New Delhi, Jan 31: The Economic Survey 2024-25, presented in Parliament today by Union Finance Minister Nirmala Sitharaman, has drawn attention to the stark regional disparities in industrial growth across India. The Survey emphasizes the need for state-specific business reforms to foster growth across industrial and service sectors, particularly in lagging regions.
According to the report, four industrially advanced states—Gujarat, Maharashtra, Karnataka, and Tamil Nadu—together contribute around 43% of the country’s total industrial Gross State Value Added (GSVA). In contrast, six northeastern states, excluding Sikkim and Assam, account for just 0.7% of the national industrial GVA, underscoring significant developmental imbalances.
The Survey highlights the importance of adopting customized industrial strategies, particularly in geographically distinct areas like the Northeast. While industrial hubs such as Gujarat, Uttarakhand, and Himachal Pradesh have successfully leveraged their industrial sectors to generate higher incomes, many regions have yet to achieve similar outcomes.
The report also points out notable inter-state differences in construction activity, which is closely tied to infrastructure development, urbanization, and real estate trends. For example, Kerala, which is less industrialized compared to other states, stands out as a positive anomaly. Construction activity accounts for nearly half of its industrial GSVA, demonstrating the state’s ability to harness growth in this sector despite limited industrial development.
Additionally, the mining sector accounts for about 8% of India’s total industrial output, with activities concentrated in just five states: Assam, Chhattisgarh, Gujarat, Maharashtra, and Odisha. Together, these states account for nearly 60% of the mining GSVA, further highlighting the uneven distribution of industrial resources.
The Survey underscores the need for states to create a more business-friendly environment to encourage investment and growth. “States should make it easier for businesses to commence operations and grow, which will help bridge the gap in living standards and per capita incomes across the country,” it states.
In conclusion, the Economic Survey 2024-25 calls for targeted reforms and investments tailored to the unique strengths and challenges of each state. By addressing regional imbalances and creating growth-enabling conditions, India can work towards achieving more equitable and sustainable economic development.
