Northern states contribute 28 pc of total Net State GDP
New Delhi, June 3 (UNI) The share of 11 north Indian states and Union Territories in the Net State Domestic Product at current prices in 2004-05 works out to 28.73 per cent at Rs 7,25,087 crore as against the national total of Rs 25,23,442 crore.
''Gauging the potential of the northern states, latent resource base and the demographic profile, the combined share in the total Net State Domestic Product should be higher,'' industry chamber PHDCCI said in an analysis.
In its study, PHDCCI has embarked on Northern Indian Common Economy (NICE), primarily to marshal the individual strengths of each state for the collective growth of the region and the nation at large.
The four states and the Union Territories in the northern region have recorded a higher growth in the Net State Domestic Product (at constant prices) than the national average of 7.5 per cent for the year 2004-05 as compared to the previous year.
Haryana registered a 8.9 per cent growth while Uttarakhand posted a 12.3 per cent increase. Chandigarh also showed an 11 per cent increase with Delhi doing fairly well at 12 per cent.
Himachal Pradesh is just below at 7.3 per cent while the entire northern region, in aggregate terms, grew by 5.35 per cent.
Significantly, Uttar Pradesh, which is the largest contributor to the region's total at Rs 2,05,249 crore, has registered a growth of 4.8 per cent, the study said.
''Evolving North as a dynamic growth centre includes free flow of trade in the region without unreasonable state interventions, leading to state integration. Differential VAT rates, multiplicity and varying rates of state level taxes on segments like industry, trade, tourism and transport vehicles are areas of concern for the industry and development agencies,'' PHDCCI President Sanjay Bhatia said.
The study suggests trade in agri produce across the region should undergo a transformation.
Inter-state power issues such as widening gap of demand and availability, increasing transmission and distribution losses, lukewarm approach of some of the state governments to empower the independent power producers (IPPs) are some of the concerns, the study highlighted.
UNI