macroproject-130321065700-phpapp02

8/13/2019 macroproject-130321065700-phpapp02

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2/90

Group 10 Section D

Arpit Jain (12P189)

Girish Chandra Joshi(12P199)

umar Abhina!(12P209)

"arunChopra(12P219)

SantoshGarbham(12P229)

"i#ash"(12P2$9)


3/90

ECONOMIC REVIEW WEST BENGAL 2

AcknowledgementWe would like to express our gratitude to all tose wo made it possiblefor us to conduct tis anal!sis"

We would especiall! like to tank Pro%& Suni' Ashrafor pro#iding us wit an

opportunit! to work on tis topic tereb! elping us gain #aluable insigts about

te econom! of West $engal% as well as for pro#iding us guidance and support

wit respect to our project"

We are also grateful to our college for pro#iding us wit te infrastructurewic ser#ed to be a useful aid and would like to tank te librar! staff for

rendering significant cooperation towards te same"

We would also like to tank our friends wo elped us wit suggestionsand encouragement trougout our course of anal!sis


4/90


5/90


Contents

1. Growth perforan!e of WestBenga"############$$%

2. Inf"at&on############$$############$$##$#23

3. Se!tor'w&se !ontr&()t&on to GS*P##$#######$$####2%

4. Se!tor w&se !ontr&()t&on to Ep"o+ent$######$###3,

5. *e(t s&t)at&on &n West Benga"#######$#########3-

.$ /&s!a" *ef&!&t ,0

7. Con!")s&on###################$########,1

8. Referen!es###################$########,2


6/90

Group 10 Section D Page 3


7/90

ECONOMIC REVIEW WEST BENGAL ,


8/90

Group 10 Section D Page ,


9/90


10/90

Real GSDP (in absolute values)

West Benga" 3393%9-31$-0

:ttar Praesh ,290091.%$10

Ta&" Na) ,19.%9,6,$10

Ra


11/90

ECONOMIC REVIEW WESTBENGAL .

Real GSDP (%e

contribution)

West Benga"

.$

,1

:ttar Praesh -$07

Ta&" Na) -$01

Ra


12/90

=arnata8a,-97-6

AnhraPraesh

,79-,-

0109000

209000

309000

,09000

%0900

0

.09000

709000

-09000

Per Cap&taGS*P

It;s !opare &n no&na" ters &n the graphs (e"ow$

GSDP !o"inal

West Benga"%,91%9-

%%$.0

.-97-93.2$-0

Ta&" Na).396092,.$

003.9-3916%$20

Maharashtra 192,9-,9%2-$00319%39-

..$.0

=era"a329..96

2-$60

,%9-69027$,0Anhra

Praesh .79%796-0$00

0.0 209009000$,09009000$.09009000$-09009000$1900900900019209009000$19,09009000$$00

Group 10 Section D Page .


13/90


GSDP!o"inal

West Benga"

.$

%--$3%

Ta&" Na)7$7.

,$,7

Maharashtra1%$1.

3$-3

=era"a

3$67

%

$

%

7

AnhraPraesh

-$21

0$00

2$0

0 ,$00

.$0

0 -$00

10$0

0

12$

00

1,$

00

1.$0

0

as a @ge ofG*P

1.2 Contribution to #riculture$ n&ustr' an& Servicesectors:

The ata (e"ow reea"s that a


14/90


15/90



16/90


17/90

Mah+aPraesh

3$1%

=era"a

,$%,

=arnata8a

%$%7

Anhra Praesh

7$

%3

0$002$0

0,$0

0 .$00 -$0010$00

12$

00

1,$00

1.$00

1-$00

As a @ge of G*Pser&!es

Sectoral Contributionto GDP

West Benga"

6$

1

3

,$%6 .$7.

:ttar Praesh1,$-

.

7$

0

0 7$3-

Ta&" Na)%$-

2-$-,

7$6%

Ra


18/90


1. Grot* Per+or"ance in 2011,12:

The growth perforan!e of West Benga" has o)tperfore In&a;s growth &nagr&!)"t)ra" se!tor$ The agr&!)"t)ra" se!tor saw a growth of 16$6%@ >no&na"?

wh&"e In&a;s aerage was at aro)n 6$,%@$ B)t &n rea" ters9 we &n;t see so

)!h of growth &n th&s se!tor$ That !an (e attr&()te to h&gh foo &nf"at&on &n the

!o)ntr+$ B)t st&"" as per RBI E!ono&! re&ew for 2011'129 West Benga"9 B&har an

har8han reg&stere s&gn&f&!ant &n!rease &n +&e"9 pro)!t&on an !)"t&ate area$

Benga" &s the "argest pro)!er of r&!e &n the !o)ntr+$ Tho)gh there &s spe!ta!)"ar

growth &n agr&!)"t)re9 the growth &n other se!tors was (e"ow aerage$ A "oo8 at

ta("e (e"ow reea"s that$ The !op"ete ata !an (e fo)n &n the anne)re &n

Ta("es 1$3 an 1$,$

Growth &n S*P

At !)rrent pr&!es In&a 2011'12 @ !hange perann)

GS*P

NS*P

Per!ap&ta

Per!ap&ta GS*P

GS*P

GS*Pser&!es

GS*P NS*Pagr&!)"t)re

&n)str+

WestBenga"

1%$-7

1%$62 1,9-0 1,9-. 16$6%

1,$.- 1%$0,

In&a1%$0

21%$0

. 139-. 6$,%12$0

2 17$.

Growth &nS*P

At !onstant pr&!es In&a 2011'12 @ !hangeper ann)

GS*P NS*P Per!ap&ta Per!ap&ta GS*P GS*P GS*P

GS*P NS*Pagr&!)"t)re

&n)str+ ser&!es

WestBenga" .$%% .$.. %9%7 %9.7 3$. 3$71 -$37

In&a .$,- .$,- %9,3 3$0% 3$3- -$61

1.- istoric Grot* Per+or"ance o+ est enal:

et*o&olo': *ata &s aa&"a("e w&th (ase +ears at 1670'-09 16-0'-19 1663'6,

an 200,'0%$ Conert&ng fro one (ase to another (ase &s not a stra&ght


19/90

ethoo"og+$ Th&s &s so (e!a)se when ata &s !onerte9 the &n&&)a"

!oponents wo)" ar+ rast&!a""+ &f on"+ !opos&te f&g)res are ta8en$ S&&"ar"+ &f

&n&&)a" !oponents are !onerte &n&&)a""+9 the !opos&te a")es !hange$

A"so9 "ong ter oesn;t ref"e!t the perforan!e effe!t&e"+$ So the ethoo"og+fo""owe here &s as fo""ows

1. Ser&es w&se a(so")te a")es are ta8en an growth rates are ana"+se for rea"GS*P

2. As the a")es of GS*P are not aa&"a("e &n 1670 ser&es9 NS*P a")es areana"+4e

3. As the !)rrent a")es !an (e eas&"+ !onerte9 the "ong ter eo")t&on &sana"+4e on the (as&s of !)rrent a")es of GS*P$

4. As growth per!entage rea&ns !onstant &rrespe!t&e of (ases9 rea" G*Pgrowth rate &s a"so ana"+se for "ong r)n



20/90


1.-.1 Grot* Per+or"ance (130 series):

The fo""ow&ng graph shows the growth rate for the ata aa&"a("e &n 1670'71ser&es for NS*P$ >Refer Ta("es 1$%?

130,31 series!SDP

.9009000$

00%9009000$

00

,9009000$

00

39009000$

00

29009000$

0019009000$

00

0$00&'()* (& &

'&*2

&'2*+

&'+*,

&

'

(

,

*(

-

&

'

(

-

*

&'.*

&

'

(

(

*

(

/&

'

(

/

*

(

'

&

'

(

'

&'/*/&

&'/&*/2

&'/2*/+

&'/+*/,

&'/,*/-

&'/-*/.&'/.*

/(&'/(*//


21/90

(

.

*

/

)

NS*P &n Rs$"a8hNS*P

Agr&!)"t)re

In)str+

Ser&!es

130,31 series!SDP

,0$00

30$00

20$00

10$0

00$00

'10$00

'20$

NS*P D'o'D GrowthNS*P D'o'DGrowth

Agr&!)"t)re D'o'DGrowth

In)str+ D'o'DGrowth

Ser&!es D'o'D Growth

The growth rate of rea" NS*P &s h&gh"+ f")!t)at&ng )r&ng the +ear 16-0 an 16-3$/ro the ata on the net state oest&! pro)!t an&ts !oponents9 &t wo)"appear that NS*P growth ratesp&!8e )p &n the 16-0s9 the a&n !ontr&()tor tothata!!e"erat&on (e&ng agr&!)"t)re$As po&nte (+ p"ann&ng !o&ss&on report of2010 on West Benga"9 an+ ana"+sts haefo)n9 the "an refors !arr&e o)t (+the Goernent of West Benga"9 !o(&ne w&th the operat&ona"&4at&on ofthee"e!te Pan!ha+at& Ra< Inst&t)t&ons pro&e (othreso)r!es an &n!ent&es tothe sa"" an arg&na"peasants an there(+ he"pe ra&se the rates ofagr&!)"t)ra"growth to a h&stor&! h&gh$



22/90


Regress&on ana"+s&s for NS*P a!ross three se!tors wo)" reea" how e!ono+

was hea&"+ r&en (+ agr&!)"t)re &n those a+s an that a"so shows wh+ WestBenga" was a a


23/90

Mean dependent ,ar "22"(1

SD dependent ,ar 5"'(#2

39ai9e in-o +riterion 4#4#2)

S+har; +riterion 45)(#55

DurbinWatson stat 1())'24

1.-.2 Grot*Per+or"ance (140,41series):

The !onstant GS*P for rea"a")es &s ana"+4e &n thegraphs (e"ow$ >Refer Ta("e1$.?

309000

2%9000

209000

1%900

0

10900

0%9000

0

GS*P

Group10SectionD

Page 11


24/90


GSDP Grot* 140,41series

30$00

2%$00

20$00

1%$00

10$00

%$00

0$00

'%$00'

10$'

1%$00

GS*P D'o'D GrowthAgr&!)"t)re D'o'Dgrowth


25/90

In)str+ D'o'DGrowth

Ser&!es D'o'DGrowth

Dependent Variable: GSDG0

Method: Least Squares

Date: 12/1/12 Ti!e: 1(:12

Sa!ple $ad%usted&: 1')1 1''(

*n+luded obser,ations: 1( a-ter ad%ust!ents

Variable .oe--i+ient Std 0rror tStatisti+rob

GSD23G0 42)''11 444))15 "2))"#)44444

GSD2*G0 4"14))' 442)("4 14)24''44444

GSD2SG0 4")#2( 4424"' 1)))((544444

Rsquared 4''2))#

3d%usted Rsquared 4''1)5(

S0 o- re8ression 425#)'

Su! squared resid 4')5()#

Lo8 li9elihood 44("##(


26/90


27/90


There e&sts a pro("e w&th an)fa!t)r&ng se!tor$ The state has a goo

an)fa!t)r&ng se!tor )r&ng 16.0s an &t rea&ne stagnant s&n!e$ It aga&nstarte grow&ng & 1660s$ Strong trae )n&on&s &n West Benga" &s often

a""egeas a a


28/90



29/90

ECONOMIC REVIEW WEST BENGAL 1,

GSDP as a %eo+ GDP

-$.

0

-$,

0

-$2

0

-$0

07$-

07$.

07$,

0

7$2

0

7$0

0

.$-

0

1 2 3 , % . 7 - 6

1

0

1

1

1

2

1

3

1

,

1

%

1

.

1

7GS*P as @ge

of G*P


30/90

1.-. Grot* Per+or"ance(1,- series):Refer Ta("e 1$7 for ata$

GSDP 1,-series

19209000

19009000

-09000

.09000

,09000209000

0

GS*PGS*PAgr&!)"t)re

GS*PIn)str+

GS*PSer&!es


31/90

Group 10 Section D Page 1,


32/90

ECONOMIC REVIEW WEST BENGAL 1%

GSDP Grot* 1,-series

20$0

01%$0

010$0

0

%$00

0$00

'%$00'

10$0

0

GS*P D'o'D GrowthAgr&!)"t)re D'o'Dgrowth

In)str+ D'o'DGrowth

Ser&!es D'o'DGrowth



Date: 12/1/12 Ti!e: 1):25

Sa!ple $ad%usted&: 2 12


33/90

*n+luded obser,ations: 11 a-ter ad%ust!ents

Variable .oe--i+ient Std 0rror tStatisti+rob

GSD23G0 42)1))2 4422421 12)44)544444

GSD2*G041)4411 44"))1 #5"((21

444

1(

GSD2SG0 42(22' 442"124 22)4"((44444

Rsquared 455'4)2

3d%usted Rsquared 4)5""

S0 o- re8ression 4"#121"

Su! squared resid 4'"1#4)

Lo8 li9elihood 242'4)2


34/90


35/90


36/90

GSDP as %eo+ GDP

-$.0

-$,

0-$2

0-$0

07$-

07$.

07$,

07$2

07$0

0.$-

0.$.

0

1 2 3 , % . 7 - 6 1011

12

GS*P as @ge ofG*P

Group 10 Section D Page 1.


37/90


1.-.- Grot* Per+or"ance (200,0- series):

In re!ent +ears9 West Benga";s an)fa!t)r&ng an agr&!)"t)ra" se!torperforan!e hae !oe own rast&!a""+$ B)t &ts ser&!es se!tor st&"" p"a+s a

a


38/90

200,'0% 200%'0. 200.'07 2007'0- 200-'06 2006'10 2010'112011'12

GS*PGS*PAgr&!)"t)re

GS*PIn)str+

GS*PSer&!es

GSDP Grot* 200,0-

Series12$0

010$0

0

-$00

.$00

,$00

2$00

0$00

'2$00

200,'0%

200%'0. 200.'07

2007'0- 200-'062006'10

2010'11

',$00

GS*P D'o'DGrowth

Agr&!)"t)re D'o'DGrowth

In)str+ D'o'DGrowth

Ser&!es D'o'Dgrowth



Date: 12/1/12 Ti!e: 1':1'

Sa!ple $ad%usted&: 2 )

*n+luded obser,ations: ( a-ter ad%ust!ents



39/90

ECONOMIC REVIEW WEST BENGAL 1-

Variable .oe--i+ient Std 0rror

tStatisti+ rob

GSD23G0 424"12 44"4212 5(2"2(4442

GSD2*G0 421('"1 44251(( )"2"'244411

GSD2SG0 4(#"2) 441"2" #"""#"44444

Rsquared 4')1"14

3d%usted Rsquared 4'(1'5

S0 o- re8ression 41)51(1

Su! squared resid 41")5")

Lo8 li9elihood "('"(24


40/90

Mean dependent ,ar 5'"(5"'

SD dependent ,ar 1111)'2

39ai9e in-o +riterion 4225(((

S+har; +riterion 42#'')

DurbinWatson stat 4#2)#)1

GSDP 200,0- Series12$0

010$0

0

-$00

.$00

,$00

2$00

0$00

200,'0% 200%'0. 200.'07 2007'0-

GS*P D'o'D Growth

GSDPas a%eo+GDP

7$20

7$00

.$-0

.$.0

.$,0

.$20

.$00

200,'0% 200%'0. 200.'07 2007'0- 200-'062006'10 2010'11 2011'12

G

S*Pas@geof

G*P

Group10SectionD

Page 1-


41/90


1.-. Grot* Per+or"ance 7on 5er":

In WestBenga"9 the oera"" e!ono&! growth rate &proe &n the16-0s9 ana!!e"erate f)rther &n the 1660s !opare tothe perforan!e &n the 1670s$ Therate of growth of thestate e!ono+ after the 16-0s >1661'200.? ha (eennear"+

o)("e the rate prea&"e &n the 1670s$

*)r&ng "ate 1670s an ear"+ 16-0s West Benga" rate of growth rates were rap&

tho)gh the+ were &n a!!oran!e w&th !o)ntr+;s growth rate$ The rap&&t+ shows

greater !ontr&()t&on to G*P an hea+ epenen!e on pr&ar+ se!tor$ Th&s ta("e

shows how WB growth rate has ar&e on a !opo)ne on %'+ear"+ (as&s$ It

shows West Benga" was o&ng we"" &n )r&ng per&os 1670'7%9 16-0'-%9 1660'

2000 an aga&n 200%'2012$ Refer Ta("e 1$6

CAGR

GS*P

WB

G*

P

1670'167% 3$1, 2$-2

167%'16-0 2$,% 2$-.

16-0'16-% ,$03 3$7%

16-%'1660 3$-2 ,$37

1660'166% %$03 ,$31

166%'2000 .$6. ,$%,

2000'200% %$.6 %$.,

200%'2010 7$13 .$%1

2010'2012 .$-6 ,$6

The e!ono+ perfore at a )!h (etter pa!e )r&ng ear"+ 1660s$ Of "ate &t !an(e seen that the e!ono+ was s"ower that In&a;s growth pa!e )r&ng 200,'0-per&o$


42/90



43/90


GDP vs GSDP

1,$0

0

12$0

010$0

0

-$00

.$00

,$00

2$00

0$00'

2$00

',$'

.$00'

-$00


44/90

G*P growth rateWB GS*Pgrowth

West Benga" perfore (etter &n agr&!)"t)re s&n!e theear"+ 16-0s$ A!!or&ng to a

p"ann&ng !o&ss&on report9 the state starte to "ose &ts pro&nen!e

&nan)fa!t)r&ng growth s&n!e the &'16.0s$ B)t &t !an (e seen that the rateofan)fa!t)r&ng growth &n!rease after the &'1660s$

In WestBenga"9 the oera"" e!ono&! growth rate &proe &n the16-0s9 an

a!!e"erate f)rther &n the 1660s !opare tothe perforan!e &n the 1670s$ The

rate of growth of thestate e!ono+ after the 16-0s >1661'200.? ha (eennear"+

o)("e the rate prea&"e &n the 1670s$ It went )p fro 3@ to a"ost .@$

The graph (e"ow shows how se!tor'w&se !ontr&()t&on to GS*P ar&e oer t&e$ It

&s !"ear that agr&!)"t)re se!tor pro&nen!e has e!"&ne$ oweer9 &t;s&shearten&ng that an)fa!t)r&ng se!tor &s a"so now hea"th+ g&en &ts nat)ra"

reso)r!es$ The a


45/90


The s"ow growth of an)fa!t)r&ng &nthe eastern part of the !o)ntr+9 part&!)"ar"+

&n WestBenga"9 was a aag&ng !onse5)en!e of the "&!ense per&tra


46/90

30

20

10

0

Agr&!)"t)reIn)str+ Ser&!es

The growth of the ser&!es se!tor &sa s)(


47/90


GSDP %e o+ GDP6$00-$007$00.$00%$00,$003$002$001$000$00

GS*P as a @ge of G*P

Note that Ta("es 1$% to 1$6 are !op)te fro Ta("es S79 S69 S- an S11$

Ta("es S1 S1, g&e !op"ete ata a(o)t West Benga" an In&a &n ters ofGS*P>Constant9 C)rrent?9 NS*P>Constant9 C)rrent?9 G*P>Constant9 C)rrent?N*P>Constant9 C)rrent? respe!t&e"+$


48/90



49/90


2$ IN/LATIONS&n!e CPI WPI &s not aa&"a("e for eer+ +ear9 the ef"ator etho for &nf"at&on

was one for (oth West Benga" an In&a$ The graph (e"ow shows that the pr&!e

"ee"s are !ons&stent w&th the !o)ntr+;s pr&!e "ee"s$ The+ are re"at&e"+ on a "&tt"e

h&gher s&e h&stor&!a""+$ A !"earer p&!t)re !an (e reea"e (+ +ear on +ear &nf"at&on

as shown &n the net graph$

Refer ta("e 2$1for ata$ It &s !op)te fro S1, an S7'S12$

S1%9 S1.9 S17 g&e ata for CPI9 WPI>In&a? an CPI WB$

GSDP vs GDP De+lator1-0

1.01,0

120

100


50/90

-0

.0

,0

20

0

&'/* /&&'/&* /2&'/2*/+&'/+*/,&'/,*/-&'/-*/.&'/.* /&'/* //&'//*/'&'/'*'&''* '&&''&* '2&''2* '+&''+* ',&'',* '-&''-* '. &''.* '&''* '/&''/* ''&'''* 2* &2&* 222* +2+*,2,*-2-* .2.* 2*/2/*'2'*&2&*&&2&&* &2

GS*P*ef"ator

G*P*ef"ator



51/90


52/90

/&/2/+/,/-/./(///'')'&'2'+','- '.'('/'')))&)2)+),)-).)()/)'&)&&

&'/*&'/&*&'/2*&'/+*&'/,*&'/-*&'/.*&'/*&'//*&'/'*&''*&''&*&''2*&''+*&'',* &''-*&''.*&''*&''/*&'''*2*2&*22*2+*2,*2-*2.*2*2/*2'*2&*

WBInf"at&on

In&aInf"at&on

Th&s showsthath&stor&!a""+WB &s orethan thatof the!o)ntr+$oweer &tgotsta(&"&4e&n ear"+2000s ()t

st&"" &t &soften orethan the!o)ntr+;saerage$

Group 10Section D

Page

2


53/90


3. Se!tor'w&se Contr&()t&on toGS*P

3.1 #riculture SectorThe Agr&!)"t)re Se!tor !ons&sts of the fo""ow&ng

1

Agr&!)"t)re2 /orestr+ an Logg&ng

3 /&sh&ng


54/90

In West Benga"9 pro)!t&&t+ growth &n agr&!)"t)re9 part&!)"ar"+ &n foo gra&npro)!t&on9 !ontr&()te s&gn&f&!ant"+ to oera"" e!ono&! growth of the states&n!e the ear"+ 16-0s$

There has (een a grow&ng !on!ern &n re!ent +ears a(o)t the e!e"erat&on of

agr&!)"t)ra" o)tp)t &n ost of the agr&!)"t)ra" states &n In&a s&n!e the ear"+1660s$ The pos&t&e &p)"se of the fast grow&ng +&e" rate to o)tp)t growth of the

a


55/90

ECONOMIC REVIEW WEST BENGAL 2.

fa"" &n p)("&! se!tor !ap&ta" forat&on &n agr&!)"t)re was a a


56/90

W&th referen!e to Ta("e 3$19 Tota" foo gra&n pro)!t&on &n West Benga" was

ro)gh"+ 1. &""&on tonnes !ontr&()t&ng 7$, per !ent of the !o)ntr+;s tota" foo

gra&n o)tp)t an ran8e ,th

aong the a


57/90



58/90

In "&ne w&th the !hang&ng tren a!ross the !o)ntr+9 West Benga" has eper&en!e

a str)!t)ra" sh&ft &n o)tp)t front as the share of agr&!)"t)re &n the State;s G*P &s

re!ore to hae !oe own fro a(o)t 33 @ &n 1666'2000 to a(o)t 2% per!ent

&n 2007'0-$ oweer9 &n!reas&ng trens of rea" wages &n the "atter ha"f of the

16-0s were not s)sta&ne &n the s)(se5)ent +ears$ The e!"&ne &n wage rate has

(een o(sere &n the f&rst ha"f of the 1660s$ The "atter ha"f of the e!ae startew&th re!oer+ of the wage rate ()t aga&n e!"&ne &n the (eg&nn&ng of the 2000$

.2 n&ustrial SectorThe In)str+ Se!tor !ons&sts of the fo""ow&ng

1 M&n&ng an H)arr+&ng

2 Man)fa!t)r&ng

3 Constr)!t&on

4

Reg&stere Ser&!es5 :nreg&stere Ser&!es



59/90


West Benga"9 oer the past three e!aes$ In In&a9&fferent reg&ons hae (een

grow&ng at )neen rates$ Thereg&ona" &spar&t&es &n growth hae (een h&gh"+asso!&atew&th )ne5)a" &n!&en!e of &n)str&a" ee"opent$


60/90

Cap&ta" &ntens&t+ &n reg&stere an)fa!t)r&ng &n!rease )r&ng 16-1'20029 ()t &t

&s )!h "ower &n the fa!tor+ se!tor &n West Benga"$ La(o)r pro)!t&&t+ eas)re

(+ a")e'ae per ep"o+ee &n th&s se!tor &n the state a"so &n!rease9 ()t

eo")ent per ep"o+ee rea&ne at the sae "ee" )r&ng th&s per&o as

s)re+e (+ P"ann&ng Co&ss&on$

Group 10 Section D Page 2-


61/90



62/90

W&th referen!e to Ta("e 3$29 In West Benga"9 the an)fa!t)r&ng se!tor has not

perfore as an eng&ne of growth oer the past three e!aes &n a !a)sa" sense$

The rate of growth of "a(o)r ean &s g&en (+ the e!ess of the rate of growth

of o)tp)t oer the rate of growth of "a(o)r pro)!t&&t+$ O)tp)t growth &n the

an)fa!t)r&ng se!tor has p"a+e an &ns&gn&f&!ant ro"e &n proot&ng ep"o+ent

growth &n the state$ A"so there were seera" !r&t&!&ss of the !o)ntr+s &n)str&a"

po"&!+ fraewor89 ost"+ on the reg&e of "&!ens&ng9 for reg&ona" &ers&t&es &n

growth$



63/90



64/90

Man+ st)&es hae o!)ente a &sat!h (etween o)tp)t growth an

ep"o+ent growth &n In&an an)fa!t)r&ng &n the 16-0s9 "ea&ng to &rt)a""+


65/90


. Service Sector

The In)str+ Se!tor !ons&sts of the fo""ow&ng

1 E"e!tr&!&t+9Gas an Water s)pp"+

2 Transport9Storage an Co)n&!at&on

3 Ra&"wa+s

4 Transport (+ other eans

5 Co)n&!at&on

6 Trae9ote"s an Resta)rants

7 Ban8&ng an Ins)ran!e

8 Rea" Estate9Ownersh&p of *we""&ngs an B)s&nessSer&!es

9 P)("&! A&n&strat&on

10 Other Ser&!es


66/90

In West Benga"9 the respons&eness of the growth of the ser&!es a!t&&t&es to thegrowth of the !oo&t+ se!tor >agr&!)"t)re an a""&e a!t&&t&es anan)fa!t)r&ng? an to the growth of rea" &n!oe of the rest of the e!ono+ &sfo)n to (e ore than proport&ona" &n s)!h s)('se!tors as trae9 (an8&ng antransport$ Growth &n se!tors "&8e rea" estate an p)("&! a&n&strat&on was "essthan proport&ona" to the growth &n the rest of the state;s e!ono+$

As per !ap&ta &n!oe r&ses9 ean sh&fts awa+ f&rst fro the agr&!)"t)ra"!oo&t&es an9 then9 een fro &n)str&a" goosJ ore an ore ean &s!reate for ser&!es s)!h as e)!at&on9 hea"th9 to)r&s9 et!$ Th)s9 an &n!reas&ngshare of nat&ona"Kstate &n!oe or&g&nates &n the ser&!es$ If the "a(o)rpro)!t&&t+ rea&ne )n!hange9 the ser&!es se!tor a"so generates re"at&e"+

ore ep"o+ent$



67/90


W&th referen!e to Ta("e 3$39 the s&4e of the tert&ar+ se!tor!opr&s&ng transportan !o)n&!at&on9 trae9 hote"s an resta)rant9 (an8&ng an &ns)ran!e9 rea"estate an ownersh&p of we""&ng an ()s&ness ser&!es9 p)("&! a&n&strat&on9other ser&!e &n ters of share of NS*P at !onstant pr&!es9 has (een "arger thane&ther the pr&ar+ or the se!onar+ se!tor &n the state$


68/90

In the )r(an9 Fe)!at&on; a!!o)nts for the "argest n)(er of own a!!o)nt ser&!eenterpr&ses$ Th&s was fo""owe (+ Fother transport an re"ate a!t&&t&es;$ Of the)r(an ser&!es esta("&shents9 the "argest &s Fresta)rants;9 &n n)(ers$ In tersof ep"o+ent9 howeer9 Fe)!at&on; &s the "ea&ng s)('se!tor w&th&n the r)ra"Fown a!!o)nt ser&!e enterpr&ses;9 th&s was fo""owe (+ Fother !o)n&t+ so!&a"an persona" ser&!es;$ The h&ghest share of ep"o+ent &n r)ra" ser&!eesta("&shents was that of Fe!han&se; roa transport;$



69/90



70/90

A"" the a(oe fa!tors !o""e!te fro ar&o)s reports show how the !ontr&()t&on ofser&!es se!tor to GS*P has &n!rease oer +ears$



71/90

ECONOMIC REVIEW WEST BENGAL 3,

4. Se!tor w&seContr&()t&on toEp"o+ent

The f")!t)at&on &n ep"o+ent or )nep"o+ent has to!oe to ters w&th the

per&o&! &nsta(&"&t+ of the growthpro!ess$ The tren &n ep"o+ent9 &n fa!t9 &s

theFo)t!oe; of the !hang&ng !o(&nat&ons of !ap&ta"9te!hno"og+ an the "a(o)r

ar8et &nst&t)t&ons$ Th&s &s state &s preo&nant"+ a r)ra" state w&th ost of the

epenent on agr&!)"t)re$ Of "ate9 ser&!es starte !ontr&()t&ng ore$ oweer9there &s a steep e!"&ne &n an)fa!t)r&ng se!tor$ A !oparat&e ana"+s&s (etween

1666 an 2002 shows th&s$

Industry-wise Employment in Organised Sector in West Bengal

(1990 and 2002)

(In la!)

"u#lic "ri$ate %otal

Industry 1990 2002199

0200

2 1990 2002

Agriculture and Allied 0.3 0.22 2.05 1.77 2.35 1.99

Mining and Quarrying 1.78 1.65 1.78 1.65

Primary Sector 2.08 1.87 2.05 1.77 4.13 3.64

Manuacturing 2.82 1.81 5.14 3.89 7.96 5.7


72/90


73/90


Th&s &s the growth rate (etween 2000 an 200% an &t &s er+ !"ear that the

tert&ar+ se!tor &n r)ra" areas &s grow&ng at a rap& pa!e$ The a(oe ta("e &sta8en fro E!ono&! Re&ew 2006'10 of west Benga" (+ state goernent$


74/90


75/90


76/90

It &s seen fro a(oe ta("e9 that a&"+ ep"o+ent &n!rease (etween 2002

an200- &n a"" a


77/90

ECONOMIC REVIEW WEST BENGAL 3.

growth of the State *oest&! Pro)!t at!onstant pr&!es fro the tert&ar+ se!tor

has reg&stere s&gn&f&!ant growth &n re!ent +ears$

The growth of ep"o+ent &n the tert&ar+ se!tor has (een 5)&te&press&e$ The

rap& growth of ep"o+ent &n shops9 !oer!&a" esta("&shents9!&neas9

theatres an other esta("&shents of p)("&! enterta&nent &n the State !onfor

toth&s o(serat&on reea"e fro NSS ata$ The tota" a&"+ ep"o+ent &n

theseesta("&shents &n!rease to 7$-2 "a8h on 30th Septe(er9 2006 fro .$-3

"a8h on 30thSepte(er9 2007$ Th&s &s e&ent fro ta("e (e"ow that &n sp&te of the

aerse effe!t ofre!ess&on the ep"o+ent &n these esta("&shents &n!rease

!ons&era("+$


78/90

*ata &s ta8en fro S1-for the net two f&g)res$

Group 10 Section D Page 3.


79/90


80/90

tert&

ar+ se!tor

se!onar+ se!tor

pr&ar+se!tor

ector ise e"plo'ee

&ist

ributiono+ 8rban

n&i

a

Aisi

t'e

100@60@-0@70

@.0@%0@,0@30@20@

10@0@

0ul!&'/*

0ul!&'/'

0ul!&''*

0ul!*1ecem

0une&'//

tert&ar+se!tor

se!onar+se!tor

pr&ar+se!tor

A sharp!hange &n

tren

(etween

west Benga"

an In&a &s

the tert&ar+

se!tor &n

r)ra" In&a

&n;t

!hange )!h

&n &ts share

whereas &n

West Benga"

the tert&ar+

se!tor &s

grow&ng at a

rap& pa!e &n

r)ra" areas

a"so$ As a

res)"t of &ts

ser&!esse!tor9 &ts

e!ono+ &s

o&ng we""$

B)t there &s a

"ot of s!ope

to &proe

an)fa!t)r&n

g se!tor for a

(etter

e!ono&!

ee"opent$

S16 g&esre!ent

&str&()t&on

ofep"o+e

nta!ross

ar&o)

s

G


81/90


%$ *e(t S&t)at&on &n West Benga"The f&s!a" s&t)at&on of West Benga" &s !hara!ter&4e (+ the fa!t that &t has the

*e(tK GS*P rat&o of ,2$% @ wh&!h &s the se!on h&ghest aongst the non spe!&a"

!ategor+ states &n In&a$ Another fa!t &s that West Benga" has own ta

reen)e>OTR?K GS*P rat&o of ,$1@9 wh&!h &s the "owest for an+ non spe!&a"

!ategor+ state$ These are two reasons for the h)ge e(t of West Benga"$

Proble" o+ i* Debt/GSDP ratio in est enal:


82/90

On ana"+s&s of the *e(tK GS*P Rat&o of a"" the states fro the a(oe f&g)re9 we

!an !on!")e that the *e(tK GS*P rat&o of a"" the states hae &n!rease fro

1667 onwars an starte to e!"&ne fro 2003'200,$ B)t &n West Benga" the

rat&o starte to e!"&ne fro 200%'200.$ Moreoer the *e(tK GS*P rat&o was

h&gher for West Benga" as !opare to a"" the other states of In&a$

One of the a&n reason for the r&se of *e(tK GS*P rat&o of a"" the states !an (e

attr&()te to the feat)res of the State Goernent /&nan!es of In&a$ One of the

8e+ feat)res of the /eera" Goernent has (een that the reso)r!es are ost"+

!on!entrate &n the hans of Centra" Goernent w&th the states ha&ng "&&te

power to !o""e!t taes an o(&"&se reso)r!es$ In a&t&on to &t a"" the

ee"opent wor8 &s one (+ the state goernent wh&!h as to the

epen&t)re of the State Goernent$ Th&s as+etr+ &n re"at&ons "eas to the

epenen!e of State Goernent on the Centra" Goernent &n orer to !arr+

o)t the&r epen&t)re respons&(&"&t&es$ Aga&nst th&s (a!8rop9 the fo""ow&ng

feat)res of state goernent f&nan!es !an (e as!erta&ne

1 Revenue Receipts:

The reen)e re!e&pts of the states9 as we 8now9 !ons&st of not on"+ &ts own

reen)e re!e&pts9 ()t a"so reen)e transfer fro the !entre &n the for of grants

an shares &n the !entra" taes$ S&n!e the "ee" of reen)e transfers rea&ns

o)ts&e the p)r&ewof the states own e!ono&! po"&!&es9 the eter&nat&on of

tota" reen)e re!e&pts a"so (e!oes eogeno)s to the state goernent

Group 10 Section D Page 3-


83/90


nterest Rate

The &nterest rate &s eter&ne eogeno)s"+ (+ theCentra" Goernent epen&ngon the onetar+ po"&!+ of the !o)ntr+$ In In&a &t &seter&ne (+

RBI$/or

a"" the statesthe

RBI has !onst&t)t&ona" power toeter&ne (oth the

etent an the ters of (orrow&ngfro a""

the reso)r!es$

*)r&ng the "&(era"&4at&on of the e!ono+ the &nterest rate has a tenen!+ to r&se$

If the rate of &n!rease of &nterest rate &s ore than the rate of &n!rease of GS*Pthe e(tK GS*P rat&o w&"" &n!rease wh&!h happene w&th a"" the states &n In&a

fro 1667 onwars$

The *e(tK GS*P rat&o for West Benga" &s h&gher than other states (e!a)se of the

fa!t that the reen)e re!e&pts of WB &s "ower than the other states an the

effe!t&e rate of &nterest &s h&gher for WB !opare to other states$ The effe!t&e

rate of &nterest for WB &s h&gher a&n"+ (e!a)se of the !opos&t&on of "&a(&"&t&es of

WB ha&ng a h&gher share of NSS/ "oans$ States hae to !op)"sor&"+ (orrow a

f&e port&on of NSS/ f)ns that the+ !o""e!t$ S&n!e WB has a )!h h&gher

proport&on of

NSS/ "oans9 &t has to (orrow ore fro th&s poo"$ The h&gher &nterest rate onthese "oans &n t)rn &n!reases the &nterest ()ren of WB$


84/90

B)t &f we ana"+4e the re"at&onsh&p (etween *e(t an GS*P of West Benga"9 &t &se&ent fro the a(oe graph that the&r GSDP *as increase& at a *i*er rateas co"pare& to t*e Debt.

*ata &s ta8en fro ta("e %$1$



85/90

ECONOMIC REVIEW WEST BENGAL ,0

.$ /ISCAL *E/ICIT

The /&s!a" *ef&!&t of West Benga" has stea&"+ &n!rease oer the past 2% +ears$

As e&ent &n the graph the f&s!a" ef&!&t of West Benga" &s a(oe - @ of the tota"

f&s!a" ef&!&t s&n!e 1666 t&"" now wh&!h &s a a


86/90

Group 10 Section D Page ,0


87/90


7. CONCL:SION

The e!ono+ of West Benga" ha a h&stor+ of o)tpa!&ng the In&as growth rate

an (e a a


88/90

Group 10 Section D Page ,1


89/90


-$ RE/ERENCES

www$statesof&n&a$!&e$!o

www$&n&astat$!o

*oest&! Pro)!t of States of In&a (+ EPWResear!h /o)nat&on www$r(&$orgE!ono&! Re&ew 2006'10

West Benga" )an *ee"opent Report '*ee"opent an P"ann&ng*ept9 Got of WB West Benga" *ee"opent Report ' P"ann&ngCo&s&on of In&a 2010

Transfor&ng West Benga" (+ B&(e8*e(ro+ an LaeeshBhanar&
http://www.statesofindia.cmie.com/http://www.statesofindia.cmie.com/http://www.statesofindia.cmie.com/http://www.indiastat.com/http://www.indiastat.com/http://www.rbi.org/http://www.rbi.org/http://www.indiastat.com/http://www.rbi.org/http://www.statesofindia.cmie.com/


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macroproject-130321065700-phpapp02

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