Kohima: The Nagaland Department of Economics & Statistics on Wednesday released the Gross State Domestic Product (GSDP) revealing that as of July 30, the state’s GSDP picked up from a negative growth of -2.63% in 2020-21 to 8.98% in 2021-22.
Director, Economics & Statistics, Neidilhou Angami while addressing the media, said that advanced estimates suggest that the growth of the state economy has surpassed the pre-pandemic average growth of 5.38% (2011-12 to 2019-20).
In absolute numbers, the real growth of the economy is estimated to increase from Rs. 17991.61 crores in 2020-21 (Provisional) to Rs. 19607.83 crores in 2021-22 (Advanced Estimates).
Correspondingly, the nominal growth of the economy is estimated to have increased from Rs.30425.11 crore in 2020-21 to Rs.33705.84 crore in 2021-22 (A.E).
The sectoral contribution also indicated that the structural change of the economy was slowly shifting towards the tertiary sector of the economy. The primary sector contribution to Gross State Value Added (GSVA) overtime has declined from 31.4 per cent in 2011-12 to 26.88% in 2021-22(A.E).
On the other hand, the contribution of the secondary sector has been hovering around 9 per cent to 12% since 2011-12, reaching a peak of 12.90% in 2017-18. The share of the tertiary sector which has contributed 56.17% to the GSVA in 2011-12 has steadily increased to 62.77% in 2021-22 (A.E).
The sub-sector secondary sector comprising manufacturing, electricity, gas, water supply & other utility services, and construction, during 2021-22, is estimated to pick up from a negative of -9.12% in 2020-21 to 9.36% in 2021-22. The contribution from the manufacturing sector to GSVA was estimated at 1.62% only in 2021-22.
The sub-sector of electricity, gas, water supply, and other utility services was the least affected by the COVID-19 pandemic. During 2021-22 (A.E), the sub-sector is estimated to grow by 9.43%. The growth in the construction sector is estimated to pick up from -14.26% in 2020-21 to 8.15% in 2021-22 (A.E), with the construction sector share in GSVA estimated at 6.04% in 2021-22.
The Department informed that over the years, the tertiary sector has become the most robust sector contributing 62.77% of GSVA in 2021-22 and that the impact of the COVID-19 pandemic was felt the most in the trade & repairs and hotel & restaurant sectors with a growth rate from the sector falling to a negative of -7.57% in 2020-21. As the economy normalized, the growth of the sub-sector is estimated to bounce back to positive growth of 6.80% in 2021-22 (A.E).
During 2021-22, the financial services are estimated to grow at 9.21% with a share of 3.89% in the overall GSVA is one of the sub-sector which is assumed to be least affected by the covid-19 pandemic. This is because the number of dwellings during the year is expected to remain the same. During 2020-21, the gross value added by real estate and ownership of the dwelling sector is estimated to have negative growth of -2.75%.
During 2021-22, as per the Budget Estimates of Government, the allocation for public administration has increased from Rs. 6015.90 crore in 2020-21 to Rs. 6764.28 crore.
The Department also revealed that over ten years, the Per Capita Income of the State has increased from Rs. 53,010 in 2011-12 to Rs. 1,35,701 in 2021-22 (A.E), achieving a Compound Annual Growth Rate (CAGR) of 9.86%. It also highlighted that the borrowing limit of the State Government is determined by the amount of the GSDP of the State, and as per the Finance Commission of India recommendation for budgetary measures, beginning from the 13th Finance Commission (FC), the State Government has been permitted to borrow only 3% of the GSDP from financial institutions.
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