Thread by @dstock_insights

Top 5 states – Economic growth and composition in 2020-21

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Tamil Nadu GSDP
💰 ₹19.02 Lakh Crore
📈 5.9% Growth rate
💸 ₹ 2,49,517 Per-Capita GSDP

GSVA - Composition
Agricultrue - 12.7%
Industry - 33%
Services - 54.3%
#TamilNadu #GSDP

The compositions of the Top 5 state economies are all quite different and vary significantly from that of India’s too. UP has the highest agricultural dependence at 26%, with industry at 25% and services at 49%.

Gujarat’s agricultural GSVA composition is 15.6%, with services at 36.2% and industry at a whopping 48.2%. It has demonstrated how to sustainably industrialize and is the only state with industrial contribution close to 50%, nearly double the India average of 26%.

However, with a low services contribution of 36%, if businessas-usual continues, Gujarat might find it problematic to keep growing dependent on industry when automation and other factors kick in. Instead, it must develop its services sectors to augment its high industry output.

Maharashtra and Tamil Nadu’s GSVA compositions are more balanced. 11% of Maharashtra’s GSVA comes from agriculture, 28.4% from industry and 60.7% from services. Meanwhile, 12.7% of Tamil Nadu’s GSVA comes from agriculture, 33% from industry and 54.3% from services.

They have both mobilized their industrial bases while also driving services subsectors to contribute 50%+.

While Gujarat can learn from these three states (Maharashtra, Tamil Nadu and Karnataka) on high-growth developing services sectors, the other states must learn from Gujarat how to industrialise sustainably as a vital source of employment and economic growth.

Each state must study its unique composition and plan accordingly