Rapidly recovering from the effects of Covid-19 and the nationwide lockdown of the year 2020-21, the economy of Jharkhand is now in a stable condition. The GSDP of the state has grown at an average annual rate of 8.8 per cent during the last three years, ie, between 2020-21 and 2022-23. However, it is estimated to grow by 7.1 per cent in the current financial year (2023-24) and by 7.7 in the next financial year (2024-25), said the Jharkhand Economic Survey tabled in the State Legislative Assembly here on Monday.
As per the survey report the GSDP of Jharkhand, which was about Rs. 1,50,918 crores in the year 2011-12, the base year of the current series of national accounts statistics, grew to become Rs. 2,29,274 crores at constant prices and Rs. 3,05,695 crores at current prices in the year 2018-19. After the economic slowdown of the year 2019-20 and the COVID-19 and the lockdown of the year 2020-21, it declined to Rs. 2,19,483 crore at constant prices and Rs. 2,96,664 crores at current prices in the year 2020-21.
The GSDP of the state has increased readily since then. It is estimated se Rs 278,316 crores at constant prices and 4,28,155 crores at the current prices in the year 2021-24. It is projected to be Re 290,443 crores at the constant prices and 4,74, 104 crores at the current prices in the year 2024-25. The real GSDP of the state, thus, has increased at an average annual rate of 8.8 per cent and the nominal GSDP of the state of an average annual rate of 15.2 per cent between the years 2020-21 and 2022-23. In the current financial year (FY 2023-24) they are estimated to grow by 7.1 per cent at constant prices and 8.7 per cent at current prices and in the nest financial year (FY 2024-25) they are estimated to grow by 7.7 per cent at constant prices and 9.8 per cent at current prices.
The per capita income of the state was Rs. 51,464 at constant prices and Rs. 69963 at current prices in the year 2020-21. By the year 2022-23, they became Rs. 60.033 at constant prices and Rs. 91874 at current prices. The per capita income of the state is estimated to be Rs. 63443 at constant prices and Rs. 95649 at the current prices in the year 2023-24 and Rs. 67347 at constant prices and Rs. 107027 at current prices in the year 20024-25
The GSDP of Jharkhand was 1.6 per cent of the GDP of the country in the year 2020-21, which increased 1.63 per cent in the year 2021-22 and 1.62 per cent in the year 2022-23. Except for a few years, the growth rate of Jharkhand has mostly been higher than that of the country. In seven out of the eleven years between 2011-12 and 2022-23, the growth rate of Jharkhand remained more than that of the country.
The per capita income of Jharkhand is one of the lowest in the country. It ranked 26th out of the 28 states of the country at the time of its formation in the year 2000-01. Only two states of the country Uttar Pradesh and Bihar ranked below it. There is not much change in the ranking of the states in the last two decades. It ranked 25th amongst the 28 states of the country in the year 2021-22 100, only ahead of Bihar, Uttar Pradesh and Manipur.
The share of the tertiary sector in the GSVA of Jharkhand is not only high but has also increased over the years. In 2011-12, the beginning of the current round of SNA (System of National Accounts), its contribution to the GSVA was about 38 per cent which grew up to about 45 per cent by 2015-16 and has remained more than 40 per cent It has maintained its share at about 44 per cent in last of the GSVA of the country since then three years ie, between 2020-21 and 2022-23.
This increase in the share of the tertiary sector has happened at the cost of the primary sector. The share of the primary sector has declined from about 28 per cent to about 22 per cent during the period of 2011-12 to 2022- 23. The share of the secondary sector has remained almost stable over the years. Its contribution to the GSVA was about 34 per cent in 2011-12 and with minor changes, it has remained almost the same during this period. It has remained a little more than 34 per cent during the last three years ie, between 2020-21 and 2022-23
Within the secondary sector, the share of Manufacturing has increased while that of construction" and electricity, gas and water supply and other utility services" has remained almost unchanged during this period.
Within the tertiary sector, the "Trade, Repair, Hotels and Restaurants" is the fastest growing sub-sector. It grew at an average annual rate of about 8.5 per cent in the period 2011-12 to 2022-23. As a result, the share of this sub-sector in the GVA of the state increased from 8.3 per cent to 11.9 per cent during this period.
