"In spite of high growth rates recorded in finance & real estate and other services sectors during 2012-13, the low growth of 6.5 per cent may be explained by the negative growth registered in Agriculture & Allied activities sector and low growth recorded in manufacturing, electricity, gas & water supply...," said Haryana's latest economic survey for 2013-14.
The agriculture and allied activities of an agrarian state posted negative growth of 0.7 per cent for 2012-13 (Quick Estimates) while other sectors including manufacturing recorded low growth at 4.9 percent, electricity, gas & water supply at 0.5 percent, construction at 4.7 percent, transport, communication & trade at 6.7 percent, as per survey.
Although finance & real estate and other services sectors grew by 15.3 percent and 13 per cent respectively for 2012-13, said survey.
As per survey, 6.5 per cent of Haryana's GSDP growth, at constant prices, was lowest since 2007-08.
It also highlighted that the state economy grew at an average annual growth rate of 8.8 percent during the 2005-06 to 2012-13.
According to advance estimates, the Gross State Domestic Product (GSDP) is against expected to grow at lower rate of 6.9 per cent for 2013-14 at constant prices.
"The sharp slow down in growth of agriculture & allied activities (3.2 per cent), manufacturing (3.8 per cent), electricity, gas & water supply (5.1 per cent), construction (4.6 per cent), transport, communication & trade (5.6 per cent) and public administration (3.5 per cent) sectors is mainly responsible for the lower growth of 6.9 per cent in real GDP of the state in 2013-14," said the survey.
Noting that agriculture and allied sector continued to be a critical factor in the overall performance of the state economy, the survey pointed out that high economic growth without consistent and rapid agricultural growth was likely to accelerate inflation in the state which would jeopardise the larger growth process.
Haryana's farm and allied sector witnessed negative growth rates of 0.1 per cent and 1.4 per cent in 2007-08 and 2009-10, respectively, as per survey.
Pointing out structural changes in state economy, the survey said that the share of farm and allied sectors in GSDP sharply dropped from 60.7 per cent in 1969-70 to now 15 per cent in 2013-14. However, the share of services sector in state GDP strengthened to 58 per cent in 2013-14 from 21.6 per cent in 1969-70.
"Thus the composition of State GDP shows that the share of agriculture & allied sector is continuously declining, whereas the share of services sector is continuously increasing," it added.