Chandigarh: Northern Region continued to be
the largest contributor to the GDP at 27.5 per cent in
2007-08 although the economic growth in the region has
underperformed the national average, says a CII report.
Stating that northern region clocked a CAGR of 6.2 per
cent against 6.5 per cent nationally, CII Northern Region,
Chairman, Harpal Singh said that the underperformance had been
witnessed across primary and tertiary sectors.
"One of the key reasons of underperformance in the primary
sector has been slow growth rates witnessed by two of the
largest agrarian states in the region - Uttar Pradesh and
Punjab, which contribute 57.5 per cent to the region's primary
sector," he said in a release issued here.
So on one hand the northern region has not been able to
capitalize on its traditional stronghold -agriculture, it has
also not been able to capitalize on the opportunities in the
service sector as much as the other regions, added Singh.
Singh pointed out that the performance of the northern
region has been reasonably good in the secondary sector,
driven to a large extent by growth in the construction sector.
Construction infact is also the fastest growing sub sector for
the region, CAGR of 12.6 per cent over 1999-00 to 2007-08.
The other fastest growing sub sectors for the region are
transport, storage and communication; Banking & insurance,
real estate, ownership of dwellings & business services, said
the report.
Discussing the state economies, Singh said that Uttar
Pradesh, Rajasthan and Delhi are the three largest economies
in the region. Chandigarh, Uttarakhand and Haryana are the
three fastest growing economies in the region.
All northern region state economies have witnessed
declining contribution from the primary sector. The greatest
increase in percentage contribution of the secondary sector
has been in Uttarakhand, 15 per cent points. Similarly the
contribution of the tertiary sector has witnessed greatest
increase in Haryana, 10 per cent points, he said.
Bureau Report
First Published: Thursday, November 05, 2009, 20:42