MUMBAI: Five states, led by Maharashtra and Uttar Pradesh, have boosted the national GDP since the pandemic by adding 235 basis points at 8.1 percent up from the pre-Covid point of 5.7 percent, shows a new analysis by State Bank. The report also says that the average inequality has gone down since the worst disaster of a century.
The analysis flies in the face of the actual GDP numbers since the pandemic as the first quarter of Fy21 saw the economy contracting by 23 percent and by 7 percent for that full fiscal.
While Maharashtra has more than doubled its growth contribution to national GDP adding 110 bps, and UP adding 70 bps during FY22-24 respectively, from 50 bps and 30 bps during FY18-20, the other three states that have doubled their contribution to GDP during this period are Tamil Nadu, (from 50 bps to 70 bps), Rajasthan and Kerala which doubled their share from 20 bps each to 40 bps each during this period, according to a report by SBI Research.
The average real GDP growth at national level is at 8.1 percent as of FY24 compared to 5.7 percent pre-pandemic. This indicates that the country accumulated 235 bps in real growth post-pandemic, says the author of the report Soumyakanti Ghosh, who is also the chief economic advisor at SBI.
While Maharashtra has contributed to the most with 56 bps, UP chipped in with 40 bps (together chipping in as much as 40 percent of the incremental growth), followed by TN and Rajasthan (19 bps each) and Kerala giving 17 additional bps to national growth. As much as 90 percent of the 235 bps incremental growth has come from the top 10 states only.
On the other hand, when it comes to per capital income, Gujarat leads the chart with a 1.9x growth, followed by Southern states, while those from the heartland exhibit stability in this and the Eastern states have been sluggish.
After Gujarat which takes the pole position increasing its GSDP 2.2x in a decade ending Fy22, closely followed by Karnataka & Andhra (1.8x) and Telangana and Assam (1.7x). Also, Gujarat’s NSDP (net state domestic product or real GSDP) has increased 2.2x, followed by Karnataka, Assam, AP, Telangana, MP, Odisha, Haryana, and TN.
On state-wise inequality, the report says in terms of per capita NSDP inequality has decreased from 0.523 in FY19 to 0.48 in FY22.