Indian states showcase resilience and outperform pre-pandemic levels across key economic indicators: PHD chamber
Dec 04, 2023
New Delhi [India], December 4 : In an analysis conducted by the PHD Chamber of Commerce and Industry, India's states have demonstrated a remarkably high level of resilience in the post-COVID era, surpassing pre-pandemic levels across various economic indicators.
According to a report, the industry body suggests a seven-pronged strategy to further strengthen this resilience and enhance the socio-economic parameters of the states.
The analysis focused on five lead indicators: Growth of Gross State Domestic Product (GSDP), Gross Fiscal Deficit as a percentage of GSDP, Capital Expenditure, State-Wise Per Capita Availability of Power, and Growth of Social Sector Expenditure.
The results showcase robust performance by the states in these domains, emphasizing their pivotal role in driving India's economic recovery.
Key findings include 28 states demonstrating resilience in GSDP growth, 24 excelling in power supply, 23 consistently increasing social sector spending, 13 performing well in capital expenditure, and 6 maintaining resilient fiscal balances. States like Gujarat, Kerala, Telangana, Rajasthan, West Bengal, Bihar, Karnataka, Uttar Pradesh, Haryana, and Odisha have notably contributed to high GSDP growth.
In terms of fiscal balance, Andhra Pradesh, Uttarakhand, Odisha, Gujarat, Haryana, and Chhattisgarh emerged as resilient states. Those showcasing remarkable resilience in capital expenditure include Assam, Bihar, Goa, Haryana, Gujarat, Jammu & Kashmir, Jharkhand, Madhya Pradesh, Odisha, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh, Uttarakhand, West Bengal, and NCT Delhi.
Power availability, a crucial indicator of infrastructure and industrial potential, exhibited high resilience in 26 states, excluding Bihar, Manipur, and Mizoram. Social services spending, a critical aspect post-pandemic, showcased resilience in numerous states, including Andhra Pradesh, Assam, Bihar, Chhattisgarh, Goa, Haryana, Jammu & Kashmir, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Odisha, Punjab, Rajasthan, Telangana, Uttar Pradesh, Uttarakhand, West Bengal, and NCT Delhi.
To further enhance the socio-economic parameters of the states, the PHD Chamber recommends a strategic focus.
States should improve their performance in Ease of Doing Business to attract private and foreign investments by reducing the cost of doing business.
The provision of high-quality infrastructure is crucial for enhancing industrial setup, power sector reforms, building the tourism industry, and improving state connectivity.
Prioritize environmentally friendly technologies, effective use of wasteland, land reforms, and strengthen land banks for sustainable growth.
Develop a services-led growth strategy prioritizing industries like health, education, IT, logistics, and knowledge-based sectors. Provide additional resources and incentives for state-based exporting units to boost exports.
Prioritize skill development, research, and innovation to increase labour productivity. Encourage mutual learning among states, fostering collaboration on capacity building and exchanging best practices.
The study concludes that most states are resilient in the post-COVID era, serving as thrust engines to propel India towards a higher growth path, aligning with the goal of a developed India by 2047.
The PHD Chamber's analysis underscores the state's pivotal role in India's economic resurgence and development agenda.
