3 Bjp-ruled states clock fastest growth
NEWDELHI: Three Bjp-ruled states have recorded the fastest economic growth rates between 2013 and 2017, according to a study by ratings firm Crisil.
While Gujarat, Chhattisgarh, and Haryana witnessed the highest growth rates, oppositionruled Kerala and Uttar Pradesh (before 2017) along with Akalibjp ruled Punjab recorded the slowest growth in the corresponding period.
In its ‘States of growth’ report released on Thursday, CRISIL said that Gujarat, which is headed for an assembly election, topped in construction and manufacturing growth. Chhattisgarh and Haryana are among the best performers in manufacturing and trade, transportation and communication services.
“These states, therefore, are likely to have been more successful than others in job creation,” the agency concluded. Creation of jobs has been a political sore point for the BJP as opposition parties are accusing the ruling dispensation of implementing policies that are causing a slump in the job market.
The performances were judged on three parameters – growth, inflation and fiscal health. The agency, however, did not take into account the post-demonetisation period for want of data.
While Gujarat and Haryana stood among the top three “in terms of gross value added (GVA) of labour-intensive sectors as well as overall GDP between fiscals 2013 and 2016”, Chhattisgarh, Jharkhand, and Orissa were the best performers among the poor states in labour-intensive sectors. Their growth was also higher than the all-india average during the same period.
Three big states, Rajasthan, Telangana and Tamil Nadu, however, couldn’t do much in employment-intensive sectors.
Uttar Pradesh, Punjab and Rajasthan have the highest debt while Chhattisgarh, Karnataka and Maharashtra were the least indebted. According to the rating agency, the share of Gujarat’s manufacturing sector in GVA has witnessed a steep rise from 28.4% to 34.4%— close to the levels in China. Interestingly, inflation in the three fastest-growing states was below the national average of 6.8%.