Growth has percolated to all states: Planning Commission

Benefits of economic growth over the last few decades have reached all states, although in different measures, a Planning Commission analysis of state growth rates during the last five Plan periods reveals. However, differences in the level and rate of economic development across states remain and have again started rising after declining during the Ninth Plan.

There were as many as 10 states, including Assam, Bihar, Chhattisgarh, Gujarat, Jammu & Kashmir, Madhya Pradesh, Maharashtra and Punjab, that were growing below 5% during the Ninth Plan period (1997-2002). But growth rate in these states increased sharply during the 10th Plan (2002-07) except for Madhya Pradesh, which posted a growth rate lower than 5%. Many of these states were expected to build on the momentum and cross into double digit growth in the 11th Plan, but the financial crisis and the slowdown could have halted the progress.

The variability between the rates of growth in different states increased slightly between the Seventh and Eighth Plan, showing that relatively well-off states grew at a faster rate than others. Although in the Ninth Plan, it came down considerably, it has been going up since then, the analysis which is part of the mid-term analysis of the 11th Plan stated.

A considerable difference in rates of growth remained between states at the top and those at the bottom of the pile during the 10th Plan. While states like Gujarat, Delhi, Haryana, Goa and Orissa posted growth rates ranging between 9% and 10.9%, Madhya Pradesh, Punjab, Uttar Pradesh, J&K and Assam grew at 4.4%, 5.1%, 5.4%, 5.6% and 5.7%, respectively.

States, on an average, recorded sharp growth during the Eighth Plan (1992-97) compared to the previous one (1985-90), which grew further during the 10th Plan after a drop during the Ninth Plan period .

Although during the first year of the Eleventh Plan, growth across states increased sharply, the global economic slowdown decelerated growth in 2008-09. The median growth for states fell to 6.4% during the year compared to 8% in the previous year.According to the Planning Commission, all states seem to have moved up in respect of their growth rates.