Telangana, Tamil Nadu Top in GSDP Growth

Telangana, Tamil Nadu, and Rajasthan have been recognized as the fastest-growing large states in India by the Ministry of Statistics and Programme Implementation (MoSPI). These states have achieved impressive economic growth, surpassing the national average GDP growth rate of 8.2%. This means their economies are expanding at a faster pace than the country’s overall economic growth.

Key Growth Numbers

Telangana: Telangana’s economy grew by 9.2%, reaching a Gross State Domestic Product (GSDP) of ₹7.9 lakh crore. This is a significant increase, showing that the state’s economy is strong and growing rapidly.

Tamil Nadu: Tamil Nadu’s economy grew by 8.2%, with its GSDP reaching ₹15.7 lakh crore. This makes Tamil Nadu one of the top-performing states in terms of economic growth.

Rajasthan: Rajasthan experienced an 8% growth in its economy, making it the seventh-largest economy in India. This growth indicates a healthy economic environment in the state.

Importance of the Services Sector

The services sector has been a key factor in driving economic growth in these states. The services sector includes industries like healthcare, finance, education, and tourism, which have been performing well and contributing significantly to the states’ economies.

Tamil Nadu: In Tamil Nadu, the services sector contributes 52% to the total Gross Value Added (GVA), which is a measure of the state’s economic output. This sector grew by 9%, helping the state’s overall economy.

Telangana: Telangana’s services sector is even more dominant, accounting for 63% of the total GVA, with an impressive growth rate of 11%. This shows that the services industry is a major driver of Telangana’s economic success.

Maharashtra: Although Maharashtra remains the largest economy in India, its services sector growth was 9%, which is lower compared to the 13% growth seen in the previous fiscal year (FY23). This indicates a slowdown in the services sector’s contribution to Maharashtra’s economy.

Performance in Other Sectors

While the services sector has been a strong performer, the agriculture sector faced challenges in many states due to the El Niño weather phenomenon, which negatively affected crop production and overall agricultural growth.

Tamil Nadu: Despite the challenges in agriculture, Tamil Nadu’s economy was supported by gains in agriculture, construction, and real estate, contributing to its strong growth.

Telangana: Telangana’s growth was boosted by real estate, other services, and a recovery in the manufacturing sector, which had faced difficulties earlier.

Comparing Top States

Telangana, Tamil Nadu, and Rajasthan have shown impressive growth, but Maharashtra still holds its position as the largest economy in India. Gujarat, which was previously ranked as the second-largest economy, is awaiting confirmation of its ranking based on the latest budget estimates. Uttar Pradesh and Karnataka are also close competitors, ranking fourth and fifth in terms of GSDP.

This overview highlights how important the services sector is in driving growth in India’s largest states, while also pointing out the different challenges and successes in agriculture and other sectors.

What is Gross State Domestic Product (GSDP)

GSDP is a measure of a state’s economic performance, similar to how GDP measures a country’s economy. It represents the total value of goods and services produced within a state. GSDP per capita, which divides the GSDP by the population, provides insight into the standard of living in a state. States with higher GSDP tend to attract more investments and have stronger economies. GSDP data is essential for shaping regional policies and can be influenced by factors like population growth, employment rates, natural disasters, and economic changes.


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