New Delhi: The Year 1991 was epochal. Following economic liberalisation in 1991, the national GDP of southern states emerged as economic powerhouses, particularly Karnataka and Telangana. According to a paper on Tuesday by the Economic Advisory Council (EAC) to the Prime Minister, the southern states collectively accounted for 30.6 percent of India’s GDP in 2023-24.
The EAC-PM paper looked at states’ relative performance in terms of their share of the national economy and their per capita GDP as a percentage of the national average since 1960-61.
It revealed that before 1991, southern states did not show expectational performance. However, since the economic liberalisation, the southern states have emerged as the leading performers.
“The paper noted: “In 2023-24, Karnataka, Andhra Pradesh, Telangana, Kerala, and Tamil Nadu together accounted for approximately 30 percent of India’s GDP.”
From 2014 Till Now, PM Modi Celebrated His Birthday in a Special Way…
Karnataka’s share of India’s GDP was 5.4 percent in 1960-61, and it remained almost the same until 1990-91. However, after the policy shift, the state saw rapid growth, with its GDP share rising to 6.2 percent by 2000-01 and reaching 8.2 percent by 2023-24. This growth has positioned Karnataka with the third-largest share of India’s GDP.
Undivided Andhra Pradesh (Andhra Pradesh and Telangana) now accounts for 9.7 percent, an increase of 2.1 percentage points since 1990-91, with Telangana accounting for most of the increase in share. After bifurcation, the share of Andhra Pradesh has remained broadly flat.
Tamil Nadu also reversed its earlier decline before 1991 by increasing its share from 7.1 percent in 1990-91 to 8.9 percent in 2023-24.
“Kerala’s share had increased from 3.4 per cent in 1960-61 to a peak of 4.1 per cent in 2000-01 but has since drifted down to 3.8 per cent in 2023-24. It is the only southern state that seems to be losing share,” the paper noted.
Southern states also emerged as top performers in terms of per capita income as well since the 1990s. In 1990-91, all these southern states had per capita incomes below the national average, resulting in relative per capita incomes of less than 100. However, within the first decade following economic liberalisation, each state’s relative per capita income surpassed 100 and continued to rise rapidly thereafter.
According to the paper, the average person in Telangana now has an income level 94 percent higher than the national average, while that of Karnataka and Tamil Nadu is 81 percent and 71 percent higher, respectively.
Among large states, Telangana and Karnataka have the country’s second and third-highest per capita incomes. “Kerala’s per capita income has also increased to 152 per cent of the national average in 2023-24. We understand the numbers may be underestimated for Kerala as it was a big receiver of remittances even in 1991,” the paper noted.
For more updates Subscribe to Media Eye News
–IANS
