The gross state domestic product (GSDP) growth of Kerala is the lowest says an international rating agency. As per a report titled ‘States of growth 2.0’ by rating agency CRISIL, the gross state domestic product (GSDP) of Kerala grew at slowest pace among 17 large states of the country. The growth rate of 5% is lowest among the 17 states which are in the non-special category. The rating agency used the data by the Central Statistical Office (CSO) to prepare the report on state GDP growth. The study left out only Goa from non-special category given that the size of the state is very small.
The GDP growth in Kerala was lowest for the fiscal year 2017-18 despite the fact that the Consumer Price Index (CPI) inflation touched 6% in the state. The public expenditure of the state was also high with fiscal deficit at 3,700 crore rupees (3.4%) of GSDP of Kerala which is 7, 47,945 crore rupees.
Kerala was also among the bottom 3 states which grew at the lowest rate between the fiscal year 2013 to the fiscal year 2017. The average GSDP growth in the state was 5.8% compared to 9.9% in Gujarat. As per the report by CRISIL suggests, Kerala is way behind Gujarat in generating economic growth.
The average year on year growth from 2012 to 2018 in employment-intensive sectors was 5.4% compared 11.5% in Gujarat. The growth in employment-intensive sectors was almost 1% higher to average GDP growth while in Kerala it was 0.2% lower to average GDP growth.
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