Clocking the slowest compounded annual growth rate (CAGR) of about 6.9 per cent in terms of gross state domestic product, Uttar Pradesh is the lowest among the traditional BIMARU states (Bihar, Madhya Pradesh, Rajasthan and UP) in this regard during the past nine years i.e. during 2004-05 and 2012-13, according to an ASSOCHAM study.
“Bihar has ranked on top among the BIMARU states registering highest growth rate of 9.3 per cent in GSDP during the aforesaid nine year period followed by Madhya Pradesh (8.8 per cent) and Rajasthan (8.2 per cent) even as India’s overall gross domestic product (GDP) grew at eight per cent during 2004-05 and 2012-13,” said a study titled ‘Analysis of BIMARU
states,’ conducted by ASSOCHAM.
“The share of other states in BIMARU category though has remained stagnant over these years but has slightly improved – Bihar (from 2.6 per cent to 2.9 per cent), MP (3.8 per cent to 4 per cent) and Rajasthan (4.3 per cent to 4.4 per cent),” the study prepared by ASSOCHAM Economic Research Bureau (AERB) said.
“Total share of BIMARU states to India’s economy has also slightly dipped from 19.5 per cent as of 2004-05 to 19.4 percent as of 2012-13,” D.S. Rawat, national secretary general of ASSOCHAM said while releasing the chamber’s study.
Even on the agriculture and allied sector front, UP has proved to be the slowest in CAGR at 2.9 per cent, well below the national growth rate of 3.7 per cent, it said.
Madhya Pradesh clocked highest growth rate of seven percent in terms of agriculture and allied sector performance amid BIMARU states followed by Rajasthan (4.8 per cent) and Bihar (4.7 per cent).
The share of agriculture and allied sector in UP’s GSDP has dipped from 29.7 per cent as of 2004-05 to 21.9 percent as of 2012-13, the Assocham study said.
In Bihar it has come down from 31.5 per cent to 22.5 per cent, while in Rajasthan it has slowed from 25.6 per cent to 19.9 per cent. MP registered just about three per cent decline i.e. from 27.7 per cent to 24.2 per cent during the period under review.
“On the industrial sector front, UP has registered 6.9 per cent growth rate during the said period while India clocked 7.4 per cent CAGR in the industrial sector,” it said.
While amid BIMARU states, Bihar clocked highest growth rate of 13.9 per cent in the industry sector followed by MP (9.2 per cent) and Rajasthan (8.5 per cent).
The share of industry sector in UP’s economy has marginally declined from 23.3 per cent as of 2004-05 to 23.2 as of 2012-13, while it has increased considerably in other BIMARU states – Bihar (from 13.8 per cent to 19.2 per cent), MP (27.1 per cent to 27.9 per cent) and Rajasthan (30.6 per cent to 31.3 per cent).
In the services sector too UP has clocked slowest growth rate of nine per cent during 2004-05 and 2012-13 which is not only below other BIMARU states but also the national average of 9.6 per cent. Bihar registered highest growth rate of over 10 per cent followed by Rajasthan (9.7 per cent) and MP (9.6 per cent) during the period under review.
UP, however, has recorded highest growth in terms of services sector’s contribution to the state economy as it rose from 47 per cent in 2004-05 to about 55 per cent as of 2012-13 followed by Rajasthan (from 43.8 per cent to 48.8 per cent), Bihar (from 54.7 per cent to 58.3 per cent) and MP (from 45.2 per cent to 47.9 per cent). Though, nationally the services sector share in the GDP increased from 53 per cent to 59.6 per cent.
At 4.8 per cent, UP has also registered slowest per- capita income growth rate between 2004-05 and 2012-13, while Bihar topped with 7.6 per cent CAGR amid other BIMARU states followed by MP (7 per cent) and Rajasthan (6.1 per cent).