CM sets his sights on improving CAGR

A lot needs to be done in the industry and services sectors, says Naidu

After laying emphasis on the double-digit growth for the last over three years, the State government is now gearing up to improve its compounded annual growth rate (CAGR). The government has set a target of achieving 15% CAGR in the years to come.

Setting the pace for improving the CAGR at the district Collectors’ conference here on Thursday, Chief Minister N. Chandrababu Naidu said that Andhra Pradesh succeeded in achieving the double-digit growth rate from 8.51% in 2014-15 to 11.37% during the first half of the current fiscal, 2017-18.

“Compared with the national growth rate of 5.8%, A.P.’s growth rate is very impressive. But a lot has to be done, as the CAGR is still hovering over 12%,” he said, adding, “We need to improve the CAGR.” “The government has been spending huge amounts on developmental works and measuring and monitoring the input. Hereafter, the rate of output will be monitored. This will help in achieving the desired CAGR (that measures the return on investment over a certain period of time) and set targets for the growth rate (a measure of economic growth from one period to another in percentage terms),” he said.

Explaining further, Mr. Naidu said the government had spent ₹86 crore on 100% distribution of micro nutrients to the farmers. The initiative improved productivity and the benefit was ₹720 crore. Use of fertilizers and pesticides had also come down. This would have a positive impact on the health scenario also, he added.

Monitoring unit soon

“A lot has to be done in the industry and services sectors. Their contribution to the Gross State Domestic Product (GSDP) is less compared to agriculture. The manufacturing industry contributes 30% to the GSDP in Gujarat, while it is 9% in A.P. The national average is 16%. Taking the MoUs signed during the Partnership Summits is also necessary. A monitoring unit will be set up in the CMO,” Mr. Naidu said.

The government identified 40 sectors that needed focused approach. Proper planning, action plans, processes, and effective execution were required. “We want 80% public satisfaction,” he added.

Deputy Chief Ministers K.E. Krishna Murthy and N. Chinarajappa, Ministers, and Chief Secretary Dinesh Kumar were present.