There has been a steep decline in the rate of growth of gross state domestic product (GSDP) in Andhra Pradesh during 2008-09 when compared to the previous year.
State finance minster K Rosaiah said the impact of the global slowdown on the state's financial resources has been much more than anticipated.
According to the socio economic survey report of the state Planning Department, the GSDP for 2008-09 grew at 5.53 per cent, as against 10.62 per cent registered during 2007-08. This is also less than the all India GDP growth rate of 6.7 per cent during the year.
Except for the services sector, no other sector of the state’s economy grew at a higher rate compared with the previous year. The services sector registered a growth of 10.06 per cent, compared with 8.37 per cent in 2007-08.
The industry sector comprising mining, manufacturing, electricity, gas and water supply and construction registered a dismal growth of 0.12 per cent during 2008-09 as against a growth of 11.11 per cent in the previous year.
There is a similar steep fall in the agricultural sector, which registered a growth rate of 2.96 per cent as against a growth of 22 per cent in 2007-08. Higher base effected is stated to have impacted the growth in the sector. The growth rate in the per capita income at 10.41 per cent (Rs 39,597) is also lower compared with a growth of 17.82 per cent in 2007-08.
In spite of this slowdown, the report says, the state economy appears to have geared up to reach its overall growth target for the 11th Five Year Plan period. The state has targeted to achieve a 5 per cent growth rate in agriculture, 10 per cent in industry and 11 per cent growth rate in the services sectors during 2007-08 to 2011-12.