Tamil Nadu and Uttar Pradesh come in the second place, but far behind Maharashtra, with a GSDP of Rs 9.67 trillion each, according to the report.
Bihar has emerged as the fastest growing state in terms of gross state domestic product (GSDP), clocking a growth rate of 17.06 per cent in FY 2014-15, while Maharashtra grew by 11.69 per cent to become the biggest state with Rs 16.87 trillion economy, says a report.
Tamil Nadu and Uttar Pradesh come in the second place, but far behind Maharashtra, with a GSDP of Rs 9.67 trillion each, according to the report by Brickwork Ratings.
However, Gujarat leads Maharashtra when it comes to composition of industry in GSDP at 27.26 per cent, versus the latter’s 25.18 per cent, the domestic rating outfit said.
Fastest-growing states are Bihar at 17.06 per cent, Madhya Pradesh at 16.86 per cent and Goa at 16.43 per cent, while the newly-formed Telangana, with expansion of 5.3 per cent, is the laggard.
Along with Karnataka, Tamil Nadu and Andhra Pradesh, Maharashtra is at the forefront of development in the services sector with a healthy growth in the IT/BPO/KPO space, it said.
On infant mortality rate (the number of infant deaths for every 1,000 live births), Maharashtra’s 25 is half of the national average of 50.
Maharashtra is also the leader when it comes to dependence on taxes collected within the state, which account for 70 per cent of total revenue receipts, it said, adding it is followed by Gujarat and Tamil Nadu.
Bihar, Odisha, Tamil Nadu and Kerala spend the most on pensions, while Karnataka and Maharashtra have kept this item of expense “reasonable”, the report said.
Andhra, West Bengal, UP, Maharashtra and Tamil Nadu account for about 60 per cent of the outstanding debt of States. Agriculture contributed 19 per cent of states’ GSDP and supported between 40 to 60 per cent of the workforce.
Top five states with higher share of farm sector are Punjab, MP, Bihar, Andhra and West Bengal, where agriculture contributes between 23 and 29 per cent of the GSDP, the report said, but rued the key segment remains neglected for 60 years in spite of emphasis on it by all political parties.
“The futures markets are not well developed and farmers have to bear the price risk of crops. That results in everyone going for the same crop like sugarcane and the sugar factories unable to crush the standing cane.”
Contribution of industry to states’ GDP is very low at an average of 27 per cent compared to 40 per cent-47 per cent in other developing countries.
“Access to finance, regular technology upgradation, skill enhancement, regular supply of power and market support through stronger links with larger firms have to be improved to boost competitiveness of manufacturing sector,” it said.
On the expenditure front, the report said states spent an average 43 per cent towards social services, 22 per cent on economic services and 23 per cent on general services.