5 states project their economies to grow slower than national GDP in FY'23

So far, only 15 states have revealed their projections for the gross state domestic product for 2022-23

Economies of five states may have grown at a slower pace than the national economy during 2022-23.

So far, 15 states have revealed their projections for the gross state domestic product (GSDP) for FY’23 as on March 15, according to data made public by the Ministry of Statistics and Programme Implementation.

Of the five states, Punjab's projection for GSDP growth is way behind the national GDP growth rate of 7.24 per cent in 2022-23. Punjab's GSDP is estimated to have grown just 6.08 per cent.

This was the case in 2021-22 as well, when the state’s economy grew by 6.29 per cent against the GDP growth of 9.05 per cent.

The remaining four states – Andhra Pradesh, Madhya Pradesh, Uttarakhand and Haryana – have projected over 7 per cent growth rate.
 

The second advance estimates had pegged the national economic growth rate at 7 per cent during 2022-23. Only Punjab had then projected its economy to grow at a slower pace than that.

Andhra Pradesh, Madhya Pradesh and Haryana had quite a higher base last year compared to the national level GDP growth. However, Uttarakhand's economy, like that of Punjab, expanded at a slower pace than the GDP growth in 2021-22.

Haryana's economy had grown in double digits – 10.6 per cent – in 2018-19, after which the national economy started to slow down for a couple of years. The state’s economic growth plunged to just 2.1 per cent the next year, less than the national GDP growth of 3.9 per cent. Like most other states, Haryana's economy too contracted in 2020-21 due to the Covid-induced national lockdowns. However, the rate of contraction was higher at 6.2 per cent against 5.8 per cent for the national GDP that year. The state's economy again grew in double digits – 11.3 per cent – in 2021-22 due to the low base effect of the previous year.

Madhya Pradesh’s economy also expanded at a robust rate – 9.3 per cent – during 2018-19, but the growth rate more than halved to 4.5 per cent the next year. The state’s economy also contracted by 4.2 per cent during the Covid-affected 2020-21, but it grew in double digits the next year – 10.4 per cent.

Among the states where the fastest economic growth is expected in 2022-23, only Assam may have expanded in double digits – 10.2 per cent. Meghalaya's economy is projected to grow by 9.1 per cent.
 

Economies of West Bengal and Rajasthan grew in double digits in 2021-22, but recorded a growth of just a little over 8 per cent the next year.
 

Of the big states in terms of GDP, Maharashtra, Gujarat and Uttar Pradesh are yet to reveal their projections for 2022-23.