From CK Nayak
NEW DELHI, Dec 7: Irrespective of claims and counterclaims on the economic growth in Meghalaya, the Reserve Bank of India said that the state has the slowest growth in the whole country with a record Compounded Annual Growth Rate (CAGR) of just 2% in the financial year 2021.
The data released by RBI stated that Meghalaya’s GDP stood at Rs 23,750 crore in FY 2021.
The CAGR is the rate of return (RoR) that would be required for an investment to grow from its beginning balance to its ending balance, assuming the profits were reinvested at the end of each period of the investment’s life span.
Interestingly, Assam made it to the list of the top ten fastest-growing states in India with a CAGR of 5.3% and GSDP of Rs 2.28 lakh crore in FY21. Among other Northeastern states, Mizoram has the fastest growth rate of 7.9% with an economy of Rs 14,400 crore in FY21.
Per capita income in Meghalaya at constant prices was estimated at Rs 60,606 in 2021-22, rising around 7% from the previous year, but less than the pre-pandemic period, according to data analysts.
The state’s economy grew less than 0.1% in 2021-22 to Rs 25,696.82 crore, compared to the previous financial year, they added.
RBI data further marked Gujarat as the fastest-growing state in India with a CAGR of 8.2%, followed by Karnataka and Madhya Pradesh with a CAGR of 7.3% and 6.7%, respectively.
The CAGR is a measure used specifically in business and investing contexts. It indicates the growth rate over multiple time periods and is a measure of the constant growth of a data series.
The CAGR is one of the most accurate ways to calculate and determine returns for anything that can rise or fall in value over time.
CAGR is thus a good way to evaluate how different investments have performed over time, or against a benchmark. But it does not, however, reflect investment risk.