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Growth in agriculture, industry sectors slows down in Haryana
Mar. 5, 2020
Low growth in industry and agriculture sectors seems to have slowed overall growth in Gross State Value Added (GSVA) in Haryana during the past three years.
The Economic Survey of Haryana for 2019-20, which was tabled on the floor of the state Assembly on last Friday, shows that the growth of GSVA decreased from 9.8 per cent in 2016-17 to 7.8 per cent in 2017-18 and further declined to 7.3 per cent in 2018-19.
The survey report issued by the Department of Economic and Statistical Analysis, Haryana, shows that the service sector has shown increase in growth during this period.
The Agriculture and Allied Services has always been an important contributor to the Gross State Domestic Product (GSDP). However, as a consequence of rapid structural transition in the state’s economy over the years, the contribution of this sector at constant prices (2011-12) went down to only 16.6 per cent of the GSVA during 2019-20.
The estimates of Agriculture and Allied sectors indicate that the growth rate increased from 3.8 per cent in 2015-16 to 7.9 per cent in 2016-17, but it fell to 6.1 per cent and 5.3 per cent in 2017-18 and 2018-19 respectively.
As per the advanced estimates for 2019-20, the GSVA from this sector has been recorded as Rs 78,677.16 crore with growth of 4.5 per cent.
The index of industrial production (IIP) is one of the prime indicators for measurement of trend in industrial production over a period of time with reference to the chosen base year.
The GSVA from the industry sector at constant (2011-12) prices was registered at 11.4 per cent in 2015-16 and 12.9 in 2016-17.
However, in 2017-18, it came down to 7.9 per cent and slipped further to 7 per cent in 2018-19.
As per the advanced estimates for 2019-20, the GSVA from industry sector is estimated to be Rs 1,64,526.83 crore, recording a growth of 6.8 per cent over the previous year. The importance of service sector for Haryana can be gauged by looking at its contribution to the GSVA of the state’s economy.
The share of service sector in the GSVA at constant (2011-12) prices has increased to 50.6 per cent in 2019-20.
The rise in the service sector’s share in the GSVA marks a structural shift in the state’s economy and takes it closer to the fundamental structure of a developed economy, says the survey report. The report says that during the 11th Five Year Plan, the service sector grew at an average annual growth rate of 12.2 per cent.
This growth rate of the service sector was significantly higher than the average annual growth recorded for combined agriculture and industry sector during this period. The trend of faster and sustained growth of service sector as compared to the other two sectors also remained on the same path during the first four years of the 12th Plan (2012-13 to 2015-16).
It was 10.6 per cent in 2012-13, 10.1 per cent in 2013-14, 10.4 per cent in 2014-15 and 10.8 per cent in 2015-16.
TVSN Prasad, Additional Chief Secretary, Finance and Planning Department, Haryana, however, said that it was incorrect to assume that the growth rate has seen a decline in agriculture and industry since this is percentage growth over the previous year. “When we have percentage over the previous year, the base will become bigger every year. Hence, it will be unfair to compare one particular year’s growth with the previous year’s growth,” said Prasad.
Towards developed economy
The rise in the service sector’s share in the GSVA marks a structural shift in the state’s economy and takes it closer to the fundamental structure of a developed economy, says the survey report.
Source: The Tribune Trust
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