Monday, October 3, 2022

State registers 8.98 pc GSDP growth in 2021-22

Nagaland’s Gross State Domestic Product (GSDP) has picked up from a negative growth of -2.63% in 2020-21 to 8.98% in 2021-22 as of July 30, 2021-22. This was disclosed by economics & statistics (E&S) director, Neidilhou Angami, during a press conference cum release of GSDP of Nagaland, 2021-2022 by the E&S department at the E&S directorate Kohima on Wednesday. The advanced estimates suggested that the growth of the state economy has surpassed the pre-pandemic average growth of 5.38% (i.e. 2011-12 to 2019-20), despite the second wave of the pandemic, which plagued the economy during the first quarter of 2021-22.
In absolute numbers, the real growth of the economy is estimated to increase from Rs. 17991.61 crore in 2020-21 (Provisional) to Rs. 19607.83 crore in 2021-22 (Advanced Estimates). Correspondingly, the nominal growth of the economy is estimated to have increased from Rs.30425.11 crore in 2020-21 to Rs.33705.84 crore in 2021-22 (A.E).

Sectoral contribution to GSVA at constant prices: Gross State Value Added (GSVA) comprises of the summation of the contribution from the three sectors—primary sector, secondary sector and tertiary sector.
The sectoral contribution indicated that the structural change of the economy was slowly shifting towards the tertiary sector of the economy. The primary sector contribution to GSVA overtime has declined from 31.4% in 2011-12 to 26.88% in 2021-22(A.E).
On the other hand, the contribution of the secondary sector has been hovering around 9-12% since 2011-12, reaching a peak of 12.90% in 2017-18.
The share of the tertiary sector which has contributed 56.17% to the GSVA in 2011-12 has steadily increased to 62.77% in 2021-22 (A.E).
The sub-sector secondary sector comprising manufacturing, electricity, gas, water supply & other utility services, and construction, during 2021-22, is estimated to pick up from a negative of -9.12% in 2020-21 to 9.36% in 2021-22.
The contribution from the manufacturing sector to GSVA was estimated at 1.62% only in 2021-22. Manufacturing sector is the core of the industrial sector.
The sub-sector of electricity, gas, water supply, and other utility services was the least affected by the COVID-19 pandemic. During 2021-22 (A.E), the sub-sector is estimated to grow by 9.43%.
The growth in the construction sector is estimated to pick up from -14.26% in 2020-21 to 8.15% in 2021-22 (A.E), with the construction sector share in GSVA estimated at 6.04% in 2021-22.
Over the years, the tertiary sector, which comprises of all economic activities that produces services, has become the most robust sector contributing 62.77% of GSVA in 2021-22.
During 2021-22, the tertiary sector was estimated to grow at 8.86%.
One of the critical areas where the impact of the covid-19 pandemic felt the most was in the Trade & repairs and Hotel & Restaurant sector with growth rate from the sector falling to a negative of -7.57% in 2020-21.
With the normalization of the economy, the growth of the sub-sector is estimated to bounce back to positive growth of 6.80% in 2021-22 (A.E).
During 2021-22, the financial services are estimated to grow at 9.21% with a share of 3.89% in the overall GSVA is one of the sub-sector which is assumed to be least affected by the covid-19 pandemic. This is because the number of dwellings during the year is expected to remain the same.
During 2020-21, the gross value added by real estate and ownership of the dwelling sector is estimated to have negative growth of -2.75%.
During 2021-22, as per the Budget Estimates of Government, the allocation for public administration has increased from Rs. 6015.90 crore in 2020-21 to Rs. 6764.28 crore.
The financial services, which comes under the category of supra regional sector due to their pan India existence, is estimated to grow at 9.21% during 2021-22 with a share of 3.89% in the overall GSVA.
During 2021-22 (A.E), the contribution of real estate and ownership of dwelling to total GSVA is estimated at 6.66%.
Adjusting for the inflationary trend in the economy, the overall growth of Public Administration (PA) is estimated at 5.19% with a contributory share of 21.49% to GSVA during 2021-22. Estimates of PA come from the budget document of the Central Government, the State Government and annual report of the Autonomous bodies.

Per capita Income (PCI): Over the period of ten years, the PCI of the State has increased from Rs. 53010 in 2011-12 to Rs.135701 in 2021-22 (A.E) achieving a compound annual growth rate (CAGR) of 9.86%.

Borrowing limit of state govt: The borrowing limit of the state government is determined by the amount of the GSDP of the State. As per the Finance Commission of India recommendation for budgetary measures, beginning from XIII FC, state government is permitted to borrow only 3% of the GSDP from the financial Institutions.