India - Andhra Pradesh : agenda for economic reforms

Report No. 15901-IN India Andhra Pradesh: Agenda for Economic Reforms January 16, 1997 Country Operations, Industry & Finance Division Country Department II South Asia Region u Document of the World Bank  CURRENCY Rs/ US$ Currency Official Unified Market a Prior to June 1966 4.76 June 6, 1966 to mid-December 1971 7.50 Mid-December 1971 to end-June 1972 7.28 1971-72 7.44 1972-73 7.71 1973-74 7.79 1974-75 7.98 1975-76 8.65 1976-77 8.94 1977-78 8.56 1978-79 8.21 1979-80 8.08 1980-81 7.89 1981-82 8.93 1982-83 9.63 1983-84 10.31 1984-85 11.89 1985-86 12.24 1986-87 12.79 1987-88 12.97 1988-89 14.48 1989-90 16.66 1990-91 17.95 1991-92 24.52 1992-93 26.41 30.65 1993-94 31.36 1994-95 31.40 1995-96 33.46 April 1996 34.24 May 1996 34.99 June 1996 34.99 July 1996 35.52 Aug 1996 35.69 Sep 1996 35.73 Oct 1996 35.64 Nov 1996 35.74 Dec 1996 35.84 Note: The Indian fiscal year runs from April I through March 31. Source: IMF, International Finance Statistics (IFS), line "rf"; Reserve Bank of India. A dual exchange rate system was created in March 1992, with a free market for about 60 percent of foreign exchange transactions. The exchange rate was reunified at the beginning of March 1993 at the free market rate. Vice President D. Joseph Wood Directors : Robert S. Drysdale, Edwin Lim Division Chief/Manager Luis E. Derbez Staff Member Fahrettin Yagei, Senior Economist  ECONOMIC DEVELOPMENT DATA GNP Per Capita (US$, 1994-95): 3 1 0 Gross Domestic Product (1994-95) Annual Growth Rate (% p.a., constant prices) % of 70-71- 75-76- 80-81- 85-86- 92-93- 93-94- USS Bin GDP 75-76 80-81 85-86 90-91 93-94 94-95 GDP at Factor Cost 272.0 90.3 3.4 4.2 5.4 5.9 5.0 6.3 GDP at Market Prices 301.2 100.0 3.3 4.2 5.6 6.2 3.9 6.3 Gross Domestic Investment 69.7 23.2 5.3 3.7 5.7 9.5 -5.8 19.8 Gross National Saving 67.0 22.3 4.4 2.6 3.5 8.7 -1.1 17.2 Current Account Balance -2.7 -0.9 -- -- -- -- -- -- Output, Employment and Productivity (1990-91) Value Added Labor Force b V. A. per Worker US$ Bln. % of Tot Mill. % of Tot. USS % of Avg. Agriculture 82.5 31.0 186.2 66.8 443 46.4 Industry 78.0 29.3 35.5 12.7 2195 230.0 Services 105.7 39.7 57.2 20.5 1849 193.7 Total/ Average 266.2 100.0 278.9 100.0 954 100.0 Government Finance General Government c Central Govermnent Rs. Bln. % of GDP Rs. Bln. % of GDP 1994-95 1994-95 90-91-94-95 1994-95 1994-95 90-91-94-95 RevenueReceipts 1809.0 19.1 19.5 910.8 9.6 10.1 Revenue Expenditures 2219.0 23.5 23.5 1221.1 12.9 13.3 Revenue Surplus/ Deficit (-) -409.9 -4.3 -4.0 -310.3 -3.3 -3.2 Capital Expenditures d 337.9 3.6 4.3 266.8 2.8 3.5 External Assistance (net) e 51.5 0.5 0.7 51.5 0.5 0.7 Money, Credit, and Prices 89-90 90-91 91-92 92-93 93-94 94-95 95-96p (Rs. billion outstanding, end of period) Money and Quasi Money 2309.5 2658.3 3170.5 3668.3 4344.1 5308.0 6005.0 Bank Credit to Governnent (net) 1171.5 1401.9 1582.6 1762.4 2039.2 2224.2 2626.7 BankCredittoCornmercialSector 1517.0 1717.7 1879.9 2201.4 2377.7 2896.6 3386.4 (percentage or index numbers) MoneyandQuasiMoneyas%ofGDP 50.6 49.6 51.4 52.0 54.2 56.1 55.4 Wholesale Price Index (1981-82 = 100) 165.7 182.7 207.8 228.7 247.8 274.7 295.8 Annual Percentage Changes in: WholesalePriceIndex 7.4 10.3 13.7 10.1 8.4 10.9 7.7 Bank Credit to Govemnment (net) 20.3 19.7 12.9 11.4 15.7 9.1 18.1 BankCredittoCornmercialSector 14.4 13.2 9.4 17.1 8.0 21.8 16.9 a. The per capita GNP estimate is at market prices, using World Bank Atlas methodology. Other conversions to dollars in this table are at the prevailing average exchange rate for the period covered. b. Total Labor Force from 1991 Census. Excludes data for Assam and Jammu & Kashmir. c. Transfers between Centre and States have been netted out. d. All loans and advances to third parties have been netted out. e. As recorded in the govemment budget.  Balance of Payments (US$ Millions) 1993-94 1994-95 1995-96p Merchandise Exports (Average 1990-91-1995-96) Exports of Goods & NFS 27,947 32,760 39,682 Merchandise, fob 22,683 26,857 32,789 US$ Mil % of Tot. Inports of Goods & NFS 29,798 38,150 48,536 Merchandise, cif 25,069 31,840 41,582 Tea 404 1.8 of which Crude Petroleum 3,468 3,428 3,672 Iron Ore 487 2.2 of which Petroleum Products 2,285 2,500 4,046 Chemicals 1,824 8.1 Trade Balance -2,386 -4,983 -8,793 Leather & Leather products 1,439 6.4 Non Factor Service (net) 535 -407 -61 Textiles 2,698 12.0 Garments 2,731 12.1 Resource Balance -1,851 -5,390 -8,854 Gems and Jewelry 3,753 16.7 Engineering Goods 2,754 12.2 Netfactor Incomea -3,929 -4,119 -4,455 Others 6,415 28.5 Net Transfersb 3,825 6,200 7,478 Total 22,506 100.0 Balance on Current Account -1,955 -3,309 -5,831 External Debt, March 31, 1996 Foreign Investment 4,235 4,895 4,347 US$ Mill. Official Grants and Aid 368 472 335 Public & Publicly Guaranteed 79,655 Net Medium & Long Term Capital 3,280 1,124 1,124 Private Non-Guaranteed 6,618 Gross Disbursements 7,307 5,953 5,953 Total (Including IMF and Short Termn) 93,697 Principal Repayments 4,027 4,829 4,829 Debt Service Ratio for 1995-96 Other Capital Flowsc 1,670 2,828 -3,180 Non-Resident Deposits 940 847 1,365 % curr receipts Net Transactions with IMF 190 -1,174 -1,719 Public & Publicly Guaranteed 20.9 Private Non-Guaranteed 1.4 Overall Balance 8,538 6,857 -1,840 Total (Including IMF and Short Term) 27.1 Change in Net Reserves -8,537 -6,858 2,005 IBRD/ IDA Lending, March 31,1996 (US$ Mill) Gross Reserves (end of year)d 15,476 21,160 17,436 IBRD IDA Rate of Exchange Outstanding and Disbursed 9,849 17,499 Undisbursed 4,122 4,583 End-March 1996e US$ 1.00 = Rs. 34.45 Outstanding incl. Undisb. 13,971 22,082 -- Not available. a. Figures given cover all investment income (net). Major payments are interest on foreign loans and charges paid to IMF, and major receipts is interest eamed on foreign assets. b. Figures given include workers' remittances but exclude official grant assistance which is included within official loans and grants, and non-resident deposits which are shown separately. c. Includes short-term net capital inflow, changes in reserve valuation and other items. d. Excluding gold. e. The exchange rate was reunified at the market rate in March 1993. f. Total exports (commerce); net of crude petroleum exports.  India Most Sa, rwgioenuucome poap Neat Latest singk yew t . hi r Urns of rsd5w Soaih Law- uicme Imndicator measure 1970-75 19504S 19t9-94 Asia income vreup Resources and Ex=enditures HU-MAN RESOURCES Popuh2tuon (mrv.1994) thousands 613,459 765,147 913,600 1.220.285 3,182.221 1,096,881 Age cependency raso rato 0.77 0.72 0.66 0.71 0.66 0.63 Urban %of pop. 213 243 26.5 26.0 283 55.9 Pooui&uson growth rme annual % 2.3 2.0 1.7 IJ 1.7 1.3 Urban ' 3.7 3.0 2.7 3.1 3.2 2.7 Labor foreu thousands 260.515 329.608 394,330 528,108 1,590.533 4a1,647 AgncOulwe % of labor fcree 70 67 64 63 67 36 Industry ' 13 14 16 16 14 26 FemaJle 3 1 32 32 32 39 40 LAbo- parocipason rns ToJ % of pop. 42 43 43 43 50 45 Feria ' 13 14 14 29 41 36 NATURAL RESOURCES Area thou. sq. km 3287.59 3287.59 3.27.59 5.133.49 40391.42 40,594.43 De=r y pop. per sq. km 186.60 232.74 273.21 233.41 77.44 26.66 AgriculturaJlaod %oflandazea 60.U3 60.86 60.89 59.11 52.42 41.05 Chxnge mo agnculn=l ISMd annual % 0.47 *0.07 -0.05 -0.02 0.16 *138 Agnricltsral land under mg=non ' 18.65 23.09 25.96 29.63 17.S4 11.40 Foreass and woodland thou. sq. km .. 551.19 517.29 65132 7.632.00 5.969.25 Deiorestuon (set) % change. 1980-90 - - 0.63 _. - BCOME Household uincome Sh2re of Lop 20* of households % of ircome 49 41 43 .. _ Shre of boctom 40* of houscholds 16 20 21 _ .. Share of bottom 20* of houschoids 6 a 8 .. .. DEXMDMrURE Food % of GDP 43.6 353 .. SupIes 20.6 12.4 .. _ Me&a fish. rilk rcheese es 6.5 7.4 _ .. .. Cereas impors thou. metz c tor 7.669 205 694 6.211 36.922 68.936 Food aud Lo ceruls 1.582 304 276 1,624 1.516 5.771 Food producion per captu 197- 100 94 104 115 113 115 102 F=silher consurption 4 193 47.0 67.5 69.7 51.5 46-3 Share of igncultur in GDP % of GDP 36.6 29.5 26.9 26.6 27.6 14.0 Hou};eg % of GDP 4.4 7.1 .. Averue household size persons per household 5.2 5.6 .. Urban 4.8 5.5 .. _ .-z-d mvetsxmft housing * of GP 2.3 218 .. Fue and power % of GDP 2.4 23 .. Energy consumption per caita kg of oil equiv. 124 170 243 219 373 1,602 Housaholds with electricity Urbsn % of bouseholds - _ .. _ .. Transport and commuaication % of GDP 4.7 5.1 _ _ Fixedu nvcsrnenu transport quxupment 1.4 2.3 .. _ Total road length thou. km 1.375 1,546 2.962 _ IrVEThLMNT IN EUMAN CAPrTAL Health ?opulaoon per physician pcrsos 4.900 2.522 .. .. .. 3.064 Populanon per nurse 3.710 1,701 Populsuon per hospial bod 1,700 1,300 1,371 1.675 1,034 592 Oral rchydynnon thcrapy (under-5) % of cases .. .. 37 37 38 Education Gross enrolnment muos Sao,dsry % of school age pop. 26 37 49 45 48 63 Fem&i 16 26 38 35 42 62 ?upii-soac.ner ratio: primary pupils per teher 42 5B 63 61 39 Pupil-teiacrn mnio: secondary 21 21 26 26 20 PuJpils rc hlng grade 4 % of cohort 51 5B .. Repeatei- rate: primary % of total eninU 17 .. _ - Mtlaav % of pop. (age 15+) 66 56 48 51 35 Feale % of fen. (agc 15) *- 71 62 64 46 .ewscaaer circulation oer thou. von. 15 25 31 26 236 \l,or!d Bsar. In-frnttional Economics DepartmrnL April 1996  India Max: Saoi FtgiOAn/nOM9 STOM~P Next Latest single year. ,Wcen higher Vnu of esinma Sou*h 'Low- inwome Indicawr measurm 1970-75 195045 1989-94 Asia income grozqu Priority Poverty Indicators POVEY Upper poievy line local . .. ..curr He-d&=t index of pop. .. Lower povey ne local curr. .. .. Hzdco index % of pop. .. GN?PerCapiu USS 180 280 310 320 390 1,670 SHORT TERM INCOME INDICATORS Uns11- urbn wages local cwr. .. .. .. Urs~LvlW rural ae RmaI of wade .. 84 94 _ Cor=r=pnrcmidex 19S7-100 45. 35 19 Lowe looe Foo 27 .. Vrban .. 83 176 SOCLL INDICATORS Ptbi c ezpecdiwre on baic social services % of GDP Gr= cU rarios Pnmary % school age pop. 79 96 102 98 105 104 Male 94 110 113 110 112 105 Fcmale 62 80 91 87 98 101 Mality infin riarity per tbou. lie biuls 132 108 70 73 58 36 loder ' Mtrlity .. .. 97 106 101 47 Ircrtran,aso Meeslm % ge group *- * 85.8 84.2 86.2 77.4 DY' .. 41.0 90.2 U.6 89.1 82.0 hild raimtricon (under-5) .. .. 63.0 61.5 38.2 Ukfe cap.acy Toul yeats 50 55 62 61 63 67 Ferale 'ivamtge -1.9 -0.4 1.3 1.2 2.4 6.4 Total feriLity rame births per woman 5.6 4.8 3.3 3.6 3.3 2.7 Mac=na.l r ity raze per 100.000 live birhs .. 460 437 Supplementary Poverty Indicators E tpenrgtr on social secunty % of totl gov't exp. .. .. .. Socal srcnty cverigc % Ccor. active pop. .. .. .. Acxts to afe War towa % of pop. 31.0 56.3 .. Urban 80.0 76.0 .. Ruraln 18.0 50.0 Access o hsealt care s 75.0 i Population growth rate GNP per capita growth rate Development diamondb 6_ ern (avcagc annual, percent) W 4:. 5. 2 ~ ~ ~ ~ ~ ~ ~ ~ aGNP Grous I ~~~~~~~~~~~~~~~~~~~~~~~~~per i- II ~~~~~~~~~~~~~~~~~~~~~~~~~capita 0 T~~~~~~~~~~~~1 1970-75 198045 1989-94 1970-75 1980-85 199: Accr