Slowdown blues: UP clocks muted 4.1% GSDP growth in Q2 of 2019-20

The Gross State Domestic Product (GSDP) growth of Uttar Pradesh in the second quarter (Q2) of the current financial year 2019-20 stood at 4.1 per cent compared to the corresponding period last year.

Even as UP is targetting to become a $1 trillion economy by 2024, the GSDP growth of 4.1 per cent against constant (2011-12) prices is even lower than India's corresponding GDP growth during the July-September quarter at 4.5 per cent, thus reflecting greater impact of the economic slowdown in its economy.

Such estimates at current and constant prices respectively are derived as per the methodology supplied by Central Statistical Office (CSO) and using the results of All India Q2 estimates of 2019-20 released in November 2019, apart from the provisional data of targets and achievements provided by different state government departments.

According to the estimates of the Gross State Value Added (GSVA) at constant (2011-12) prices for Q2, the primary, secondary and tertiary sectors of the UP economy showed year-on-year growth of 3.5 per cent, 1.3 per cent and 6.2 per cent respectively for the current fiscal year 2019-20.

As such, the tertiary sector, which mainly comprises tourism, transport, financial services, real estate, hospitality, warehousing, communication etc, logged the highest growth numbers during Q2 in the state.

India’s GDP had reflected downward trajectory for the seventh consecutive quarter in Q2 of 2019-20 and compared to Q2 of 2018-19, it fell 2.6 per cent, when the quarterly GDP growth had stood at a higher 7.1 per cent mark. It was India’s second lowest GDP growth since the previous lowest point of 4.3 per cent in the last quarter (January-March) of 2012-13.

Meanwhile, UP’s (GSDP) at constant and market prices in Q2 was estimated at roughly Rs 2.82 trillion and Rs 4.13 trillion respectively.

The Gross State Value Added (GSVA) of crop and livestock subsector in Q2 showed a growth of 4.9 per cent and 4.2 per cent respectively for 2019-20, according to the state economic & statistics division of the State Planning Institute, Lucknow.

UP’s manufacturing subsector reflected a contraction of (-) 0.3 per cent in GSVA in Q2 of 2019-20 as compared to the corresponding quarter of 2018-19. Similarly, the services sector mirrored a growth of 6.2 per cent in Q2 of 2019-20 as compared to the corresponding quarter of 2018-19.

The GSDP (constant prices) growth of UP for 2018-19 was estimated at 5.3 per cent with the primary, secondary and tertiary sectors of the state’s economy growing by 2.1 per cent, 4.5 per cent and7.6 per cent respectively.

UP’s per capita income at Rs 66,512 in 2018-19 showed a growth of 13.1 per cent, according to the estimates. UP’s GSDP at constant prices was estimated to be Rs 11.38 trillion in 2018-19, a growth of 5.3 per cent.