Industrial growth was ‘sluggish’ in Uttar Pradesh while agriculture fared much better amid talk about an industry-friendly climate in the state, government data showed.

The industrial sector’s contribution to the Gross State Domestic Product was 3.7%, both at current prices and constant (2011-12) prices, according to the quick estimates for 2017-18 released recently by the economics and statistics division of the State Planning Institute, Uttar Pradesh.

The industrial growth rate was much lower than the previous years.

In contrast, agriculture appears to have done pretty well with a growth rate of 6.5% in 2017-18, the estimates revealed.

But the surprise has been sprung by mining. Its contribution to the gross state domestic product (GSDP) was estimated to grow at the fastest pace during 2017-18.

Manufacturing, industry’s main sub-sector, may have further slipped down the growth ladder. It is estimated to have grown at 2.6% during the same year.

The industrial growth in 2015-16 and 2016-17 was reported to be 8% and 7.9% respectively.

“The Quick estimates for the year 2017-18 both at current and constant (2011-12) prices are derived as per the methodology provided by the Central Statistical Office, Government of India(GOI), New Delhi, and using the quick and provisional data provided by various related departments of the state government,” a planning department official said.

The estimates, he clarified were provisional and subject to revision though major changes were unlikely, he said.

The report further estimates agricultural growth to be an impressive 6.5% when allied sectors like forestry, fishing, livestock are clubbed together. Separately, the contribution of crops has been expected to be even more at 9.1%.

The agricultural growth rate was negative in 2015 and 2016.

The service sector that includes transport, railways, real estate, hotel and restaurants is estimated to have grown at 8.3% during 2017-18 against 7.3% in 2015 and 6.4% in 2016, according to the same quick estimates.

The contribution of mining and quarrying that have been in the news for all the wrong reasons in the recent years were estimated to have grown as high as 25.5%. The contribution of mining to the GSDP was even higher last year at 39.3% and 14.3% in 2015.

Commenting on the report, noted economist and former head of the Giri Institute of Development Studies, Ajit Kumar Singh said the recently released state income estimates for 2017-18 presented a mixed picture.

“While relatively high growth of agriculture is welcome, the estimates leave scope for skepticism about its veracity.

The decline in growth rate of livestock and animal husbandry is a cause of concern as it affects the livelihood of a good number of people.”

He said the performance of the manufacturing sector was really disappointing and so was the decline in the growth rate of most of the services, including trade, hotels, transport, etc.

“The declining performance of industry, especially manufacturing as well as most services, may have been due to the adverse impact of demonetisation,” he pointed out.

Singh said the phenomenal growth of mining and quarries despite slowing down of construction industries was also surprising and its contribution to the state Gross Domestic Product (GDP) in 2015 and 2016 was also substantially high at 14.3% and 39.3% respectively.

First Published: Jan 14, 2019 14:34 IST