Southern states have 30% share in India’s GDP, Bengal financial local weather commonly lowering: EAC-PM paper

Southern states of India, which did disappoint “exceptional” effectivity previous to 1991, have really turn out to be the main monetary large complying with the monetary liberalisation. “Overall, the southern states together account for 30.6 per cent of India’s GDP in 2023-24,” a paper by the Economic Advisory Council (EAC) to the Prime Minister, launched on Tuesday, talked about.

“In 2023-24, Karnataka, Andhra Pradesh, Telangana, Kerala and Tamil Nadu together accounted for approximately 30 per cent of India’s GDP,” the EAC-PM paper extra talked about.

Authored by EAC-PM participant Sanjeev Sanyal, the paper ‘Relative Economic Performance of Indian States: 1960-61 to 2023-24’ targeting the member of the family effectivity of states with regard to their share of the nationwide financial local weather and their per head GDP primarily based on cent of the nationwide customary as a result of 1960-61.

Karnataka & & Telangana grew to become monetary giants

As per the EAC-PM paper, in 1960-61, Karnataka’s share in India’s GDP was 5.4 %, and it stayed almost the very same until 1990-91.

However, Karnataka skilled a quick growth after the plan change, with its GDP share climbing to six.2 % by 2000-01 and getting to eight.2 % by 2023-24.

“This growth has positioned Karnataka with the third-largest share of India’s GDP,” it higher claimed.

Undivided Andhra Pradesh (Andhra Pradesh and Telangana) presently represents 9.7 %, an increase of two.1 portion elements as a result of 1990-91 with a variety of the enhance in share made up byTelangana After bifurcation, the share of Andhra Pradesh has really stayed usually stage.

Tamil Nadu likewise reversed its earlier pre-1991 lower by boosting its share from 7.1 % in 1990-91 to eight.9 % in 2023-24.

Kerala’s share as effectively had really raised from 3.4 % in 1960-61 to an optimum of 4.1 % in 2000-01, but has usually because wandered to three.8 % in 2023-24.

“It is the only southern state that seems to be losing share,” the paper claimed.

West Bengal has really seen common lower

Meanwhile, West Bengal, which held the third-largest share of India’s GDP at 10.5 % in 1960-61, presently represents simply 5.6 % in 2023-24. It has really seen a relentless lower all through this period,” the paper stated.

How state’s share in India’s GDP is calculated

The state’s share in India’s GDP is set by separating the Gross State Domestic Product (GSDP) of the state by the quantity of GSDP of all states.