The Hush Post: Punjab’s prosperity is history now, considering the latest findings of a report ‘States of growth’ released on Thursday by rating firm, CRISIL. Along with Kerala and Uttar Pradesh, Punjab during the Akali –BJP regime recorded the slowest growth between 2013 and 2017, according to the report. Also, Punjab has the highest debt along with Uttar Pradesh and Rajasthan while Chhattisgarh, Karnataka and Maharashtra were the least indebted. Neighbouring state Haryana witnessed one of the highest growth rates along with Gujarat and Chhattisgarh in the corresponding period. Gujarat was the top performer in construction and manufacturing growth, while Chhattisgarh and Haryana have been among the top performers in manufacturing and trade, transportation and communication services.
The performances of the states were judged on the basis of three parameters – growth, inflation and fiscal health. The agency, however, did not take into account the post-demonetisation period for the want of data.
Chhattisgarh, Jharkhand, and Orissa were the best performers among the poor states in labour-intensive sectors. Their growth was also higher than the all-India average during the same period. While Gujarat and Haryana stood among the top three “in terms of gross value added (GVA) of labour-intensive sectors as well as overall GDP (gross domestic product) between fiscals 2013 and 2016”, Three big states, Rajasthan, Telangana and Tamil Nadu, however, couldn’t do much in employment-intensive sectors.
According to the rating agency, the share of Gujarat’s manufacturing sector in GVA has witnessed a steep rise from 28.4% to 34.4%– close to the levels in China. Interestingly, inflation in the three fastest-growing states was below the national average of 6.8%, which means there was no growth-inflation trade-off for them, said the Crisil study.