Bihar Tops The List In Terms Of GDP Growth In FY18: Report
A new report released by Crisil (a global analytical company providing ratings, research) has shown that Bihar and Andhra Pradesh have led the pack among States in terms of Gross State Domestic Product (GSDP) growth in the financial year 2017-18. According to the report, Bihar has topped the list after clocking 11.3%.
From eight position Bihar jumps to the top
In the fiscal year 2017, the state ranked at eighth spot with 9.9 per cent GSDP growth. GSDP growth in fiscal 2017. The second on the list is Andhra Pradesh which has clocked 11.2% growth in the FY 2017-18. As per the report, 12 of the 17 general category states have grown faster in comparison with the national growth rate, which is of 6.7% for the same FY, as reported by The Hindu.
“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, as reported by Money Control. Meanwhile, the report has ranked Jharkhand, Kerala, and Punjab at the bottom.
It has also revealed that between the FY years 2012-13 and 2016-17, Gujarat, Madhya Pradesh and Karnataka were the fastest growing states, on an average. However, in the new report, only Gujarat has remained in the top three list, while Madhya Pradesh and Karnataka have seen a deep in their growth rate ranking to 9 and 4, respectively. However, all three have managed to maintain their GSDP growth higher than the all-India GDP growth in 2018.
Jharkhand remains at the bottom
The states – West Bengal, Jharkhand and Bihar – that were in the bottom list for the past five years, have now seen a growth. While Bihar has topped the list, West Bengal rose to the sixth rank, with a growth of 9.1%. Only Jharkhand has not changed its ranking, continuing to remain at the bottom.
“In Gujarat and Karnataka, manufacturing was the main driver, while in Madhya Pradesh, agriculture and allied activities drove growth on average,” said the report. It added that among the laggards, West Bengal was dragged down by mining, and Jharkhand by electricity and other utilities.
No growth in the job sector
However, it is also o be noted that this growth is not equal and balanced, as the gap between the per capita incomes in low-income and high-income states is widening over the last five years. The report has also claimed that the GSDP growth has not resulted in job creation, as GSDP expansion has come in from sectors which are less job-intensive.
At the same time, the report says that the state debt is increasing.“While the FRBM Act (Fiscal Responsibility and Budget Management Act, 2003) had helped states recover their fiscal health considerably, recent trends show they are slipping. Debt ratios have risen in many States—with the assimilation of Ujwal Discom Assurance Yojana (UDAY), farm loan waivers, and Pay Commission hikes,” said Dipti Deshpande, senior economist at Crisil, as reported by Financial Express.