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SOCIO ECONOMIC SURVEY 2017-18 I SOCIO ECONOMIC SURVEY 2017-18 i SOCIO ECONOMIC SURVEY 2017-18 PLANNING DEPARTMENT GOVERNMENT OF ANDHRA PRADESH ii SOCIO ECONOMIC SURVEY 2017-18 SOCIO ECONOMIC SURVEY 2017-18 iii PREFACE At the national level, the Ministry of Finance, Government of India presents the Economic Survey in both houses of the Parliament every year, just before the Union Budget. It is the ministry’s view on the annual economic development of the country. Annual document of the Ministry of Finance, Government of India, Economic Survey, reviews the developments in the Indian economy over the previous 12 months, summarizes the performance on major development programs, and highlights the policy initiatives of the government and the prospects of the economy in the short to medium term. It contains certain prescriptions that may find a place in the Union Budget which is presented a day or two later. The Government of Andhra Pradesh publishes ‘Socio-Economic Survey’ report every year and places it in both Houses of the State Legislature along with the budget documents. The report is a unique volume that captures the socio-economic changes took place in the state since the beginning of the financial year. The report essentially attempts to present the growth performance of the state economy by capturing the progress under key macro-economic aggregates and physical outcomes because of implementation of various programmes / schemes during the year 2017-18. The Socio Economic Survey 2017-18 is an outcome of the collective effort of all the stakeholders including the government departments, consultations made with experts from research bodies and interested readers who have offered their valuable advice. iv SOCIO ECONOMIC SURVEY 2017-18 SOCIO ECONOMIC SURVEY 2017-18 1 Contents Sl. No. Chapter Pages 1. General Review 02 2. Macro Economic Aggregates 14 3. Public Finance 24 4. Prices, Wages and Public Distribution 28 5. Agriculture and Allied Activities 36 6. Industries 84 7. Economic Infrastructure 102 8. Social Infrastructure 152 9. Poverty, Employment and Unemployment 240 10. Real Time Governance 250 Annexures 258 2 SOCIO ECONOMIC SURVEY 2017-18 GENERAL REVIEW CHAPTER GENERAL 1 REVIEW SOCIO ECONOMIC SURVEY 2017-18 3 GENERAL REVIEW Andhra Pradesh - Towards a Sustained Economic and Structural Transformation During the last few years, the State has witnessed poverty. Towards this endeavor, government is numerous challenges and it is worth noting that conscious to step up public expenditure and reduce enormous efforts have been made to put the state out of pocket expenditure on these two important back on the inclusive and higher growth trajectory. determinants of Human development. Noteworthy The overarching and ultimate objective of the efforts have been done on this front. In order to government is to ensure inclusive growth, higher improve school education and learning outcomes in levels of human development and a happy society. government schools, government is keen to rollout the Thus, the broad welfare agenda of the State is ‘Municipal school model’, which in the recent past has creation of wealth, ensuring better standards of shown improvement in strength as well as standards. living to people, reducing inequalities and disparities Similarly, conversion of Hostels to Residential and enhancing the happiness index. The State as per Schools also yielded good results. Strengthening this its Vision agenda is targeting a compound annual set up further and to improve nutrition-intake, the growth rate of 12% till 2029 and a high level of government is committed to increase in diet charges. Human Development Index of 0.90 by 2029 through The government is moving with saturation approach structural & social transformation. for primary education enrolment, infrastructure and learning outcomes as a foundation for lifelong Economic growth imperative – learning. 2358 digital classrooms are proposed to be making it more inclusive set up in 2017-18. Virtual classroom and internet connectivity is provided to 3500 schools. Physical The growth performance of the state in the recent literacy is encouraged in schools for all classes. past is most impressive with the average growth during the last three years as 11%. The Per capita incomes have also shown substantial jump from Rs. Happiness and Global 107276 in 2015-16 to Rs.142054 in 2017-18.Thus, benchmarking every year, on an average, nearly Rs. 12,000 are being Ensuring good Health, Wealth and providing civic added to the per capita, while the average annual amenities to the people of the state remain the key increase of State Per Capita during three years before determinants of happiness. Andhra Pradesh moved state re-organization was around Rs. 6500 only. in sync with the Nation for a total transformation Despite impressive rise in the growth performance, towards “Prosperity with Happiness” of our society. the fruits of growth and development are not fully The state is thereby benchmarking against the global percolating down to the last mile. Recognizing this, best standards. AP state has arrived at benchmarks the state government has initiated steps to resolve for the 17 SDG goals and related indicators for issues that are hindering the inclusiveness, setting national/global comparison. To achieve these goals, right the inequalities. the government has evolved a holistic monitoring strategy encompassing five themes: Gross Value Added (GVA), Sustainable Development Goals Focus on multidimensional issues – (SDG), Samaaja Vikaasam, Kutumba Vikaasam and higher human development Key Performance Indicators (KPI). Keeping this in view, government decided to focus The Government of Andhra Pradesh envisions on access and quality to health and education besides becoming a happy and globally competitive society income as criteria for observing the wellbeing of placing people’s happiness and well-being at the people and compile estimates on multidimensional 4 SOCIO ECONOMIC SURVEY 2017-18 GENERAL REVIEW forefront of the State’s efforts. In Happiness Index, sector is a concern. Manufacturing is the need of the AP stood at 74th rank (equivalent) while India’s rank hour and improving the growth and contribution, is 122. The levels of happiness across 13 districts have especially in the low skill labour intensive industries been studied in a sample survey done. and MSMEs, is the focus. Government to focus on putting in necessary infrastructure in place and create an enabling environment. Sectoral concerns Government has achieved a significant success in the Service sector as a major GVA contributor and Primary sector. However, low base in the previous employment provider in organized sector requires years to some extent have contributed to this growth. additional focus. Construction sector is expected to pick Productivity improvements and diversification have up and especially in the light of huge public investment largely helped the state to show decent performance. to a tune of Rs. 2000 crore. Urban housing is yet At the core of the vision of the government is making another key area and with Economic cities – walk to agriculture sustainable and profitable and ensuring work with plug and play being set up. The construction that the state is made drought-free. Promoting sector with increased demand for cement, steel is set diversification into horticulture and livestock for to create more jobs. However, Real estate sector is yet sustained income and drought resilience and is to fully pickup with the adverse impact of GST and proactively promoting agriculture produce processing demonetization slowly fading away. IT is a promising and value addition for better returns to farmer are our sector with exports and job creation. Tourism has focus. We are focusing on improvement in production an abundant scope for adding more GVA and more of milk, meat and egg under livestock sector to ensure jobs and identification of tourist places is to be done. earnings of Rs.10,000 income per month to every Five star hotels in Tirupati and Visakhapatnam would household. boost the prospects. Government is willing to allot land at concessional rates to attract investors. Urbanization Growth in Fisheries sector has been very good in the as a growth enabler has a positive impact on growth. recent past. The sector contributes 6.4% to GSDP, Lack of big cities in the state resulting in lesser PCI as provides employment to about 14.5 lakh people, and States with higher urban population and major cities contributed Rs.17000 Crores from sea food export have higher PCIs. Asset formation not promising and it during 2016-17. AP Ranks 1st in total fish and is time, the credit plans to move from routine renewals shrimp production by producing more than 70% of to productive assets. cultured shrimp in the country. AP State envisions to become ‘Aquaculture hub’ by investing in processing capacity and export. However, expansion is reaching Welfare – focus on lowest decile saturation in fisheries sector and pollution issues need About Rs. 60,000 crore is spent on welfare. However, to be tacked effectively. Separate zone for saline lands, social and financial inclusion is yet to show marked conversion of delta to hatcheries in WG dist., deep improvements. Greater inclusiveness and lower sea fishing to be encouraged by providing few deep GINI is the motto of the government. This requires sea fishing vessels in the Tamil Nadu model. Milk nurturing social entrepreneurs. The issue is how to is another important growth engine in the primary prepare people who drive social innovation and sector. Silage to be used as a regular feed to cattle transformation in various fields including education, but not just as a drought mechanism. It is essential health, environment and enterprise development to conduct a detailed study on the issues and the and who build strong and sustainable non-profit problems in primary sector so that further growth organizations. Lower decile population to have can be explored and farming community is benefited. more opportunities and become true stakeholders of the development and growing economy.
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