Mizoram

1. STATE PROFILES – MIZORAM

2. ECONOMIC CHALLENGE FOR CHIEF MINISTERS IN 2012 Achieving Fiscal Stability Enhancing State Competitiveness Competitiveness is the only way to achieve sustainable job growth, improving incomes and stable public finances Creating a clear economic strategy for the state that engages all stakeholders is even more important in times of budget cutting and austerity

3. HIERARCHY OF MEASUREMENT OF STATE COMPETITIVENESS INDEX * Approximate figure

4. STAGES OF THE ECONOMY City States (Per capita GDP>1300 USD)

5. Categorization Microeconomic Competitiveness Ranks City States (Per capita Incomes >1300 USD) Delhi 1 Goa 2 Innovation Driven Economies (Per capita Incomes 900 to1300 USD) Haryana 1 Maharashtra 2 Gujarat 3 Kerala 4 Transition Economies (Per capita Incomes 800 to 900 USD) Punjab 1 Tamil Nadu 2 Himachal Pradesh 3 Investment Driven Economies (Per capita Incomes 500 to 800 USD) Andhra Pradesh 1 Karnataka 2 Uttarakhand 3 West Bengal 4 Chhattisgarh 5 Sikkim 6 Mizoram 7 Meghalaya 8 Arunachal Pradesh 9 Tripura 10 Evolving/ Changeover Economies (Per capita Incomes 400 to 500 USD) Rajasthan 1 Jharkhand 2 Orissa 3 Jammu and Kashmir 4 Factor Driven Economies(Per capita Incomes < 500 USD) Bihar 1 Madhya Pradesh 2 Assam 3 Uttar Pradesh 4 Manipur 5 Nagaland 6 STATES ACCORDING TO CATEGORIZATION Source: Institute for Competitiveness Analysis

6. NEAR TERM STATE PROSPERITY PERFORMANCE Gross Domestic Product per Capita, 2011 Gross Domestic Product per Capita real growth rate , 2008-2011 All India Average 57.28 Index Points All India GSDP /Capita rate (CAGR) of 6.27 % All I ndia Average of 47,998 Rupees/capita Highly Productive and Prosperity Rising versus India High but declining versus India Low but rising versus India Low and declining versus India

7. COMPETITIVENESS: UNDERLYING CONCEPTS Competitiveness is the productivity with which a state utilizes its human, capital, and natural resources Productivity determines wages and the standard of living – Productivity growth determines sustainable economic growth Productivity depends on how a state competes, not what industries it competes in Innovation in products and processes is necessary to drive productivity growth Only productive businesses can create wealth and jobs. States compete to offer the most productive environment for business The public and private sectors play different but interrelated roles in creating a productive economy

8. MIZORAM PERFORMANCE SNAPSHOT Top 33.33% of the states 33.33%-66.67% of the states 66.67 % to 100% of the states Position Trend Prosperity Productivity Labour Mobilization State of Clusters Leading Clusters Type of Economy Investment Driven Public Administration Real Estate Construction

9. Labour Mobilization Population, 2011 Rank : 9 In Mizoram 10,91,014 % of India .09 % Population Growth, GAGR, 2001-2011 Rank : 3 In Mizoram 2.07% In India 1.61% Employment, 2010 Rank: 8 In Mizoram 441006 % India .15 % Employment growth, annual rate, 2000-2010 Rank : 3 In Mizoram 2.69 % In India 2.05% Unemployment, 2010 (Per hundred People) Rank: 3 In Mizoram 7.70 In India 9.39 Change in Unemployment rate, 2000-2010 Rank : 2 In Mizoram 14.93% In India 41.37 Clusters Total Number of People employed in all Factory sector Rank: NA In Mizoram NA In India 1,15,06,838 State Employment to total India Employment (factory sector) NA Productivity Gross State Domestic Product per l abour force participant, 2011 Rank: 7 In Mizoram Rs 96,058. In India Rs 1,21,265 State Difference to India 3.11 % Growth in Gross State Domestic Product Rank: 10 per Labour force participant, 2001-11 In Mizoram -20.78 % In India 8.44% Average Private Wage in 2008-09, Rank : NA In Mizoram NA In India Rs 64,741 State Difference to India -17.25.% Private Wage Growth, CAGR, 2000-2009 Rank:NA In Mizoram NA In India 4.53% Prosperity Gross State Domestic Product per Capita, 2011 Rank: 9 In Mizoram Rs . 37,525 In India Rs . 47,998 State Difference to India -21.81 % . Growth in Gross State Domestic Product per Capita , 2008-11 , (CAGR) Rank : 10 In Mizoram 4.91% In India 6.28% MIZORAM COMPETITIVENESS – OVERALL PERFORMANCE INDICATORS

10. GSDP at current price at factor cost in Rupees Crore UNDERSTANDING STATE ECONOMIC PERFORMANCE Source : Institute for Competitiveness Analysis

11. GSDP at current price at factor cost in Rupees Crore CONTRIBUTION OF MIZORAM’S GSDP TO INDIAN GSDP   Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Ratio of Mizoram's GSDP to Indian GDP in Percentage 0.1 0.1 0.1 0.1 0.1 0.1 0.2 0.2 0.2 0.2 0.2 0.2 Source : Institute for Competitiveness Analysis

12. WHAT DRIVES STATE PRODUCTIVITY 1. O verall business climate conducive to growth 2. Stage of Economy (strong clusters) 3. Proper Policy enactment and strong rule of law

13. MODEL USED FOR ANALYSIS Climate for Innovation based local rivalry Clusters of Related and Supporting Industries Demand Conditions Local rules and incentives that encourage investment and productivity e.g . salaries, incentives for capital investments, intellectual property protection Vigorous local competition i.e., Openness to foreign and local competition ; Sophistication of company operations Local availability of suppliers and supporting industries Presence of clusters instead of isolated firms Sophisticated and demanding local customers and needs e.g . , - Strict quality, safety, and environmental standards – Consumer protection laws – Government procurement of advanced technology – Early demand for products and Services. Access to high quality business inputs i.e. , - Natural endowments , - Human resources, - Capital availability , - Physical infrastructure , - Administrative infrastructure , - Information infrastructure, - Scientific and technological infrastructure Factor Conditions Source: Michael E Porter

14. IMPROVING PRODUCTIVITY IN BUSINESS ENVIRONMENT Key Issues for States • More power in terms of tax sharing with center • Reduce costs of doing business • Developing training programs which meet the specific needs of the state industrial clusters • Focus on infrastructure investments on the most leveraged areas for productivity and economic growth • Implementing policies to support small growth businesses Enhancing the state’s skill development and training institutions for the same • Relentlessly improve of the public education system, the essential foundation

15. Nation Neighboring states S tates City Regions Rural Regions GEOGRAPHIC INFLUENCES ON COMPETITIVENESS Influence and access federal policies and programs Integrate policies and infrastructure with neighbors Assist each city area in developing its own strategy Connect rural regions with urban areas

16. CONTRIBUTION OF AGRICULTURE SECTOR TO GSDP GSDP at current price at factor cost in Rupees Crore   Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Ratio of Agricultural GSDP in Mizoram to the total GSDP in Mizoram in Percentage terms 22.52 20.17 21.30 19.77 19.06 18.29 17.14 15.92 14.76 13.78 14.25 13.88 Source : Institute for Competitiveness Analysis

17. CONTRIBUTION OF MANUFACTURING SECTOR TO GSDP GSDP at current price at factor cost in Rupees Crore   Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Ratio of Manufacturing GSDP in Mizoram to the total GSDP in Mizoram in Percentage terms 1.58 1.51 1.37 1.27 1.32 1.42 1.47 1.54 1.68 1.80 1.66 1.68 Source : Institute for Competitiveness Analysis

18. CONTRIBUTION OF SERVICE SECTOR TO GSDP GSDP at current price at factor cost in Rupees Crore   Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Ratio of Services GSDP in Mizoram to the total GSDP in Mizoram in Percentage terms 61.35 64.18 63.11 63.91 64.14 65.68 64.03 65.51 66.56 67.61 66.90 67.11 Source : Institute for Competitiveness Analysis

19. COMPOSITION OF MIZORAM’S ECONOMY Source : Institute for Competitiveness Analysis

20. GSDP in Rs . Crore Indian contribution Mizoram ’s contribution COMPOSITION OF MIZORAM’S ECONOMY Source : Institute for Competitiveness Analysis

21. Mizoram / National GSDP share (Percent) , 2011 Change in contribution of GSDP of Mizoram to total Indian GSDP, CAGR (2000 - 2011) COMPOSITION OF MIZORAM’S ECONOMY IN GREATER DEPTH

22. STATE PRIVATE WAGE PERFORMANCE Average Wage : Rupees 64,741 Wage Growth rate 4.53% Average Wages in Rupees , 2009 Source : Institute for Competitiveness Analysis, Data as of 2010

23. LABOUR PRODUCTIVITY All India Average 57.28 Index Points All India Average of of 1,21,265 Rupees/Labour force participant All India Average of 8.44% GSDP /Labor force participant growth rate(CAGR) GSDP at Current Prices per labour force participant , 2011 High but declining versus India Highly productive and Productivity rising versus India Low but rising versus India Low and declining versus India Source : Institute for Competitiveness Analysis

24. LONG TERM JOB GROWTH Number of Jobs, 2011 Losing Jobs Gaining Jobs All India average of 1,62,99,464 Jobs /State All India Average of 2.05% Source : Institute for Competitiveness Analysis,

25. Unemployment rate All India Average of 9.39% All India Average 57.28 Index Points All India Average of -2.12% Unemployment Rising Below average Unemployment Above A verage Unemployment Unemployment rate 2010 LONG TERM UNEMPLOYMENT RATE Source : Institute for Competitiveness Analysis, Data as of 2010

26. NEAR TERM UNEMPLOYMENT RATE All India Average of 9.39% All India Average 57.28 Index Points All India Average of -6.55% Unemployment rate 2010 Source : Institute for Competitiveness Analysis, Source : Institute for Competitiveness Analysis, Data as of 2010

27. GROSS AREA SOWN VERSUS IRRIGATED AREA Log of area sown in ‘000 hectares All India Average 67,41,000 hectares All India All India Average 30,03,000 hectares Source: MOA, Institute for Competitiveness Analysis, Data as of 2010

28. HEALTHCARE Percentage of Total government Expenditure on Medical, Health and Sanitation Total Government Expenditure on Medical, Health and Sanitation in Crores All India Average 4.02% All India All India Average 1633 Crores Source: Institute for Competitiveness Analysis

29. PERCENTAGE OF VILLAGES ELECTRIFIED All India Average of 84.96 % Source: Institute for Competitiveness Analysis

30. TELEDENSITY Teledensity GSDP per Capita Source: Ministry of telecom, Institute for Competitiveness Analysis

31. DEBT TO GDP RATIO Prescribed limit according to the growth and stability Pact of EU Source: Institute for Competitiveness Analysis

32. RURAL POPULATION VERSUS RURAL POPULATION GROWTH RATES G rowth rate (CAGR 2001-2011) Source: Census 2011, Institute for Competitiveness Analysis

33. URBAN POPULATION VERSUS URBAN POPULATION GROWTH RATES Growth rate (CAGR 2001-2011) Source: Census 2011, Institute for Competitiveness Analysis

34. RURAL AND URBAN POPULATION IN INDIA Source: Census 2011, Institute for Competitiveness Analysis

35. DEMOGRAPHIC PROFILE IN MIZORAM Population in Numbers Source: Institute for Competitiveness Analysis

36. RURAL URBAN AND TOTAL POPULATION Urban Population as a percentage of total Population All India Average 32.98% All India All India Average 67.02% Source: Census 2011, Institute for Competitiveness Analysis Rural Population as a percentage of total Population

37. SEX RATIO VERSUS SEX RATIO GROWTH RATES All India Average 0.169% CAGR All India All India Average 940 females/1000 males CAGR growth rate 2001-11 Sex ratio Source: Census 2011, Institute for Competitiveness Analysis

38. LITERACY RATES VERSUS GDP GSDP per capita at current prices 2011 Literacy rate 2011 Source: RBI , Census 2011, Institute for Competitiveness Analysis

39. REVENUE EXPENDITURE VERSUS REVENUE RECEIPTS Revenue Expenditure in Rs . Crores Revenue Receipts in Rs . Crores All India All India Average 34757 Rs . Crores All India Average 34190 Rs . Crores Source: RBI , Institute for Competitiveness Analysis

40. LITERACY RATES VERSUS POPULATION All India Average 67232968 People/state All India All India Average Literacy level of 77.12% Source: Census 2011 , Institute for Competitiveness Analysis

41. All India Average of 9.30 % CAGR growth rate All India All India Average of 12,157 C rores /state CAGR growth rate in Agriculture 2005-10 GROWTH RATE IN AGRICULTURE VERSUS BANK CREDIT TO AGRICULTURE Source: MOA , Institute for Competitiveness Analysis

42. PERCENTAGE OF FACTORIES IN OPERATION VERSUS TOTAL NUMBER OF FACTORIES Source: ASI , Institute for Competitiveness Analysis, Data as of 2010

43. SLUM POPULATION GROWTH RATE (2001-2011) Source: MOUA, Data as of 2010

44. SPM Level above 140 is considered dangerous for residential areas SPM Level above 400 is considered dangerous for industrial areas SPM is Suspended Particulate matter. The above mentioned limits are are prescribed by Central Pollution Control Board (CPCB), India. POLLUTION Source: CPCB , Institute for Competitiveness Analysis

45. AIR POLLUTION SPM Level above 140 is considered dangerous for residential areas SPM Level above 400 is considered dangerous for industrial areas SPM is Suspended Particulate matter. The above mentioned limits are are prescribed by Central Pollution Control Board (CPCB), India.

46. CAPITAL OUTLAY BY MAJOR SECTORS

47. POPULATION PERCENTAGES IN DISTRICTS OF MIZORAM v v Kakching Mayang Imphal v Note: The district Hathras is now called Mahamaya Nagar and Kanshiram Nagar is the 71 st (Newest) district of UP. 7.86 7.61 37.03 11.49 5.95 14.12 10.76 5.17

48. POPULATION PERCENTAGES IN DISTRICTS OF MIZORAM Major Cities Capital City Note: The top 10 cities according to population are shown here

49. FACTOR CONDITIONS GSDP in Rs . Crore Factor Conditions Score Source: MOSPI, Institute for Competitiveness Analysis

50. SUB PILLARS OF FACTOR CONDITIONS - FINANCIAL CONDITIONS GSDP in Rs . Crore Financial Conditions Score Source: MOSPI, Institute for Competitiveness Analysis

51. SUB PILLARS OF FACTOR CONDITIONS - PHYSICAL CONDITIONS Road length per one lakh of Population Physical Conditions Score Source: MORTH, Institute for Competitiveness Analysis

52. SUB PILLARS OF FACTOR CONDITIONS - COMMUNICATION CONDITIONS Teledensity Communication Conditions Score Source: Ministry of Teleco m , Institute for Competitiveness Analysis

53. SUB PILLARS OF FACTOR CONDITIONS – ADMINSTRATION Total Number of Government Hospitals Administration Conditions Score Source: CBHI, Institute for Competitiveness Analysis

54. SUB PILLARS OF FACTOR CONDITIONS - HUMAN CONDITIONS Population in the age group 15-64 years Human Conditions Score Source: Report on Population , Institute for Competitiveness Analysis

55. SUB PILLAR OF FACTOR CONDITIONS- INNOVATION RATING Literacy rate Innovation Score Source: Census 2011, Institute for Competitiveness Analysis

56. DEMAND CONDITIONS Literacy rate Demand Conditions Source: Census 2011, Institute for Competitiveness Analysis

57. SUB PILLAR OF DEMAND CONDITIONS- DEMOGRAPHY Per capita GSDP at state level Demography Source: MOSPI, Institute for Competitiveness Analysis

58. SUB PILLAR OF DEMAND CONDITIONS- INCOME AND CONSUMPTION Income Distribution Total number of households Source: Census 2011, Institute for Competitiveness Analysis

59. SUPPORTING CONDITIONS GSDP/ Capita Supporting Conditions Source: MOSPI, Institute for Competitiveness Analysis

60. SUB PILLAR OF SUPPORTING CONDITIONS- DIVERSITY OF FIRMS Total number of factories Diversity of Firms Index Source: ASI, Institute for Competitiveness Analysis

61. SUB PILLAR OF SUPPORTING CONDITIONS - BUSINESS INCENTIVES Outstanding Scheduled commercial bank credit Business Incentives Source : RBI, Institute for Competitiveness Analysis

62. STRATEGIC CONTEXT GSDP per capita Strategic context Source: Institute for Competitiveness Analysis

63. SUB PILLARS OF STRATEGIC CONTEXT – SUPPLIER SOPHISTICATION Total Number of Factory Workers Supplier sophistication Source: ASI, Institute for Competitiveness Analysis

64. SUB PILLAR OF STRATEGIC CONTEXT- INSTITUTIONAL SUPPORT Institutional Support Index Educational Institutions – Universities per crore of population Source: UGC, Institute for Competitiveness Analysis

65. PROSPERITY AND COMPETITIVENESS Source: Institute for Competitiveness Analysis

66. POLICE OFFICIALS VERSUS COMPETITIVENESS Source: Institute for Competitiveness Analysis

67. PORT INFRASTRUCTURE VERSUS COMPETITIVENESS Source: Institute for Competitiveness Analysis

68. NATIONAL HIGHWAY INFRASTRUCTURE VERSUS COMPETITIVENESS Source: Institute for Competitiveness Analysis

69. AIRPORT INFRASTRUCTURE VERSUS COMPETITIVENESS Source: Institute for Competitiveness Analysis Microeconomic Competitiveness Scores

70. TELEDENSITY VERSUS COMPETITIVENESS Source: Institute for Competitiveness Analysis

71. LITERACY RATES VERSUS COMPETITIVENESS Source: Institute for Competitiveness Analysis

72. EDUCATION VERSUS COMPETITIVENESS Source: Institute for Competitiveness Analysis

73. RURAL TO URBAN LITERACY RATIO VERSUS COMPETITIVENESS Source: Institute for Competitiveness Analysis

74. GENDER DISPARITY (LITERACY) VERSUS COMPETITIVENESS Source: Institute for Competitiveness Analysis

75. DEMOGRAPHICS OF INDIA 2011 Source: Census of India, Institute for Competitiveness Analysis

76. DEMOGRAPHICS OF INDIA 2026 Source: Census of India, Institute for Competitiveness Analysis

77. OVERALL DEPENDENCE RATIO OF STATES Source: Census of India, Institute for Competitiveness Analysis

78. GOVERNMENT HOSPITALS VERSUS COMPETITIVENESS Source: Institute for Competitiveness Analysis

79. REGISTERED DOCTORS VERSUS COMPETITIVENESS Source: Institute for Competitiveness Analysis

80. PER CAPITA REVENUUE EXPENDITURE ON MEDICAL, HEALTH AND EXPENDITURE AND COMPETITIVENESS Source: Institute for Competitiveness Analysis

81. HOUSEHOLDS AND COMPETITIVENESS Source: Institute for Competitiveness Analysis

82. AGRICULTURAL GSDP PER CAPITA AND COMPETITIVENESS Source: Institute for Competitiveness Analysis

83. PER CAPITA FERTILIZER CONSUMPTION AND COMPETITIVENESS Source: Institute for Competitiveness Analysis

84. MANUFACTURING AND COMPETITIVENESS Source: Institute for Competitiveness Analysis

85. SERVICES AND COMPETITIVENESS Source: Institute for Competitiveness Analysis

86. HOUSEHOLDS IN INDIA Source: Census of India,2011 Institute for Competitiveness Analysis

87. ACCESS TO WATER Source: Census of India,2011 Institute for Competitiveness Analysis

88. EXPORT COMPETITIVENESS Source: Economic Survey of India 2011, Institute for Competitiveness Analysis

89. COUNTRY EQUIVALENTS Source: EIU 2011, Institute for Competitiveness Analysis BAHAMAS CUBA

90. Punjab Uttar Pradesh Haryana Madhya Pradesh Bihar Rajasthan Maharashtra Gujarat Jammu and Kashmir Uttarakhand Andhra Pradesh Tamil Nadu Karnataka Odisha West Bengal Kerala Chhattisgarh Jharkhand Himachal Pradesh Arunachal Pradesh Assam Manipur Mizoram Meghalaya Nagaland Sikkim Delhi Goa China Pakistan Arabian Sea Bay of Bengal Indian Ocean Sri Lanka Nepal Tripura 24.6 21.4 9.3 5.4 5.0 3.4 3.3 2.8 2.8 2.6 2.4 2.1 1.6 1.2 0.7 EXPORTS FROM THE TOP 15 STATES PERCENTAGE OF THE TOTAL Source: Institute for Competitiveness Analysis

91. Punjab Uttar Pradesh Haryana Madhya Pradesh Bihar Rajasthan Maharashtra Gujarat Jammu and Kashmir Uttarakhand Andhra Pradesh Tamil Nadu Karnataka Odisha West Bengal Kerala Chhattisgarh Jharkhand Himachal Pradesh Arunachal Pradesh Assam Manipur Mizoram Meghalaya Nagaland Sikkim Delhi Goa China Pakistan Arabian Sea Bay of Bengal Indian Ocean Sri Lanka Nepal Tripura 3 1 35 40 15 22 18 11 36 4 100 52 33 108 88 74 33 21 2 67 31 7 88 7 2 NUMBER OF PPP PROJECTS IN INDIA Source: Institute for Competitiveness Analysis

92. Punjab Uttar Pradesh Haryana Madhya Pradesh Bihar Rajasthan Maharashtra Gujarat Jammu and Kashmir Uttarakhand Andhra Pradesh Tamil Nadu Karnataka Odisha West Bengal Kerala Chhattisgarh Jharkhand Himachal Pradesh Arunachal Pradesh Assam Manipur Mizoram Meghalaya Nagaland Sikkim Delhi Goa China Pakistan Arabian Sea Bay of Bengal Indian Ocean Sri Lanka Nepal Tripura 1.04 0.57 2.29 2.09 16.49 5.67 1.38 0.84 8.58 3.47 7.55 2.58 0.24 0.30 0.09 0.22 0.16 0.11 2.72 4.99 9.29 0.12 6.00 2.11 7.00 5.05 2.76 5.96 POPULATION PERCENTAGES IN STATES Source: Institute for Competitiveness Analysis

93. Punjab Uttar Pradesh Haryana Madhya Pradesh Bihar Rajasthan Maharashtra Gujarat Jammu and Kashmir Uttarakhand Andhra Pradesh Tamil Nadu Karnataka Odisha West Bengal Kerala Chhattisgarh Jharkhand Himachal Pradesh Arunachal Pradesh Assam Manipur Mizoram Meghalaya Nagaland Sikkim Delhi Goa China Pakistan Arabian Sea Bay of Bengal Indian Ocean Sri Lanka Nepal Tripura 1788 1652 1056 945 941 933 872 821 801 713 698 669 650 615 571 553 544 534 529 494 487 474 404 396 394 378 377 320 254 All the figures are in dollars, The exchange rate taken for arriving at the figures was 1 US$ = 49 Rupees PROSPERITY IN INDIA Source: Institute for Competitiveness Analysis

94. STATE OF INDUSTRIES All India Average of 18,54,826 people employed/ state All India All India Average 23816.62 Crores Source: MSME , Institute for Competitiveness Analysis

95. CONTRIBUTION PER PERSON IN INDUSTRIES Average Contribution of 1.57 Lakhs/Person Source: MSME 4 th round , Institute for Competitiveness Analysis

96. PER UNIT EMPLOYMENT VERSUS PER UNIT GROSS OUTPUT Source: MSME 4 th round, Institute for Competitiveness Analysis   Manufacturing Services Per unit employment (Person) 7.21 6.31 Per unit Gross Output (in Lakhs of Rupees) 8.92 5.63 Per unit revenues/ per unit employment 1.24 0.89

97. MARKET VALUE VERSUS ORIGINAL VALUE OF PLANT AND EQUIPMENT Source: MSME fourth round, Institute for Competitiveness Analysis   Manufacturing Services Market value of Fixed Investments in Crores of Rupees 249.11 30.77 Original value of Plant and Machinery/ Equipment in Crores of Rupees 65.74 20.92 No of times valued by the market 3.79 1.47

98. CREATING A STATE ECONOMIC STRATEGY State Value Proposition Achieving and Maintaining parity with peers Developing Unique Strengths What are the main strengths, positive attributes, location advantage etc of the particular state in question. How can the state leverage on its unique capabilities and create new ones? Which businesses/ clusters can be made stronger? What are the key weaknesses which need to be taken care of while forming maintaining parity with peers? State economic strategy requires setting clear priorities and measuring against predefined criteria.

99. COMPETITION AMONG STATES Tactical (Zero Sum Competition) Strategic (Positive Sum Competition) Focus on FDI investments Compete in every domain Offer tax benefits across the spectrum Provide subsidies to lower / offset business costs Every city and sub-region for itself Government is responsible for development of cluster. Focus on domestic and existing companies Compete in specialized cluster domains Government incentives and support for training, infrastructure, and institutions Improve the efficiency of doing business Economies of scale to help benefit from multiple geographies Government and the private sector collaborate to build cluster strength Source: Michael E Porter

100. HOW SHOULD STATES COMPETE WITH EACH OTHER Old Model New Model Competitiveness is the result of both top-down and bottom-up processes in which many companies and institutions take responsibility Government drives economic development through policy decisions and incentives Economic development is a collaborative process involving government at multiple levels, companies, teaching and research institutions, and private sector organizations Source: Michael E Porter

101. COMPETITION AMONG STATES The purpose of a sound economic policy is to increase the overall prosperity in the state and for that the states should focus on increasing their competitiveness . Improvements and productivity and technological advancement are the guiding principles in this regard. Competitiveness requires a fundamental rethinking of usage of your existing resources. For government has to fundamentally rethink its role, it should try to foster a spirit of entrepreneurship in the private sector . The criteria for judging the merits and demerits of an economic policy should be by outcomes and not political philosophy. The prosperity of India will depend largely on the states and not just the (Center) Delhi.

102. INTERPRETATION CHARTS Top 33.33% of the states 33.33%-66.67% of the states 66.67 % to 100% of the states The snapshot chart summarizes the relative performance of a state on levels and trends in 5 key measures. The circles in the chart show the measurement of the chart legend. Prosperity: State GDP per capita and 10 year trend. Productivity: Average Private wage and 10 year trend. Labour Mobilization: Total labour force as a share of civilian population and 10 year trend. Clusters: Total number of people employed in the cluster and total number of enterprises in the cluster. Type of Economy: Factor Driven economies, Changeover economies, Investment driven economies, Transition economies, Innovation driven economies and city state economies. Position Trend Prosperity Productivity Labour Mobilization State of Clusters Leading Clusters Type of Economy Investment Driven Public Administration Real Estate Construction

103. The economy has been looked at from the primary, secondary and tertiary Perspective. These sectors are then looked in detail to find the contribution of each sub sector to the three primary sectors namely Agriculture, Industry and Services. The result is a bubble chart which shows the contribution of each sub sector to the economy. The size of the bubble represents the size of the GSDP contribution in Rs . Crores . Strong and Growing Position Cluster is growing faster than Indian Average The regions share of cluster GSDP relative to its size COMPONENTS OF REGIONAL ECONOMIES Mizoram/ National GSDP share (Percent) , 2011 Change in contribution of GSDP of Mizoram to total Indian GSDP, CAGR (2000 - 2011)

104. The political boundaries of a state often encompass many distinct regional economies or portions of large regional economies. A comprehensive approach to economic development should reflect both the distinct economies within the state as well as strong linkages to the economies in the neighboring states. In addition to this clusters should be mapped on areas of high economic growth. This will lead to spillover effects in the long run. A state's or region’s economy can be divided into 3 components namely Primary/Agriculture sector Secondary /Industry sector Tertiary /Service sector In this report we focus more on Industrial sector to bring out its components in detail. GSDP in Rs . Crore A BRIEF NOTE OF THE REGIONS AND OVERALL ECONOMY OF ANDHRA PRADESH

105. Agricultural p roducts Grain mill products, starches & starch products and prepared animal foods Other food products Beverages Apparels and related industries Knitted and crocheted fabrics and articles Wearing apparel; dressing and dyeing of fur Wearing apparel, except fur apparel Agricultural services Agriculture, hunting, and related services activities Automotive Bodies (coach work) for motor vehicles Parts and accessories for motor vehicles & their engines Chemicals Basic chemicals Domestic and electric Industries Domestic appliances Office, accounting and computing machinery Electrical machinery and apparatus Electric motors, generators and transformers Electricity distribution and control apparatus Footwear Footwear Furniture Furniture Glass and related industries Glass and glass products Leather industries Tanning & dressing of leather; luggage, handbags Medical equipment Medical, precision and optical instruments , watches & clocks Metals Basic Iron & Steel Basic precious and non-ferrous metals Casting of metals Lighting electric equipment Insulated wire and cable Accumulators, primary cells and primary batteries Electric lamps and lighting equipment Other electrical equipment Minerals Minerals Machinery and e quipment Structural metal products, tanks, reservoirs Other fabricated metal products Machinery and equipment General purpose machinery Special purpose machinery Other service i ndustries Other Service Industries Mining Mining and quarrying Processed food Manufacture of food products and beverages Meat, fish, fruit vegetables, oils and fats Dairy product Publishing and p rinting Publishing Printing and service activities related to printing Rubber and plastic i ndustries Rubber products Plastic products Production Manufacturing Pulp and Paper Pulp and Paper Industries Wood and forest products Wood and of products Saw milling and planning of wood Products of wood, cork, straw and plaiting materials Textiles Spinning, weaving and finishing of textiles Other textiles Oil and g as Coke oven products Refined petroleum products Tobacco Tobacco products Television and allied electronic industries Electronic valves and tubes and other electronic components Television and radio transmitters and apparatus Television and radio receivers Other transportation Other transport equipment Railway and tramway locomotives and rolling stock Transport equipment CLUSTERS AND SUB CLUSTERS IN THE INDIAN ECONOMY