Modi's Gujarat contributes over 7% to India GDP: CARE
CARE Ratings has come out with its report on state update for Gujarat. According to the rating agency, the state has attained a balanced economic structure, with the secondary and tertiary sectors together accounting for 78.2% as of 2011-12.
CARE Ratings has come out with its report on state update for Gujarat. According to the rating agency, the state has attained a balanced economic structure, with the secondary and tertiary sectors together accounting for 78.2% as of 2011-12. Gujarat continues to direct efforts, such as increasing reliable irrigation coverage, towards making agriculture self-sustaining.
With a decadal growth rate of more than 10% (2001-2011), the state of Gujarat has come to establish itself as a strong growth engine for the country. Accounting for about 5% of the country’s population and 6% of land area, the state has metamorphosed into one of the fast growing state economies, overcoming its limitations in resource base and its climatic constraints. The state now contributes more than 7% to India’s GDP; in particular, it for 13% of manufactured and 11% of primary sector output of the country.
Also, at the micro-level, the state records a per capita income of Rs 89,668 (as of 2011-12), well above the national average level of Rs 61,564 for the same year, indicative that benefits of growth are reaching at the individual level.
This update broadly covers the current economic scenario in the state of Gujarat along with the government’s performance in terms of fiscal management; the state recently having announced its budget for 2013-14.
Population - 6.04 crore persons (as on March 1, 2011), with decadal growth of 19.2% (2001-2011), higher than national level decadal growth rate of 17.6%. Population density of 803 persons per square kilometre, below national average of 382 persons per square kilometre. Birth rate of 21.3%, death rate of 6.7%.
Urbanisation - Gujarat most urbanised state in country (43% of population stays in urban areas)
Literacy - 79.3% (as per Census 2011); with urban literacy at 73.0% and rural literacy at 87.8%
Gender ratio - 918 females per thousand males (Census 2011)
Life expectancy - for males recorded at 64.9 years and for females at 69.0 years
Registering an annualised growth rate of 9.1% (in constant terms, CAGR for the period 2008-11), Gujarat has achieved a growth rate well above the national level growth rate of 8.2% for the same period. In terms of current prices, GDP growth in the state has been robust, touching nearly 23.0% in FY11 and 15.3% in FY12 (against a high base of the previous year).
While, budget estimates for 2013-14 suggest lower growth rates of 14.0% in FY13 and 14.5% in FY14, it reflects the impact of slowdown in overall economic activity in India rather than a weakening of fundamentals of the Gujarat economy. In particular, Gujarat being one of the major industrial and trade hub as well as a fast-growing consumption centre, it is bound to be impacted by such macro-economic constraints.
Sectorally speaking, Gujarat has attained a balanced economic structure, with the secondary and tertiary sectors together accounting for 78.2% as of 2011-12. Both these sectors have been supported by a strong infrastructure network in the state.
It is noteworthy, that this drought-prone state has significantly improved its agri-production. Share of primary sector in GSDP has risen to 21.8% in 2011-12 (19.5% in 2004-05). The state continues to direct efforts, such as increasing reliable irrigation coverage, towards making agriculture self-sustaining.
Disclaimer: This report is prepared by the Economics Division of Credit Analysis & Research Limited [CARE]. CARE has taken utmost care to ensure accuracy and objectivity while developing this report based on information available in public domain. However, neither the accuracy nor completeness of information contained in this report is guaranteed. CARE is not responsible for any errors or omissions in analysis/inferences/views or for results obtained from the use of information contained in this report and especially states that CARE (including all divisions) has no financial liability whatsoever to the user of this report.
The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
To read the full report click on the attachment