Gujarat recorded lowest GSDP growth in five years during 2020-21: CAG

Gujarat recorded its lowest Gross State Domestic Product (GSDP) growth in five years in financial year 2020-21 — when the coronavirus pandemic began — the Comptroller and Auditor General of India (CAG) has noted in its report.

This period saw lockdowns and various restrictions being imposed on account of the pandemic.

The ‘State Finances Audit Report of the CAG for the year ended March 31, 2021′ was tabled in the Gujarat Assembly on Thursday, the last day of the month-long Budget session.

Gujarat’s GSDP “grew at a higher rate during the period 2016-17 to 2020-21 compared to the national growth rate,” the report said.

But during 2020-21, “the State registered its lowest growth rate in five years whereas the Nation registered a negative growth rate,” it added.

The state’s economy registered a growth rate of 0.57 per cent in 2020-21 over the previous year.

The GSDP growth rate was 13.43 per cent in 2016-17, 13.87 per cent in 2017-18, 13.08 per cent in 2018-19 and 9.75 per cent in 2019-20.

Against 0.57 per cent growth rate of Gujarat in FY 20-21, the country’s GDP registered a negative growth of -2.97 per cent in the same period.

GSDP is the value of all the goods and services produced within the boundaries of a State in a given period.

Growth of GSDP is an important indicator of a State’s economy, as it denotes the extent of changes in the level of economic development of the State over a period, the CAG noted.

“GSDP of Gujarat in 2020-21 at current prices was Rs 16,58,865 crore. The per capita GSDP of the State at Rs 2,35,969 during 2020-21 was higher than all India average of Rs 1,45,680 during the same period,” said the CAG, noting that Gujarat is the ninth most populous state in India.

The state’s population increased from 6.10 crore in 2011 to 7.03 crore in 2021, recording a growth of 15.25 per cent, the CAG noted.

The sectoral contribution data showed that there was a decrease in the relative share of industry in GSDP, from 39.72 per cent in 2015-16 to 38.44 per cent in 2019-20, said the CAG, adding that decrease was seen in Agriculture and Services sectors too.

The relative share of “taxes on products minus subsidies” increased during the same period, the CAG noted.

Advertisement
Web Hyip
Previous articleGovernment to borrow Rs 8.45 lakh crore in first half of 2022-23
Next articleExplained: The copyright row over pop artist Andy Warhol’s paintings