Economic Growth and Performance
Southern States' economic growth lagged behind India’s growth rate of 9.2% in 2023-24.
Tamil Nadu grew at 8.2%, Telangana at 7.4%, and Karnataka, Kerala, and Andhra Pradesh grew over 6%.
Despite high per capita incomes in these States, growth is concentrated in a few districts, with income disparities noticeable.
Income Disparities
In Tamil Nadu, only 8 out of 38 districts had higher per capita income than the state average (₹2.8 lakh).
Telangana’s highest-income district, Rangareddy, had more than triple the state's average per capita income.
Kerala had the most equitable distribution of income among southern States, with 7 out of 14 districts above the state average.
Unemployment and Labour Force Concerns
All southern States, except Karnataka, had unemployment rates higher than India’s average in 2023-24.
Labour Force Participation Rates (LFPR) in Tamil Nadu, Karnataka, and Kerala were below the national average of 60.1%.
Labour Market Trends
In Tamil Nadu, casual labour decreased from 33.5% in 2017-18 to 31%, while self-employment rose from 32.8% to 34.2%.
Telangana saw an 8% increase in self-employed workers, reaching 55.9%, with a 5.7% decline in casual labour.
Sectoral Composition
The services sector contributes more than 50% of the economic output in southern States, driving their economies.
Andhra Pradesh saw a decline in services’ contribution but an increase in agriculture’s share (from 30% to 34%).
Manufacturing remains a smaller sector, contributing less than 20% to the economies of these States.
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