Trends in share of crop and allied sectors in GSDP

Sectoral trends in GSDP

The growth rate of GSDP denotes the performance of economy of the State and changes in the magnitude and composition of GSDP of the State economy over time. The economy is broadly classified into three sectors, i.e., primary, secondary and tertiary. The primary sector consists of crops; livestock; forestry & logging; fisheries; and mining & quarrying. The secondary sector consists of manufacturing; electricity, gas, water supply & other utility services; and construction sectors. The tertiary sector consists of trade & repair services; hotels & restaurants; transport, including railways, road, water, air & services incidental to transport; storages; communications & services relating to broadcasting; financial services; real estate, ownership of dwellings & professional services; public administration; and other services.

While the sectoral analysis in terms of GVA at basic prices reveals that during the year 2015-16 (AE), growth rate at constant (2011-12) prices is highest in tertiary sector with 11%, followed by secondary sector with a growth of 8.6% and primary sector expected a negative growth of 1.9%. The GSDP growth estimates of 9.2% would have been better, but for the negative growth recorded in crops sector, attributed mainly to the adverse seasonal conditions prevailing in the State since last two consecutive years. Crops sector per se was badly affected due to these reasons and recorded a negative growth of 18.2%. But growth in primary sector was partially compensated by the positive growths registered in Livestock (12.2%), Fisheries (17.8%) and mining & quarrying (6.9%) sectors.

Trend in broad sectors growth reveals that primary sector has been decreasing since 2012-13 to 2015-16, mainly due to the negative growth in the production of crops. Secondary sector has registered a negative growth of -12.2 percent in 2012-13, has picked up in 2013-14 with growth rate of 4.8 percent and showed a robust growth of 8.6 percent in 2015-16. Tertiary sector is the main contributor of GVA growth of the State. It has registered a growth of 7.7 percent in 2012-13 and peaked up in 2014-15 by growing at 11.8 percent. As per the advanced estimates of 2015-16 services sector is poised to grow at 11.0 percent.

Agricultural Sector

Agriculture & allied activities consist of four sub-sectors viz., crop sector, livestock, forestry & logging and fi shing & aquaculture. The Crop sector is the largest contributors to the agriculture & allied sector with a share of 53 percent, followed by livestock (42 percent), fi shing & aquaculture (3 percent) and forestry & logging (2 percent) in 2016-17. The crop sector, which experienced negative growth for last two consecutive years, is projected to grow at a high growth of 26.3 percent, the highest ever since 2012-13. While the spurt in agriculture sector growth directly benefit the about half of State’s population, it will enhance the income of the other half of the population by augmenting the demand in rest of the economy.

The average size of holdings in the state was 1.30 hectares in 2005-06 and it declined to 1.12 hectares in 2010-11. This indicates that there has been a decline in the average size of landholdings by 14.49 percent. The decrease in the average size of holdings is observed in all categories except marginal and small groups, during the period 2005-06 to 2010-11.

Industrial sector

There is a high fluctuation in growth performance of industrial sector in Telangana in recent years. Manufacturing sector contributes about 55.0% in total industrial sector GVA in the State, as a result, growth in manufacturing sector has high impact on industrial sector. Industrial sector in the State is likely to register a growth rate of 8.4% in current prices and 8.3% at constant (2011-12) prices during 2015-16 (AE) (Figure 4.1), during the same period manufacturing sector is likely to grow at 8.2% in current prices and 9.5% in constant prices. A trend analysis reveals that industrial sector growth has picked up over a period of time, putting in a high growth trajectory.

The Annual Survey of Industries (ASI) is the major source of industrial statistics. Structure of industry sector in the State could be analysed using ASI data of the State from 2008-09 to 2012-13. ASI covers all units registered under the Factories Act, 1948 i.e., those employing 10 or more workers with power and 20 or more workers without power respectively. Number of factories increased from 7,357 in 2008-09 to 10,279 in 2012-13, registering a growth of 40 percent in number of factories in the State.

Service sector

The Services sector comprises trade & repair services; hotels & restaurants; transport, including railways, road, water, air & services incidental to transport; storages; communications & services relating to broadcasting; fi nancial services; real estate, ownership of dwellings & professional services; public administration, and other services. This sector is a dominant sector in the State’s economy in terms of contribution and growth in GSDP. The contribution of Services sector is estimated to be around 62% of total GVA for the year 2015-16 as per the Advance Estimates at current prices. Services sector is the largest employment provider in urban areas as 62.3 percent of total urban workforce was dependent on this sector for employment in 2013-14.

Major services in the State include real estate, ownership of dwelling & professional services (including ITeS), and trade, repair, hotels and restaurants etc. Real estate, ownership of dwelling & professional services account for about one-third of total services sector GVA in the State, followed by trade, repair, hotels & restaurants (23%) and other services (15%).

Growth in Services Sector using average annual growth rate reveals that most of the sub sectors in services have registered a double digit growth during period 2012-13 to 2015-16. The public administration sector experienced highest growth (AAGR of 19.9 percent) during 2012-13 to 2015-16. at current prices. Other services that grew at double digit are communication (13.9%), Real estate (18.6%) and trade, repair, hotels and restaurants (18.9%) during the same period.

As the State progresses on development front, there is a trend of people shifting from agriculture to nonagricultural sector, most of those who are either semi-skilled or unskilled. While services sector could absorb the educated and skilled labour force, it is important that we develop the industrial sector to generate employment opportunities for semi-skilled labour force which is on rise. Thus, growth of industrial sector is a key for solving the problem of unemployment in the State. It is also important that in order to garner the benefi ts arising out of increase in working age population due to change in demographic profi le and increase number of skilled workers as a result of various skill imparting schemes; we need to develop the industrial sector.


TSPSC  Notes brings Prelims and Mains programs for TSPSC  Prelims and TSPSC  Mains Exam preparation. Various Programs initiated by TSPSC  Notes are as follows:- For any doubt, Just leave us a Chat or Fill us a querry––

Hope we have satisfied your need for TSPSC Prelims and Mains Preparation

Kindly review us to serve even better

TSPSC Mains Test Series 2022

20 Quality mock tests and GS Mains Notes

Mains Test Series and Notes

Mains Printed Notes (With COD)

TSPSC Prelims Test Series 2022

24 Quality mock tests and GS Prelims Notes

Prelims Test Series and Notes

Prelims Printed Notes (With COD)

Subscribe to TSPSC Notes

Never Miss any TSPSC important update!

Join 2,489 other subscribers

error: Content is protected !!