While predicting a growth rate of 8.83 per cent, the economic survey of the state that was tabled in the Jharkhand Assembly on Thursday, pointed out that the manufacturing sector is yet to gain a growth momentum.
The state government has been trying hard since last year to attract investment in the industrial sector, primarily manufacturing and had made claims of attracting investment worth over several thousand crores.
The survey said that the prime contributor in the growth of the state economy was the service sector. “The share of the service sector to the GSDP at constant prices has increased from 33 per cent in 2004-05 to about 49 per cent in 2015-16,” said the survey. Further, it said that even in the service sector, the contribution has not come from the Railways, trade, hotels and restaurants but from banking and insurance, besides communication and public administration sectors. It said that the contribution of Railways, trade, hotels and restaurants has gone down in the last 11 years.
On the other hand, the industrial production, particularly in the registered manufacturing sector, continued to be negative.
“The outputs of manufacturing and registered manufacturing sectors, this year also, have declined by 0.11 per cent and 2.8 per cent, respectively,” the survey said, adding that the performance has remained poor because of very low growth in manufacturing and in electricity, gas and water supply”.