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STATE PROFILES – ANDHRA PRADESH
ECONOMIC CHALLENGE FOR CHIEF MINISTERS IN 2012



                               Achieving Fiscal
                                  Stability




                              Enhancing State
                              Competitiveness

 • Competitiveness is the only way to achieve sustainable job growth, improving
   incomes and stable public finances
 • Creating a clear economic strategy for the state that engages all stakeholders is
   even more important in times of budget cutting and austerity
HIERARCHY OF MEASUREMENT OF STATE COMPETITIVENESS INDEX




                                  4 Major
                                   Pillars




                               12 Sub Indices




                               350* Indicators




* Approximate figure
STAGES OF THE ECONOMY




                                        Innovation Driven Economies (Per capita GDP 900 to
City States (Per capita GDP>1300 USD)   1300 USD)




                                        Transition Economies (Per capita GDP 800 to 900 USD)




                                        Investment Driven Economies (Per capita GDP 500 to
                                        800 USD)



                                        Evolving / Changeover Economies (Per capita GDP 400
                                        to 500 USD)




                                        Factor Driven Economies(Per capita GDP < 400 USD)
STATES ACCORDING TO CATEGORIZATION
                                                                           Microeconomic Competitiveness
      Categorization
                                                                           Ranks
      City States (Per capita Incomes >1300 USD)
      Delhi                                                                                 1
      Goa                                                                                   2
      Innovation Driven Economies (Per capita Incomes 900 to1300 USD)
      Haryana                                                                               1
      Maharashtra                                                                           2
      Gujarat                                                                               3
      Kerala                                                                                4
      Transition Economies (Per capita Incomes 800 to 900 USD)
      Punjab                                                                                1
      Tamil Nadu                                                                            2
      Himachal Pradesh                                                                      3
      Investment Driven Economies (Per capita Incomes 500 to 800 USD)
      Andhra Pradesh                                                                        1
      Karnataka                                                                             2
      Uttarakhand                                                                           3
      West Bengal                                                                           4
      Chhattisgarh                                                                          5
      Sikkim                                                                                6
      Mizoram                                                                               7
      Meghalaya                                                                             8
      Arunachal Pradesh                                                                     9
      Tripura                                                                              10
      Evolving/ Changeover Economies (Per capita Incomes 400 to 500 USD)
      Rajasthan                                                                             1
      Jharkhand                                                                             2
      Orissa                                                                                3
      Jammu and Kashmir                                                                     4
      Factor Driven Economies(Per capita Incomes < 500 USD)
      Bihar                                                                                 1
      Madhya Pradesh                                                                        2
      Assam                                                                                 3
      Uttar Pradesh                                                                         4
      Manipur                                                                               5
      Nagaland                                                                              6

  Source: Institute for Competitiveness Analysis
NEAR TERM STATE PROSPERITY PERFORMANCE
                                                                9
Gross Domestic Product per Capita real growth rate, 2008-2011


                                                                                                                                                                     Haryana
                                                                        Low but rising versus India           Chhattisgarh
                                                                                                                                                                                  Highly Productive and Prosperity
                                                                                Bihar                                                                                             Rising versus India
                                                                                                                                                   Maharashtra
                                                                8
                                                                                                                                Himachal Pradesh
                                                                                        Uttar Pradesh
                                                                                                                    Andhra Pradesh

                                                                                                          Orissa
                                                                7                                                       Karnataka         Punjab
                                                                                                                       Sikkim
                                                                                                                  Uttarakhand
                                                                                                     Arunachal Pradesh               Kerala
                                                                                                  Assam                                    Gujarat
                                                                                                    Rajasthan
                                                                                                          Tripura
                                                                6




                                                                                                                                               Points
                                                                                                                                               Index
                                                                                                                                               57.28
                                                                                                                                               Average
                                                                                                                                               All India
                                                                                                                             Tamil Nadu
                                                                                                            West Bengal
                                                                                                          Meghalaya
                                                                                                                                              All India GSDP                     Delhi
                                                                                                                                                                                                           Goa

                                                                                                                                              /Capita rate
                                                                                             Jharkhand
                                                                                                                                              (CAGR) of 6.27 %
                                                                                                          Mizoram
                                                                5
                                                                                           Manipur
                                                                                        Madhya Jammu & Kashmir
                                                                                               Pradesh


                                                                                                                                 All India Average
                                                                4
                                                                                              Nagaland                           of 47,998
                                                                        Low and declining versus India                           Rupees/capita
                                                                                                                                                                                    High but declining versus India

                                                                3
                                                                    0               20000                    40000                    60000                      80000         100000           120000                140000

                                                                                                                     Gross Domestic Product per Capita, 2011
COMPETITIVENESS: UNDERLYING CONCEPTS


 • Competitiveness is the productivity with which a state utilizes its
    human, capital, and natural resources
 • Productivity determines wages and the standard of living – Productivity
    growth determines sustainable economic growth
 • Productivity depends on how a state competes, not what industries it
    competes in
 • Innovation in products and processes is necessary to drive productivity
    growth
 • Only productive businesses can create wealth and jobs. States compete to
    offer the most productive environment for business
 • The public and private sectors play different but interrelated roles in creating
    a productive economy
ANDHRA PRADESH PERFORMANCE SNAPSHOT
                            Position       Trend

 Prosperity


 Productivity
 Labour Mobilization

 State of Clusters

 Type of Economy          Investment Driven        Top 33.33% of the
                                                   states


                                                   33.33%-66.67% of
                          Textiles                 the states
 Leading Clusters         Apparels
                          Processed Food
                                                   66.67% to 100% of
                                                   the states
ANDHRA PRADESH COMPETITIVENESS – OVERALL PERFORMANCE INDICATORS



                                Prosperity                                                                            Clusters
 Gross State Domestic Product per Capita, 2011                          Rank: 2    Total Number of People employed in all Factory sector                      Rank: 1
 • In Andhra Pradesh                                   Rs. 49,149                  • In Andhra Pradesh                                   11,13,149
 • In India                                            Rs. 47,998                  • In India                                            1,15,06,838
 • State Difference to India                          +2.40%.                      • State Employment to total
                                                                                      India Employment (factory sector)                  9.83%
 Growth in Gross State Domestic Product per Capita, 2008-11 , (CAGR)     Rank: 2
 •   In Andhra Pradesh                                 7.29%
 •   In India                                         6.28%


                              Productivity                                                                Labour Mobilization
                                                                                   Population, 2011                                                Rank: 2
 Gross State Domestic Product per labour force participant, 2011       Rank: 4     • In Andhra Pradesh                                  8,46,66,533
 • In Andhra Pradesh                                    Rs 1,25,040.               • % of India                                         4.98%
 • In India                                             Rs 1,21,265
 • State Difference to India                            +3.11%                     Population Growth, GAGR, 2001-2011                                        Rank: 10
                                                                                   •   In Andhra Pradesh                                1.06%
 Growth in Gross State Domestic Product                                Rank: 2     •   In India                                         1.61%
 per Labour force participant, 2001-11
 •    In Andhra Pradesh                                10.43%                      Employment, 2010                                                          Rank: 2
 •    In India                                         8.44%                       • In Andhra Pradesh                                  20808940
                                                                                   • % India                                            7.31%
 Average Private Wage in 2008-09,                                      Rank: 6
 • In Andhra Pradesh                                   Rs 53,575                   Employment growth, annual rate, 2000-2010                                 Rank: 10
 • In India                                            Rs 64,741                   • In Andhra Pradesh                                  1.43%
 • State Difference to India                           -17.25.%                    • In India                                           2.05%
 Private Wage Growth, CAGR, 2000-2009                                  Rank:2      Unemployment, 2010 (Per hundred People)                                   Rank: 7
 • In Andhra Pradesh                                   7.66%                       • In Andhra Pradesh                                  7.60
 • In India                                            4.53%                       • In India                                           9.39

                                                                                   Change in Unemployment rate, 2000-2010                                    Rank: 6
                                                                                   •   In Andhra Pradesh                                0%
                                                                                   •   In India                                         41.37
UNDERSTANDING STATE ECONOMIC PERFORMANCE



                                                                                                                          Andhra Pradesh
                                                       450000
GSDP at current price at factor cost in Rupees Crore




                                                       400000




                                                                                                                                                                                       411349



                                                                                                                                                                                                  409549
                                                                                                                                                                            377346
                                                       350000




                                                                                                                                                                 326547
                                                       300000




                                                                                                                                                      277286
                                                       250000




                                                                                                                                           239683
                                                       200000



                                                                                                                                211802
                                                                                                                     190017
                                                                                                          167096




                                                       150000
                                                                                            156711
                                                                                144723
                                                                    128797




                                                       100000


                                                        50000


                                                            0
                                                                  Dec-00     Dec-01      Dec-02      Dec-03        Dec-04     Dec-05     Dec-06     Dec-07     Dec-08     Dec-09     Dec-10     Dec-11




                                                        Source : Institute for Competitiveness Analysis
CONTRIBUTION OF ANDHRA PRADESH’S GSDP TO INDIAN GSDP
GSDP at current price at factor cost in Rupees Crore




                                                         6000000


                                                         5000000


                                                         4000000


                                                         3000000


                                                         2000000


                                                         1000000


                                                                   0
                                                                          Dec-00   Dec-01      Dec-02         Dec-03     Dec-04     Dec-05     Dec-06     Dec-07      Dec-08      Dec-09      Dec-10      Dec-11

                                                                                                                        Andhra Pradesh's GDP    Indian GDP



                                                                          Dec-00    Dec-01       Dec-02        Dec-03      Dec-04     Dec-05     Dec-06      Dec-07      Dec-08      Dec-09      Dec-10      Dec-11


                                                       Ratio of Andhra
                                                       Pradesh's GSDP
                                                       to Indian GDP in    7.56     8.06         8.12          8.02         8.07       8.02      8.02        7.97        8.12        8.23        8.23         8.19
                                                          Percentage
                                                            Terms



                                                            Source : Institute for Competitiveness Analysis
WHAT DRIVES STATE PRODUCTIVITY




                                                      3. Proper Policy
       1. Overall business   2. Stage of Economy   enactment and strong
      climate conducive to     (strong clusters)
                                                         rule of law
             growth
MODEL USED FOR ANALYSIS


                                                                        Climate for
                                                                    Innovation based
                                                                       local rivalry



                                                       •   Local rules and incentives that encourage
                                                           investment and productivity e.g.
                                                       -   salaries,
                         Factor                        -    incentives for capital investments,                   Demand
                       Conditions                      -    intellectual property protection
                                                                                                                 Conditions
                                                       •   Vigorous local competition i.e.,
                                                       -   Openness to foreign and local competition;
                                                       -   Sophistication of company operations

   Access to high quality business inputs
    i.e.,                                                                                                      Sophisticated and demanding local
    - Natural endowments,                                                                                      customers and needs e.g.,
   - Human resources,                                                                                          - Strict quality, safety, and environmental
   - Capital availability,                                         Clusters of Related                         standards
   - Physical infrastructure,                                       and Supporting                             – Consumer protection laws
   - Administrative infrastructure,                                    Industries                              – Government procurement of
   - Information infrastructure,                                                                               advanced technology
   - Scientific and technological infrastructure                                                                – Early demand for products and
                                                   Local availability of suppliers and supporting industries   Services.
                                                   Presence of clusters instead of isolated firms




Source: Michael E Porter
IMPROVING PRODUCTIVITY IN BUSINESS ENVIRONMENT


 Key Issues for States
 •    More power in terms of tax sharing with center
 •    Reduce costs of doing business
 •    Developing training programs which meet the specific needs of the state
      industrial clusters
 •    Focus on infrastructure investments on the most leveraged areas for
      productivity and economic growth
 •    Implementing policies to support small growth businesses


 • Enhancing the state’s skill development and training institutions for the same
 • Relentlessly improve of the public education system, the essential foundation
GEOGRAPHIC INFLUENCES ON COMPETITIVENESS




                                   • Influence and access federal
               Nation                policies and programs


                                   • Integrate policies and
         Neighboring states          infrastructure with
                                     neighbors

               States

                                   • Assist each city area in
            City Regions             developing its own strategy


                                   • Connect rural regions with
           Rural Regions             urban areas
CONTRIBUTION OF AGRICULTURE SECTOR TO GSDP

                                                           450000
 GSDP at current price at factor cost in Rupees Crore




                                                           400000

                                                           350000

                                                           300000

                                                           250000

                                                           200000

                                                           150000

                                                           100000

                                                            50000

                                                                 0
                                                                         Dec-00       Dec-01   Dec-02      Dec-03    Dec-04   Dec-05   Dec-06    Dec-07     Dec-08      Dec-09       Dec-10    Dec-11


                                                                Dec-00       Dec-01        Dec-02       Dec-03      Dec-04    Dec-05    Dec-06     Dec-07      Dec-08       Dec-09        Dec-10        Dec-11

    Ratio of
  Agricultural
GSDP in Andhra
Pradesh to the
 total GSDP in                                                  28.83        29.86         28.36        25.81       26.97     25.83     25.37      23.84       25.46        26.34         25.34         25.01
    Andhra
  Pradesh in
  Percentage
     terms

                                                        Source : Institute for Competitiveness Analysis
CONTRIBUTION OF MANUFACTURING SECTOR TO GSDP

                                                       450000
GSDP at current price at factor cost in Rupees Crore




                                                       400000

                                                       350000

                                                       300000

                                                       250000

                                                       200000

                                                       150000

                                                       100000

                                                        50000

                                                             0
                                                                         Dec-00       Dec-01      Dec-02     Dec-03    Dec-04   Dec-05   Dec-06   Dec-07    Dec-08     Dec-09      Dec-10       Dec-11



                                                              Dec-00              Dec-01       Dec-02      Dec-03     Dec-04    Dec-05   Dec-06    Dec-07     Dec-08      Dec-09       Dec-10        Dec-11

      Ratio of
     Manufacturi
     ng GSDP in
       Andhra
     Pradesh to
      the total                                                  12.53            11.38        11.53       12.08      12.08     12.43     11.95     11.89      11.45      10.73        10.56         11.02
      GSDP in
       Andhra
     Pradesh in
     Percentage
        terms

                                                       Source : Institute for Competitiveness Analysis
CONTRIBUTION OF SERVICE SECTOR TO GSDP

                                                             450000
GSDP at current price at factor cost in Rupees Crore




                                                             400000

                                                             350000

                                                             300000

                                                             250000

                                                             200000

                                                             150000

                                                             100000

                                                              50000

                                                                       0
                                                                           Dec-00    Dec-01      Dec-02       Dec-03       Dec-04     Dec-05   Dec-06   Dec-07    Dec-08      Dec-09       Dec-10       Dec-11



                                                              Dec-00        Dec-01      Dec-02       Dec-03            Dec-04       Dec-05     Dec-06    Dec-07      Dec-08       Dec-09            Dec-10       Dec-11

              Ratio of
              Services
              GSDP in
               Andhra
             Pradesh to
              the total                                       47.42         47.38       48.93        50.37             49.81        49.49      48.94     48.74       47.21         47.81            48.87        48.40
              GSDP in
               Andhra
             Pradesh in
             Percentage
                terms
                                                       Source : Institute for Competitiveness Analysis
COMPOSITION OF ANDHRA PRADESH’S ECONOMY




                                                    Agriculture, forestry
                                                         and fishing
                                                            25%

                         Services
                          48%




                                                                    Industry
                                                                      27%




  Source : Institute for Competitiveness Analysis
COMPOSITION OF ANDHRA PRADESH’S ECONOMY


                    3000000


                                                                                                                          2549085
                    2500000
GSDP in Rs. Crore




                    2000000


                                                                                            1492375
                    1500000



                    1000000                                 924340




                     500000
                                                                                                      203375
                                        77352                            87111
                           0
                                     Agriculture, forestry and fishing           Industry                      Services




                               Indian contribution
                               Andhra Pradesh’s contribution
                    Source : Institute for Competitiveness Analysis
COMPOSITION OF ANDHRA PRADESH’S ECONOMY IN GREATER DEPTH
                                                                  0.4


                                                                0.35

                                                                                                      Public administration and defence

                                                                  0.3                                                                                               Electricity, gas and water supply
Andhra Pradesh/National GSDP share (Percent) ,2011




                                                                0.25


                                                                  0.2                                                                     Construction

                                                                 Forestry and logging

                                                                0.15                                                      Mining and quarrying
                                                                                                         Other services
                                                                                                            Agricuture


                                                                  0.1
                                                                                                             Communication
                                                                                                                Fishing


                                                                                                   Transport by other means
                                                                0.05
                                                                                         Real states, ownership of dwellings and
                                                                                         Banking hotelinsurance
                                                                                          Trade, and and restaurant
                                                                                                     business services
                                                                                               Manufacturing
                                                                                             Storage
                                                                    0                                                                               Railways

                                                     -5                 0               5                       10                        15                   20          25                           30   35

                                                                -0.05


                                                                 -0.1


                                                          Change in contribution of GSDP of Andhra Pradesh to total Indian GSDP, CAGR (2000-2011)
                                                     Source : Institute for Competitiveness Analysis
STATE PRIVATE WAGE PERFORMANCE


                                160000



                                140000
                                                                       Jharkhand                       Wage Growth
                                                                                                       rate 4.53%
Average Wages in Rupees ,2009




                                120000

                                                           Uttaranchal
                                                                                                                        Orissa
                                100000                                         Maharashtra
                                                                                                       Goa
                                                                                                                                                    Average Wage :
                                                                                                                                                    Rupees 64,741
                                80000 Chhattisgarh               West Bengal           Madhya Pradesh
                                                                                                  Haryana Karnataka
                                                                                            Gujarat                                                                       Meghalaya
                                                                               Delhi                          Himachal Pradesh
                                                                                              Uttar Pradesh
                                60000                                                                                            Andhra Pradesh
                                                                                              Punjub      Tamil Nadu
                                                                       Kerala Rajasthan
                                                     Jammu & Kashmir
                                                                            Bihar                 Assam

                                40000
                                                                                                                                                  Manipur

                                                Tripura                        Nagaland
                                20000            Low and declining versus India                                                                               Low but rising versus India



                                     0
                                         0                   2                            4                        6                       8                 10                12           14
                                                                                                  Wage Growth (CAGR), 2001 to 2008
                                   Source : Institute for Competitiveness Analysis, Data as of 2010
LABOUR PRODUCTIVITY

                                                            400000
GSDP at Current Prices per labour force participant, 2011




                                                                                                                                                                             Goa

                                                            350000             High but declining versus India                                                                     Highly productive and Productivity
                                                                                                                                                                                   rising versus India

                                                            300000




                                                                                                                                               Points
                                                                                                                                               Index
                                                                                                                                               57.28
                                                                                                                                               e
                                                                                                                                               Averag
                                                                                                                                               India
                                                                                                                                               All
                                                                                                                                      Delhi
                                                                                                                                               All India Average of
                                                            250000                                                                             8.44%

                                                                                                                                                                                      Haryana
                                                            200000
                                                                              All India Average of of Punjab                                                      Maharashtra
                                                                                                                                                                  Kerala    Gujarat
                                                                              1,21,265 Rupees/Labour                               Himachal Pradesh
                                                            150000            force participant       Tamil Nadu
                                                                                                                                      Karnataka       Andhra Pradesh
                                                                                                                                                      Sikkim
                                                                                                                            West Bengal                    Uttarakhand                                      Chhattisgarh
                                                                                           Mizoram                                  Nagaland
                                                            100000                                    MeghalayaTripura Pradesh
                                                                                                             Arunachal                                                                          Orissa
                                                                                                                      Rajasthan
                                                                             Jammu & Kashmir                 Assam
                                                                                    Madhya Pradesh             Jharkhand
                                                                            Manipur
                                                                                                          Uttar Pradesh
                                                             50000                                          Bihar


                                                                                Low and declining versus India                                                             Low but rising versus India
                                                                 0
                                                                     5.00              6.00             7.00               8.00                9.00               10.00                11.00             12.00             13.00


                                                                                                     GSDP /Labor force participant growth rate(CAGR)
                                                              Source : Institute for Competitiveness Analysis
LONG TERM JOB GROWTH


                       90000000

                                                                                                                                              Uttar Pradesh
                       80000000


                       70000000


                                                                                                                                                              All India Average of
                       60000000
                                                                                                                                                              2.05%
Number of Jobs, 2011




                       50000000
                                                                                                                              Maharashtra

                                                                                                                                                                                  Bihar

                       40000000
                                                                                                         West Bengal
                                                                                  Andhra Pradesh
                                                 All India average of
                                                                                                                                              Madhya Pradesh
                       30000000                  1,62,99,464 Jobs                                                      Tamil Nadu

                                                                                                                                                                      Rajasthan
                                                 /State                                                       Karnataka
                                                                                                                                                Gujarat

                       20000000                                                                          Orissa

                                                                                                                                                                 Jharkhand
                                                                Kerala                                                     Assam
                                                                                                                  Punjab
                                                                                                                                                Haryana
                                                                                                                                                                Chhattisgarh
                       10000000                                                                                                                                                           Delhi
                                                                                                                                            Uttarakhand       Jammu & Kashmir
                                                                                         Himachal Pradesh
                                      Nagaland                                   Goa                         Tripura                                                            Mizoram Manipur
                                                                                                                                                                               Arunachal Pradesh   Meghalaya

                              0                                                                     Sikkim


                                  0                      0.5                 1                     1.5                              2                                2.5                           3           3.5

                                                  Losing Jobs                    Job growth rate CAGR, 2001-2010                                                             Gaining Jobs
                          Source : Institute for Competitiveness Analysis,
LONG TERM UNEMPLOYMENT RATE
                                                                                                                           30
                               Goa
                                     jharkhand




                                                                                                                           25




                                                                                                                                 s
                                                                                                                                 Point
                                                                                                                                 Index
                                                                                                                                 57.28
                                                                                                                                 ge
                                                                                                                                 Avera
                                                                                                                                 India
                                                                                                                                 All
                                          Below average Unemployment                                                                   All India Average of -
                                                                                                                           20          2.12%
                                                             Rajasthan
Unemployment rate 2010




                                                                                        Bihar


                                                                                                                                             Unemployment Rising
                                                                                                                           15
                                     Unemployment rate
                                     All India Average of                                               Meghalaya

                                     9.39%                                                               West Bengal                                                  kerala
                                                                                          Gujarat
                                                                                          Punjab                       MizoramOrissa
                                                                                                                Uttar Pradesh
                                                                                                                            10
                                                                                                      Haryana                 Nagaland
                                                                                                                     Manipur
                                                                                                         Tripura           Andhra Pradesh
                                                                                                    Madhya Pradesh
                                                                                                         Arunachal Pradesh                 Above Average
                                                                                                                               Himachal Pradesh     Assam          Unemployment
                                                                                                                           Sikkim Maharashtra
                                                                                                                                   Jammu Tamil Nadu
                                                                                                                             5               Uttarakhand

                                                                                                                                                   Chhattisgarh


                                                                                                                                     Karnataka             Delhi


                                                                                                                             0
                         -25                -20                -15                -10                   -5                       0                     5               10         15
                                                                           Change in Employment rate 1999-2010
                           Source : Institute for Competitiveness Analysis, Data as of 2010
NEAR TERM UNEMPLOYMENT RATE

                                                                                                                                                   30
                                       Goa
                                               jharkhand




                                                                              Points
                                                                              Avera

                                                                              57.28
                                                                              Index
                                                                               All India Average of -




                                                                              India
                                                                                                                                                   25
                                                                               6.55%




                                                                              All


                                                                              ge
                                                                                                                                                   20
Unemployment rate 2010




                                                                              Rajasthan

                                                                                                  Bihar


                                                                                                                                                   15

                                        All India Average of                                      Meghalaya
                                                                                                                                     West Bengal
                                        9.39%                                                                       Punjab
                                                                                                                  Gujarat                             kerala
                                                                                                                          Orissa
                                                                                                                        Haryana                     10
                                                                                                                          Uttar Pradesh
                                                                                                                     Manipur
                                                                                                                Mizoram Nagaland Madhya Pradesh
                                                                                                                                         Tripura Andhra Pradesh
                                                                                                     Arunachal Pradesh
                                                                                                                             Sikkim Assam
                                                                                                             Himachal Pradesh                    Maharashtra             Tamil Nadu
                                                                                                                                        Jammu      Uttarakhand
                                                                                                                                                     5
                                                                                                                                              Chhattisgarh
                                                                                                                                                             Karnataka

                                                                                                                                                    Delhi

                                                                                                                                                     0
                         -30                   -25                -20                 -15                     -10                 -5                     0                5           10

                                                                                 Change in Employment rate 2008 to 2010
                               Source : Institute for Competitiveness Analysis, Data as of 2010
GROSS AREA SOWN VERSUS IRRIGATED AREA

                                    100000


                                                                                                                                          Madhya Pradesh
                                                                                                                                                   Maharashtra
                                                                                                                                                                      Uttar Pradesh
                                                                                                                                                           Rajasthan
                                                                                                                                       Tamil Nadu        Andhra Pradesh
                                     10000                                                                                                                Gujarat
                                                                                                                                                        West Bengal
                                                                                                                                                            Punjab Karnataka
                                                                                                                        Chhattisgarh         BiharOrissaHaryana
Log of area sown in ‘000 hectares




                                                                                                       Assam
                                                                                                                         Kerala
                                                 All India Average                                                Jharkhand
                                                 67,41,000                                                                   Uttarakhand
                                      1000                                                                      Himachal Pradesh & Kashmir
                                                                                                                           Jammu
                                                 hectares




                                                                                                                                                             India
                                                                                                                                                             All
                                                                                                                                                   All India Average
                                                                                      Meghalaya            Nagaland
                                                                               Arunachal Pradesh          Tripura                                  30,03,000 hectares
                                                                                            Goa
                                       100                                   Sikkim
                                                                             Mizoram

                                                                                          Delhi



                                        10




                                         1
                                             1                          10                          100                       1000                      10000                         100000

                                                                                          Log of Irrigated Area in ‘000 hectares
                                       Source: MOA, Institute for Competitiveness Analysis, Data as of 2010
HEALTHCARE
Percentage of Total government Expenditure on Medical, Health


                                                                    10
                                                                                                                                    Delhi

                                                                     9


                                                                     8


                                                                     7
                        and Sanitation




                                                                     6           Goa
                                                                                                 Jammu & Kashmir

                                                                                    Uttarakhand
                                                                                                                                                                             All India Average
                                                                     5       Manipur
                                                                                  Himachal Pradesh                                                                           4.02%
                                                                                                              AssamKerala

                                                                         Meghalaya                                                              West Bengal     Tamil Nadu
                                                                             Tripura
                                                                           Nagaland                                                                                                               Uttar Pradesh
                                                                         Mizoram                                        Rajasthan
                                                                     4                                                                Gujarat
                                                                          Sikkim           Chhattisgarh                        Karnataka
                                                                                          Jharkhand Haryana                                               Andhra Pradesh
                                                                                                                   Madhya Pradesh                                            Maharashtra
                                                                                                    Orissa
                                                                                                     Punjab      Bihar

                                                                     3

                                                                    Arunachal Pradesh
                                                                                                                                 India
                                                                                                                                 All



                                                                     2
                                                                                                                   All India Average 1633
                                                                                                                            Crores
                                                                     1
                                                                         0                    1000                   2000                       3000                 4000                  5000               6000



                                                                                       Total Government Expenditure on Medical, Health and Sanitation in Crores
                                                                Source: Institute for Competitiveness Analysis
PERCENTAGE OF VILLAGES ELECTRIFIED

             120



                   100                        100.0
                                                  100.099.7100.098.2 98.2          99.9100.0                                           100.0         100.0
All India    100                          96.9                                              96.4                                                                       96.9 97.3
                                                                                                                                                  94.4
Average of                                                                                         88.3
                                                                                                          85.8
                                                                                                                                                                88.3
84.96 %                     80.8                                                                                        80.6
              80
                                                                                                                                           69.2
                                                                                                                               64.4 62.6
                                   61.3
                                                                                                                 59.3
              60         56.8                                                                                                                            57.2




              40
                                                                            31.1


              20




               0




        Source: Institute for Competitiveness Analysis
TELEDENSITY
                  140000
                                                 Goa



                  120000
                                                                                                                             y = 429.3x + 12630
                                                                                                                                  R² = 0.388
                                                                                                                                                  Delhi

                  100000


                                                       Haryana

                   80000
GSDP per Capita




                                                           Maharashtra

                                                         Gujarat               Punjab
                                                                           Kerala
                                                                               Himachal Pradesh
                   60000                                                        Tamil Nadu
                                                               Karnataka
                                              Andhra Pradesh
                                    Sikkim
                             Arunachal Pradesh Bengal
                                            West
                                 MeghalayaChhattisgarh
                                  Mizoram
                                  Tripura
                                   Orissa           Uttarakhand
                   40000
                      Jammu & Kashmir  Rajasthan
                                  Nagaland Jharkhand
                                   Manipur
                       Madhya Pradesh
                            Uttar Pradesh

                   20000




                        0
                            50           70                90                110             130       150       170   190   210           230            250


                                                                                                   Teledensity
                     Source: Ministry of telecom, Institute for Competitiveness Analysis
DEBT TO GDP RATIO
     West Bengal                                                             42.8                      Prescribed limit according to the
      Uttaranchal                                                          41.1                         growth and stability Pact of EU
    Uttar Pradesh                                                             43.5
           Tripura                                                          42.2
      Tamil Nadu                                     25.5
            Sikkim                                                                                               80.6
        Rajasthan                                                          41.1
           Punjab                                                  35.2
            Orissa                                          30.6
        Nagaland                                                                           59.4
         Mizoram                                                                                                                           109.1
        Meghalya                                                     37.3
         Manipur                                                                                            77.4
     Maharashtra                                     25.1
  Madhya Pradesh                                                   34.4
            Kerala                                                 34.3
       Karnataka                                 24.3
       Jharkhand                                               33.6
 Jammu & Kashmir                                                                                     70.1
        Himachal                                                                     55.7
          Haryana                          19
           Gujarat                                           32.1
               Goa                                              35.5
             Delhi                    13.8                                                  Prescribed limit according
      Chattisgarh                      15.2                                                  to WTO for developing
             Bihar                                                        39.7                      economies
            Assam                                      28
       Arunachal                                                                                                                                   115.9
           Andhra                                           30.1

                     0                   20                          40               60                    80               100                   120


    Source: Institute for Competitiveness Analysis
RURAL POPULATION VERSUS RURAL POPULATION GROWTH RATES

                                4.000

                                                                                                           Meghalaya
                                                                                           Arunachal Pradesh                                                           Bihar
                                                                                     Mizoram             Manipur              Jammu & Kashmir Jharkhand Rajasthan
                                                                                                                                           Chhattisgarh Madhya Pradesh      Uttar Pradesh
                                2.000                                                                                                              Assam
                                                                                                                         Himachal Pradesh
                                                                                                                             Uttarakhand               Orissa Maharashtra
                                                                                                                                          Haryana        Gujarat
                                                                                                                                           Punjab         KarnatakaBengal
                                                                                                                                                              West
                                                                                                                                                           Tamil Nadu
                                                                                                               Tripura
                                                                                                                                                           Andhra Pradesh
                                0.000                                              Sikkim

                                         10                      100                             1,000                              10,000                            100,000                    1,000,000
Growth rate (CAGR 2001-2011)




                                                                                                    Nagaland
                                                                                           Goa                                                                                              Thousands
                                -2.000
                                                                                                                                              Kerala




                                -4.000



                                -6.000


                                                                                   Delhi

                                -8.000



                               -10.000


                                                                Population in Rural areas as per census (provisional Data) in Thousands


                                 Source: Census 2011, Institute for Competitiveness Analysis
URBAN POPULATION VERSUS URBAN POPULATION GROWTH RATES

                               12




                                     Sikkim
                               10
Growth rate (CAGR 2001-2011)




                                 8

                                                                           Kerala


                                      Tripura
                                 6
                                  Nagaland




                                                          Haryana
                                 4 Manipur
                                       Uttarakhand
                                               Chhattisgarh
                     Arunachal Pradesh                                                                   Andhra Pradesh
                              Jammu & Kashmir
                             Goa                         Bihar                                       Gujarat
                         Meghalaya           Jharkhand                                        Karnataka
                                      Assam Orissa                           Rajasthan                                                            Uttar Pradesh
                          Mizoram                                            Delhi Madhya Pradesh                            Tamil Nadu
                                                     Punjab                                                    West Bengal
                                                                                                                                                                  Maharashtra

                                 2
                               Himachal Pradesh




                                 0
                                      0                      10000                   20000                      30000                     40000                   50000                60000
                                                                                                                                                                                Thousands
                                                            Population in Urban areas as per census (provisional Data) in Thousands
                                       Source: Census 2011, Institute for Competitiveness Analysis
100,000,000
                                                                                                                                                                          120,000,000
                                                                                                                                                                                        140,000,000
                                                                                                                                                                                                             160,000,000




                                                                                                    20,000,000
                                                                                                                 40,000,000
                                                                                                                                  60,000,000
                                                                                                                                               80,000,000




                                                                                         0
                                                                                             151,726
                                                                                             455,962
                                                                                             561,977
                                                                                             529037
                                                                                             313,446
                                                                                             1069165
                                                                                             906,309
                                                                                             551414
                                                                                             573,741
                                                                                              1406861
                                                                                             822,132
                                                                                              1899624
                                                                                             595,036
                                                                                              2368971
                                                                                             960,981
                                                                                               2,710,051
                                                                                             688,704
                                                                                                 6167805
                                                                                               3,091,169
                                                                                                  7,025,583
                                                                                               3,414,106




Source: Census 2011, Institute for Competitiveness Analysis
                                                                                                   9134820
                                                                                                       16,333,916
                                                                                             419319
                                                                                                   8,821,588




                                                              Urban Population in 2011
                                                                                                       16531493
                                                                                                 5,936,538
                                                                                                         19603658
                                                                                                    10,387,436
                                                                                                                                                                                                                           RURAL AND URBAN POPULATION IN INDIA




                                                                                                        17,316,800
                                                                                                4,388,756
                                                                                                              26780516
                                                                                                  7,929,292
                                                                                                             25,036,946
                                                                                                       15,932,171
                                                                                                        17455506
                                                                                                 6,996,124

                                                              Rural Population in 2011
                                                                                                                   34,951,234
                                                                                                             25,712,811
                                                                                                                  34670817
                                                                                                            23,578,175
                                                                                                                    37552529
                                                                                                        17,080,776
                                                                                                                            51,540,236
                                                                                                                   34,949,729
                                                                                                                    37,189,229
                                                                                                         20,059,666
                                                                                                                            52537899
                                                                                                               28,353,745
                                                                                                                              56311788
                                                                                                               29,134,060
                                                                                                                                 62,213,676
                                                                                                     11,729,609
                                                                                                                                                            92075028
                                                                                                                                 50,827,531
                                                                                                                                       61545441
                                                                                                                              44,470,455
                                                                                                                                                                                                      155,111,022
DEMOGRAPHIC PROFILE IN ANDHRA PRADESH




                                                                   8246000


                                                                             8348000
                         9000000




                                                                                       7529000
                                                         7441000
                         8000000


                                               6976000




                                                                                                 6882000
                                    6799000




                                                                                                           6345000
                         7000000




                                                                                                                     5723000
 Population in Numbers




                                                                                                                               5092000
                         6000000




                                                                                                                                         4259000
                         5000000




                                                                                                                                                   3404000
                         4000000




                                                                                                                                                             2591000
                         3000000




                                                                                                                                                                       1933000


                                                                                                                                                                                 1489000
                         2000000




                                                                                                                                                                                           977000


                                                                                                                                                                                                    702000
                         1000000


                               0
                                    0-4        5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 80+
                                   years      years years years years years years years years years years year years years years years years




                 Source: Institute for Competitiveness Analysis,
RURAL URBAN AND TOTAL POPULATION

                                                                          120


                                                                                Delhi
Urban Population as a percentage of total Population




                                                                          100                                                           All India Average




                                                                                                                                                India
                                                                                                                                              67.02%




                                                                                                                                                All
                                                                           80



                                                                                                                 Goa
                                                                                                                              Tamil Nadu
                                                                                                                                 Maharashtra
                                                                           60                                                    Kerala
                                                                                                                            Mizoram Gujarat
                                                                                                                                         Karnataka
                                                                                    All India Average                                       Punjab Pradesh
                                                                                                                                             Andhra Bengal
                                                                                                                                                West
                                                                                                                                               Haryana
                                                                                    32.98%                                                         MadhyaUttar Pradesh
                                                                                                                                                            Pradesh
                                                                           40                                                                             Rajasthan
                                                                                                                                                  Uttarakhand
                                                                                                                                                    Manipur
                                                                                                                                                   Jammu & Kashmir
                                                                                                                                                           Jharkhand
                                                                                                                                                     Nagaland
                                                                                                                                                          Chhattisgarh
                                                                                                                                                         Tripura
                                                                                                                                                            Sikkim
                                                                                                                                                                     Orissa
                                                                                                                                                        Arunachal Pradesh Bihar
                                                                                                                                                                Meghalaya
                                                                                                                                                                        Assam
                                                                           20
                                                                                                                                                                      Himachal Pradesh




                                                                            0
                                                          -20                   0                 20                   40                  60                    80                      100   120



                                                                          -20
                                                                                         Rural Population as a percentage of total Population
                                                       Source: Census 2011, Institute for Competitiveness Analysis
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh

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Andhra Pradesh

  • 1. STATE PROFILES – ANDHRA PRADESH
  • 2. ECONOMIC CHALLENGE FOR CHIEF MINISTERS IN 2012 Achieving Fiscal Stability Enhancing State Competitiveness • Competitiveness is the only way to achieve sustainable job growth, improving incomes and stable public finances • Creating a clear economic strategy for the state that engages all stakeholders is even more important in times of budget cutting and austerity
  • 3. HIERARCHY OF MEASUREMENT OF STATE COMPETITIVENESS INDEX 4 Major Pillars 12 Sub Indices 350* Indicators * Approximate figure
  • 4. STAGES OF THE ECONOMY Innovation Driven Economies (Per capita GDP 900 to City States (Per capita GDP>1300 USD) 1300 USD) Transition Economies (Per capita GDP 800 to 900 USD) Investment Driven Economies (Per capita GDP 500 to 800 USD) Evolving / Changeover Economies (Per capita GDP 400 to 500 USD) Factor Driven Economies(Per capita GDP < 400 USD)
  • 5. STATES ACCORDING TO CATEGORIZATION Microeconomic Competitiveness Categorization Ranks City States (Per capita Incomes >1300 USD) Delhi 1 Goa 2 Innovation Driven Economies (Per capita Incomes 900 to1300 USD) Haryana 1 Maharashtra 2 Gujarat 3 Kerala 4 Transition Economies (Per capita Incomes 800 to 900 USD) Punjab 1 Tamil Nadu 2 Himachal Pradesh 3 Investment Driven Economies (Per capita Incomes 500 to 800 USD) Andhra Pradesh 1 Karnataka 2 Uttarakhand 3 West Bengal 4 Chhattisgarh 5 Sikkim 6 Mizoram 7 Meghalaya 8 Arunachal Pradesh 9 Tripura 10 Evolving/ Changeover Economies (Per capita Incomes 400 to 500 USD) Rajasthan 1 Jharkhand 2 Orissa 3 Jammu and Kashmir 4 Factor Driven Economies(Per capita Incomes < 500 USD) Bihar 1 Madhya Pradesh 2 Assam 3 Uttar Pradesh 4 Manipur 5 Nagaland 6 Source: Institute for Competitiveness Analysis
  • 6. NEAR TERM STATE PROSPERITY PERFORMANCE 9 Gross Domestic Product per Capita real growth rate, 2008-2011 Haryana Low but rising versus India Chhattisgarh Highly Productive and Prosperity Bihar Rising versus India Maharashtra 8 Himachal Pradesh Uttar Pradesh Andhra Pradesh Orissa 7 Karnataka Punjab Sikkim Uttarakhand Arunachal Pradesh Kerala Assam Gujarat Rajasthan Tripura 6 Points Index 57.28 Average All India Tamil Nadu West Bengal Meghalaya All India GSDP Delhi Goa /Capita rate Jharkhand (CAGR) of 6.27 % Mizoram 5 Manipur Madhya Jammu & Kashmir Pradesh All India Average 4 Nagaland of 47,998 Low and declining versus India Rupees/capita High but declining versus India 3 0 20000 40000 60000 80000 100000 120000 140000 Gross Domestic Product per Capita, 2011
  • 7. COMPETITIVENESS: UNDERLYING CONCEPTS • Competitiveness is the productivity with which a state utilizes its human, capital, and natural resources • Productivity determines wages and the standard of living – Productivity growth determines sustainable economic growth • Productivity depends on how a state competes, not what industries it competes in • Innovation in products and processes is necessary to drive productivity growth • Only productive businesses can create wealth and jobs. States compete to offer the most productive environment for business • The public and private sectors play different but interrelated roles in creating a productive economy
  • 8. ANDHRA PRADESH PERFORMANCE SNAPSHOT Position Trend Prosperity Productivity Labour Mobilization State of Clusters Type of Economy Investment Driven Top 33.33% of the states 33.33%-66.67% of Textiles the states Leading Clusters Apparels Processed Food 66.67% to 100% of the states
  • 9. ANDHRA PRADESH COMPETITIVENESS – OVERALL PERFORMANCE INDICATORS Prosperity Clusters Gross State Domestic Product per Capita, 2011 Rank: 2 Total Number of People employed in all Factory sector Rank: 1 • In Andhra Pradesh Rs. 49,149 • In Andhra Pradesh 11,13,149 • In India Rs. 47,998 • In India 1,15,06,838 • State Difference to India +2.40%. • State Employment to total India Employment (factory sector) 9.83% Growth in Gross State Domestic Product per Capita, 2008-11 , (CAGR) Rank: 2 • In Andhra Pradesh 7.29% • In India 6.28% Productivity Labour Mobilization Population, 2011 Rank: 2 Gross State Domestic Product per labour force participant, 2011 Rank: 4 • In Andhra Pradesh 8,46,66,533 • In Andhra Pradesh Rs 1,25,040. • % of India 4.98% • In India Rs 1,21,265 • State Difference to India +3.11% Population Growth, GAGR, 2001-2011 Rank: 10 • In Andhra Pradesh 1.06% Growth in Gross State Domestic Product Rank: 2 • In India 1.61% per Labour force participant, 2001-11 • In Andhra Pradesh 10.43% Employment, 2010 Rank: 2 • In India 8.44% • In Andhra Pradesh 20808940 • % India 7.31% Average Private Wage in 2008-09, Rank: 6 • In Andhra Pradesh Rs 53,575 Employment growth, annual rate, 2000-2010 Rank: 10 • In India Rs 64,741 • In Andhra Pradesh 1.43% • State Difference to India -17.25.% • In India 2.05% Private Wage Growth, CAGR, 2000-2009 Rank:2 Unemployment, 2010 (Per hundred People) Rank: 7 • In Andhra Pradesh 7.66% • In Andhra Pradesh 7.60 • In India 4.53% • In India 9.39 Change in Unemployment rate, 2000-2010 Rank: 6 • In Andhra Pradesh 0% • In India 41.37
  • 10. UNDERSTANDING STATE ECONOMIC PERFORMANCE Andhra Pradesh 450000 GSDP at current price at factor cost in Rupees Crore 400000 411349 409549 377346 350000 326547 300000 277286 250000 239683 200000 211802 190017 167096 150000 156711 144723 128797 100000 50000 0 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Source : Institute for Competitiveness Analysis
  • 11. CONTRIBUTION OF ANDHRA PRADESH’S GSDP TO INDIAN GSDP GSDP at current price at factor cost in Rupees Crore 6000000 5000000 4000000 3000000 2000000 1000000 0 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Andhra Pradesh's GDP Indian GDP Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Ratio of Andhra Pradesh's GSDP to Indian GDP in 7.56 8.06 8.12 8.02 8.07 8.02 8.02 7.97 8.12 8.23 8.23 8.19 Percentage Terms Source : Institute for Competitiveness Analysis
  • 12. WHAT DRIVES STATE PRODUCTIVITY 3. Proper Policy 1. Overall business 2. Stage of Economy enactment and strong climate conducive to (strong clusters) rule of law growth
  • 13. MODEL USED FOR ANALYSIS Climate for Innovation based local rivalry • Local rules and incentives that encourage investment and productivity e.g. - salaries, Factor - incentives for capital investments, Demand Conditions - intellectual property protection Conditions • Vigorous local competition i.e., - Openness to foreign and local competition; - Sophistication of company operations Access to high quality business inputs i.e., Sophisticated and demanding local - Natural endowments, customers and needs e.g., - Human resources, - Strict quality, safety, and environmental - Capital availability, Clusters of Related standards - Physical infrastructure, and Supporting – Consumer protection laws - Administrative infrastructure, Industries – Government procurement of - Information infrastructure, advanced technology - Scientific and technological infrastructure – Early demand for products and Local availability of suppliers and supporting industries Services. Presence of clusters instead of isolated firms Source: Michael E Porter
  • 14. IMPROVING PRODUCTIVITY IN BUSINESS ENVIRONMENT Key Issues for States • More power in terms of tax sharing with center • Reduce costs of doing business • Developing training programs which meet the specific needs of the state industrial clusters • Focus on infrastructure investments on the most leveraged areas for productivity and economic growth • Implementing policies to support small growth businesses • Enhancing the state’s skill development and training institutions for the same • Relentlessly improve of the public education system, the essential foundation
  • 15. GEOGRAPHIC INFLUENCES ON COMPETITIVENESS • Influence and access federal Nation policies and programs • Integrate policies and Neighboring states infrastructure with neighbors States • Assist each city area in City Regions developing its own strategy • Connect rural regions with Rural Regions urban areas
  • 16. CONTRIBUTION OF AGRICULTURE SECTOR TO GSDP 450000 GSDP at current price at factor cost in Rupees Crore 400000 350000 300000 250000 200000 150000 100000 50000 0 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Ratio of Agricultural GSDP in Andhra Pradesh to the total GSDP in 28.83 29.86 28.36 25.81 26.97 25.83 25.37 23.84 25.46 26.34 25.34 25.01 Andhra Pradesh in Percentage terms Source : Institute for Competitiveness Analysis
  • 17. CONTRIBUTION OF MANUFACTURING SECTOR TO GSDP 450000 GSDP at current price at factor cost in Rupees Crore 400000 350000 300000 250000 200000 150000 100000 50000 0 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Ratio of Manufacturi ng GSDP in Andhra Pradesh to the total 12.53 11.38 11.53 12.08 12.08 12.43 11.95 11.89 11.45 10.73 10.56 11.02 GSDP in Andhra Pradesh in Percentage terms Source : Institute for Competitiveness Analysis
  • 18. CONTRIBUTION OF SERVICE SECTOR TO GSDP 450000 GSDP at current price at factor cost in Rupees Crore 400000 350000 300000 250000 200000 150000 100000 50000 0 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Ratio of Services GSDP in Andhra Pradesh to the total 47.42 47.38 48.93 50.37 49.81 49.49 48.94 48.74 47.21 47.81 48.87 48.40 GSDP in Andhra Pradesh in Percentage terms Source : Institute for Competitiveness Analysis
  • 19. COMPOSITION OF ANDHRA PRADESH’S ECONOMY Agriculture, forestry and fishing 25% Services 48% Industry 27% Source : Institute for Competitiveness Analysis
  • 20. COMPOSITION OF ANDHRA PRADESH’S ECONOMY 3000000 2549085 2500000 GSDP in Rs. Crore 2000000 1492375 1500000 1000000 924340 500000 203375 77352 87111 0 Agriculture, forestry and fishing Industry Services Indian contribution Andhra Pradesh’s contribution Source : Institute for Competitiveness Analysis
  • 21. COMPOSITION OF ANDHRA PRADESH’S ECONOMY IN GREATER DEPTH 0.4 0.35 Public administration and defence 0.3 Electricity, gas and water supply Andhra Pradesh/National GSDP share (Percent) ,2011 0.25 0.2 Construction Forestry and logging 0.15 Mining and quarrying Other services Agricuture 0.1 Communication Fishing Transport by other means 0.05 Real states, ownership of dwellings and Banking hotelinsurance Trade, and and restaurant business services Manufacturing Storage 0 Railways -5 0 5 10 15 20 25 30 35 -0.05 -0.1 Change in contribution of GSDP of Andhra Pradesh to total Indian GSDP, CAGR (2000-2011) Source : Institute for Competitiveness Analysis
  • 22. STATE PRIVATE WAGE PERFORMANCE 160000 140000 Jharkhand Wage Growth rate 4.53% Average Wages in Rupees ,2009 120000 Uttaranchal Orissa 100000 Maharashtra Goa Average Wage : Rupees 64,741 80000 Chhattisgarh West Bengal Madhya Pradesh Haryana Karnataka Gujarat Meghalaya Delhi Himachal Pradesh Uttar Pradesh 60000 Andhra Pradesh Punjub Tamil Nadu Kerala Rajasthan Jammu & Kashmir Bihar Assam 40000 Manipur Tripura Nagaland 20000 Low and declining versus India Low but rising versus India 0 0 2 4 6 8 10 12 14 Wage Growth (CAGR), 2001 to 2008 Source : Institute for Competitiveness Analysis, Data as of 2010
  • 23. LABOUR PRODUCTIVITY 400000 GSDP at Current Prices per labour force participant, 2011 Goa 350000 High but declining versus India Highly productive and Productivity rising versus India 300000 Points Index 57.28 e Averag India All Delhi All India Average of 250000 8.44% Haryana 200000 All India Average of of Punjab Maharashtra Kerala Gujarat 1,21,265 Rupees/Labour Himachal Pradesh 150000 force participant Tamil Nadu Karnataka Andhra Pradesh Sikkim West Bengal Uttarakhand Chhattisgarh Mizoram Nagaland 100000 MeghalayaTripura Pradesh Arunachal Orissa Rajasthan Jammu & Kashmir Assam Madhya Pradesh Jharkhand Manipur Uttar Pradesh 50000 Bihar Low and declining versus India Low but rising versus India 0 5.00 6.00 7.00 8.00 9.00 10.00 11.00 12.00 13.00 GSDP /Labor force participant growth rate(CAGR) Source : Institute for Competitiveness Analysis
  • 24. LONG TERM JOB GROWTH 90000000 Uttar Pradesh 80000000 70000000 All India Average of 60000000 2.05% Number of Jobs, 2011 50000000 Maharashtra Bihar 40000000 West Bengal Andhra Pradesh All India average of Madhya Pradesh 30000000 1,62,99,464 Jobs Tamil Nadu Rajasthan /State Karnataka Gujarat 20000000 Orissa Jharkhand Kerala Assam Punjab Haryana Chhattisgarh 10000000 Delhi Uttarakhand Jammu & Kashmir Himachal Pradesh Nagaland Goa Tripura Mizoram Manipur Arunachal Pradesh Meghalaya 0 Sikkim 0 0.5 1 1.5 2 2.5 3 3.5 Losing Jobs Job growth rate CAGR, 2001-2010 Gaining Jobs Source : Institute for Competitiveness Analysis,
  • 25. LONG TERM UNEMPLOYMENT RATE 30 Goa jharkhand 25 s Point Index 57.28 ge Avera India All Below average Unemployment All India Average of - 20 2.12% Rajasthan Unemployment rate 2010 Bihar Unemployment Rising 15 Unemployment rate All India Average of Meghalaya 9.39% West Bengal kerala Gujarat Punjab MizoramOrissa Uttar Pradesh 10 Haryana Nagaland Manipur Tripura Andhra Pradesh Madhya Pradesh Arunachal Pradesh Above Average Himachal Pradesh Assam Unemployment Sikkim Maharashtra Jammu Tamil Nadu 5 Uttarakhand Chhattisgarh Karnataka Delhi 0 -25 -20 -15 -10 -5 0 5 10 15 Change in Employment rate 1999-2010 Source : Institute for Competitiveness Analysis, Data as of 2010
  • 26. NEAR TERM UNEMPLOYMENT RATE 30 Goa jharkhand Points Avera 57.28 Index All India Average of - India 25 6.55% All ge 20 Unemployment rate 2010 Rajasthan Bihar 15 All India Average of Meghalaya West Bengal 9.39% Punjab Gujarat kerala Orissa Haryana 10 Uttar Pradesh Manipur Mizoram Nagaland Madhya Pradesh Tripura Andhra Pradesh Arunachal Pradesh Sikkim Assam Himachal Pradesh Maharashtra Tamil Nadu Jammu Uttarakhand 5 Chhattisgarh Karnataka Delhi 0 -30 -25 -20 -15 -10 -5 0 5 10 Change in Employment rate 2008 to 2010 Source : Institute for Competitiveness Analysis, Data as of 2010
  • 27. GROSS AREA SOWN VERSUS IRRIGATED AREA 100000 Madhya Pradesh Maharashtra Uttar Pradesh Rajasthan Tamil Nadu Andhra Pradesh 10000 Gujarat West Bengal Punjab Karnataka Chhattisgarh BiharOrissaHaryana Log of area sown in ‘000 hectares Assam Kerala All India Average Jharkhand 67,41,000 Uttarakhand 1000 Himachal Pradesh & Kashmir Jammu hectares India All All India Average Meghalaya Nagaland Arunachal Pradesh Tripura 30,03,000 hectares Goa 100 Sikkim Mizoram Delhi 10 1 1 10 100 1000 10000 100000 Log of Irrigated Area in ‘000 hectares Source: MOA, Institute for Competitiveness Analysis, Data as of 2010
  • 28. HEALTHCARE Percentage of Total government Expenditure on Medical, Health 10 Delhi 9 8 7 and Sanitation 6 Goa Jammu & Kashmir Uttarakhand All India Average 5 Manipur Himachal Pradesh 4.02% AssamKerala Meghalaya West Bengal Tamil Nadu Tripura Nagaland Uttar Pradesh Mizoram Rajasthan 4 Gujarat Sikkim Chhattisgarh Karnataka Jharkhand Haryana Andhra Pradesh Madhya Pradesh Maharashtra Orissa Punjab Bihar 3 Arunachal Pradesh India All 2 All India Average 1633 Crores 1 0 1000 2000 3000 4000 5000 6000 Total Government Expenditure on Medical, Health and Sanitation in Crores Source: Institute for Competitiveness Analysis
  • 29. PERCENTAGE OF VILLAGES ELECTRIFIED 120 100 100.0 100.099.7100.098.2 98.2 99.9100.0 100.0 100.0 All India 100 96.9 96.4 96.9 97.3 94.4 Average of 88.3 85.8 88.3 84.96 % 80.8 80.6 80 69.2 64.4 62.6 61.3 59.3 60 56.8 57.2 40 31.1 20 0 Source: Institute for Competitiveness Analysis
  • 30. TELEDENSITY 140000 Goa 120000 y = 429.3x + 12630 R² = 0.388 Delhi 100000 Haryana 80000 GSDP per Capita Maharashtra Gujarat Punjab Kerala Himachal Pradesh 60000 Tamil Nadu Karnataka Andhra Pradesh Sikkim Arunachal Pradesh Bengal West MeghalayaChhattisgarh Mizoram Tripura Orissa Uttarakhand 40000 Jammu & Kashmir Rajasthan Nagaland Jharkhand Manipur Madhya Pradesh Uttar Pradesh 20000 0 50 70 90 110 130 150 170 190 210 230 250 Teledensity Source: Ministry of telecom, Institute for Competitiveness Analysis
  • 31. DEBT TO GDP RATIO West Bengal 42.8 Prescribed limit according to the Uttaranchal 41.1 growth and stability Pact of EU Uttar Pradesh 43.5 Tripura 42.2 Tamil Nadu 25.5 Sikkim 80.6 Rajasthan 41.1 Punjab 35.2 Orissa 30.6 Nagaland 59.4 Mizoram 109.1 Meghalya 37.3 Manipur 77.4 Maharashtra 25.1 Madhya Pradesh 34.4 Kerala 34.3 Karnataka 24.3 Jharkhand 33.6 Jammu & Kashmir 70.1 Himachal 55.7 Haryana 19 Gujarat 32.1 Goa 35.5 Delhi 13.8 Prescribed limit according Chattisgarh 15.2 to WTO for developing Bihar 39.7 economies Assam 28 Arunachal 115.9 Andhra 30.1 0 20 40 60 80 100 120 Source: Institute for Competitiveness Analysis
  • 32. RURAL POPULATION VERSUS RURAL POPULATION GROWTH RATES 4.000 Meghalaya Arunachal Pradesh Bihar Mizoram Manipur Jammu & Kashmir Jharkhand Rajasthan Chhattisgarh Madhya Pradesh Uttar Pradesh 2.000 Assam Himachal Pradesh Uttarakhand Orissa Maharashtra Haryana Gujarat Punjab KarnatakaBengal West Tamil Nadu Tripura Andhra Pradesh 0.000 Sikkim 10 100 1,000 10,000 100,000 1,000,000 Growth rate (CAGR 2001-2011) Nagaland Goa Thousands -2.000 Kerala -4.000 -6.000 Delhi -8.000 -10.000 Population in Rural areas as per census (provisional Data) in Thousands Source: Census 2011, Institute for Competitiveness Analysis
  • 33. URBAN POPULATION VERSUS URBAN POPULATION GROWTH RATES 12 Sikkim 10 Growth rate (CAGR 2001-2011) 8 Kerala Tripura 6 Nagaland Haryana 4 Manipur Uttarakhand Chhattisgarh Arunachal Pradesh Andhra Pradesh Jammu & Kashmir Goa Bihar Gujarat Meghalaya Jharkhand Karnataka Assam Orissa Rajasthan Uttar Pradesh Mizoram Delhi Madhya Pradesh Tamil Nadu Punjab West Bengal Maharashtra 2 Himachal Pradesh 0 0 10000 20000 30000 40000 50000 60000 Thousands Population in Urban areas as per census (provisional Data) in Thousands Source: Census 2011, Institute for Competitiveness Analysis
  • 34. 100,000,000 120,000,000 140,000,000 160,000,000 20,000,000 40,000,000 60,000,000 80,000,000 0 151,726 455,962 561,977 529037 313,446 1069165 906,309 551414 573,741 1406861 822,132 1899624 595,036 2368971 960,981 2,710,051 688,704 6167805 3,091,169 7,025,583 3,414,106 Source: Census 2011, Institute for Competitiveness Analysis 9134820 16,333,916 419319 8,821,588 Urban Population in 2011 16531493 5,936,538 19603658 10,387,436 RURAL AND URBAN POPULATION IN INDIA 17,316,800 4,388,756 26780516 7,929,292 25,036,946 15,932,171 17455506 6,996,124 Rural Population in 2011 34,951,234 25,712,811 34670817 23,578,175 37552529 17,080,776 51,540,236 34,949,729 37,189,229 20,059,666 52537899 28,353,745 56311788 29,134,060 62,213,676 11,729,609 92075028 50,827,531 61545441 44,470,455 155,111,022
  • 35. DEMOGRAPHIC PROFILE IN ANDHRA PRADESH 8246000 8348000 9000000 7529000 7441000 8000000 6976000 6882000 6799000 6345000 7000000 5723000 Population in Numbers 5092000 6000000 4259000 5000000 3404000 4000000 2591000 3000000 1933000 1489000 2000000 977000 702000 1000000 0 0-4 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 80+ years years years years years years years years years years years year years years years years years Source: Institute for Competitiveness Analysis,
  • 36. RURAL URBAN AND TOTAL POPULATION 120 Delhi Urban Population as a percentage of total Population 100 All India Average India 67.02% All 80 Goa Tamil Nadu Maharashtra 60 Kerala Mizoram Gujarat Karnataka All India Average Punjab Pradesh Andhra Bengal West Haryana 32.98% MadhyaUttar Pradesh Pradesh 40 Rajasthan Uttarakhand Manipur Jammu & Kashmir Jharkhand Nagaland Chhattisgarh Tripura Sikkim Orissa Arunachal Pradesh Bihar Meghalaya Assam 20 Himachal Pradesh 0 -20 0 20 40 60 80 100 120 -20 Rural Population as a percentage of total Population Source: Census 2011, Institute for Competitiveness Analysis