Among the 19 states, Karnataka’s GSVA at constant prices displayed the highest CAGR of 7.5 per cent during FY2015-FY2024, exceeding the CAGR of the all-India GVA of 5.8 per cent by 1.7 percentage points
Chennai: Dominance of services in India’s economy continued to rise during FY2015– FY2024, led by Karnataka, which increased its Gross State Value Added (GSVA) contribution to India’s Gross Value Added (GVA) by 1 percentage point.
India’s economy is dominated by the services sector, which comprised 55 per cent of the total GVA (at constant prices) in FY2024, up from 52 per cent in FY2015. This was offset by a decline in the share of agriculture to 15 per cent in FY2024 from 17 per cent in FY2015, while the share of the industrial sector remained stable at 31 per cent, finds ICRA.
Among the 19 states, Karnataka’s GSVA at constant prices displayed the highest CAGR of 7.5 per cent during FY2015-FY2024, exceeding the CAGR of the all-India GVA of 5.8 per cent by 1.7 percentage points. The CAGR of the GSVA of Odisha and Gujarat during the nine-year period was also healthy at 7.1 per cent and 7 per cent, respectively.
Contribution of Karnataka’s GSVA in India’s GVA rose by 1 percentage point during FY2015- FY2024 while Maharashtra’s dropped by 0.8 pps, though it remained the top state in terms of GSVA, followed by Tamil Nadu.
During FY2015-FY2024, Karnataka’s services sector displayed a CAGR of 8.3 per cent, exceeding 6.3 per cent at the national level. Karnataka’s real estate, ownership of dwelling and professional services sub-sectors displayed a high CAGR of 10 per cent. Along with 6-7 per cent growth in the remaining four sub-sectors, this fuelled the overall expansion of the state’s services output.
Andhra Pradesh’s agricultural output recorded the highest CAGR of 7.2 per cent during FY2015-FY2024, mainly led by the fishing and aquaculture sub-sector. The share of this sub-sector doubled to 33 per cent in FY2024 from 16 per cent in FY2015, similar to the proportion of the crop sub-sector in FY2024. Led by the crop sector, the agricultural sector of Telangana and that of Madhya Pradesh displayed a CAGR of 6.2 per cent each during FY2015-FY2024. In contrast, the agricultural output of Jharkhand and Kerala declined by 0.3 per cent and 0.2 per cent respectively.
The CAGR of Odisha’s industrial sector was 10 per cent during the period, exceeding the 5.7 per cent CAGR at the national level. This was mainly led by a robust rise in the state’s manufacturing sector output. The industrial output of Andhra Pradesh, Gujarat, Tamil Nadu, Uttar Pradesh and West Bengal displayed a CAGR of 7-8 per cent.
In terms of per-capita GSVA (at current prices), Telangana, Karnataka and Tamil Nadu, were the top 3 states in FY2024, replacing Haryana, Uttarakhand and Kerala in FY2015.
