Hyderabad, Dec. 9: Strains of economic slowdown are being felt in the state as the key sectors like industries and services have been on the downside because of global meltdown. Andhra Pradesh, which stood at the top with regard to growth in the last financial year, has plunged below national average.
In the latest report on the Gross State Domestic Product (GSDP) spanning six months in 2008-09, reveals that not everything is well in the state. While the industrial sector was down at 5.4 per cent growth, the service sector trailed behind the national average at 8.7 per cent. Both registered phenomenal growth in the last year when the State achieved an overall growth of 15.3 per cent.
The only good news is that the agricultural sector, hit hard during the Telugu Desam (TD) regime, has continued to grow at 4.8 per cent against the national average of 2.9 per cent. The half-yearly statistics reveal that more number of units are being closed or proposals being withdrawn.
The Rs 2,000 crore worth Textile Park at Naidupet in Nellore by the Southern Mills’ Association has been cancelled. The Singareni Collieries has been experiencing reduced demand for its production. Nearly one lakh tonnes of coal has been waiting to be lifted at the mines. This is because coal-based steel and cement units have reduced the production, resulting in reduced demand.
The Navabharat Ferro Alloys announced the closure of four units for a temporary period as the demand shrunk. With a reduced demand for paper, the Bhadrachalam Paper Mills cut staff by 500. The Krishnapatnam port which was seen buzzing with export of iron ore, has no takers as the mineral price plummeted to one third of what it was in the last year. Even the Visakhapatnam port is witnessing reduced exports, with drop in the prices of steel and cement in international markets.
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