Southern states have 30% share in India’s GDP, Bengal economic climate regularly decreasing: EAC-PM paper

Southern states of India, which did disappoint “exceptional” efficiency prior to 1991, have actually become the leading financial giant complying with the financial 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, mentioned.

“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 more mentioned.

Authored by EAC-PM participant Sanjeev Sanyal, the paper ‘Relative Economic Performance of Indian States: 1960-61 to 2023-24’ concentrated on the family member efficiency of states in regards to their share of the nationwide economic climate and their per head GDP based on cent of the nationwide standard because 1960-61.

Karnataka & & Telangana became financial giants

As per the EAC-PM paper, in 1960-61, Karnataka’s share in India’s GDP was 5.4 percent, and it stayed nearly the exact same till 1990-91.

However, Karnataka experienced a fast development after the plan change, with its GDP share climbing to 6.2 percent by 2000-01 and getting to 8.2 percent by 2023-24.

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

Undivided Andhra Pradesh (Andhra Pradesh and Telangana) currently represents 9.7 percent, a rise of 2.1 portion factors because 1990-91 with a lot of the boost in share made up byTelangana After bifurcation, the share of Andhra Pradesh has actually stayed generally level.

Tamil Nadu likewise reversed its earlier pre-1991 decrease by boosting its share from 7.1 percent in 1990-91 to 8.9 percent in 2023-24.

Kerala’s share as well had actually raised from 3.4 percent in 1960-61 to an optimal of 4.1 percent in 2000-01, yet has actually because wandered to 3.8 percent in 2023-24.

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

West Bengal has actually seen regular decrease

Meanwhile, West Bengal, which held the third-largest share of India’s GDP at 10.5 percent in 1960-61, currently represents just 5.6 percent in 2023-24. It has actually seen a constant decrease throughout this duration,” the paper said.

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

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