The document compares the gross state domestic product (GSDP) growth rates of different Indian states in 2014-15. It finds that Bihar had the highest GSDP growth rate at 17.06%, followed by Madhya Pradesh at 16.86% and Meghalaya at 15.56%. The economies of Bihar and Madhya Pradesh are driven largely by services and agriculture respectively, and both states have implemented reforms to encourage economic development in other sectors as well.

1. COMPARATIVE ANALYSIS
OF GROSS STATE DOMESTIC
PRODUCT OF DIFFERENT
STATES OF INDIA
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PRESENTED BY
Subarnarekha Pradhan,
Bhagyashree Mohanty,
Subashis Behera
Biswajit Rath

2. Gross domestic product (GDP) is the monetary value of all the finished goods and services
produced within a country's border in a specific time period. GDP is a broad measurement of a
nation’s overall economic activity.
ESTIMATION OF GDP:
The GDP in India is calculated using two different methods. The first method is based on
economic activity(at factor cost),and the second is based on expenditure(at market price).
The components of GDP are;
{Personal Consumption Expenditure +Business Investment+ Government
Spending+ Net Exports (Exports-Imports)}
Equation:
C+I+G+(X-M)
Where, C-Consumption Expenditure
I – Investment Expenditure
G-Government Expenditure
X- Exports & M- Imports
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What is 'Gross Domestic Product – GDP

3. It is used as an indicator of the economic health of a country.
It can be used to compare the productivity of various countries with a high
degree of accuracy.
It is used in measuring a nations economic growth or decline.
It is helps to government make decisions for a stagnant economy by
investing money into it or, slow down an economy that’s getting overheated.
It is also guide to business to expand or control their production and other
business activities.
GDP provides a framework to investors for investment decision making.
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SIGNIFICANCE OF GDP:

4. 4
There are many different ways to measure a country's GDP
Nominal GDP:-
Nominal GDP is gross domestic product (GDP) evaluated at current market
prices, GDP being the monetary value of all the finished goods and services
produced within a country’s borders in a specific time period.
Real GDP :-
Real GDP is a measurement of economic output that accounts for the effects
of inflation or deflation.
Growth Rate :-
Growth rates refer to the percentage change of a specific variable within a
specific time period, given a certain context.
GDP PER CAPITA :-
Per capita GDP is a measure of the total output of a country that takes gross
domestic product(GDP) and divides it by the number of people in the country.

5. GROSS STATE DOMESTIC PRODUCT
Gross State Domestic Product(GSDP) is the monetary terms, of the
volume of all goods and services produced within the boundaries of the
state during a given period of time.
SIGNIFICANCE OF GSDP:-
 It is used to determine both the absolute and relative performance of the
economy of the state.
 It is also an important tool to measure the regional imbalances and the
level of living of people.
 The estimates are also useful in measuring the effects of implementation of
planned programs.
 It is used for policy formulation in various given sectors.
 It is a measure of structural changes in the pattern of production of
goods and services for purpose of economic analysis in the wake of
balanced growth.
 The S.D.P estimates are also used for assessing the impact of
budgetary transactions on the economy of the state.
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6. Basically state income can be estimated by any of these three approaches:-
 OUTPUT APPROACH
 INCOME APPROACH
 EXPENDITURE APPROACH
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7.  Agriculture including Animal Husbandry
 Forestry and Logging
 Fishing
 Mining and Quarrying
 Manufacturing Registered
 Manufacturing Un-registered
 Construction
 Trade, Hotel and Restaurants
 Banking and Insurance
 Electricity, Gas and Water Supply
 Transport, Storage and Communications
 Real Estate, Ownership of
 Dwellings and Business Services
 Public Administration
 Other Services
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8. GSDP AT CURRENT PRICES ,PERCENT GROWTH
(2005-06—2014-15)STATE
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Andhra Pradesh 9.53 17.92 22 11.78 15.14 17.03 13.25 13.2 13.2 12.03
Arunachal Pradesh 7.65 9.4 17.09 18.23 31.42 20.7 19.44 9.85 14.44 15.08
Assam 11.21 8.94 9.87 14.07 18.38 17.41 11.73 9.93 15.22 15.26
Bihar 6.05 22.12 12.85 25.16 14.51 24.94 19.51 20.7 17.05 17.06
Chhattisgarh 11.53 25.28 20.01 20.83 2.47 20.18 20.9 14.72 12.1 13.2
Goa 12.7 15.33 18.41 29.9 14.61 15.38 28.72 -1.96 15.3 NA
Gujarat 20.34 15.92 16.07 11.73 17.22 20.93 14.82 9.98 16.26 NA
Haryana 13.66 18.23 17.76 20.4 22.51 16.56 14.61 14.28 13.93 11.93
Himachal Pradesh 12.67 11.6 12.19 22.14 16.17 19.22 13.06 13.48 12.04 NA
Jammu& Kashmir 9.58 11.06 11.64 14.06 14.34 20.02 17.41 12.8 13.85 0.4
Jharkhand 1.91 9.91 25.42 4.58 14.61 26.5 6.55 11.83 13.93 14.32
Karnataka 17.49 15.99 19.1 14.66 8.78 21.67 10.84 14.82 17.59 14.24
Kerala 14.74 12.38 13.89 15.78 14.41 13.7 18.54 11.25 13.93 NA
Madhya Pradesh 10.05 16.34 11.69 22.17 15.35 15.75 15.86 18.39 20.33 16.86
Maharashtra 17.16 20.08 17.16 10.1 13.5 22.6 11.53 13 14.21 11.69
Manipur 11.4 7.33 10.53 9.08 11.56 10.7 21.31 14.55 12.81 NA
Meghalaya 10.76 18.72 12.87 19.33 9.4 14.75 17.94 10.52 15.32 15.56
Mizoram 10.78 10.74 15.99 19.94 14.92 21.44 7.86 21.38 23.13 NA
Nagaland 12.83 10.15 11.27 16.85 11.56 11.7 17.86 13.11 13.22 13.24
Odisha 9.48 19.68 26.94 14.87 9.73 21.22 11.67 13.89 8.66 13.86
Punjab 12.18 17.02 19.76 14.32 13.48 14.53 13.34 11.21 11.38 10.16
Rajasthan 11.34 20.25 13.9 18.54 15.1 27.28 22.41 13.52 10.09 11
Sikkim 14.61 8.43 15.96 28.85 89.93 20.85 20.17 17.58 18.18 NA
Tamilnadu 17.73 20.44 12.98 14.4 19.53 21.92 14.07 11.64 14.68 14.34
Telengana 20.44 17.2 20.07 24.22 7.46 29.67 15.81 13.57 12.87 9.92
Tripura 10.35 11.07 8.09 15.05 13.48 16 11.79 13.63 18.12 NA
Uttar Pradesh 12.39 14.72 13.89 16.1 17.7 14.69 14.19 13.84 10.55 13.16
Uttarakhand 20.91 22.78 24.63 22.18 26.25 18.72 16.54 10.62 13.53 12.88
West Bengal 10.35 13.65 14.45 14.18 16.65 15.56 14.61 14.2 17.11 13.35
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9. • Pertaining to the 2014-15 GSDP growth rate of Bihar is highest in
the country, followed by Madhya Pradesh which has the second
highest GSDP growth rate in the country.
• The growth rate in GSDP of Bihar and Madhya Pradesh are
17.06% and 16.86% respectively.
• Meghalaya will come in the third place and Assam and Arunachal
Pradesh will come in the fourth place with a GSDP growth rate of
15.56%, 15.26% and 15.08% respectively.
• The top ten states of India, ranked on the criterion of GSDP
growth rate recorded by the respective states in the financial year
2014-15 where : Bihar, Madhya Pradesh, Meghalaya, Assam,
Arunachal Pradesh, Tamilnadu, Jharkhand, Karnataka, Odisha,
West Bengal.
• Jammu and Kashmir have the lowest growth rate of GSDP that is
0.40%.
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10. • The economy of Bihar is largely service
oriented, but it also has a significant
agriculture base. The state also has a small
industrial sector.
• Sector-wise contribution of Bihar to the total
GDP in the year 2016
Agriculture-18%
Industry- 23%
Service- 59%
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11. • Since November 2005, a new government led by
Nitish kumar has implemented a number of economic
and social reforms.
• The state has planned incentives for the development
of other sectors such as education and tourism and
also provides incentives for information technology
and renewable energy.
• A consequence has been a positive improvement in
the economy of the state and also of Patna. For
example in June in 2009 the World Bank reported that
Patna was the second best city in India to start a
business, after Delhi.
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12. • Agriculture is the dominating sector in Madhya Pradesh
representing the major source of livelihood.
• Sector-wise contribution-
Agriculture- 34% Industry- 22%
Service- 38%
• Madhya Pradesh is the second largest growing state
having GSDP growth rate of 16.86%.
• Development of robust infrastructure, conducive
environment policy gave rise to the growth of
industrialization.
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13. • Emerging High-Tech industries and other sectors made
their significant contribution by taking the geographical
advantages.
• Madhya Pradesh is endowed with natural resources.
• Plug and Play facilities for new entrepreneur creates
demand of incubation.
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