Uttar Pradesh and Maharashtra Spearhead India's Post-Pandemic Growth: SBI Report | 28 Mar 2024

Why in News?

According to the latest findings from the State Bank of India (SBI) Research, out of the 235 basis point (bp) growth, Maharashtra and Uttar Pradesh emerged as frontrunners, contributing 56 and 40 bps, while the remaining 90 bps stemmed from other states.

Key Points

• The Indian economy has demonstrated resilience in the wake of the Covid-19 pandemic, with the average real Gross Domestic Product (GDP) growth surging to 8.1%, a substantial increase from the 5.7% growth witnessed in the pre-pandemic period.
• According to the report:
  • On the Gross State Domestic Product (GSDP) front, Gujarat has notably doubled its economic output, marking a 2.2 times increase over the last decade.
  • Following closely behind are states such as Karnataka, Assam, Andhra Pradesh, Odisha, Telangana, Sikkim, and Madhya Pradesh, showcasing significant economic momentum and development.
  • While some states such as Uttar Pradesh, Chhattisgarh, Bihar, and Madhya Pradesh have maintained stable per capita income growth trajectories, others like Jharkhand, Rajasthan, West Bengal, Maharashtra, Punjab, Delhi, and Goa have experienced deceleration in this aspect.
  • The report highlights a significant reduction in state-wide inequality in terms of per capita Net State Domestic Product (NSDP) following the Covid-19 pandemic.
• The SBI Research team emphasised the importance of continued policy support and targeted interventions to sustain and enhance economic growth momentum across all states.
• It serves as a resource for policymakers, economists, and stakeholders, providing insights into the evolving dynamics of the Indian economy and guiding future development initiatives.