Wednesday, April 7, 2010

GSDP from agriculture sector

Growth of GSDP from agriculture sector is much more stable in Andhra region as
compared with the Telangana region as may be observed from the fluctuations in the
annual growth rates of agricultural GSDP. A dip in agricultural growth in a year on account
of drought or pest attacks or for any other reason results in a higher growth in the
following year because of the base effect. This may pull up the overall growth of the
GSDP. For instance, agricultural GSDP was estimated to have grown by as much as
62.13 per cent in 2005-06 in the Telangana region from a negative growth of 18.95 in
2004-05. If the abnormal year of 2005-06 is left out, then the average growth of
GSDP in Telangana region will be the lowest in the period 1999-2000 to 2007-08.
Agriculture sector contributes over 25 per cent of the GSDP in the Telangana

The above analysis clearly demonstrates that the GSDP growth in the Telangana
region is not higher than that in the remaining two regions. Because of
predominance of rainfed agriculture in the Telangana region and dependence on
wells, growth of agriculture in the region is highly fluctuating. The incidence of
farmer suicides is much higher in the region.

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