Synopsis
The Economic Survey 2024-25 underscores the necessity for states to prioritize business reforms to boost industrial and service sector growth, highlighting significant disparities across regions in India.Key Takeaways
- Business reforms are vital for economic growth.
- Four states contribute significantly to industrial GVA.
- Northeast states lag in industrial output.
- Kerala excels in construction despite lower industrialization.
- Mining concentration exists in a few states.
New Delhi, Jan 31 (NationPress) States must prioritize business reforms to enhance growth in various industrial and service sectors, as indicated by the Economic Survey 2024-25 released on Friday.
The Survey highlighted that four states - Gujarat, Maharashtra, Karnataka, and Tamil Nadu - contribute nearly 43 percent of the total industrial Gross State Value Added (GSVA).
Conversely, six states in the Northeast (excluding Sikkim and Assam) account for merely 0.7 percent of the industrial GVA.
“It is essential to concentrate on industrial strategies that cater to the distinctive geographies such as the North East,” the Survey remarked.
There are evident trends in industrialization, with select states like Gujarat, Uttarakhand, and Himachal Pradesh successfully capitalizing on their industrial sector's significance to yield substantial incomes for their residents.
The level of industrialization varies among states, with some more adept at utilizing their industrial sectors to elevate income levels for their citizens, as per the Economic Survey presented in Parliament by Union Finance Minister Nirmala Sitharaman.
The survey also noted that construction activities, which are closely tied to infrastructure development, urbanization, and real estate trends, demonstrate inter-state disparities.
In this regard, the Survey indicates that while Kerala is relatively less industrialized compared to several other states, it stands out positively in construction, with this sector contributing approximately half of its industrial GVA.
The Survey assessed that the mining sector contributes about 8 percent to the overall industrial output.
It noted that mining is heavily concentrated, with the top five states—Assam, Chhattisgarh, Gujarat, Maharashtra, and Odisha—accounting for around 60 percent of the total state mining GSVA.
"States should simplify the process for businesses to initiate operations and expand; this will lead to quicker convergence of living standards and per capita incomes," stated the Survey.
