A recent working paper by the Economic Advisory Council to the Prime Minister highlights the impact of economic liberalization since the 1990s on various Indian states. Gujarat, Haryana, Karnataka, Tamil Nadu, and Delhi have seen significant increases in their share of the national GDP from 1990-91 to 2023-24. In contrast, Maharashtra’s GDP share declined from 14.6% to 13.3%, yet it remains the leading state. Tamil Nadu reversed a previous decline, improving its GDP share from 7.1% to 8.9%. Similarly, Gujarat’s GDP share rose from 6.4% to 8.1%, while Karnataka benefited from its growing technology hub, increasing its share from 5.3% to 8.2%.
Economic Liberalization Boosts GDP in Key States
The economic liberalization that started in the 1990s has had a significant positive impact on several Indian states. According to a recent working paper from the Economic Advisory Council to the Prime Minister (EAC-PM), Gujarat, Haryana, Karnataka, Tamil Nadu, and Delhi have seen a notable increase in their share of the national GDP from 1990-91 to 2023-24.
Maharashtra, while still leading with the largest GDP share, observed a decline from 14.6 percent in 1990-91 to 13.3 percent in 2023-24. In contrast, Tamil Nadu experienced a remarkable turnaround. After a drop from 8.7 percent in 1960-61 to 7.1 percent in 1990-91, its GDP share rebounded to 8.9 percent by 2023-24. Similarly, Gujarat has made strides, increasing its GDP share from 6.4 percent in 1990-91 to 8.1 percent in 2022-23.
Karnataka’s impressive growth can be attributed to Bengaluru’s emergence as a major technology hub, raising the state’s GDP share from 5.3 percent in 1990-91 to 8.2 percent in 2023-24. As these states continue to thrive, their evolving economic landscapes highlight the success of liberalization policies.
Meta description: A recent report shows how economic liberalization has positively impacted Gujarat, Haryana, Karnataka, Tamil Nadu, and Delhi, increasing their shares in India’s GDP since the 1990s.
Tags: Economic liberalization, GDP growth, Gujarat, Karnataka, Tamil Nadu, Haryana, Delhi, Maharashtra, Economic Advisory Council, 2024 economic report.
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What are the biggest gains for Gujarat from the 1990s reforms?
Gujarat has seen huge growth in industries and employment. The state focused on attracting investments, which helped create jobs and boost the economy. -
How did Tamil Nadu benefit from the 1990s reforms?
Tamil Nadu improved its manufacturing and service sectors. The state started to focus on technology and education, which increased jobs and economic growth. -
What changes happened in Karnataka after the reforms?
Karnataka became a hub for IT and technology companies. The reforms helped the state attract many high-tech businesses and skilled workers, boosting the local economy. -
Why were the 1990s reforms important for these states?
The 1990s reforms made it easier for businesses to grow by reducing government control and promoting free trade. This led to more investments and better job opportunities. - Are these gains still affecting these states today?
Yes, the reforms laid the foundation for ongoing development. Gujarat, Tamil Nadu, and Karnataka continue to see economic growth and attract new industries because of the changes made during the 1990s.
