Bihar top state in terms of GDP growth in FY18: Crisil report

Bihar has been ranked the top state in terms of GSDP (Gross State Domestic Product) growth in financial year 2017-18, according to a report by Crisil.

The state has topped the list by clocking 11.3 percent GSDP growth in fiscal 2018. It was ranked at eighth spot in fiscal 2017 with 9.9 percent GSDP growth.

The second spot has been secured by Andhra Pradesh, whose GSDP growth in FY18 jumped to 11.2 percent. Gujarat listed third with growth of 11.1 percent.

“In fiscal 2018, Bihar, Andhra Pradesh, and Gujarat were top rankers in terms of GSDP growth among the 17 non-special states considered in our analysis,” the report said. It added, “Jharkhand, Kerala and Punjab were at the bottom.”

Madhya Pradesh, which was the top state in GSDP growth in FY17 (14 percent), dropped in fiscal 2018 to 7.3 percent. “Madhya Pradesh, which was among the top three earlier, slid in fiscal 2018, due to slowdown in GSDP growth and slippage on fiscal deficit,” the Crisil report said.

The report further highlighted that 12 out of 17 states saw faster growth in fiscal 2018 compared with the previous 5 years. However, the growth did not translate into job creation, as GSDP expansion has come in from sectors which are less job-intensive.

The report, which came in the immediate backdrop of a report by the independent think-tank Centre for Monitoring Indian Economy which said as many as 1.1 crore jobs were lost in 2018 alone, stated, "Growth has not quite been conducive to job creation in a majority of the states.”

It noted that growth was not equitable, as the chasm on per capital income between low-income states and high income states widened over the last five years.

Most states were found to have veered off the targets under the fiscal responsibility and budget management act, the report said, adding because of the pressure on fiscal deficit for the Centre, the states have become the engines of government spending, accounting for a bulk 65 percent of the total money spent.