Northern Region – Largest Contributor to the GDP :)


North India - Largest Contributor to the GDP

CII report states that although the economic growth in the region has underperformed the national average, the Northern Region continued to be the largest contributor to the GDP at 27.5% in 2007-08.

However, it said that it clocked a CAGR of 6.2% against 6.5% nationally while the under performance had been witnessed across primary and tertiary sectors.

Moreover, the northern region has not been able to capitalize on its traditional stronghold –agriculture while it has also not been able to capitalize on the opportunities in the service sector like the other regions.

One of the key reasons of under performance in the primary sector has been slow growth rates witnessed by two of the largest agrarian states in the region – Uttar Pradesh and Punjab, which contribute 57.5 per cent to the region’s primary sector.


Performance of the northern region has been reasonably good in the secondary sector, driven to a large extent by growth in the construction sector.

Construction, on the other hand, is also the fastest growing sub sector for the region, CAGR of 12.6% over 1999-00 to 2007-08

Other fastest growing sub sectors for the region are transport, storage and communication; Banking & insurance, real estate, ownership of dwellings & business services.

Discussing the state economies, CII offical said that Uttar Pradesh, Rajasthan and Delhi are the three largest economies in the region.

Chandigarh, Uttarakhand and Haryana are the three fastest growing economies in the region.

All northern region state economies have witnessed declining contribution from the primary sector.

The greatest increase in percentage contribution of the secondary sector has been in Uttarakhand, 15 per cent points.

Similarly the contribution of the tertiary sector has witnessed greatest increase in Haryana, 10 per cent points, he said.


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