Share of states in the GDP of Bharat ~ here are the top five:
- Maharashtra ~ 15.7%
- Uttar Pradesh ~ 9.2%
- Tamilnadu ~ 9.1%
- Gujarat ~ 8.2%
- West Bengal ~ 7.5%
The Union Statistics Department, under the Ministry of Statistics and Programme Implementation, publishes the Gross Domestic Product (GDP) data every year. Through this, the monetary value of domestically produced goods and services can be known over some time.
In this case, multiple social media handles started spreading this information on social media that Tamil Nadu has been pushed back by Uttar Pradesh. Various English media including ANI, Times of India, Financial Express, The Economic Times, NDTV, and many more have published the same information.
What’s the truth?
GDP reports in the English media are based on data made available by the website “soic.in” (school of Intrinsic Compounding), which monitors investments and the stock market.
Indian States and their % Share to GDP of India
Maharashtra is the largest contributor to India’s GDP and is followed by Uttar Pradesh, Tamil Nadu, Gujarat and West Bengal. pic.twitter.com/dsI8BLhEj6
— Intrinsic Compounding (@soicfinance) December 9, 2023
The state-by-state GDP percentage on the map of India was released on December 9, 2023, on page X of soic.in. In addition, it claims that “Maharashtra is the largest contributor to India’s GDP, followed by Uttar Pradesh, Tamil Nadu, Gujarat and West Bengal.”
Examining the GDP data on the SOIC website, it was discovered that the state-by-state GDP data was inaccurate. When the state-by-state GDP percentages listed above are added together, the overall GDP percentage comes out to 108.6%. Furthermore, the Union Territory of the Andaman and Nicobar Islands’ GDP percentage is not stated.
In this case, the GDP of West Bengal surpasses that of Karnataka, one of the biggest economic states as per this data. But, this information is also incorrect.
Furthermore, the sources of this data are not made explicit in the SOIC card. The only sources cited were CLSA and Sensex. Upon visiting CLSA’s website, it was discovered that they had not released any state-specific GDP data in a while.
We therefore investigated the Reserve Bank of India website to learn the facts about this. On November 25, 2023, the Reserve Bank of India published state-by-state GDP data. Data on GDP was included, spanning the fiscal years 2004–2005 through 2022–2023. However, data for multiple states, including Maharashtra, Assam, and Mizoram, as well as data for the current fiscal year 2022–2023 were left out of this.
We examined the entire GDP data in it from the most recent fiscal year, 2022–2023, to the fiscal year, 2004–2005. Based on data computed with 2004–05 as the base year, Tamil Nadu ranks second in the 2014–2015 fiscal year.
Likewise, Base Year: 2011–12 data confirms that Tamil Nadu has been in the lead over Uttar Pradesh since the previous fiscal year 2011–12.
According to GDP data for FY 2022-23, Tamil Nadu is at Rs 23.6 lakh crore and Uttar Pradesh at Rs 22.5 lakh crore. Maharashtra tops the GDP list with 31.08 lakh crores and Tamil Nadu ranks second with 20.7 lakh crores in GDP for FY 2021-2022. Uttar Pradesh, Karnataka and Gujarat are next with 19.7, 19.6 and 19.3 lakh crores respectively.
Accordingly, the state-wise GDP data for the financial year 2021-2022 has been calculated as a percentage and the GDP share percentages of Maharashtra, Tamil Nadu and Uttar Pradesh are 12.97%, 8.65% and 8.24% respectively.
This makes it clear that the claim stating Tamil Nadu is falling behind Uttar Pradesh in terms of GDP economy is a piece of false information.
GDP for the Financial year of 2023-24:
On November 09, 2023, Forbes India media released its GDP forecast for the fiscal year 2023–2024, which was derived from GDP data from prior years. It is projected that with 38.79 lakh crores, Maharashtra will come in first, followed by Tamil Nadu with 28.3 lakh crores.
In this, Gujarat and Karnataka are third and fourth leaving behind Uttar Pradesh, which is predicted to be fifth with Rs 24.39 lakh crore.
Gross Domestic Product (GDP) vs GDP per Capita:
GDP refers to a calculation of the total economic growth and activity of a country. While GDP per Capita is calculated by dividing its total GDP by its total population to determine the average financial income per person in a country.
Therefore, former RBI Governor C Rangarajan has said that the best way to calculate the economic growth of a country is to calculate it by GDP per Capita rather than by GDP.
Although India ranks fifth globally in terms of GDP, as of January 2023, it ranks 142nd in terms of GDP per Capita. And it is also worth noting here that the average annual income of a citizen in India is about Rs.1.62 lakh ($2,000).
According to the data released by the Ministry of Statistics and Programme Implementation, the state-wise GDP Per Capita at Constant Prices in 2021-22 is Rs 42,525 in Uttar Pradesh and Rs 1,54,427 in Tamil Nadu.
According to our investigation, there is false information circulating on media that Tamil Nadu’s GDP is lagging behind Uttar Pradesh.