Ranchi: Jharkhand’s economy is projected to grow at 5.96% in the 2026-27 fiscal, down by 0.21% from the current year’s projected estimate of 6.17%. However, the actual growth in 2024-’25 remained at 7.02%, exceeding the national rate of 6.5%.Moreover, Jharkhand’s gross state domestic product (GSDP) doubled between 2011-’12 and 2024-’25, rising from Rs 1,50,918 crore to Rs 3,03,178 crore at constant prices, according to the state economic survey report tabled in the Vidhan Sabha on Saturday.A state’s GSDP is defined as the total monetary value of all final goods and services produced within a state’s geographical boundaries during a specific period, usually a fiscal year. It serves as a key indicator of a state’s economic health and growth, and is used by the RBI to identify top economic performers.Reading out the report before the lunch break in the ongoing budget session of the assembly, finance minister Radha Krishana Kishore said, “This marks the fourth consecutive year of growth above 7%. Jharkhand outperformed the national growth rate in four out of seven years between 2018-19 and 2024-25, and its pandemic-year contraction of 5.30% was less severe than the national decline of 5.8%.”At current prices, GSDP is now projected to cross Rs 5.6 lakh crore in 2025-26 and is expected to approach Rs 6.1 lakh crore in the next fiscal year. The projected moderation in growth rates from the 7% range to 6% is consistent with a transition from post-pandemic recovery to a sustainable long-term expansion path, the report said.The report also stated that the per capita income at current prices crossed the Rs 1 lakh mark for the first time, reaching Rs 1,16,663 in 2024-25. “Real per capita income rose to Rs 68,357, a 65.7% increase over 2011-12 levels at a compound annual growth rate (CAGR) of 4%. The state’s per capita income stabilised at about 60% of the national average since 2016-17, indicating that the state is keeping pace with the national income growth,” the report said.At current prices, the per capita income is projected to rise further to Rs 1,25,677 in 2025-26 and Rs 1,35,195 in 2026-27.Interestingly, the report said inflation moderated to an average of 4% in 2024-25, down from 6% in 2023. The rural-urban inflation gap also closed in 2024. “The inflation difference between rural and urban, which remained at 1.8% in 2023, closed by 2024,” it said.Explaining the growth, the report said the service sector has been driving the economic shift more than the industry. “Services overtook the industry to become the largest sector, rising from 38.54% of the gross state value added (GSVA) in 2011-12 to 45.56% in 2024-25,” it said, stressing that agriculture’s share declined from 9.65% to 6%, even as the absolute agricultural output continued to grow.“The growing service sector acts as a stabiliser for the broader economy. In 2024-25, the services sector contributed 52% of GSVA growth, followed by the industry at 23% and agriculture at 16%,” it said, highlighting that the services sector will continue to grow at 7.81% in 2026-27.While the state’s budget increased more than 20-fold since the state’s formation in 2000, growing from Rs 6,067 crore in 2001-02 to Rs 1,16,892 crore in 2024-25 (actual), with a budget provision of Rs 1,45,400 crore for 2025-26, the total expenditure crossed Rs 1 lakh crore for the first time in the 2023-24 fiscal year.The report also informed that the state’s fiscal deficit remained within the mandates of the Fiscal Responsibility and Budget Management (FRBM) limit of 3% of GSDP every year except 2020-21. “The Covid-19 pandemic pushed it to 5%,” it added.Meanwhile, the house passed the third supplementary budget of Rs 6,450 crore by a voice vote in the second half of the session. The state will present its full budget for the 2026-27 financial year on February 24.
