Economic Survey pegs State's growth below 5 pc

With the industry sector witnessing sluggish momentum, the State’s growth rate in the current fiscal year is expected to slide below five per cent.  This, despite the agriculture sector expected to do well, with food grain production likely to touch 140 lakh tonnes.

According to advance estimates for 2013-14, the industry is expected to log 1.5 per cent to 2 per cent growth as against 2.4 per cent last year. While the country’s growth rate is projected at 4.9 pc, that of the State is expected between 4.5 per cent to 5 per cent.  

However, service sector, State economy’s main lifeline, is expected to do slightly better compared to last year with about 10 per cent growth. The government will release the Economic Survey Report before presentation of State Budget 2014-15 on February 14, sources said.

The overall projected growth in 2012-13 was 5.9 per cent. Service sector, the biggest contributor to State Gross Domestic Product (GSDP), had taken a hit with 8.9 per cent growth. While the agriculture sector was projected to grow at 1.8 per cent, the industry’s growth rate was estimated at 2.4 per cent. Sources said farm sector is likely to grow at 4.2 per cent in the current year owing to good monsoon. 

This despite the government declaring 98 taluks drought hit. In 2012-13, 157 taluks of 176 were drought affected. Then, food grain production was estimated at 124 lakh tonnes.

Sources cited bottlenecks in mining, delay in land acquisition and bureaucratic hurdles as main reasons for contraction in industrial growth. According to Institute of Social and Economic Change Economics Prof M R Narayana, the government should create a conducive atmosphere to attract private investment. 

Good and transparent administration, quick and smooth clearance of projects are imperative, he said, adding there was no need for public investment for infrastructure development if a conducive atmosphere for investment exists.  

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