do not appear to be so in relation to the
performance of other states.
Tables
3a-3d show the behaviour of constant price GDP (in index number terms)
of aggregate GDP over the period 1993-94 to 1998-99. While these broadly
confirm the picture provided by Table 1, they do bring out some other
interesting features. Thus, in Andhra Pradesh economic growth appear
to be not just on the low side but also more volatile than elsewhere.
Rajasthan, which is not covered in Chart 1, shows a surprisingly high
rate of economic expansion. The common impression that the southern
region economically outperforms the other regions is not borne out by
the evidence, which show some high growth and some low growth states
in all regions.
Table 3a >>
Table 3b >>
Table 3c >>
Table 3d
>>
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