Andhra Pradesh Chief Minister N Chandrababu Naidu though expressed satisfaction over the continuing growth process, admitted that it would be difficult to reach desired destination of 15.28 %.
According to him, as per the figures provided at the two-day district collectors conference, presently going on in Vijayawada, the state posted an impressive growth of 12.26 % during the first quarter of 2016-17 and could almost sustain it during the 2nd quarter with an equally inspiring growth performance of 12.20%.
‘We did not reach our desired destination of 15.28% but Andhra Pradesh achieved a distinction,’ he said. Besides impressive performance in agriculture and allied sectors without additional funds from the government, crucial sectors for growth engine, which contributes a major part of revenues, like industry, manufacturing, construction and service sectors seems to be unimpressive.
The first half year reveals that as against the target of Rs 2.30 lakh crore Gross Value addition (GVA), the achievement is Rs 2.22 lakh crore, registering a growth rate of 12.23 per cent, leaving a shortfall of Rs 8,287 crore. The shortfall was projected mainly from industry (Rs 5017 crore) and the service sectors (Rs 3,694 crore).
Overall growth in agriculture and allied sector registered 30.09 per cent. Industry and service sectors with 16.13 per cent and 12.27 per cent targets ended up with only 9.46 and 9.02 per cent respectively. The downward graph in industry is attributed to closure of 30 per cent of industries (10,600 units) as against the total 15,100 for a variety of reasons.
A shortfall of Rs 3694 crore is noticed in the industrial sector as a result of slowdown in growth. Manufacturing sector clocked 10.20 per cent over the target of 14.94 per cent. Construction sector witnessed a poor show with 8.52 per cent as against the ambitious target of 17.83 per cent. The service sector too failed to meet the target of 14.28 per cent by ending up with just 9.57 per cent.
Finance Minister Yanamala Ramakrishnudu, few days ago admitted that the state economy has been suffering a whopping Rs 1,000 crore a month since the second week of November due to the problems associated with the availability of currency.
