Tailor policy by region for balanced industrial growth

The survey asserted that states should make it easier for businesses to commence operations, grow

- Subhash Narayan

The Economic Survey 2024-25 on Friday called for adopting geographic-specific industrial strategies to address the high level of variance in industrialisation across Indian states.

The survey, tabled by Union finance minister Nirmala Sitharaman in Parliament, highlighted that four Indian states-Gujarat, Maharashtra, Karnataka, and Tamil Nadu- account for about 43% of the total industrial gross state value added (GSVA), while six northeastern states, excluding Sikkim and Assam, account for only 0.7% of the industrial GSVA.

The survey said there is a need to focus on industrial strategies appropriate to unique geographies like the Northeast, adding that this would also be required to provide better leverage to all states to use their industrial sectors to generate higher income levels for their populations.

The survey pointed out that construction activity, which is closely linked with infrastructure development, urbanization, and real estate trends, also shows inter-state differences.