Andhra Pradesh and Bihar have come to the centre-stage after the recent Lok Sabha elections. With the BJP falling short of a simple majority of 272, it now relies on the support of its NDA allies from Telugu Desam Party of Andhra Pradesh and Janata Dal (United) of Bihar.
Both have asked for a special package from the central government to help them with their development. Here’s a look at how these two states’ economies have fared in recent years.
GSDP: Data available with the RBI and CMIE Economic Outlook shows that Andhra Pradesh’s gross state domestic product (GSDP) at constant prices stood at Rs 7.54 lakh crore in FY23. Over the past five years, the southern state, which was bifurcated 10 years ago, has recorded 27% growth in GSDP. Meanwhile, Bihar’s GSDP has surged 29% in five years to Rs. 4.42 lakh crore in FY23.
For comparison, the country’s GDP at constant prices rose 22.3% in that period to Rs.160.7 lakh crore in FY23. As of FY23, Andhra Pradesh contributed 4.7% to India’s GDP while Bihar accounted for 2.8% of the national economy.
Per capita income: India’s per capita income in FY23at current prices was Rs 1.70 lakh. Andhra Pradesh’s with per capita income was Rs 2.20 lakh, which represented a growth of 59% over five years. Bihar, in contrast, is the state with one of the lowest per capita income at Rs 54,111, which was a 47% rise in five years.
Infrastructure development: Andhra Pradesh spent Rs. 47,995 crore in FY23 on capital expenditure (capex), which represents an 87% surge in five years. In that period, Bihar’s capex increased 35% to Rs 45,735 crore. The combined capex of all the states and Union Territories in FY23 was Rs 11.92 lakh crore.
National Highways: The length of national highways in India has surged 20% in five years to 145,000 km in FY23 from 120,000 km in FY18. In Andhra Pradesh, the network length increased 36% over five years to 8,683 km in FY23. In Bihar, length of NH surged 23% in the period to 5,969 km.
Debt: Andhra Pradesh’s total debt rose 93% over five years to Rs 4.42 lakh crore in FY23. For Bihar the figure was Rs. 2.86 lakh crore, which was an 82% jump over the period. The combined debt of all the states and UTs increased 77% to Rs 76.1 lakh crore in FY23.
Income: The own tax revenue of Andhra Pradesh surged 74% in five years to Rs 91,018 crore in FY23. Bihar saw a jump of 39% to Rs 41,387 crore in FY23. The combined tax revenue of all the states and UTs registered a growth of 58% in this duration to Rs 17.87 lakh crore.
In the current political scenario, the BJP with 240 seats in the Lok Sabha is dependent on the TDP (16 seats) and Jan Sena (2 seats) from Andhra Pradesh and JD(U) with 12 seats, LJPRV (5 seats) and HAM (1 seat) from Bihar. Both states are expecting strong support from the central government for rapid development.