Draft Annual Plan 1990-91 Volume - I Notes

Abstract

The Draft Annual Plan 1990–91 of Andhra Pradesh presents a comprehensive review of the State’s economic performance, highlighting a strong recovery during 1988–89 following four consecutive drought years from 1984–85 to 1987–88. Favorable South-West Monsoon conditions in 1988–89 resulted in record foodgrains production of about 129 lakh tonnes, significant growth in agricultural output, and substantial inflows into irrigation reservoirs, though deficient North-East Monsoon rainfall affected certain dry crops. The Net State Domestic Product (NSDP), revised under the new 1980–81 base series, recorded impressive growth rates of 19.5 percent at current prices and 12.6 percent at constant prices in 1988–89, with agriculture maintaining a dominant share in the State economy. Per capita income also showed marked improvement. However, during 1989–90, excessive rains in some regions and deficient rainfall in others adversely affected Kharif and Rabi prospects. Industrial performance weakened, with a 4.3 percent decline in the index of industrial production during the first seven months of 1989–90 due to power shortages, labour unrest, and reduced output in key sectors such as sugar, textiles, and transport equipment. Power generation increased marginally in 1988–89, with hydel generation improving due to good reservoir inflows, although supply constraints persisted. The report underscores improvements in crop productivity through expanded use of high-yielding varieties, fertilizers, and crop insurance coverage, while also noting structural challenges in industry and energy that influenced overall economic trends in the State.