INVC NEWS
New Delhi,
The workforce dependability on industrial sector indicates that state’s industrial sector employability has also witnessed a significant increase from the level of 2001. According to the census 2011, workforce dependent on industry is 3.0 percent of the total workforce in the state which was just 2.3 percent in 2001.
The industrial sector growth performance has been credible in the recent years as industrial performance has recorded highest growth amongst the states and much better than all India average growth. The state grew at a CAGR of 16.5 percent
during 2004-05 to 2014-15 (base price is 2004-05), noted the ASSOCHAM pre-election agenda. All the political parties should focus on SMEs promotion based on the locally available raw materials.
“If we look GVA (Gross Value Added) at the new base 2011-12, the compound annual growth of industries sector suggests that the state’s industrial sector growth rate is much better than all India average growth rate. The state has recorded 5.2 percent growth during 2011-12 to 2015-16 while 4.4 percent recorded at all India level during the same period,” according to the ASSOCHAM Secretary General, Mr. D S Rawat.
The service sector plays an important role in Uttarakhand’s economy but it is amongst one of the few states of India which has a lower share of services sector when compared with the national average of services sector contribution to Indian GDP. Currently, service sector contribution to the state economy is 51.0 percent of GSDP in 2014-15 which was 49.5 percent of GSDP in 2004-05, noted the paper.
The service sector has recorded a compound annual growth rate of 12.3 percent during 2004-05 to 2014-15 which is highest amongst major states in India.
If we look GVA (Gross Value Added) at the new base 2011-12, the compound annual growth of services sector suggests that the state’s services sector growth rate is better than all India average growth rate. The state has recorded 7.5 percent growth during 2011-12 to 2015-16 while 7.0 percent at all India level during the same period.
The service sector growth rate has declined from its peak level of 20.4 percent in 2007-08 to reach its lowest level of 5.8 percent in 2012-13 thereafter it has recorded upswing. The last four years performance indicates that the state service sector growth has improved from lowest growth of 5.8 percent in 2012-13 to 7.6 percent in 2013-14 and 7.9 percent in 2014-15. In 2015-16, services sector gross value added was 11.8 percent.
The growth performance of service sector is encouraging as the state has ample potential for growth and expansion of services sector. The policy makers should
aim to expand the sector so that it generates additional economic activity and employment for the state, said Mr. Rawat.
Uttarakhand’s robust economic growth has encouraged investors to invest in the state. The state’s outstanding investment trend is suggesting robust growth performance especially after 2012-13. As on 2015-16, the state has recorded Rs. 1.45 lakh crore live investment projects with a positive growth rate of 23.7 percent but in the past, it has recorded sharp deceleration in its investment growth from its peak level of 44.6 percent 2008-09 to negative growth rate of 3.9 percent in 2012-13. The state’s live investment growth rate is much better than India’s live investment growth rate since in 2013-14.
Uttarakhand has recorded negative growth rate of 3.9 percent in 2012-13 thereafter positive growth of 1.9 percent in 2013-14, 13.7 percent in 2014-15 and 23.7 percent in 2015-16. At same time in India, live investment has administered positive growth rate of 1.9 percent in 2013-14, about 7.7 percent in 2014-15 and 6.6 percent in 2015-16, adds the paper.
The under implementation rate has declined from its peak level of 63.5 percent in 2004-05 to 38.6 percent in 2015-16. Under implementation projects have been a major concern for policy makers in India as well as for most of the states in India. All states government as well as Central Government has been trying to curb down the under implementation rate and many initiatives have been taken by both. However, analysis suggests that Uttarakhand has recorded faster implementation of projects that has resulted in a significant fall in the under implementation rate of the projects.
The state has been witnessing a strong demand for employment with large portion of population coming into the working age group of population. As per ASSOCHAM estimate, about 32.1 percent of population falls in the age group of 15 to 30 years.
About 4.5 million people from this group are already a part of the workforce. The current level of workforce participation rate stands at 38.6 percent, therefore in order for the working age group of 15-30 years also to achieve a similar rate an additional 5 lakh jobs will need to be created in the next five years. If the state has to meet the potential demand of employment, the state needs to grow at a double digit rate.
The newly form government must look at this on priority basis which will accelerate investment activities in the state as well as it will encourage private sector to invest in the state.
ASSOCHAM Special Task Force on Uttarakhand, after generating debate on several critical issues on the eve of the elections in the state, has formulated a “Sustainable Action Plan” to achieve double digit growth. ASSOCHAM believes state achieving double digit growth on a sustainable basis will help the state to become one of the front ranking states in the country.
