Size of the economies of Madhya Pradesh and Odisha get doubled between FY16 and FY22: India Ratings Report

Madhya Pradesh and Odisha more than doubled their gross state domestic product (GSDP) on a nominal basis in six years to FY22 despite the pandemic, a report by India Ratings & Research said on Tuesday.

Madhya Pradesh has shown a "remarkable journey" on economic growth by doubling in size in FY22, as compared with what it was in FY16, India Ratings and Research said in a note.

It added that Chief Minister Shivraj Singh Chouhan's state also entered into the top 10 states by GSDP because of this performance, and was the only new entrant in the list. Kerala has dropped off the list, it said.
Maharashtra, Tamil Nadu, Uttar Pradesh, Karnataka, Gujarat, West Bengal, Rajasthan, Andhra Pradesh, Telangana and Kerala were the 10 largest subnational economies in FY16, while in FY22 Kerala was replaced by Madhya Pradesh, it said.

Maharashtra led the list with the highest GSDP, and was followed by Tamil Nadu, it said, adding that both the states have retained their top positions in FY22.

Karnataka replaced Uttar Pradesh as the third-largest subnational economy in FY22. Gujarat also moved up to the fourth position in FY22 from fifth in FY16.

The report said that the post-Covid recovery in nominal GDP of 13 states, accounting for 27.5 per cent of India's GDP, lagged behind the national average during FY21-FY22.

The medium-term growth prospects of Odisha and Madhya Pradesh look bright as they have stepped up their capital outlay to GSDP significantly during FY16-FY22. While Odisha's capital outlay to GSDP averaged 4.3 per cent during FY16-FY22, that of Madhya Pradesh averaged 3.6 per cent, it said.

“The cost of borrowing for the union government edged up to a five-month high of 7.38% in March 2023 from 7.37% a month ago. The 10-year G-sec yield in March 2023 stood 96bp higher than the pre-pandemic level,February 2020: 6.42%,” stated the report.