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NEW ERA IN BIHAR AT A GLANCE (POST 2005 TILL THIS DATE)
MANISH KUMAR
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BIHAR STRUGGLES AGAINST AN IMAGE
PROBLEM THAT IS DEEPLY DAMAGING TOITS GROWTH PROSPECTS. HOWEVER,THE SITUATION HAS CHANGED IN RECENT
YEARS.
´
MANISH KUMAR
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THE MAN WHO CHANGES THE IMAGE, THEMAN WHO CHANGES THE THOUGHT
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DEVELOPMENT BOARDS
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WHAT HAS CHANGED IN THE STATE DURING2005-10?
´ A state-level comparative analysis is doneunder the following heads
´ Economic Indicators1. State GDP Growth Rate2. Sectoral Growth3.Consumer Markets4. Investment Scenario5.Central Grants and Social Sector Expenditure
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SOCIAL AND DEVELOPMENT INDICATORS
´ L aw and Order´ Infrastructure and Communication
´ Poverty´ Education´ Health
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OTHER
´ T ourism´ Agriculture
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THE OVER ALL ANALYSIS GIVES POSITIVESIGNALS, BIHAR IS GRADUALLY TREADINGON THE PATH OF DEVELOPMENT
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GDP GROWTH RATE IN BIHAR (2004-05 TO 2008-09)
T he state's economy has never grown so fast and so consistently as it has since 2004-2005.
T he Central Statistical Organization (CSO), in areport released recently, placed Bihar in thesecond place in terms of growth in the GrossDomestic Product (GDP) between the years2004 and 2010.
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GDP GROWTH RATE TREND
0
2
4
6
8
10
12
1984-89 1989-94 1994-99 1999-2004 2004-2009
annual GDP growth rate(%)
annual GDP growth rate(%)
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GDP GROWTH RATE (2004-05 TO2008-09)
YEAR GDP GROWTH RATE (% P ER ANNUM )
2004-05 12.17
2005-0 1.49
200 -07 22.00
2007-08 8.04
2008-09 11.44
AVERAGE GROWT H (2004-09) 11.03
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THE BIHAR ECONOMIC SURVEY 2009-10
´ T he main growth sectors have been construction,communication and trade/hotels/restaurants.
´ T he annual growth rate for these high-growth sectors
was 35.8, 17.7 and 17.7 percent respectively, wayabove the overall average rate of 11.0 percent.
´ Further, according to the Associated Chambers of Commerce and Industry of India (ASSOCHAM),
´ Bihar GDP is estimated to reach Rs 2, 4,781 crore fromthe current level of Rs 1,05,148 crore, mainly due to thepositive boost from good governance.
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SECTORAL GROWTH
´ T he process of growth and development, thereis a structural change in the sectoral share of income, the main focus of an economy'sactivity shifts from the primary, through thesecondary and finally to the tertiary sector.Further, this is accompanied by a shift in
employment from the primary sector to theother sectors as surplus labour moves to moreproductive avenues of employment
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SECTORAL SHARES IN GSDP(%)
STAT E PRIMERY SECOR SECONDRYSECT OR
T ERT IARY SECT OR
2001-02 2007-08 2001-02 2007-08 2001-02 2007-08
BIHAR 37.9 24.8 11.2 15.7 51 59.5
JHARKHAND 29.3 21.9 35.3 39.5 35.5 38.
PUNJAB 35 32.5 22.7 24.7 42.3 42.8
MAHARAST RA 1 .2 14. 25.7 2 .8 58.2 58.78
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CONSUMER MARKET
´ T he consumer market is composed of individuals(or households) who buy a specific good orservice. In recent times, many factors such as
urbanized lifestyle, increased influence of themedia, and growth of the service sector havecompletely changed the consumer market scenario in Bihar.
´ T he 5 percent of the households in the statebelong to the middle class which offers a largeand vital consumer base.
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ANNUAL PER CAPITA EXPENDITURE ACROSSSTATES (RS PER PERSON), 2008s tate
Bihar 800 12800
Jharkhand 1 300 38100
Maharastra 21300 4100
Orissa 17100 35100
Punjab 23500 41100
T amilnadu 18400 38400
West bangal 19500 44700
india 1 200 41700
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INVESTMENT CLIMATE
´ Investment climate refers to the generaleconomic conditions affecting the financialmarkets. A favorable investment climateencourages businesses to improve efficiencyand productivity in order to increase revenuesand capital available for investment. It also
gives investors confidence in the market andencourages them to invest more capital
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CONTD .
´ In the period spanning 2004-2010, Bihar haswitnessed an annual average growth rate of about 8 percent in overall proposed investment which
includes Industrial Entrepreneur Memoranda(IEMs)Filed, and L etters of Intent ( L OIs) & Direct Industrial L icences (DI L s) issued . In 2004, theshare of Bihar in the overall proposed investment
(vis-à-vis other states) was a mere of 0.1 percent (Rs 314 crore). However, by 2010, this shareincreased to about 1.5 percent (Rs 13, 74 crore)
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CENTRAL GRANTS AND SOCIAL EXPENDITURE
´ T he buoyant growth of the state in recent times is also attributed to the fact that the flowof Central funds to Bihar has increasedmanifold in recent years . It went up from Rs37,341 crore during the five-year period2000-2005 to Rs 55,459 crore during the next
three years
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PERCENTAGE OF TOTAL REVENUE RECEIPTS FROMGRANTSS TATE S 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
BIHAR 12.2 15.2 1 .2 23.2 21.1 23. 24.7
JHARKHAND
14.3 25.2 25.1 1 .5 20. 17.4 14.4
M.P 13.3 13.9 12.4 13.8 14.5 19.1 19.5
ORISSA 17. 21.3 18.2 23. 27.3 21.7 24.8
U.P 12.9 8.3 7.8 12.7 11.9 13.9 15.
WEST
BANGAL20.2 15.4 14.4 13.5 13. 17.7 1 .8
INDIA 1 .9 1 .3 1 .2 17.5 18.3 19.2 19.8
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CONTD ..
´ Despite facing many daunting challenges there areseveral instances of successful development efforts in Bihar. T hese demonstrate that projects
can succeed and entrepreneurship can thrive andthat strong leadership and a vision for changecould yield dramatic results. T he Bihar StateCooperative Milk Producers' Federation(COMFED), Muzaffarpur s National L iteracyCampaign, and the Paliganj ParticipatoryIrrigation Management experience are examplesof excellence.
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POLITICS
´ Just 2 days ago he makes history in 243legislative seats as present govt got 20 seats.
´
And bihar mass prove that he doesn t want castism. He wants development . Development.
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THANKYOU
´ ANY QUEST ION