Per Capita Income of the State estimated to be Rs. 1,35,701 in 2021-22
Gross State Domestic Product (GSDP) of Nagaland as of July 30, 2021-22 has picked up from a negative growth of -2.63 percent to 8.98 percent in 2021-22. This was informed by the Department of Economics & Statistics during a press conference held at the Directorate of Economics and Statistics, Kohima on 21st September 2022.
GSDP is the sum total of value added by different economic sectors (Agriculture, Industry & Services) produced within the boundaries of the state calculated without duplication during a year and is one of the measures of economic growth for a state’s economy. According to Neidilhou Angami, Director of Economics and Statistics, advanced estimates indicate that the state economy’s growth has surpassed the pre-pandemic average growth rate of 5.38 percent (2011-12 to 2019-20), despite the second wave of the pandemic plaguing the economy in the first quarter of 2021-22.
“In absolute numbers, the real growth of the economy is estimated to increase from Rs. 17,991.61 crore in 2020-21 (Provisional) to Rs. 19,607.83 crore in 2021-22 (Advanced Estimates). Correspondingly, the nominal growth of the economy is estimated to have increased from Rs.30, 425.11 crore in 2020-21 to Rs.33, 705.84 crore in 2021-22 (A.E),” he added.
Data shows Nagaland is moving towards tertiary economy
According to the department, over the years, the tertiary sector has become the most robust sector in the state which contributed 62.77 percent of Gross State Value Added (GSVA) in 2021-22. The department also informed that as per the indication of the sectoral contribution, the structural change of the economy was slowly shifting towards the tertiary sector of the economy.
The tertiary sector is made of the market services sector such as trade, transportation, accommodation, etc. and the non-market services sector like the public administration, education, human health and social work activities.
“The share of the tertiary sector which has contributed 56.17 percent to the GSVA in 2011-12 has steadily increased to 62.77 percent in 2021-22 (A.E),” the department informed.
Meanwhile, the contribution by the primary sector to GSVA has reportedly declined from 31.4 percent in 2011-12 to 26.88 percent in 2021-22(A.E) while the contribution of the secondary sector has been hovering around 9 percent to 12 percent since 2011-12, reaching a peak of 12.90 percent in 2017-18.
Regarding the sub-sector secondary sector, the department informed that, it is estimated to pick up from a negative of -9.12 percent in 2020-21 to 9.36 percent in 2021-22. Sub-sector comprises of manufacturing, electricity, gas, water supply and other utility services, and construction. It was also informed that the contribution from the manufacturing sector to GSVA was estimated at 1.62 percent only in 2021-22.
According to the department, the least affected by the Covid-19 Pandemic was the sub-sector of electricity, gas, water supply, and other utility services while trade & repairs and hotel & restaurant sectors were affected the most with a growth rate from the sector falling to a negative of -7.57 percent in 2020-21. However, with the normalization of the economy, the growth of the sub-sector is estimated to bounce back to positive growth of 6.80 percent in 2021-22 (A.E).
Further, the sub-sector of electricity, gas, water supply, and other utility services is estimated to grow by 9.43 percent during 2021-22 (A.E), while the growth in the construction sector is estimated to pick up from -14.26 percent in 2020-21 to 8.15 percent in 2021-22 (A.E). It is estimated that the construction sector share in GSVA will be at 6.04 percent in 2021-22.
The department also estimates a growth in the financial services at 9.21 percent with a share of 3.89 percent in the overall GSVA during 2021-22 which was also assumed to be one of the sub-sectors affected least by the pandemic.
According to the department, this growth is because “the number of dwellings during the year is expected to remain the same” while it is to be noted that during 2020-21, the gross value added by real estate and ownership of the dwelling was estimated to have a negative growth of -2.75 percent.
During 2021-22, as per the Budget Estimates of Government, the allocation for public administration has increased from Rs. 6015.90 crore in 2020-21 to Rs. 6764.28 crore, the department informed.
The Department also revealed that over ten years, the Per Capita Income of the State has increased from Rs. 53,010 in 2011-12 to Rs. 1,35,701 in 2021-22 (A.E), achieving a Compound Annual Growth Rate (CAGR) of 9.86 percent.
It also highlighted that the borrowing limit of the State Government is determined by the amount of the GSDP of the State, and as per the Finance Commission of India recommendation for budgetary measures, beginning from XIII FC, State Government is permitted to borrow only 3 percent of the GSDP from financial institutions.
