The Jharkhand Economic Survey tabled by the Government in the State Legislative Assembly on Tuesday estimated 9.5 per cent GSDP growth in the Financial Year 2021-22 over the GSDP of 2020-21, while it stated that the average annual growth rate of the State economy was just 4.8 per cent between the period 2014-15 and 2018-19.
The survey report prepared by the Centre for Fiscal Studies, Planning cum Finance department, Government of Jharkhand further stated that the economy of Jharkhand grew by 7.3 per cent per annum during the financial year 2011-12 and 2014-15, but the growth rate took a nosedive and fell to 4.8 per cent during the financial years 2014-115 and 2018-19.
The Gross State Domestic Product (NSDP) of Jharkhand is estimated to be Rs 2,44,805 crore at current prices and Rs 2,23,566 crore at constant prices in the year 2020-21. The per capita income (per capita NSDP) is estimated to be Rs 79,873 at current prices and Rs 57,863 at constant prices in the year 2019-20.
The GSDP of Jharkhand at constant (2011-12) prices was Rs 1,50,918 crore in the year 2011-12. It grew at an average annual rate (CAGR) of 7.3 per cent per annum between 2011-12 and 2014-15 and 4.8 per cent between the years 2014-15 and 2018-19. It is estimated to have grown by 6.7 per cent in the year 2019-20 (Pr.) and has become Rs 2,40,036 crore.
Like the rest of the country, Covid-19 has also hit the economy of Jharkhand very badly.
The real GSDP of the state is expected to contract by 6.9 per cent and the nominal GSDP is expected to contract by 3.2 per cent in the current financial year (2020-21).
They, thus, are estimated to be Rs 2,23,566 crore at constant prices and 2,44,805 crore at current prices in the year 2020-21. They are expected to recover in the next financial year.
Among the three major sectors (the primary, the secondary and the tertiary) of the State’s economy, the tertiary sector has grown at the fastest rate in the year 2019-20. While the primary sector has been estimated to grow at the rate of 2.2 per cent and the secondary sector at the rate of 4.9 per cent, the tertiary sector has been estimated to have grown at the rate of 7.9 per cent in the year 2019-20.
Within the tertiary sector, sub-sectors like ‘Hotels and Restaurants’, ‘Communication and Services Related to Broadcasting’ and ‘Real Estate, Ownership of Dwelling and Professional Services’ have grown by more than 8 per cent this year. Sectoral Contribution to Growth-Rate: The tertiary sector has been the major contributor to the State’s growth-rate. It has contributed 62.5 per cent to the growth of the State’s economy in the year 2019-20. The primary and secondary sectors have made a contribution of approximately 9 and 29 per cent, respectively.
The shares of ‘agriculture, forestry and fishing’, ‘secondary’ and ‘service/tertiary’ sectors in the GSVA of the state in the year 2011-12 were 16.1 per cent, 33.8 per cent and 38.5 per cent, respectively.
In the financial year 2019-20 the share of agriculture in the GSVA is estimated to be 12.6 per cent while that of ‘secondary sector’ is estimated to be 32.8 per cent and that of Services is estimated to be 45.8 per cent.
The share of ‘industry’, which is a combination of the secondary sector and mining and quarrying, has decreased from 45.4 per cent in the year 2011-12 to 41.7 per cent in the year 2019-20.
The changes in the sectoral shares have taken place because of a relatively slow growth in the ‘agriculture, forestry and fishing’, secondary and ‘mining and quarrying’ sectors and a relatively high growth in the service sector.