Changing Dimensions of India's Growth Process: A State Level Analysis

Growth of the Indian economy has been quite impressive during 2004-07. This paper chronicles the performance of the states in India during this high growth phase. The growth performance during 2000-03 is taken as the benchmark to compare and contrast the changing growth patterns across sectors in different states. Apart from sectoral growth, sectoral contributions to state output, variability of sectoral output and contribution of different sectors to overall growth in the spatial dimension have been studied. The results broadly indicate a decline in the importance of the service sector during the high growth phase and increased variability in output in the states. While maintaining the high growth rates of the primary and secondary sectors remains a challenge, increased variability of output raises serious concerns on the continuity of the high growth momentum in the future.