1 Aug 11: According to the report released by Mc Kinsey& Co., the real GDP growth in South India has slowed down from 2005-10. The report was released in CII conference of “The Next Wave of Growth – South India”. Each of the south Indian states, Andhra Pradesh and Tamil Nadu have contributed to the growth of 7.4 percent each, while Karnataka and Kerala contributed to 8.5% and 8.1% respectively. This is quite low when compared to North Indian states like, Gujarat (11.3%); Haryana (11%) and Bihar (9.6%).
As per the reasons for this slow down stated in the report, our city is one among the major cities in the south including Chennai and Bangalore, which are contributing to the overall slow growth of GDP. In our city, apart from government policies on land acquisitions, the other reasons for this slow down are increase in urban population leading to urban congestion, increase in labor costs due to shortage of labor supply and low employability due to lack of skills in employees though having professional degrees.
The report suggested that focusing on the cluster based approach and high potential sectors, developing physical and social infrastructure will help in maintaining growth.