The Hunt for the Special Category Status

The Story of the New Andhra Pradesh  

    1. Glimpse  Of Special Status – Part 1
    2. Current Status In Andhra Pradesh – Part 2
    3. Prediction Of Andhra Pradesh Over Special Category Status- Part 3
    4. Broken Promises By The Government – Part 4

Let us look into to a scenario what are the benefits that Andhra Pradesh will get and its growth rate when granted special category status.The Budget of India mainly consist of 59% Centrally Assistant and the remaining 41% for Centrally Sponsored Schemes.

The Government of Andhra Pradesh gets mainly benefited by SCS over many sectors including Tax redemption, Industry development, Infrastructure, fiscal incentives, higher growth of employment, projects being funded by the central.

Statistical analysis of data over the tenure 2017-2020.

Sources: SOCIO-ECONOMIC-SURVEY-2016-17, Industrial-Development Policy,AP Economy,State Statistics E book NITI ayog,States Share In Central Taxes

The above statistics has been found out by different analysis of benefits by SCS such as tax exemption to the industries, manufacturing units and also there will be getting funded by  the central also there will be plenty of jobs available due to these establishments.In AP industrial growth resembles in bringing down the poverty and increase of employment which leads to a better living standards sustainable growth.If the AP  gets the SCS, its main aim is to establish state of art infrastructure promoting manufacturing and enhancing the chances of further development. The development of industrial ecosystem will give a boost to the development and construction of capital as industries will attract huge investments in to the capital.

With SCS the employment status in the state increases proportional to industrial and manufacturing sector growth. The unemployment growth rate stands at 3.9% for the year 2016-2017 which will increase if the state does not improve its industrial ecosystem. The increase in the working age population is 2.4% which reflects the need for increasing employment opportunities in the state and establishing skill-oriented courses for the youth so that they can handle the upcoming technology.

The above graph illustrates about the trends in the growth of AP state without the benefits of the Special package as it maintains a steady growth, but this growth rate is not sufficient enough for Andhra Pradesh to invest in its infrastructure facilities and capital development. The state need huge investments in infrastructure facilities to put itself in top states in few years. The statistics mainly consists of GSDP(Gross State Domestic Product),Manufacturing and Industries GSDP of the preceding years 2017-20.

Overall, we can see from the data that If the state is not given SCS then the Main sectors such as Industry,Manufacturing will see a drastic change i.e if there are no developments in these sectors the state GSDP will short fall and it will fall decline if there is no such improvement in these sectors.

The graph above depicts the growth rate of AP if given the special category status in three domains(GSDP growth rate, Manufacturing, and Industries).It can be seen from graph that industrial and manufacturing growth rates are higher when Andhra Pradesh is given special category status. We can see that if these sector growth is increasing which in turn will be a part in increasing the state GSDP.

It can be seen that with SCS higher industrial growth rate can be achieved which in turn translates in to sustainable development.With the SCS we can see that there will be more opportunities for the establishment of industries,manufacturing units as there will be tax incentives,exemptions and a lot of other benefits which will help the AP to get back into a stable state.

Unemployment  Rate trends in Andhra Pradesh over Special category Status

The above graph illustrates the trends in unemployment rate if the state is being predicted over the special status.Overall,we can see there is gradual decrease of the rate if the SCS is given to the state. Firstly,In the Year 2017-18 the unemployment growth seems dramatically increasing as Andhra Pradesh lacks in industries and manufacturing unit if the SCS is not being granted and if it is granted the UR has been declined steadily. In the year 2013-14 the UR(Unemployment rate) is 2.5% minimal as compared to 3.9% for the year 2016-17, which shows a sudden increase post bifurcation that indicates significant people lost their jobs in the capital and are in search of new employment in their own state.

In the year 2018-19, we can see the same trend over the SCS as we can see there is decrease of the rate if the status is given.Because of SCS UR has decreased as SCS will attract investment opportunities and provide employment. The state government has released the strategies to overcome these rates including the implementation of skill-oriented courses, training and soon which will decline the UR when combined with SCS in the state.

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