What is GSDP?
- GSDP is the sum total of value added by different economic sectors (Agriculture, Industry & Services) produced within the boundaries of the state.
What has happened?
- Despite Covid-induced slowdown in economies across the world,
- Uttar Pradesh has become the second largest state of India in terms of Gross State Domestic Product (GSDP), Surging ahead of even industrialised states like Gujarat and Tamil Nadu.
- The finance department data, reveals that the UP’s GSDP in the 2020-2021 financial year has crossed Rs 19.48 lakh crore,
- Equivalent to $268 billion, and UP has climbed to the second spot from number five in 2019-2020.
- Maharashtra continues to lead from the top position while UP moved up three ranks past Tamil Nadu, Gujarat and Karnataka.
But how UP is gaining?
- “Our state has been making rapid strides in industry and economy by ensuring an industry-friendly eco-system in the state,
- As a result of which UP had achieved the second position among all states in ease of doing business in a short span,” Said MSME and export promotion minister Sidharth Nath Singh.
- The increase in GSDP when the economy contracted severely in the first two quarters of the financial year 2020-21 due to pandemic outbreak and lockdown,
- Indicates revival of economic activities in manufacturing and services.
- Agriculture played a key role in giving livelihood to vast population during lockdown and layoffs,
- But the upsurge in GSDP proves that other non-agriculture activities are also showing signs of resilience, say experts.
- Of late, the state has been in the headlines for leaving an impact at the national level and jumped to second rank in the ease of doing business and was declared best performing state in Kisan Samman Nidhi
- CM Yogi had on Wednesday announced in the assembly that the state government has received a certificate from the Union government for benefiting 2.37 crore farmers under Kisan Samman Nidhi Yojana.
- The CM has been pushing industrial growth as his key agenda and organised the investors’ summit in which MoUs of Rs 4.28 lakh crore were inked,
- Out of which projects of nearly Rs 3 lakh crore have started at the ground level.
- The exports from Uttar Pradesh also increased by 32% in the last two years.
- “It is indeed a major achievement and an unexpected feat of the state which has done well in a pandemic-affected year,” Economist Yashvir Tyagi, former Lucknow University professor
- The way the chief minister handled the corona crisis and did not let the economy be badly hit also played a key role in saving the state from a financial crisis and has resulted in an increase in the state’s GSDP, he added.
Q)Which of the following statement regarding GDP calculation is correct?
- While calculating GDP, income generated by foreigners in a country is taken into consideration.
- While calculating GDP, income generated by nationals of a country outside the country is taken into account.
- 1 only
- 2 only
- Both 1 & 2
- None of the above