5 Indian States with High Debt Load
Andhra Pradesh
Andhra Pradesh (AP) has incurred a state debt of Rs 1,538 billion from 1,360.1billion in 2011. AP has shown a slow economic progress in the current financial year. AP too depends largely on agriculture for the state’s income. Because of the adverse climatic conditions last year the economy has dipped on the national and international front affecting the investment and consumption response. Apart from agriculture AP also earns its income from mining. It has India’s one third of limestone reserves estimated to 30 billion tonnes approximately.
Tamil Nadu
Tamil Nadu is the fifth state with a high debt load of Rs 1,325 billion from 1,138.3 billion in 2011. The GDP growth rate in the state was 11.74 percent in 2011.It is just 9.39 percent in 2012. As per the 2011 Census, Tamil Nadu is considered as the most urbanized sate with 49 percent of urbanization. To the economy of the state the service industry contributes 45 percent, next manufacturing at 34 percent, and then agriculture at 21 percent. The state has always added to the growing economy of the country but it now needs to work on the piled up debts.
The state’s with high debt amount is a matter of concern and the respective governments need to find more effective measures to rid the state from the financial burden.
