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GOVERNMENT of ANDHRA PRADESH
FINANCE DEPARTMENT
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PREVIOUS ECONOMIC TRENDS

 
Economic Survey 1999-2000

GENERAL REVIEW
 

Andhra Pradesh with a population of 6.65 crore as per 1991 Census, is the fifth most populous State in the country. The decadal growth rate of the State is 24.2 percent which is higher than the All India growth-rate of 23.5. About 73 percent of the State's population live in rural areas. The work participation rate in the State, as per 1991 Census at 45 percent is above the All India rate of 38 percent. According to the mid-year population estimates worked out by the Central Statistical Organisation, the State's population for 1999 is projected at 7.51 crore. The geographical area of the State, the fifth largest in the country is 2,75,000 Sq. K.ms. The State has the longest coast line of 972 KMs.

As per the Advance Estimates for the year 1999-2000, the Gross State Domestic Product at constant (1993-94) prices is estimated at Rs. 79268.07 crore as against Quick Estimates of Rs.75530.40 crore registering an increase of 4.95 percent. This slow growth rate was due to significant deceleration in Agriculture sector because of adverse seasonal conditions prevailed during both South-West and North-East Monsoons. Percapita income at constant (1993-94) prices for the year 1999-2000 is estimated at Rs.9424 as against Rs.9118 (Quick Estimates) in 1998-99 showing an increase of 3.36 percent. The South-West Monsoon which accounts for about 70 percent of the annual rainfall was deficit by 16 percent during the year 1999-2000. During the North East Monsoon, the rainfall received was deficit by 34 percent. The value of loss in terms of production due to damage to the standing crops are estimated at Rs. 2566.91 crore. The state Government have declared 612 Mandals covering 16 districts of the State as drought affected areas.

As per the Advance Estimates for 1999-2000, the area under food grains in the state declined from 73.70 lakh hect. in 1998-99 to 64.63 lakh hect. in 1999-2000. The estimated food grains production during the year 1999-2000 is of the order of 128.10 lakh tonnes as against an all time record production of 149.1 lakh tonnes during the year 1998-99 showing a decline of 14.1 percent. All the important food crops like Rice, Jowar, Bajra, Maize, Pulses etc. and non-food crops like Groundnut, Sesamum, Castor, etc., indicated a decline in output.

The 16 th Quinquennial Livestock Census conducted during the year 1999, revealed an increase of 5.3 percent in respect of Buffaloes and also an increase of 31.4 percent in Poultry Population compared to the previous Census conducted during the year 1993. According to an Integrated Sample Survey conducted by the Animal Husbandry Department, the total milk production in the State during 1998-99 was estimated to be 4.9 million tonnes. The value of inland fish production in the State during 1998-99 was Rs.1022.70 crores while that of Marine was Rs.677.11 crore. The State is having 23.2 percent of the total geographical area under forests. The State occupies a pride place in sericulture development and plays a vital role in rural development. It is mostly concentrated in Rayalaseema region of the State. The area covered under Mulberry cultivation in the State was 105785 acres, the production of reeling cocoons was 30179 tonnes and the Mulberry raw silk was 3335 M.Ts. in 1998-99.

The average Index Number of Industrial Production in the State with base 1993-94=100 revealed an increase of 9.1 percent in 1999-2000 (upto December, 1999) compared to 1998-99 (upto December, 1998) and this increase was contributed by Mining (15.9 percent), Electricity (13.7 percent) and Manufacturing sectors (8 percent). In the Power Sector, the installed generation capacity increased from 7265 M.Ws in 1998 to 7363 M.Ws as on 31 st December, 1999, while the power generated has declined from 26264 M.Us. in 1998 to 22175.72 M.Us. in 1999. A total of 17.99 lakh agricultural pump sets are energised in 1999-2000. The actual energy generated in utilities and distribution is found to be not sufficient to the growing needs of the people at large in all the sectors viz. Domestic, Industrial, Commercial etc. Due to Power Reform, APSEB has been bifurcated into two bodies, namely APGENCO and APTRANSCO. The percapita consumption of power in the State has increased from 410 units in 1997-98 to 466 units in 1998-99.

The promotion of Hi-Tech City at Hyderabad is a joint venture with Larsen & Toubro Limited is attracting most of Info-Tech Companies to CYBERABAD. Apart from Janmabhoomi, institutions of Vanasamrakshana Samithis, Watershed Committees, Water Users Associations, CMEY., DWACRA, School Committees etc., are yielding fruitful results. The State has launched DEEPAM for rural and urban areas. Roshini are also yielding good results. The State Government has established Indian School of Business which is being promoted by Indian Corporate Groups like Reliance, Godrej and financial institutions like ICICI etc.

The Andhra Pradesh State Road Transport Corporation (A.P.S.R.T.C.) had 18526 buses on road in 1998-99 and covering abou 204.83 crore Kilometres per annum and carying 1.22 crore per day

A total length of 1,78,012 Kms. of road was maintained by the State (1996-97) of which State Highways comprise 8806 K.Ms. National Highways 2949 K.Ms and District Roads constitute 140686 K.Ms. Railway routes cover 5026 K.Ms of which 4303 K.Ms are broad gauge lines. There are 612 Railway Stations in the State.

The number of mandays lost due to work stoppages during the year 1999-2000 was 11.52 lakhs compared to 18.09 lakh mandays lost during the year 1998-99.

There were 5058 Bank Offices of Scheduled Commercial Banks in the State as at the end of June, 1999, with a deposit of Rs.39275.91 Crore. The gross Bank credit provided by these Banks was Rs.25,665.67 Crores. The Credit Deposit Ratio in the State was 65.3 while at the National level was only 54.1.

As per 1997 National Sample Survey Organisation, the literacy rate in the state was 52 percent. Male literacy rate was 64 and female literacy was 43 percent. During 1998-99 the Pupil-Teacher ratio at Primary Stage was 45 : 1, Upper Primary 39 : 1 and at High School stage at 32 : 1.

A look at the trends in Wholesale prices of Agricultural commodities, Consumer Price Index Numbers for Industrial Workers and Consumer Price Index Number for Urban Non-Manual Employees revealed that there was no respite in price levels in the State causing concern. The State Government has initiated appropriate measures to curtail the price rise. A special cell was formed to monitor and initiate remedial steps. To avoid middlemen from the system of sale of commodities in between producers and consumers, the Government has established 95 Rythu bazars in the State for direct sale of vegetables by farmers to the consumers.

Exports from Andhra Pradesh for the year 1998-99 is estimated at Rs. 7341.00 crore as against Rs. 7002.70 crore in 1997-98, registering an increase of 4.83 percent.

Sales Tax is the major source of revenue in the State. The revenue realised through Sales Tax on top 25 commodities in the State was Rs.3150.27 crores during 1999-2000 as against Rs.2651.99 crores in 1998-99. The revenue realised from State Excise increased to Rs.924 crores in 1998-99 and Rs.688.3 crores in 1999-2000 (upto November, 1999). A new system of Computerised Registration was introduced in the Land Registration Officers in the State and it was fetching Rs.566.98 Crores in 1999-2000 (upto December, 1999). The amount realised under Motor Vehicles Tax in the State was Rs.703.45 crore in 1998-99 and Rs.533.23 crore in 1999-2000 (upto December, 1999).

A draft Vision 2020 document was released on 26 th January, 1999. It is the desire of the Government to make Andhra Pradesh State the foremost State in the country in terms of growth, equity and quality of life. The State should be a State where poverty is totally eradicated that every man,. Woman child in the State should have access, not just to basic minimum needs, but to all the opportunities to lead a happy and fulfilling life and that people must emerge as a knowledge and learning society built on values of hard work, honesty, discipline and collective sense of purpose.

The basic thrust of the Vision document is to make development totally sustainable. Over the last four years, Government have launched several initiatives. The Janmmabhoomi Programme embodies the principles of voluntarism, participation, transparency, accountability and promotes excellence in all walks of life. The quality and the reach of primary education and primary health care delivery systems have been improved. Self help groups in many sectors have been actively promoted and expanded. The developmental effort of the Government has a distinct bias in favour of women and disadvantaged groups.

The Key indicators of the economy of Andhra Pradesh during 1997-98 to 1999-2000 are given in the following table:

 

Table - 1.1

KEY INDICATORS

 
Sl No. INDICATORS ABSOLUTE FIGURES PERCENTAGE OVER PREVIOUS PERIOD
    1997- 98 1998-99 1999-2000 1997-98 1998-99 1999-2000
1 GROSS DOMESTIC PRODUCT ( Rs. crore )            
  At Current Prices 95918 ( R ) 114154 (Q)   5.68 (R) 19.01 (Q)  
  At Constant (1993-94) Prices 68015 ( R ) 75530 (Q) 79268 (A) -1.70 (R ) 11.05 (Q) 4.95 (A)
2 NET DOMESTIC PRODUCT (Rs. crore)            
  At Current Prices 85924 ( R ) 102876 (Q)   5.24 ( R ) 19.73 (Q)  
  At Constant (1993-94) Prices 60555 ( R) 67712 (Q) 70785 (A) -2.22 ( R ) 11.82 (Q) 4.54 (A)
3 PER CAPITA INCOME (Rs.)            
  At Current Prices 11701 ( R) 13853 (Q)   4.08 ( R ) 18.39 (Q)  
  At Constant (1993-94) Prices 8246 ( R ) 9118 (Q) 9424 (A) -3.29 ( R ) 10.57 (Q) 3.36 (A)
4 FOOD GRAINS PRODUCTION (LAKH TONNES) 108.22 149.05 128.10 -20.89 37.72 -14.06
5 INDUSTRIAL PRODUCTION (1)   118.5 129.3     9.1
6 POWER GENERATED (MU) 24690 26264 22176 13.43 6.38 -15.57
7 WHOLESALE PRICE INDEX (2) 383 406 429 4.93 14.19 5.67
8 CONSUMER PRICE INDEX FOR INDUSTRIAL WORKERS (3)            
  (a) Central Series 357.5 407.2 415.6 13.4 13.9 2.0
  (b) State Series 351.7 386.7 393.7 11.6 9.9 1.8
9 EXPORTS AT CURRENT PRICES (Rs crore) 7002.7 7341.0   3.32 4.83  
 

Note: Gross State Domestic Product & Net Domestic Product are at factor cost ( New series with Base year 1993-94 )

R: Revised Estimate, Q: Quick Estimate, A: Advance Estimate

1. Index of Industrial Production: 1993-94 = 1000

2.Index with base 1981-82 = 100 ( Averages of January to December)

3. Index with base 1982 = 100 ( Averages of January to December)

 
 
 
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