How do you see the effect of the new GDP series on the fortunes of states in India?
The new method introduced by India of calculating the Gross Domestic Product has reshaped the fortunes of many states as these have had huge effects on both the borrowing limits of states and also the distribution of resources to the states by the Finance Commission.
The states which saw a largely negative effect in the form of the shrinking of their economies are Bihar, Madhya Pradesh, Odisha, Rajasthan, and West Bengal. The notable exceptions to the above were the states of Jharkhand and Assam. Latter two contrary to the expectations saw a boost in their economies.
The states which were already in the prosperous bracket like Karnataka, Kerala and Andhra Pradesh saw a further boost to their economies. The states of Haryana, Punjab, and Gujarat only saw a limited increase in their economic output.
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