ECONOMIC SURVEY ASSAM, 1975-76

CHAPTER – 1

GENERAL ECONOMIC SITUATION

National Economy:—

1. The national economy during the year 1975-76 recovered from the crippling effects of economic set-back of the preceding few years and forged ahead with an optimistic outlook. Notable achievements in various sectors of the economy helped to a great extent in regaining the lost grounds. Agricultural production reached a new height and production of foodgrains which was 101 million tonnes in 1974-75 increased to 116 million tonnes in 1975-76. In the field of industry also the overall growth rate was about 5.7 per cent during 1975-76 over the year 1974-75. Spectacular achievements of the external sector of the economy resulted in an unprecedented rise in foreign exchange reserves. However, the size of the trade deficit remained more or les unchanged at the previous year’s level. The most noteworthy achievement during the period was the containment of inflationary trend. Price rise was not only checked but even reversed in case of certain essential commodities. Thus the overall picture of the economy during the period under report presents the visions of brighter days ahead for the country.

2. Economy of Assam:—

2.1. Against the above noted background of the national economy, the economy of Assam also showed promising performance during the year. The quick estimates of state income reveal that State Income in real terms (at 1948-49 prices) increased by 5.3 pr cent in the year 1975-75. The net income for 1975-76 at constant (1948-49) prices was estimated at Rs 497.7 crores with a per capita income of Rs 297.9. The corresponding estimates for 1974-75 were Rs 472.7 crores and Rs 291.4 respectively.

2.2. Agricultural production during the year showed satisfactory performance. There was record production of foodgrain crops in the state. As against the production of 21.15 lakh tonnes of foodgrains in the year 1974-75, the production in 1975-76 increased by 14.0 per cent to reach 24.11 lakh tonnes. Production of all non-food crops except jute, oilseeds and mesta also recorded an increase.

2.3. In the industrial sector, however the same old picture of a yawning gap between state’s great possibilities and its realisation continues to portray the industrial backwardness of the State. The index of industrial production (base 1970=100) showed a decrease of 0.9 per cent in 1975 over that in 1974. However, vigorous efforts are being made by the State Government to exploit the industrial potentialities of the State. Among the achievements of the industrial sector during the year, the commissioning of the Ashok Paper mills Limited at Jogighopa, the Assam Petro-Chamicals Complex at Namrup and the Bokajan Cement Factory in the district of Karbi Anglong deserve special mention. These industrial projects along with some other projects under construction are expected to breathe a fresh life in the sluggish industrial sector of the State.

2.4. One of the commendable performances of the economy is in the price front. Increased agricultural production coupled with various anti-inflationery measures taken by the Government brought a halt to the rise in price level. The wholesal price index number recorded a fall of 12.8 in per cent March in 1976 over that in March 1975 compared to an increase of 13.3 per cent in the corresponding period of the previous year. The index stood at 331.8 in March 1976 as against 371.9 in March 1975 and 328.1 in March 1974.

2.5. The employment situation in the State, however, continued to be critical. The live register of the employment exchanges revealed that the number of persons seeking jobs through the employment exchanges was increasing at an alarming rate. The number of persons on the live register of employment exchanges of the State increased from 1.39 lakhs in 1974 to 1.89 lakh in 1975. Vacancies filled through employment exchanges during 1975 was 7,538 as against 6,466 in 1974.

2.6. A detailed survey of the economy of Assam in its various facets is presented in the following chapters.

CHAPTER – II

POPULATION

2.1. With a population of 146.25 lakh (Census, 1971) Assam ranks thirteenth among the states of the India Union. It shelters 2.67 per cent of the total population of the country. The area of the state is 78,523 sq. kms. As against the country’s total area of 3,280,483 sq. kms. The state, thus constitutes 2.39 per cent of the total land area of the country . In respect of area Assam ranks fourteenth among the states.

2.2. Growth of population:—

2.2.1. During the past two census decades phenomenal growth rates of population of the State has been noticed which poised as a serious problem of the State. During the 1951-61 decade the growth rate of population is Assam was 34.97 per cent as against the all-India decadal growth rate of 21.64 per cent, Similarily, the growth rate during the decede 1961-71 was 34.97 per cent in Assam while it was 24.80 per cent for, the country as a whole. This very high growth rate of population in Assam is caused not by biological factor alone. As a matter of fact influx of refugees from time to time and migrants from neighbouring states coupled with the inflow of labourers are some of the important factors contributing to the rapid growth rate of population of the State. Table below shows the population trend in Assam and India since 1901:—

TABLE No — 2.1

TRENDS IN POPULATION: ASSAM AND INDIA

2.2.2. From the table above it is clearly evident that the growth rate of population in Assam continues to be alarmingly high in comparison to the all India average growth rate, If this growth rate is allowed to increase at such a faster rate Assam will soon face a serious population pressure leading to bad repercussions on her economy. Taking into account the 1961-71 growth rate, an estimate of population upto the year 1980-81 has been made by the Directorate of Economics and Statistics, in Assam, which shows that the population of Assam in 1980-81 would be around 193.68 lakhs. The following table shows the projected mid-financial year population of Assam for the period from 1971-72 to 1980-81:

TABLE No. – 2.2

POPULATION PROJECTION IN ASSAM

2.3. Density of Population:—

2.3.1. The density of Population in Assam in 1971 was 186 persons per square kilometre which was higher than the national average density of 167 persons per sq. km. Even in 1961 density of population in Assam (138 persons) was higher than that of national average density (134 per cents per sq. km.). Among the districts of Assam, Nowgong has the highest density with 302 persons per sq. km. Followed by the districts of Kamrup (286) and Cachar (246) as revealed by 1971 census. Lowest density occurs in the district of North-Cachar Hills with only 16 persons per sq. km.

TABLE No. – 2.3

DISTRICT-WISE AREA, POPULATION AND DENSITY IN ASSAM (1971 CENSUS)

2.4. Literacy:

2.4.1. In respect of literacy Assam has made very little progress. While literacy rate for the country as a whole increased from 24.0 per cent in 1961 to 29.5 per cent in 1971, Assam’s increase was very marginal from 27.0 pr cent in 1961 it rose only to 28.1 per cent in 1971. As per 1971 census, Assam ranks 12^th among the states of India in regard to literacy while the state of Kerala, with a literacy rate of 60.4 per cent, ranks first. A notable feature of the movement of literacy rate in Assam is that literacy level among females show a marked increase from 15.1 per cent in 1961 to 18.6 in 1971. In the case of makes, however, there was actually a slight fall from 37.3 per cent in 1961 the rate of literacy came down to 36.7 per cent in 1971.

2.5. Sex-ratio

2.5.1. According to 1971 census, sex-ratio of the population (per females per 1000 males) of the state increased to 896 in 1961. The all India sex-ratio in 1971 was 930.

2.6. Rural and urban composition of population

2.6.1. The 1971 census reveals that Assam has a predominantly rural population with 91.1 per cent of the population living in the rural areas. In 1961 rural population constituted 92.6 per cent of the total population. For the country as a whole, rural population constituted 80.1 per cent in 1971 as against 82.0 per cent in 1961.

2.6.2. In Assam, only 8.9 per cent of the population lives in urban areas in 1971 which was much lower than the all India percentage of 19.9 during the same period. The total number of towns in the state stood at 72 in 1971 as against 53 in 1961. Though the number of towns in the state has increased over the period, the fact is that many of such towns are little more than over grown villages. Gauhati is the only town having a population of over one lakh. There are 4 towns with population between 50 thousand and one lakh, 10 towns with the size group of 20 thousand to 50 thousand; the remaining 57 towns have population below 20 thousand.

2.6.3. The state of Assam with 21,995 inhabited villages accounted for 4 per cent of the 5,75,840 inhabited villages of the country in 1971. The number of inhabited villages in the state in 1961 was 20,565. In Assam, there are only 27 villages having population of over 5,000. On an average there are 606 persons per village in Assam.

2.7. Population of schedules castes and scheduled tribes:

2.7.1. As per 1971 census, scheduled castes and scheduled tribes population in Assam was 913 thousands and 1607 thousands and 1607 thousands respectively as against 732 thousands and 1165 thousands respectively in 1961. Thus, the state scheduled castes population represent 6.24 per cent and the scheduled tribes population represent 6.24 per cent and the scheduled tribes population represent 10.99 per cent of the total population of the state in 1972. It may be noted that in the country as a whole, the population scheduled castes and scheduled tribes accounted for 14.6 per cent and 6.9 per cent respectively of the total population.

2.8. Working class population:

2.8.1. The total number of workers in the state, which was 46.00 lakh in 1961, decreased to 40.88 lakhs in 1971. This fall is however, mainly attributed to the difference in the definition of workers adopted in the 1961 and the 1971 censuses. The 1961 census definition of worker was on the liberal side which had exaggerated the participation rates, because a person was categorised as economically active even if his contribution to work was marginal. In the 1971 census persons were classified as workers or non workers on the basis of their main activity.

2.9. Houseless persons:

2.9.1. The 1971 census reported 13,068 houseless persons in the state as against 12,433 in 1961. As per census definition, houseless persons are those who have no fixed place of residence and no regular house to live in and include such persons as beggars sadhus, nomads’ mendicants, vagrants, vagabonds, etc. and also population on boats playing on rivers. The total houseless population constitutes 0.09 per cent of the total population of the state.

2.10. Institutional population:

2.10.1. Institutional population includes inmates of such institutions as hostels, boarding house, hotels sanatoria, jails, asylum, hospitals etc. where groups of unrelated persons stay together. A number of 56,368 persons of such category was reported by 1971 census in the state as against 22,521 in 1961.

CHAPTER – III

STATE INCOME

2.1. The quick estimates of State domestic Product (State Income) at current prices as prepared by the Directorate of Economics and Statistics, Assam, stood at Rs 1421.0 crores in 1975-76 as against Rs 1315.1 crores in 1974-75 (Provisional Estimates) showing an increase of 8.1 per cent as against an increase of 26.0 per cent in 1974-75 over 1973-74. The high rate of increase in the State Income in 1974-75 is partly due to the colossal rise in the prices of agricultural commodities during the period.

2.2 At constant (1948-49) prices, the net State domestic product of Assam for the year 1975-76 was worked out at Rs 497.7 crores as against Rs 472.7 crores in 1974-75. Thus State income in real terms in 1975-76 showed a rise of 5.3 per cent over 1974-75 as against 4.8 pr cent in 1974-75 over 1973-74.

3.3. The estimates further reveal that the income from agriculture sector recorded an increase of 6.7 per cent and in sectors viz, showed an increase of 12.9 per cent, 6.3 per cent and 7.1 per cent respectively.

2.4. The per capita income at current prices in 1975-76 rose by 4.9 per cent over the previous year as against 26.4 per cent in 1974-75 over 1973-74. In absolute terms the per capita income at current prices in 1975-76 was estimated at Rs 850.5 as against Rs 810.7 in 1974-75. In real terms, the per capita income at constant prices in 1975-76 was estimated at Rs 297.9 as against Rs 291.4 in 1974-75, recording an increase of 2.2 per cent during the year.

2.5 The table below presents the per capital State income of Assam and per capita National Income for the year 1960-61, 1965-66 and 1970-71 to 1975-76.

TABLE No. 2.1

PER CAPITA INCOME (RUPEES)

2.6. The estimates of net State domestic product at current and constant (1948-49) prices for the year 1974-75 and 1975-76 by Industry of origin are shown below:—

TABLE No. – 2.2

NET STATE DOMESTIC PRODUCT OF ASSAM

P – Provisional Q – Quick.

CHAPTER – IV

AGRICULTURE

4.1.1. The year 1975-76 may be termed as a year of recovery for Assam’s agriculture. During this year, the State produced an all-time record production of rice and was thus able to offer a sizable portion of the same to the central pool. The various developmental measures undertaken by the Government coupled with the favourable weather conditions prevailing in the State was mainly responsible for this achievement.

4.2.1. Production:—

4.2.1. Production of principal Crops:— Production of foodgrains in the State during 1975-76 registered a 13.9 per cent increase over the year 1974-75. A total of 24 11 lakh tonnes of foodgrains were produced in the State in the year 1975-76 as against 21.15 lakh tonnes in 1974-75 to 22.90 lakh tonnes in 1975-76. Production of maize, sugarcane (gur), potato and sweet potato also showed increase over the previous year. However, fall in production was noticed in respect of certain crops like wheat, pulses, jute and mesta. There was also marginal fall in the production of oil-seeds from 72 thousand tonnes in 1975-76 to 71 thousand tonnes in 1974-75. The table below shows production of some important crops in Assam for the years 1960-61, 1970-71 and 1973-74 through 1975-76.

TABLE No. 4.1

PRODUCTION OF SOME IMPORTANT CROPS IN ASSAM

4.2.2. The index numbers of agricultural production in Assam shown below give an indication of the trend of agricultural production in the State.

TABLE No. - 4.2

INDEX NUMBERS OF AGRICULTURAL PRODUCTION IN ASSAM (Base: 1950=100)

P - Provisional

4.3. Area under crops:

4.3.1. There has been a slow but steady increase in area under different crops in Assam over the past two and a half decades. The gross area under crops increased from 22.03 lakh hectares in 1951-52 to 27-92 lakh hectares in 197071 and then to 30.76 lakh hectares in 1973-74. The partially available data show that the cropped area in the state has increased further in the years 1974-75 and 1975-76. Thus roughly 39 percent of the total geographical area the State is available for cultivation. It is also important to note that about 72 per cent of the total cropped area of the State is accounted for by foodgrain crops alone. During 1975-76, area under foodgrain crops in the State stood at 24.20 lakh hectares as against 22.42 lakh hectares in 1974-75 and 20.96 lakh hectares in 1970-71. The area under rice increased from 19.74 lakh hectares in 1970-71 to 20.58 lakh hectares in 1974-75 and further to 22.41 lakh hectares in 1975-76. But areas under wheat and pulses decreased in 1975-76 from the same in 1974-75. Area under almost all non-foodgrain crops, except potato, also registered at fall in 1975-66. The fall in area under jute is considerable from 120 thousand hectares in 1974-75 it came down to 94 thousand hectares in 1975-76. The following table shows the areas under food and non-food crops in the State over the post few years.

TABLE No. - 4.3

AREA UNDER CROPS
(Area in thousand hectares)

N.A. – Not available

4.3.2. Districtwise area under foodgrain crops for the years 1970-71, 1974-75 and 1975-76 are furnished in the table below:—

TABLE No. – 4.4

DISTRICT WISE AREA UNDER FOODTRAIN GROPS
(Area in thousand hectares)