Tamil Nadu, during the just concluded financial year of 2011-2012, recorded 9.39 per cent economic growth rate, the highest among southern States.
Last year, Karnataka posted 6.44 per cent growth rate; Andhra Pradesh – 6.81 per cent and Kerala - 7.8 per cent. The all-India average was 6.5 per cent, according to provisional figures available with the Central authorities.
Compared to the national average, Karnataka's rate was marginally behind; Andhra Pradesh's slightly higher and Kerala's perceptibly higher. But, it was Tamil Nadu which was much above the national figure. However, the growth rate of 10.95 per cent registered by the Union Territory of Puducherry was higher than that of Tamil Nadu. Another significant development the State witnessed last year was that it attained the second status in terms of the size of the economy, next to Maharashtra. In the process, Tamil Nadu overtook Uttar Pradesh and Andhra Pradesh. In 2011-2012, the value of the Gross State Domestic Product (at 2004-2005 prices) of Tamil Nadu was Rs. 4.28 lakh crore while it was Rs. 4.19 lakh crore in respect of Uttar Pradesh and Rs. 4.07 lakh crore in the case of Andhra Pradesh. The Maharashtra's GSDP value in 2010-2011 was Rs. 7.75 lakh crore, according to a senior policy maker.
Notwithstanding comparatively better performance last year, the State's economic growth rate was two percentage points less than that of the previous year. Considering the fact that 2011-2012 was the final year of the 11 Plan period, the State's growth rate saw its peak during 2010-2011 with 11.3 per cent.
The policymaker explains that the State's performance should be seen in a broader context, not in isolation. It is influenced by both global and national factors. Moreover, in 2010-2011, even the national growth rate figure was on the high side - 8.39 per cent, whereas in 2011-2012, there was a substantial fall.
One more aspect to be kept in mind is that the State operates on higher base unlike Bihar, which registered 13.13 per cent, the highest for the country during the previous year.
An analysis of the growth pattern reveals that the Services sector continues to dominate the economy. Segments such as financial services, real estate and hotel performed relatively well. Compared to 2010-2011, the secondary sector recovered marginally last year. The primary sector's performance – 2.63 per cent – was the best in the last five years, though it did not touch the targeted mark of four per cent.
The present government is keen on reversing the trend of the Services sector-led economic growth by providing greater push to agriculture and manufacturing, adds the policymaker.
