Analysis and recommendation

Insights from India GDP per Capita Analysis

• Overall India GDP growth is showing decline from 2012 to 2016
• State-wise growth rate differs but most of the states are declining
• Fast moving states are Andhra Pradesh, Goa, and Jamu and Kashmir
• Slow moving states are Haryana, Odisha, and Gujrat
• States are highest in terms of average growth rate Mizoram, Nangaland, and Tipura
• States had lowest growth rate since Sikim, Maghalaya, and Goa
• States are above national average while 9 are below national average line
• The average GSDP of 5 top states is 999,556 while average for bottom 5 states is 45,111 which is 22 times higher than bottom 5 states, and 2.6 times higher than national average.

Categorization of states into 4 quarters based on Per Capita rate

Insights for GDP per capita and Total GDP

1. The ratio of highest to lowest is 8. Means that Goa people earns 8 times more than Bihar people.
2. Highest GDP per capita is 271893 INR in Goa which is 8 times higher than Bihar with lowest GDP per capita of 33954.
3. National per capita is 113941 INR, 28 states are above national average but ** 16 states** are lower than national average
4. The tertiary sector has greater contribution, the second is secondary sector but primary sector has the lowest contribution.
5. Primary sector has 0 or a negative affect on state GSDP
6. Manufacturing; Agriculture, forestry and fishing; Real Estate, and Trade; Real estate, ownership of dwelling & Professional services; Trade, repair, hotels and restaurants; and construction sub-sectors has greater affect of states GSDP and national GDP.
7. Category C1 sector with highest GDP per capita though has affect on per capita but is contributing less per centage to total GDP.

GDP and Education relationship

1. There is negative correlation of GSDP per capita against drop out rate. A raise in drop means there lower GDP per capita.
2. There Correlation between drop rates of % primary sector contribution, but negative correlation among drop out rates and secondary sector. Positive correlation between primary drop out rate and % Tertiary contrition to GDP, no correlation or a bit correlation between Secondary drop out rate and Tertiary sector but negative correlation between Upper Primary drop out rate and secondary sector.
3. There is negative correlation between drop out rates and population. It means that when population increases the drop out decreases and when drop out increase the population decrease.
4. If government and each state invest on increasing the GDP per capita, the education drop out will get lower. A better educated people will then make a higher return of making higher GDP to the nation.

Take always/recommendations

1. Overall, India GDP growth rate is declining from 2012 to 2016
2. Learn and use success factors from fast growing states like Goa
3. Find why reason behind slow moving states and invest on these states
4. Primary sector has 0 or negative affect on state GSDP
5. Each state should Manufacturing; Agriculture, forestry and fishing; Real Estate, and Trade; Real estate, ownership of dwelling & professional services; Trade, repair, hotels and restaurants; and construction sub- sectors to increase GSVA.
6. There is negative correlation between drop out rates and population. It means that when population increases the drop out decreases and when drop out increase the population decrease.
7. If government and each state invest on increasing the GDP per capita, the education drop out will get lower. An educated people will directly affect individual learnings resulting to higher GDP to the nation.

Data source

The following data source has been used for this GDP Analysis

https://github.com/mahmudie/Dataset