By IANS
Hyderabad : The southern state of Andhra Pradesh is poised to achieve annual economic growth rate of 10.37 percent against the national growth rate of 8.7 percent for fiscal 2007-08.
The state recorded a growth rate of 8.87 percent during 2006-07. According to advance estimates published by the Central Statistical Organisation, the state achieved an average annual growth rate of 8.73 percent for four years, including the current year.
Governor N.D. Tiwari presented these statistics in the state legislature Monday during his address on the first day of the budget session.
“This is the highest ever growth rate achieved by the state for any four-year period since its formation in 1956,” he said.
The state was confident of achieving the target of 9 percent annual growth rate in the overall economy, with a target of 4.5 percent for agriculture for the 11th five-year plan (2007-12).
The governor said the state would have to do a lot more to sustain the double digit growth rate in the economy on a sustainable basis over a period of next two decades and to translate the same into a higher quality of life for all its citizens.
“Following the proven economic models, our state has to substantially improve infrastructure facilities all over the state to offer itself as an attractive investment destination.”
The governor called for improving the share of manufacturing sector in the economy from present 15 percent to 30 percent of the state’s gross domestic product (GDP).
He said Andhra Pradesh, with 974-km long coastline backed by well-developed hinterland, a diversified manufacturing base and entrepreneurial talent, vast reserves of coal and natural gas besides many other minerals, has the potential to emerge as the leading outsourcing base for manufacture.
The governor said the government planned to step up physical and social infrastructure as part of efforts to enhance the share of the manufacturing in the economy.
Industrial investments in the state rose to Rs.123.5 billion during the last three and half years, generating an additional employment to 172,616 persons, as against an investment of Rs.45.24 billion during 2001-04.
An additional 210 projects with an estimated investment value of Rs.386.71 billion are under implementation, creating an employment potential of 130,458.
According to Reserve Bank of India report released in August, 2007, Andhra Pradesh ranked second among the state in the country for total investment intentions for 2006-07, next only to Gujarat.
The governor said 71 special economic zones (SEZs) were coming up in the state. Already 49 SEZs have been notified, which is highest for any state in the country, with a potential to raise capital investments of Rs.350 billion.