Economy

Arunachal Pradesh, J&K are fastest growing economies

Tina Edwin New Delhi | Updated on January 09, 2018

BL31_Development_of_India

Top five States account for 46% of national GDP



Jammu and Kashmir and Arunachal Pradesh were the fastest expanding State economies in 2015-16, according to a new series of gross State domestic product data with 2011-12 as the base year published by the Central Statistics Office. The two States also reported the fastest rise in per capita income in the same year.

Arunachal Pradesh’s gross State domestic product (GSDP) expanded 16.5 per cent and that of Jammu and Kashmir 14.7 per cent at constant 2011-12 prices.

National growth rate

In comparison, the economies of bigger States such as Maharashtra and Uttar Pradesh expanded about 8-8.5 per cent that year. The national economy too expanded 8 per cent in 2015-16 at constant 2011-12 prices.

Per capita income in Jammu and Kashmir and in Arunachal Pradesh rose by more than 14 per cent at constant 2011-12 prices, while the rise at the national level was only 6.8 per cent. Yet, the per capita income in these States was just a fraction of that in richer States and territories such as Delhi.

The rapid expansion of Jammu and Kashmir’s GSDP came after a 0.3 per cent contraction in 2014-15 when the State was hit by its worst flood in 60 years following heavy monsoon rains . The Arunachal Pradesh economy, in comparison, had expanded at a similar pace that year.

These two were not the only States to record double-digit growth in the year. Other State economies to record double-digit expansion were Goa (11.5 per cent), Gujarat (11.1 per cent), Andhra Pradesh (11 per cent), Mizoram (10.9 per cent) and the Union Territory of Puducherry (10.3 per cent).

Top 5 States

Maharashtra remains the largest State economy, with its size estimated at ₹16,59,776.05 crore (₹16.6 lakh crore) at constant 2011-12 prices. Jammu and Kashmir’s economy, at ₹97,289.27 crore, is just about 6 per cent of Maharashtra’s.

The second-biggest State economy is Tamil Nadu, estimated at ₹9,48,673.85 crore. Gujarat displaced Uttar Pradesh to become third largest, but the difference between the two was narrow. Gujarat’s economy was estimated at ₹9,01,375.28 crore and Uttar Pradesh at ₹9,01,256.8 crore.

Karnataka was the fifth largest with an estimated size of ₹8,14,802.64 at constant 2011-12 prices. These five States together account for about 46 per cent of the nation’s GDP.

Per capita income

On per capita income, the average income of a Jammu and Kashmir resident was just a little more than a fifth of a resident of Goa at constant 2011-12 prices. The per capita income for Jammu and Kashmir was estimated at ₹60,171.36 compared with ₹2,67,328.90 for Goa and ₹2,26,583.11 for Delhi.

Among the five largest State economies, the per capita income was the highest in Gujarat at ₹1,22,502.06, followed by Maharashtra (₹1,21,514.50), Karnataka (₹1,13,506.12) and Tamil Nadu (₹1,11,453.76).

Growth estimates for West Bengal, compiled by the State’s directorate of economics and statistics, are still under examination by the CSO, and have therefore not been published. Compilation of the growth data for 2016-17 is not yet complete, as only 18 States and Union Territories have reported their numbers to the CSO.

Published on August 30, 2017

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