The State economy of Assam has witnessed “a picturesque change” over the period from 2004-05 to 2013-14, as the primary sector witnessed a shift to service sector and the service sector has flourished rapidly in the State economy, says the report of the Economic Survey, Assam, 2013-14 tabled on the floor of the Assam Assembly on Monday.
Other than service sector, the percentage contribution of agriculture and allied activities and industry sector to Assam’s Gross State Domestic Product at constant (2004-05) prices recorded a steady decline during the period from 2004-05 to 2013-14.
“In respect of agriculture and allied activities the contribution is expected to decrease from the level of 25.5 per cent in 2004-05 to 21.3 per cent level in 2013-14. The “agriculture sector” although the major contributor of agriculture and allied activities, the percentage contribution of this sector towards the state economy has been declining steadily and expected to reach the level of 17.8 per cent in 2013-14 from 21.7 per cent in 2004-05.
The percentage contribution of the Industry Sector to the State economy has also shown the same declining trend and expected to fall from 27.54 per cent in 2004-05 to 21.27 per cent in 2013-14.
Within the ‘industry sector’, the percentage contribution of mining and quarrying, the most potential sector of the State, has also recorded decline from 8.76 per cent in 2004-05 to 5.13 per cent in 2013-14,” says the report published by Directorate of Economics and Statistics, Assam.
On the other hand, the Services Sector has shown “an encouraging trend in the State economy” and has increased from 47 per cent in 2004-05 to 58 per cent in 2013-14.
The survey attributes the growth in services sector to rapid diversification in the communication sector, transport sector, trade and business services, banking services, hotel and catering services and introduction of various ancillary services.
“In fact the Services sector has radically changed the structure of the economy and generated significant level of employment particularly in the private sector of the economy. It is hoped that this sector would be able to provide larger employment opportunity for the young generation of the state in near future,” the report says.
The survey brings out that according to Advanced Estimates for 2013-14, the GSDP at constant (2004-05) prices is estimated at Rs. 88,537.17 crore as against Rs. 83630.23 crore for the 2012-13 (quick estimates), reflecting a growth rate of 5.87 per cent which is lower than the growth rate of 6.06 per cent estimated in 2012. “The expectation of growth of 5.87 per cent in the GSDP of the state for 2013-14 comprises of the estimated growth of 4.59 per cent in Agriculture and Allied Sector, 4.28 per cent in Industry sector and 6.95 per cent in services sector.”
The Economic survey, however, says that the State has achieved an annual average growth rate of GSDP at 6.41 per cent during the eleventh plan period from 2007-2012 as against 5.33 per cent annual average growth rate during the tenth plan period from 2002 to 2007. As compared to the tenth plan period, the agriculture and allied sectors has “improved considerably” during the 11th plan period and achieved a growth rate of 3.86 per cent. The growth rate in Industry sector has shown a slowdown during the 11th plan period and pegged at 4.27 per cent, compared to 7.90 per cent annual average growth achieved during the tenth plan.
“The slowdown of the Industry sector is mainly due to some social disorder in the State during the period and economic meltdown in the country as reflected by latest downbeat of all India Index of Industrial Production. More acceleration in the Industry sector is required to flourish in the coming days,” adds the 293-page survey report.
