Page 27 - CII Artha Magazine

REGIONAL VARIATIONS together accounting for activities, industry, and services. cent) to the nation's industrial
Within the services sector, the
almost 37 per cent to the
output than its share in the
GSDP and Sectoral Growth (y-o-y%) IN SECTORAL nation's industrial production. Southern region accounts for a nation’s agriculture and
CONTRIBUTIONS AND These states have substantial 31 per cent share, services sectors which is 18
GROWTH PATTERNS demonstrated positive trends with Karnataka and Tamil Nadu per cent and 20 per cent,
GSDP Agriculture Industry Services in their GDP growth rates emerging as the primary respectively. In contrast, the
compared to the contributors. In the industrial rest of India contributes more
2022-23 5 yr avg 2022-23 5 yr avg 2022-23 5 yr avg 2022-23 5 yr avg India’s economic engine is pre-pandemic average. Notably, sector, the region contributes to the country's agricultural
fuelled primarily by services Arunachal Pradesh, Manipur, 28 per cent to the nation's output than it does to the
sector that account for more and Tripura have made industrial output, with Tamil industry and services sectors’
Andhra Pradesh 7.0 7.9 4.5 10.7 5.7 6.3 10.1 6.6 than half of the nation’s GDP. significant strides in the Nadu taking the lead. In output. Central region’s
Industry sector accounts for industrial sector. If these small agriculture and allied sector, it contribution stands at a
Arunachal Pradesh* 7.3 6.0 4.9 4.9 20.6 1.7 8.7 8.5 about 23 per cent share, states sustain their growth contributes 28.5 per cent to substantial 23 per cent, with
whereas agriculture and allied trajectory, they will be on the the national agricultural output, Uttar Pradesh being the
Assam 10.2 7.9 13.3 3.6 9.3 13.7 9.7 4.4 sector contributes only 14 per path to become promising with Andhra Pradesh playing a largest contributor (share of
cent to India’s GDP. Over the economies with the potential pivotal role. Conversely, the 12.3 per cent) to nation’s
last decade, the contribution to transform into Western region, encompassing agricultural output followed by
Bihar 10.6 7.4 6.6 4.0 6.9 6.4 13.0 8.8
of services sector to nation’s high-performing states, driven Gujarat and Maharashtra, has a Madhya Pradesh (8.8 per cent).
GDP has experienced a by their industrial sectors. The greater contribution (27 per
Chhattisgarh 8.0 6.3 5.9 5.6 7.8 7.0 9.2 5.5 substantial growth of 10 per service sector has
cent, while that of industry and experienced remarkable
Gujarat* 10.6 9.3 6.0 4.9 10.8 10.2 6.7 8.8 the agriculture sector have growth following the Regional Contribution to India’s Sectoral Output
witnessed a decline of 6 per pandemic, with nearly all states
Haryana 7.1 8.1 5.3 6.6 6.3 7.7 8.4 7.6 cent and 19 per cent, recording a substantial 35
respectively. expansion in this sector. 30
Kerala, Manipur, Bihar, West
Karnataka 7.9 9.0 5.5 6.0 5.1 7.5 9.2 9.4 Post the covid-19 pandemic, Bengal, and Tripura have 25
Maharashtra, Kerala and Assam achieved growth rates of over 20
Kerala* 11.9 5.9 4.9 -1.7 3.1 5.1 16.8 6.2 have seen substantial growth 10 per cent, surpassing the 15
in the agriculture and allied national average in the 10
Madhya Pradesh 7.1 8.2 5.7 7.8 4.8 7.9 10.0 7.5 sector. However, Madhya services sector. 5
Pradesh and Haryana, which
are primarily agrarian states, Considering the regional 0
Maharashtra* 9.1 5.4 11.4 4.5 3.8 2.9 10.6 6.9 North North East East Central West South
have witnessed a decline in distribution, the Southern
agricultural performance. region of India leads in Agriculture & Allied Industry Services
Manipur* 13.5 4.8 3.1 7.9 8.7 -3.4 15.2 5.2 Gujarat, Maharashtra, and Tamil sectoral contributions, Source: MoSPI
Nadu are industrial giants, including agriculture and allied
Punjab 6.4 5.8 3.7 3.3 6.8 5.1 6.7 6.7

Conclusion development. support to promote their foster investment promotion,
Rajasthan 8.2 5.4 5.2 5.2 6.3 3.3 10.7 6.7 economic growth and be provided with targeted infrastructure development,

Tamil Nadu 8.2 6.8 3.9 5.4 9.2 8.6 7.8 5.4 industrial prowess. This involves and promote sustainable
India holds a promising Firstly, there is a need to implementing industry-friendly agriculture in these regions to
prospect of emerging as a prioritize agriculture as its policies, enhancing harness their capabilities.
Telangana 7.8 9.0 8.8 9.8 3.1 9.1 10.8 8.5 US$9 trillion economy by contribution to India’s GDP infrastructure, and attracting
2030, but this realization remains low despite large investments to further Moreover, it is imperative for
Tripura 8.9 7.3 4.1 6.2 8.7 3.1 11.5 9.2 depends on the effective population dependent on it. strengthen their industrial all states to diversify their
utilization of its states' States like Madhya Pradesh, sectors. States excelling in the economies beyond their
Uttar Pradesh 8.3 6.5 4.1 4.0 15.4 8.9 5.7 7.0 potential. A significant Haryana and Punjab, which are service sector should focus on traditional sectors so as to
challenge lies in the primarily agrarian but have boosting the sector through enhance overall economic
persistence of regional witnessed a decline, require skill development initiatives, resilience. Inter-state
West Bengal 8.4 5.8 1.9 2.5 7.7 9.2 11.4 6.0
disparities driven by varying immediate attention. These conducive business collaboration and prioritizing
economic growth rates and regions should be provided environment, and further inclusive growth is important
India 7.2 6.7 4.0 4.5 4.4 5.4 9.5 7.6 diverse geographies across with financial support and investments in technology and to address regional disparities
states. To ensure that every encouraged to adopt innovation. Small states, notably across the states towards
state contributes optimally to sustainable agricultural Assam, Tripura, Manipur, and achieving a balanced and
Notes: 5 year average is calculated from 2015-20
*2021-22 estimates India’s growth story, it is practices to revitalize the Arunachal Pradesh, have sustained economic growth
Source: MoSPI
important to harness each sector. Industrial powerhouses demonstrated growing trajectory, steering India
state’s unique potential and like Gujarat, Maharashtra, Tamil potential in recent times. It is toward the US$9 trillion
contribute to overall Nadu, and Karnataka should imperative to prioritize economy milestone by 2030.

26 ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY 27
QUARTERLY JOURNAL OF ECONOMICS
QUARTERLY JOURNAL OF ECONOMICS
SEPTEMBER 2023 SEPTEMBER 2023