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18 Apr 2014 6:00 PM from States of India
Cindrella Shah

Madhya Pradesh had the highest


growth in GSDP in 2013-14
Growth led mainly by agriculture sector
Madhya Pradesh outpaced all the major states to show the highest growth in Gross State
Domestic Product (GSDP) in 2013-14. The states GSDP registered a double-digited growth
of 11.1 per cent at constant prices, up from 9.9 per cent in 2012-13. Its GSDP, thus stood at
Rs. 2,385.3 billion in 2013-14.

Madhya Pradesh has been showing a strong growth of above nine per cent since 2009-10.
Also, most of this growth in the recent years is propelled by a high growth in the agriculture
and allied sector supplemented by a modest growth in the services sector. Growth rates in
these two sectors have helped tide over the sluggish industrial performance in the state.
Moreover, the per capita NDP in the state has also been growing at a sturdy pace of around
eight per cent since 2008. It grew by 9.6 per cent in 2012-13.

The share of agriculture & allied sector in GSDP was 29 per cent while that of industry and
services sector was 25.6 per cent and 45.4 per cent, respectively in 2013-14. Agriculture &
allied sector share has been rising since 2008-09, while that of the industrial sector has
been declining. This is in contrast to all the major states which are seeing a decline in the
agriculture & allied sector share in their GSDP. Share of services sector in the state has been
stable.
Much of the growth in this year too can be accorded to the agriculture & allied sector. It
manifested a growth of 23.3 per cent, over a 18.6 per cent rise in 2012-13. Within the sector,
agriculture alone recorded a growth of 25 per cent. It has been seeing a remarkable growth
of around 20 per cent since the last three years. It had fourth highest share of eight per cent
in Indias agriculture sector GDP in 2012-13. Further, the state ranks second highest in
foograin production in the country, only after Uttar Pradesh. The state is also known for its
non-food crops, especially oilseeds.

The growth in agriculture can be attributed to the additional irrigation facilities created in
the state in the last three years. The Mahi Irrigation Project by the state government on the
river Mahi was completed in March 2012. It brought a large 264 thousand hectares of land
under irrigation. Other important projects like the Bariarpur Left Branch Canal Project,
Sanjay Sagar (Bah) Project and the Kushalpur Irrigation Project were also completed in the
year 2012-13. These three projects together brought over 69.1 thousand hectares of
cultivated land under irrigation in the state. The fiscal year of 2013-14 saw completion of
other two big irrigation projects - phase one of Narmada-Kshipra Simhasta River linking
project and Sagad Irrigation Project. Narmada-Kshipra Simhasta project links the Narmada
and Shipra river waters and aims to bring 1.6 million hectares of land under irrigation on its
completion. While the Sagad Irrigation project provides irrigation to 17 thousand hectares
of land from the Sagar river. With several other irrigation projects underway, agriculture
sector has potential for further growth in the state.

Services sector in the state grew moderately at 9.5 per cent. It had seen a growth of 8.1 per
cent last year. Trade, hotels and restaurants, which account one-fourth of the services
sector, grew by 9.3 per cent in the year. Finance, insurance, real estate and business services
reported a combined growth of 12.4 per cent. Of this, banking and insurance has seen a
good 18.3 per cent growth in the year.

Industrial sector of the state, however, has been showcasing sluggish growth. The state has
been known as one of the industrially backward states. Industrial sector in the state has
been seeing lowered levels of growth since 2009. It grew by only 2.1 per cent in 2013-14,
down from 5.5 per cent in 2012-13. Manufacturing industry accounts for 39.3 per cent in the
industrial sector and has seen a fall of 2.2 per cent in the year. It has been witnessing a
meagre growth since 2010. It last saw a good growth of 18.2 per cent in 2008-09, but the
growth level came down drastically to 6.8 per cent in 2009-10. Mining & quarrying industry
recorded a fall of 0.1 per cent, stumbling from a 9.6 per cent rise in 2012-13.

Electricity, gas & water supply and construction were the only industries to report a growth
of above five per cent in 2013-14. Electricity, gas & water supply has seen rising levels of
growth rates. Whereas construction industry growth is much lower than that seen in the
previous years. Construction industry growth has been on a rapid down slide since 2008. It
came down to 5.4 per cent from 28.2 per cent in 2013-14.