Gujarat's growth model better than other states...
_______________________________________
Gujarat has a far better chance, according to
analysis by research firm CLSA, of sustaining its high growth trajectory in the
next few years as compared with competing states such as Maharashtra and Tamil
Nadu.
"Unlike most large economies, India's economy has evolved
differently. It has transited from an agrarian economy to a services
powerhouse, without going through a phase where manufacturing dominates. But
Gujarat has bucked this national trend," the report said.
In
Gujarat, it said, industry accounts for 40 per cent of the Gross State Domestic
Product (GSDP), while the national average is just 27 per cent.
This means
far more sustainable growth for Gujarat. It also says the state's low reliance
on central funds would help it deliver strong growth.
Other industrialising states such as Maharashtra
and Tamil Nadu have seen a fall in the share of industry in overall GSDP.
"The state's industry GDP contribution to the national GDP has
consistently increased from 8-8.5 in 2000-01 to 11-1.5 per cent in FY11,"
the report said.
On the oft-repeated criticism that despite high
growth, Gujarat's Human Development Index (HDI) and Infant Mortality Rate (IMR)
show little signs of improvement as compared to Maharashtra or Tamil Nadu, the
report said with improved governance, Gujarat's HDI and IMR would soon converge
with the other two states.
In agriculture, the report said farming contributes
13 per cent to the state's GDP, significantly higher than Maharashtra and Tamil
Nadu.
"The
state's contribution to the national production of wheat and cotton has
significantly improved in the last few years and the contribution of its agri
GDP to the national agri GDP has doubled in the last 10 years," the report
said.
Regarding the reliance on central
funds, CLSA said the ratio of the state's own tax revenue to total tax
revenue is one of the highest among all states, at 84 per cent.
"Less
than 30 per cent of its overall revenue receipts come from central taxes and
grants from the central account," the report said.
These,
experts said, make Gujarat's growth far more robust, even if there is a slowing
in central allocation.
It
spends a consistent 55-60 per cent of overall expenditure on development, while
not compromising on spending in other sectors.
In
other states, the share of total expenditure on development activities
fluctuates widely.
Gujarat is India's top state in terms of economic
freedom, according to 'Economic Freedom Rankings of the States of India
2012'.
The economic freedom Index is based on the three parameters - size of
the government, legal structure and security of property rights, regulation of
business and labour.
The report highlights the significant differences in
economic governance that exist in India.
It has focused attention on
state-level reforms to improve inclusive economic growth. India ranks only 111
among 144 countries in the EFW list, having slipped from 76th position in 2005.
Clearly, its government has attached a low priority to improving economic
freedom, the report points out.
The levels of economic freedom from state to
state within India varies, many states have shown significant increases and
significant declines in their economic freedom rankings. Greater economic
freedom is positively associated with growth at the state level, states the
report.
The report states that
Gujarat has left behind its sordid past of communal violence and destruction,
while other states are unable to improve security of life and property in the
manner required.
This puts a serious
question mark on the sustainability of high economic growth in such states,
says the 'Economic Freedom Rankings of the States' report.
Gujarat has shown a
remarkable increase from 0.46 to 0.64, and has moved up from 5th position in
2005 to become India's top state in economic freedom today.The good news is
that economic freedom in Indian states has improved even though it has slipped
at the national level.
State capitals have been
doing more to improve economic freedom than New Delhi.
Click NEXT to read more...
Tamil Nadu has shown steady
improvement in their index values and relative ranking - each has benefited
from economic growth without commensurate increase in the size of their
government.
Tamil Nadu has been a
consistent performer – it was at the top in 2005 as well as 2009 but has
declined to second 14 rank in 2011.
The report has been prepared by policy expert
Bibek Debroy of the Centre for Policy Research, Laveesh Bhandari, Indicus
Alaytics, Swaminathan S Anklesaria Aiyar, the Cato Institute and Ashok Gulati,
Commission for Agricultural Costs and Prices, Government of India.
Madhya Pradesh is one of
the best governed states and this is reflected in its index value, ahead of all
others.
Better police investigations as well as a lower
share of economic offenses to the total incidences of crime resulted in
significant improvement in the state.
Haryana has been the most rapidly growing state
in India. The state is attracting significant investments in the services
sector and manufacturing.
Himachal Pradesh scored on
better performance on a range of variables - yearly market wages to minimum
notified wages for unskilled workers, strikes and lock outs, and total cases
registered in the prevention of corruption act improved.
Click NEXT to read more...
Andhra Pradesh ranks fifth
in legal structure and security. Andhra Pradesh has slipped from 3rd to
6th position in rankings.
Click NEXT to read more...
ammu & Kashmir (Rank 7)
Score: 0.46
Jammu & Kashmir is now
among the best performers with relatively high economic growth. The index
values of 2005 and 2009 show that the state was amongst the poorest performers.
Rajasthan (Rank 8)
Score: 0.43
Rajasthan's ratings show an
improvement since 2005. The value of property recovered out of property stolen
and decline in the proportion of violent crime are some of the factors leading
to its improvement.
Karnataka (Rank 9)
Score: 0.42
Karnataka has seen a moderate improvement in
ratings.
Kerala (Rank 10)
Score: 0.42
Kerala has seen significant
decline in economic offence cases.
Chhattisgarh
(Rank 11)
Score: 0.41
Chhattisgarh scores high on legal structure and
security of property rights and regulation of labour and business.
Punjab
(Rank 12)
Score: 0.39
Punjab's rank has slipped badly from 6th
position in 2005 to 12th position in 2011. This does not reflect a major
deterioration in its freedom rating, which has dipped just marginally from 0.41
to 0.39.
But it has failed to keep up with other states, many of whom have
improved their freedom ratings dramatically, states the report.
However, Punjab's
cities have created a relatively good business climate. Ludhiana, the biggest
city in the state, is ranked by IFC/World Bank study as one cities with the
best business climate among major Indian cities.
Maharashtra
(Rank 13)
Score:
0.39
Maharashtra is another state that is among the
better performers. The size of the government has not increased as much as
economic growth in recent years.
Uttaranchal
(Rank 14)
Score: 0.38
Uttaranchal has seen a moderate improvement (0
to 0.08 points). But the states that have performed better have seen
improvements on a whole range of indicators.
This suggests that improvements
in economic freedom can be most dramatic when they are comprehensive and not
driven by excellent performance in just one or two areas.
Assam
(Rank 15)
Score: 0.36
Assam's index values and rankings show that
there has been significant improvement but here as well, the data shows many
year-on-year variations – largely due to an economy that is highly dependent
upon agriculture.
Assam
(Rank 15)
Score: 0.36
Assam's index values and rankings show that
there has been significant improvement but here as well, the data shows many
year-on-year variations – largely due to an economy that is highly dependent
upon agriculture.
Orissa
(Rank 17)
Score:
0.34
Overall, Orissa has had a significant fall in
their economic freedom ratings.
West
Bengal (Rank 18)
Score:
0.32
As many as 8 states have seen a fall in their
economic freedom rankings since 2005. West Bengal is among the worst performers
in 2011.
Jharkhand
(Rank 19)
Score: 0.31
Jharkhand
is among the worst performers, with its score falling from 0.40 to 0.31.
The declining index values and relative ranking
of Jharkhand in this area only confirm the much stated worsening condition in
recent years.
Its human development indicators are among the poorest in the
country.
Bihar
(Rank 20)
Score:
0.29
Bihar
have shown steady improvement in their index values and relative ranking- each
has benefited from economic growth without commensurate increase in the size of
their government.
Bihar has improved significantly from 0.25 to 0.29, but
remains at the last position.
How 20 Indian states fare against the world
How
big is Uttar Pradesh, the most populous state?
One
way of answering the question is to take its total area: 95,000 square miles
(246,000 sq km).
Another
way is to think of it as a country. If Uttar Pradesh were to declare
independence, it would be the world's fifth most populous country.
Yet
its economy would only be the size of Qatar, a tiny oil-rich state of fewer
than two million people.
That
makes it poor on a per person basis. Despite India's two decades of rapid
growth, Uttar Pradesh's GDP per head is close to that of Kenya.
The
following data, based on 2009 figures, presents country equivalents for India's
states and territories in terms of GDP, GDP per person (in PPP terms) and
population, according to The Economist.
Maharashtra
GDP
of Maharashtra: $175.3 billion
GDP
of Singapore (nearest equivalent): $183.3
billion
GDP
per person in Maharashtra: $4,743
GDP
per person in Sri Lanka (nearest equivalent):
$4,760
Population
of Maharashtra: 110.5 million
Population of Mexico
(nearest equivalent): 111.2 million
Uttar
Pradesh
GDP
of Uttar Pradesh: $103.5 billion
GDP
of Qatar (nearest equivalent): $98.3
billion
GDP
per person in Uttar Pradesh: $1,586
GDP
per person in Kenya (nearest equivalent): $1,620
Population
of Uttar Pradesh: 195.8 million
Population of Brazil
(nearest equivalent): 191.5 million
Andhra Pradesh
GDP of Andhra Pradesh: $85.7 billion
GDP of Slovakia (nearest
equivalent): $87.8 billion
GDP per person in Andhra
Pradesh: $3,047
GDP per person in
Nicaragua (nearest equivalent):
$2,950
Population of Andhra
Pradesh: 83.6 million
Population of Egypt
(nearest equivalent): 83 million
Gujarat
GDP
of Gujarat: $80.1 billion
GDP
of Angola (nearest equivalent): $80.6
billion
GDP
per person in Gujarat: $4,132
GDP
per person in Congo-Brazzaville (nearest equivalent): $4,150
Population
of Gujarat: 57.1 million
Population
of Italy (nearest equivalent): 59.6
million
Tamil
Nadu
GDP
of Tamil Nadu: $80.1 billion
GDP
of Angola (nearest equivalent): $80.6
billion
GDP
per person in Tamil Nadu: $3,549
GDP
per person in Mongolia (nearest equivalent):
$3,550
Population
of Tamil Nadu: 66.4 million
Population of Thailand
(nearest equivalent): 66.36 million
West
Bengal
GDP
of West Bengal: $76.9 billion
GDP
of Angola (nearest equivalent): $77.6
billion
GDP
per person in West Bengal: $2,429
GDP
per person in Ghana (nearest equivalent): $2,400
Population
of West Bengal: 87.5 million
Population
of Vietnam (nearest equivalent): 86.1
million
Karnataka
GDP
of Karnataka: $62.9 billion
GDP
of Angola (nearest equivalent): $63.2
billion
GDP
per person in Karnataka: $3,199
GDP
per person in The Philippines (nearest equivalent): $3,270
Population
of Karnataka: 58.6 million
Population of Italy
(nearest equivalent): 59.9 million
Rajasthan
GDP
of Rajasthan: $46.3 billion
GDP
of Dominican Republic (nearest equivalent):
$46.6 billion
GDP
per person in Rajasthan: $2,093
GDP
per person in Sudan (nearest equivalent): $2,190
Population
of Rajasthan: 66.3 million
Population of Thailand
(nearest equivalent): 67.0 million
Haryana
GDP
of Haryana: $44.2 billion
GDP
Serbia (nearest equivalent): $44.7 billion
GDP
per person in Haryana: $5,326
GDP
per person in Armenia (nearest equivalent):
$5,300
Population
of Haryana: 24.8 million
Population
of Ghana (nearest equivalent): 23.8 million
Kerala
GDP
of Kerala: $41.2 billion
GDP
Tunisia (nearest equivalent): $40.9
billion
GDP
per person in Kerala: $3,350
GDP
per person in Papua New Guinea (nearest equivalent): $3,370
Population
of Kerala: 34 million
Population of Canada
(nearest equivalent): 33.4 million
No comments:
Post a Comment