Karnataka, Gujarat and TN, Biggest Gainers from 1990s Reforms: EAC – PM

Current Context: According to a recent “Economic Reforms and Their Impact on States” report by the Economic Advisory Council to the Prime Minister (EAC-PM), Karnataka, Gujarat, and Tamil Nadu have been the biggest beneficiaries of the economic reforms that began in the 1990s.

• Here are some key points from the report:
• Karnataka: Its share in the national GDP increased from 5.3% in 1990-91 to 8.2% in 2023-24, largely due to Bengaluru’s rise as a technology hub.
• Gujarat: Saw its share rise from 6.4% in 1990-91 to 8.1% in 2023-24.
• Tamil Nadu: Despite a decline in the earlier decades, its share in the national GDP rebounded to 8.9% in 2023-24.

Question:

1 According to the report "Economic Reforms and Their Impact on States" by the Economic Advisory Council to the Prime Minister (EAC-PM), which state saw the largest increase in its share of the national GDP between 1990-91 and 2023-24?

• A) Karnataka
• B) Gujarat
• C) Tamil Nadu
• D) Maharashtra

Answer: A) Karnataka’s share in the national GDP increased from 5.3% in 1990-91 to 8.2% in 2023-24, largely due to Bengaluru’s development as a major technology hub.