The Hindu Business Line : Industry poised to clock 8.36% growth in AP: Governor

THE GOVERNOR, Mr Rameshwar Thakur, addressing the budget session of the Andhra Pradesh Assembly in Hyderabad on Monday. At right is the Speaker, Mr K.R. Suresh Reddy. - P.V. Sivakumar

Advertisement

Hyderabad Feb. 12 The State economy has bounced back in the Tenth Plan period (2002-2007) and similar buoyancy is expected as it moves into the XI Plan period.

Addressing the Budget session in the Legislative Assembly today, the Governor, Mr Rameshwar Thakur, said that sectorally, as per advanced estimates, the industry is poised to achieve an annual growth rate of 8.36 per cent. The services sector recorded 8.11 per cent growth and agriculture 2.88 per cent growth during the Tenth Plan.

"We have every reason to be satisfied about the economic growth that the State has been able to achieve across the sectors, particularly during the last two years, which helped register a compounded annual growth rate of 6.79 per cent in its Gross State Domestic Product. This is considerably higher than the growth rates of 5.44 per cent for the Eight Plan (1992-97) and 5.68 per cent for the Ninth Plan (1997-2002)," the Governor said. The per capita income of Andhra Pradesh at Rs 26,211 for 2005-2006 was higher than that of the national average, he said.

The contribution of the services sector is likely to go up to 55 per cent by 2010 from 50 per cent now.

Referring to some of the important indicators of the State's economic buoyancy, Mr Thakur said that the Cash Deposit Ratio for the State was 82.50 per cent as against national average of 73 per cent.

More heartening is the cash deposit ratio for the rural branches, which is as high as 115.70 per cent, which he said was the highest in any State in the country as of September 30, 2006, an indication of good governance.

Given the priority for agriculture, the State will achieve 4 per cent growth rate in the sector thereby targeting 9 per cent annual growth rate in the overall economy during the XI Plan (2007-2012).Efforts have been initiated to improve contribution from industrial and manufacturing sectors.

While projects such as the Rs 9,000-crore expansion plan of Visakhapatnam Steel Plant, and HPCL are underway, new initiatives such as the Rs 1,200-crore car plant of MLR Motors in Medak, is likely to begin work in April 2007.

The cement industry, which is witness to buoyancy, is set to double capacity within three years to become the largest producer of cement in the country. This would be complemented by significant capacity addition in the power sector. Efforts are on to set up a 4,000-MW plant at Krishnapatnam.

More Stories on : Economy | Andhra Pradesh

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page