State economy to grow at 5 per cent this year

Services and industry sector to take a hit, says economic survey

Services and industry sectors are expected to take a hit with 7.2 per cent and 1.2 per cent growth rate respectively, slowing the pace of the State’s overall economic growth in 2013-14.

According to the Economic Survey report released by the State government on Friday, the State economy is estimated to have grown at 5 per cent in the current year against 5.3 in 2012-13. The national average is projected at 5.2 pc. 

However, real estate, ownership of dwellings and business services, banking and insurance and other services have grown beyond 9 per cent. Gross State Domestic Product (GSDP) at constant prices (2004-05) is expected to reach Rs 3,11,628 crore.

Growth rate of services sector, which is the biggest contributor to the GSDP, has decreased to 7.2 per cent from 8.4 per cent in 2012-13. But the sector’s contribution to the GSDP has increased from 58.94 per cent in 2012-13 to 61.40 per cent in 2013-14. Industry sector is estimated to contribute 26.16 per cent and agriculture sector is estimated to contribute 14.90 per cent to the GSDP, the report said.

Agriculture has done well

Due to good monsoon rains, agriculture sector has done well. The sector is expected to grow at 3.6 per cent against negative growth of 4.9 per cent in 2012-13. The total food grain production in the State is estimated to be 130.54 lakh tonnes, the report added.

Growth rate of industry sector has been disappointing with just 1.2 per cent against 4.4 per cent of 2012-13. But the State accounts for a significant share in total Foreign Direct Investment (FDI) that flows into India. The State has attracted US $ 11,523 million during 2000 to 2013. 

The State’s export as a per centage of GSDP has increased over the years -- from 7.36 per cent in 1993-94 to 48 per cent in 2012-13. Export of electronics and computer software constitute the largest share in the State’s export. 

Per capital State income at constant prices is estimated at Rs 44,857 in 2013-14 against Rs 43,075 in previous year, as per the report.