Page 41 - economic review

13

NSDP - Southern States of India MACRO ECONOMIC PROFILE

1.28 In 2013-14, Kerala recorded 6.49 percent economic growth rate, the second highest among
Southern States and above the national average. Tamil Nadu growth rate of 7.48 during 2013-14 was
the highest among the southern states. Karnataka posted 5.79 percent growth rate; Andhra Pradesh
5.97per cent. The all-India average was 4.04 percent, according to provisional figures available with
the Central authorities (see Table 1.5 ). It may be seen that all the southern states have shown a
higher growth in 2013-14 than in the previous year.

Table 1.5
NSDP of Southern States of India at Constant Price (Base- 2004-05)
(` Crores)

State Name 2011-12 2012-13 2013-14 Growth Rate Growth Rate
2012-13 2013-14

Andhra Pradesh 362808 382633 405482 5.46 5.97

Karnataka 248040 259500 274531 4.62 5.79

Kerala 176915 187327 199478 5.89 6.49

Tamil Nadu 386508 397471 427182 2.84 7.48

India 4619695 4794228 4988116 3.78 4.04

Source: : Hand Book of Statistics on the Indian Economy RBI (2013-14)

1.29 An analysis of the growth pattern of NSDP reveals that the Services sector continues to
dominate the economy. Segments such as Transport, Communication, Trade, Hotels, Banking &
Insurance and Real Estate performed relatively well. Compared to 2012-13, the secondary sector
recovered marginally in 2013-14.

1.30 The Ministry of Statistics & Programme Implementation has released the new series
of national accounts, revising the base year from 2004-05 to 2011-12. The base year of national
accounts was last revised in January 2010. However, income estimates of the changed base year of
various states are yet to be worked out. Kerala’s income will also undergo changes as it gets aligned
to the new accounting standards followed by the Central Government.

1.31 There is visible evidence of inequality within Southern India. One reason could be that as
IT companies have entered the economic arena, their high level of pay has raised the economic
standing of young and educated professionals, while the poor have become less able to afford basic
necessities. Inclusive growth has to ensure that wide inequalities in income and wealth are reduced
through a concerted effort at improving the income earning opportunities for farmer, fishermen and
other vulnerable sections of the population.

Section 4
Poverty

1.32 Poverty may be defined as a state or condition in which a person or community lacks the financial
resources and essentials to enjoy a minimum standard of life and well being. Poverty, food prices and
hunger are inextricably linked. Millions live with hunger and mal nourishment because they simply
cannot afford to buy enough food. The poor are those who are unable to achieve basic facilities
like food, safe drinking water, shelter, access to information, education, health care, social status,
political power or even have the opportunity to develop meaningful connections with other people
in the society. This condition is absolute poverty, while relative poverty refers to the inadequacy of
income when compared to the average standard of living.

Economic Review 2014