Gujarat, MP, Haryana fastest growing states in 2013-17: Crisil

New Delhi, Dec 7 (PTI) Gujarat, Madhya Pradesh andHaryana were the top three fastest growing states in the lastfour fiscals, while Punjab, UP and K...

New Delhi, Dec 7 (PTI) Gujarat, Madhya Pradesh andHaryana were the top three fastest growing states in the lastfour fiscals, while Punjab, UP and Kerala featured in thebottom three, a report by Crisil said today.

There are wide divergences in state-level performance asthey are getting exposed to increasing competition, said thereport titled 'States of Growth' by ratings firm Crisil.

The performance of states was gauged on parameters likegrowth, inflation and fiscal health.

"Gujarat, Madhya Pradesh and Haryana were the fastestgrowing states between fiscals 2013 and 2017. Bringing up thebottom were Punjab, Uttar Pradesh and Kerala," said thereport.

Gujarat was the top performer in construction andmanufacturing growth, while Chhattisgarh and Haryana wereamong the top performers in manufacturing and trade,transportation and communication services, it said.

"These states, therefore, are likely to have been moresuccessful than others in job creation. In Gujaratspecifically, the share of manufacturing has jumped from 28.4per cent to 34.4 per cent of gross value added (GVA)–which isclose to levels seen in China."These states recorded the highest growth in aggregate GVAof labour-intensive sectors.

The report pointed out that the poorer states aren'tgrowing faster.

States with the lowest GDP growth during 2013 to 2017–Kerala, Punjab, Uttar Pradesh, saw below-average growth in GVAof their labour-intensive sectors.

On price rise front, inflation in 11 major states fellfaster than all-India average. In fastest growing Gujarat,Haryana and Madhya Pradesh, it stayed below national averageof 6.8 per cent.

Going by the fiscal math, the report revealed a mixedpicture as some states were highly indebted and ran largedeficits and other continued to perform well on both fronts.

On level of indebtedness and deficit, Chhattisgarh,Karnataka and Maharashtra were the top three states and UttarPradesh, Punjab and Rajasthan came in the bottom three.

Chhattisgarh, Karnataka, Maharashtra, Gujarat andTelangana were among the states which successfully managedhigh growth levels while keeping their fiscal deficits below3 per cent.

On the contrary, states which have lower growth ratesdespite their fiscal deficits overshooting the 3 per centtarget are Kerala, Punjab, Rajasthan, Tamil Nadu and UttarPradesh, it added.

"We conclude that Gujarat and Maharashtra performed wellon all the three key macroeconomic parameters, having a growthrate above the national average, inflation and debt levelsbelow the national average, and fiscal deficit less than thetarget set by the Fiscal Responsibility and Budget Management(FRBM) Act between fiscals 2013 and 2017," Crisil said.

Conversely, Bihar, Rajasthan and Uttar Pradesh werelaggards across these parameters with low growth rate, highinflation and debt compared with the national average, and afiscal deficit overshooting the FRBM target. PTI KPMMKJ.

This is unedited, unformatted feed from the Press Trust of India wire.

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