Jharkhand Economic Survey: Tertiary sector registers fastest growth between 2011-12 & 2019-20

Ranchi: Among the three major sectors of the state’s economy the tertiary sector has grown at the fastest rate in the period between 2011-12 and 2019-20.

As per the economic survey for the year 2021-22 which was laid in the Assembly by Finance  Minister Rameshwar Oraon the primary sector grew at an average annual rate of 1.9 percent and the secondary sector at the rate of 6.3 percent, the tertiary sector grew at the rate of 7.7 percent in this period.

The tertiary sector is not only the dominant sector in the economy of the state but its there in the GSVA (Gross State Value Added) has also increased over the years. In 2011-12 the beginning of the current round of (System of National Accounts) its contribution to the GSVA was 38.5 percent which grew up to about 46 percent by 2019-20.

“This increase in the share of tertiary sector has happened at the cost of the primary sector. The share of the primary sector has declined from 28 percent to about 20 percent during the period 2011-12 to 2019-20. The share of the secondary sector has remained mostly stable over the years its contribution to the GSVA was 38.8 percent in 2011-12 and 2019-20,” the survey said.

It was pointed out that the Covid-19 pandemic and the ensuring lockdown of the Year 2020-21 caused a contraction in the value of the output of all the sectors except ‘Agriculture Forestry and Fishing’ and essential services like ‘Electricity Gas Water supply and Other utilities’. After two consecutive years of deficient monsoon rainfall, Jharkhand received a good monsoon rainfall this year, as a result, the agriculture forestry and fishing sector recorded a growth of 26 percent, the crop component of it grew by about 35 percent.

Electricity gas water supply and other utilities a component of the secondary sector could also record a positive growth of 1.9 percent as it was exempted from the restrictions of the lockdown otherwise the value of the output of the secondary sector contracted by about 7 percent. The pandemic also hit the tertiary sector severely as its output contracted by 10 percent. Within the tertiary sector those of ‘trade repair hotels and restaurants and ‘transport storage and communication’ were most severely affected as their output contract by about 18 percent.

As far as inflation is concerned the survey pointed that after staying above 6 percent for more than a year the rate of inflation in Jharkhand started decreasing in December 2020. From 6.36 percent in November 2020 it decreased to 5.94 percent in December 2020 since then it has remained below 6 percent the mark set by the RBI in its new monetary policy framework.


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