Manufacturing prowess of Maharashtra, TN, UP & Karnataka to drive $5 trn economy: SBI Report

New Delhi, Nov 15 (KNN) The manufacturing ability of Maharashtra, Tamil Nadu, Uttar Pradesh and Karnataka would be the top four contributors of the Indian GDP and help achieve USD 5 trillion economy target by 2027-28, said a report by State Bank of India (SBI).

To create a more liberal business environment the paper by the bank’s research team suggested a slew of initiatives such as more public spending on critical infrastructure and rolling out a suite of labour and legal reforms, especially in select Coastal Economic Zones (CEZs).

From the current 15%, share of manufacturing sector should increase to 22%, said the research paper.

The country will require “more globally competitive large firms to help accelerate growth” in the next six years, said the report.

The document pointed out that India is currently where China was in 2007 and needs to grow at 9% annually to reach USD 5 trillion in 2027-28.

To change the business landscape factor such as ease of doing business, enhanced competitive and innovation index rankings, and the massive infrastructure push will help.

SBI’s research projected that in the $5 trillion economy, the services sector would contribute 55% of the GDP, and agriculture and allied sector, 17% of the economy.  (KNN Bureau)