Economy Meerut in last 9 years (2012-21) has grown 9.4 per cent in current prices. However, at constant prices growth it moderates to just 4.6 per cent on an annual basis. Agriculture and allied sectors account for about 19 per cent of Gross Value Added and has recorded a growth of 6.2 per cent annual basis during this period. Services have been the most buoyant sector with a growth of 11.7 per cent. Growth had turned negative in 2020-21 due to the impact of pandemic and this deceleration was across all the three sectors. Growth in industries and agriculture has already become minimal in last four years. It is, however, expected that there may be a significant recovery in post pandemic period of 2021-22 and 2022-23, in line with the growth assumed for the State.
[Source: Directorate of Economics & Statistics, Uttar Pradesh]
A new vision should aim at raising the growth rate to more than double the present level to accomplish the objective of the State for a trillion-dollar economy. Meerut is however better placed in terms of two parameters; first it is a more urban centric relative to rest of Uttar Pradesh. Secondly, it has a significant non agriculture sector which accounts for nearly 80 per cent of the gross value added. Manufacturing and services, the two vibrant sectors significantly contribute of the value added of the economy.
Urbanisation has significantly contributed to higher per capita GSDP of Meerut relative to the State average. The well-known agglomeration economies operate through scale economies (more people, more choices, more demand and the spiral go on); lower infrastructure cost per capita, less information asymmetry (physical proximity of people, firm and modern civic centres to exchange ideas); hub of producers, suppliers, artisans (everyone has enough to contribute, collaborate and grow) and ease of networking.
There are better schools, colleges, universities and training facilities in the city as agglomeration economies push for innovation and help in knowledge spill over which sets in dynamic efficiency effect. Cities are no longer the hub of only production and exchange activities; they are also the place of germination of ideas on governance and policy making. Urbanisation has also contributed to emergence of secondary and tertiary sector as dominant sectors relative to agriculture. The share of various sectors of economy in GSDP of Meerut, average of state of Uttar Pradesh and national average indicated in graph below fully substantiates this fact.
