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Industrial output in Andhra Pradesh touched rock bottom in 2012-13 registering a growth of 0.73 per cent, according to the advance estimates (at constant prices) prepared by the directorate of economics and statistics.
The primary reason attributed to this record low growth is the power crisis. The industrial sector has been reeling under severe power cuts for the past 18 months with utilities imposing a power holiday of 3-4 days in a week. A steep dip in natural gas production in the K-G basin has further aggravated this demand-supply mismatch.
The advance estimates come as a shocker not only because the industrial growth is the lowest in the past nine years but also because it reflects a sharp fall from a growth of 7.71 per cent in the previous year. Industry bodies such as the Federation of Andhra Pradesh Chambers of Commerce and Industry (Fapcci) have openly blamed the state government for mishandling the power sector.
This is the second consecutive year that AP is going through a 2-percentage-point decline in GSDP (gross state domestic product) growth from 9.66 per cent in 2010-11 (revised estimates) to 7.82 in 2011-12 and to the estimated 5.29 per cent for the current year.
The GSDP growth for 2012-13, however, is a tad better compared with 4.53 per cent in 2009-10 on the back of a slight recovery in the agriculture sector. The standalone growth in the agriculture sector is estimated at 1.96 per cent as compared with 0.78 per cent growth in the last year (2011-12). The revival mostly comes from allied sectors like fisheries and animal husbandry, according to the officials.
In absolute terms, the advance estimates pegged the current year's GSDP at Rs 426,470 crore as compared with Rs 405,046 crore last year. These estimates also suggest a decline in growth in the service sector to 8.45 per cent for the current financial year as compared with 10.53 per cent last year.
The advance estimates for the GDP (all India) suggest a growth of 4.96 per cent in the current year. In comparison, the state fares better only in the service sector. Agriculture, industry and service sectors growth for the year is estimated at 1.79 per cent, 3.12 per cent and 6.59 per cent respectively.
