Tamil Nadu's gross state domestic product grew by 5.87% in FY21: CAG report

Tamil Nadu's gross state domestic product GSDP, one of the vital indicators of the state's economy, grew by 5.87 per cent during the period 2020-21 despite the contribution from industries and the services sector between 2016-17 and 2020-21 declining, a report of the Comptroller and Auditor General of India said on Thursday.

The report which was tabled during the Assembly session said the GSDP grew by 5.87 per cent as compared to 2019-20 which stood at 10.25 per cent.

However, the GSDP at 5.87 per cent was against the country's growth rate of a negative 2.97 per cent, the report said.

The GSDP is the value of all the goods and services produced within a state and the growth of GSDP is an important indicator of the economy, as it denotes the extent of changes in the level of economic development of the state over a period of time.

The economy activity of a state is divided into primary, secondary and tertiary sectors which correspond to agriculture, industry and service sectors, the report said.

Accordingly, the contribution of the agriculture sector and services sector between 2016-17 and 2020-21 increased 'marginally' while there was a reduction of 1.63 per cent in the industry sector.

As per the report, the agricultural sector in 2016-17 reported 3.83 per cent which grew to 10.11 per cent in 2020-21 while industries sector which stood at 11.62 per cent in 2016-17 slipped to 2.90 per cent in 2020-21, the report said.

Similarly, the services sector which stood at 10.39 per cent in 2016-17 slipped to 6.37 per cent in 2020-21.

"There was an increase in the sectoral growth of agriculture sector in GSDP during the five-year period while the sectoral growth of industries and services sector has come down," it said.