Andhra Pradesh, along with West Bengal, are the only states lagging behind the all-India GDP growth rates.
Apart from these two, the remaining states have consistently performed better than the national GDP growth, according to a study by trade body Assocham.
While “forward” states such as Maharashtra, Gujarat and Haryana have consistently performed above 10 per cent growth in nominal GDP, the study highlighted the consistent rise of the normally considered “laggards” such as Bihar, Madhya Pradesh, Odisha and Rajasthan.
D.S. Rawat, Secretary General of the trade body, said one of the factors that helped these States was their “liberal approach to investment”.
The reports highlights the need for underperforming states to search for their shortcomings despite their favourable geographical positioning, natural resources and elevated levels of literacy. In the first three years of the seven-year period of the study, Andhra Pradesh had grown well above the national average, but it dived subsequently, according to the study. The key issue is how the expected larger revenue surplus would be used — -whether to provide sops to the electorate or for capital expenditure that could build long lasting assets, Assocham feels.