However, if real (or nominal) government spending is held constant, the surplus will rise over time as a share of GDP, putting downward pressure on the equilibrium real rate, offsetting, at least in part, the effect on the real rate of the higher trend productivity.
This enabled the State to significantly improve its rank among the 28 states from 17th to 10th during the same period. The growth impulses in the initial phase during 2001–08 emanated mainly from industry and services. In the latter phase of 2009–12, growth was driven by the services sector. However, in both the phases agricultural growth remained low and volatile (Chart 3).