Nagpur’s per capita nominal net distt domestic product crosses Rs 3.22 lakh

 

 

 

IN A positive reflection of the State Government’s consistent efforts in improving the economic indicators of Nagpur district, the latest Economic Survey of Maharashtra (2024-25) brings out that the district’s per capita nominal Net District Domestic Product (NDDP) was Rs 3,22,927 in 2023-24. This is above the average per capita district income of Maharashtra (Rs 2,78,681) and all India (Rs 1,88,892). With this per capita NDDP, Nagpur stood fourth in the State. Mumbai topped the chart with per capita nominal NDDP of Rs 4,55,767, followed by Thane (Rs 3,90,726), Pune (Rs 3,74,257) at second and third place respectively. Nagpur at fourth place was followed by Raigad (Rs 3,15,681), Kolhapur (Rs 2,82,297), and Sindhudurg (Rs 2,79,080). Nagpur is the only district from Vidarbha among the top ten performers in per capita nominal NDDP. However, the bottom ten districts have four from Vidarbha namely Yavatmal, Gadchiroli, Buldhana, and Washim.

 

Their per capita nominal NDDP is below the national average. Gross State Domestic Product (GDP) is a measure, in monetary terms, of all goods and services produced (without duplication) within the boundaries of any geographical area during one year. By subtracting consumption of fixed capital from respective GSDP, one can derive the Net District Domestic Product (NDDP). And, per capita district income is obtained by dividing NDDP by mid-year population of respective district. Per capita income is an important socio-economic indicator of a district. As per the data, the per capita nominal NDDP for Nagpur has come a long way from Rs 2,16,402 in 2018-19 to Rs 3,22,927 in 2023-24. It has registered a steady rise, except for a fall in 2020-21. The fall in per capita income is attributed to COVID-19 pandemic and its impact on economic activity.

 

However, after that, it has kept increasing. As per the strategic growth plan drawn up by the district administration, Nagpur’s growth could be attributed to contribution from various sectors including real estate, professional services, manufacturing, financial services, trade, repairs, hotels and restaurants, other construction activities, etc. The infrastructure growth also has fuelled the economic activity. However, as compared to other developed parts of the State, Nagpur’s per capita income (PCI) is still lower. According to Dr Kapil Chandrayan, former Expert Member, Vidarbha Development Board, and an expert in development economics, “Though there is arithmetic progression in per capita nominal NDDP over the years, cultural and structural changes are needed for converting this increase into indicator of qualitative growth.” The relatively lower per capita nominal NDDP of Vidarbha region, as compared to Mumbai, Thane, Pune, and Western Maharashtra, is a result of the historic economic backwardness of the region.

 

The effect of the consistent level of low investment in the region since independence will take some more time to be squared off, felt Dr Chandrayan. “Mere low level of industrialisation cannot be held responsible for the lower PCI and NDDP. Especially with the prominent role of the private sector, it cannot be compelled to set industries and it will not be sustainable too,” he added. According to Dr Chandrayan, in order to improve the PCI and NDDP of Vidarbha region, focus has to be on increased agricultural productivity through increased investment in irrigation, better agricultural inputs, and most importantly a good market linkage with excellent remuneration through ‘just’ prices for the farmers. Animal Husbandry, Fisheries and Dairy are the sectors with a huge underutilised potential. Service sector can prove to be a great booster to the rural and tribal economy of the region through proper policy interventions backed by productive investments, he observed.