Drought pulls down growth to 9.6%
- A crippling drought in most parts of the State, with as many as 156 taluks declared as severely hit, will see the farm sector decelerate by 4.8%. In 2016, a similar drought had seen growth decline by -8.9%.
- The decline in crops will reduce the State’s Gross State Domestic Product (GSDP) to an estimated 9.6% during 2018-19, against 10.4% in 2017-18, according to the Economic Survey for 2018-19 that was tabled in the State.
- In contrast, the GDP at the national level is projected to grow at 7.2% at constant prices (2011-12).
- The negative growth rate of the agriculture sector and decline in crop production will reduce production of food grains from 144 lakh tonnes in 2017-18 to an estimated 100 lakh tonnes during 2018-19.
- However, the industry sector (comprising mining and quarrying, manufacturing, construction and electricity, gas and water supply) is expected to grow by 7.4% in 2018-19, which is higher than 4.7% last year, while the services sector is set to grow at 12.3% during the year as against 12.2% in the previous year, the survey said.
- Mining, in particular, will see a rebound. In 2017-18, it had declined by a staggering 28.7, while in 2018-19 it is project to see a growth of 0.7%.
- During the last few years, the services sector has been contributing the largest component of GSDP. It saw a marginal increase from 65.88% in 2017-18 to 67.87% in 2018-19.
- The contribution of real estate, professional services and ownership of dwellings is highest, with 36.02%, followed by manufacturing (14.46%), trade and repair services (9.80%), and crops (6.92%)
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