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net
A Study
For
Prabhat Khabar
November 2008
indicus Analytics
Nehru House 2nd Floor, 4 Bahadur Shah Zafar Marg
New Delhi 110002
Table of Contents
Acknowledgement...............................................................................................................6
Introduction........................................................................................................................7
Data Qualification..............................................................................................................9
Jharkhand – A Review......................................................................................................10
State Profile____________________________________________________________10
Gross State Domestic Product Estimates.........................................................................11
Section I Jharkhand in the post liberalization era..........................................................12
Section II Jharkhand @ IT today....................................................................................20
Section III. Jharkhand in its Eighth Year.......................................................................32
A. Governance in Jharkhand______________________________________________32
1. Law and Order.......................................................................................................33
2. Public Finance........................................................................................................42
3. Movement of Prices...............................................................................................50
4. Infrastructure..........................................................................................................52
B. Jharkhand As a Knowledge Economy.......................................................................60
1. Communication......................................................................................................60
2. Educational Institutions.........................................................................................64
C. Socio-Economic Profile .............................................................................................70
1.Demography............................................................................................................70
2. Workforce ..............................................................................................................75
3. Basic Necessity......................................................................................................77
4. Health.....................................................................................................................81
5. Education...............................................................................................................85
6. Agriculture.............................................................................................................92
.........................................................................................................................................92
.........................................................................................................................................93
7. Investment Scenario...............................................................................................95
8. Consumer markets...............................................................................................104
9. Fiscal Status.........................................................................................................110
Section IV : The Districts of Jharkhand_____________________________________116
1. Health and Civic Attainment ...............................................................................117
2. Education.............................................................................................................120
3. Demography.........................................................................................................122
4. Poverty.................................................................................................................124
...............................................................................................................................124
5. Economy..............................................................................................................126
6. Overall Performance of the districts....................................................................131
Acknowledgement
Team Members
Introduction
The passing of the Bihar Reorganization Bill gave birth to the 28th state
of the nation, Jharkhand on November 15th 2000 on the occasion of the
birth anniversary of the legendary Bhagwan Birsa Munda. Jharkhand as
a state is known as a vast reservoir of natural resources in terms of
forest areas as well as minerals. However, in spite of this immense
potential, it has not been able to utilize them properly and is thus
counted among the backward states in the country. Its inheritance is
considered to be one of the major reasons for this backwardness which
is reflected in the development backlog over the years. The
widespread unrest among the naxal community in recent times has
further added to the problem. It thus puts a challenge before the state
to provide good governance and to enable equitable growth and socio-
economic progress. With a population size a third of Bihar and
community-centered traditional ethos of tribal people, it will be
relatively easier for the nascent state to pass on the benefits of growth
to its citizens equally.
The study is divided into eight sections each dealing with various
issues related to development. Section I focuses on Jharkhand's
position vis-à-vis other states in the post-liberalization phase. Section II
examines the potential of the IT/ITES sector in the state. The third
section of the study explores the quality of governance, examines the
knowledge and communication base as well as the socio-economic
profile of Jharkhand. The fourth section of the report deals with the
intra-state analysis where the districts of the state are compared. The
fifth section provides a comparative picture of the parliamentary
constituencies in the state in terms of various socio-economic and
infrastructure based parameters. Sixth section explores the potential
cities of the state while the seventh section gives the state rankings in
the eastern zone in terms of various socio-economic variables. Gross
The states, which are being considered for comparison, are in one way
or the other, related to Jharkhand. We have considered the parent
state of Jharkhand, Bihar, new states that were formed at the same
time as Jharkhand, Chhattisgarh and Uttarakhand and the other
neighbors of Jharkhand -West Bengal and Orissa. In some cases, where
relevant, we have also considered states that have performed
significantly well in the area being discussed.
Data Qualification
Jharkhand was formed only eight years ago and generally the different
government departments take an average of two years to release their
data. Hence the data for the year 2006-07, and 2007-08 is not
available more majority of the indictors. As a result, for most of the
indicators, the latest data we have is for the period of 2005-06. Hence
depending on the availability of the data the analysis has been done
from 2001to 2005-06.
One important point related to the GDP data is that the previous
reports contained GDP figures with 1993-94 as the base year. While the
present report gives GDP figures with the latest released 1999-2000
base year.
With a relatively short time span, the data shows a lot of fluctuations
during this period. While analysis for these parameters is being done
on the basis of this data, the trends will become clearer with passage
of time and release of the data in forthcoming years.
Jharkhand – A Review
State Profile
State Jharkhand
Capital Ranchi
Area (sq. km.) 79,714
Population 2001 29,945,829
Density of Population per sq. km. 338
Average Annual growth rate of 2.1
population 1991-2001 (%)
Annual Per Capita Income 2007-08
(Rs.) Rs. 23,098
Percentage of Urban Population
(%) 22.25
Literacy Rate (%), 2004-05 58.82
Number of Districts 24
Number of Towns 152
Number of Villages 32,616
Ranchi, Jamshedpur, Dhanbad,
Prominent Cities Bokaro
Prominent Airports Ranchi
Principal Crops Maize, Rice, Wheat, Pulses
Heavy Engineering, Coal Mining,
Major Industries Tussar Silk, Steel, IT, Tourism
12
Figure1: Growth ratefor Real GSDP
10.3
10 9.6
8.5
8 7.4
6.6
5.9 5.9 5.9 6.2 5.7
(%)
6 5.0 5.0
4.5 4.4 4.6 4.7
3.9
4 3.2 3.0
2.1 2.1
2
0
Jharkhand Bihar Chhattisgarh Madhya Uttarakhand Uttar Pradesh India
Pradesh
Source: Central Statistical Organization;Note: The three time periods 1986-87 to 1992-93
are based on three different national accounting series -1983-84, 1993- 1993-94 to 1999-00
94 and 1999-00 respectively, which are not strictly comparable across 2000-01 to 2006-07
time.
The graph reveals that there was a spurt in growth in Bihar, including
Jharkhand in the nineties with economic liberalization. However, after
the formation of the new state in 2000, Jharkhand growth has risen in
double digits, while Bihar has lagged behind. The picture is more
varied for the other divided states, but the basic trend is clear: growth
has increased over the last two decades and the newly formed states
have benefited from separation from their parent state and having
greater control in their own governments.
1
Development Trends, Tenth Plan Document, Planning Commission
Yet, reforms have reached the state with power projects now getting an
impetus.
The provision of electricity, road and telecom connectivity can give the
required impetus to growth in the villages that will reduce inequality by
boosting traditional livelihoods in the small-scale sector. Though
teledensity in India has crossed 25 percent, in Jharkhand there is only
one landline per hundred people and just 2 mobile phones per hundred
people. There are significant challenges to overcome here since forests
occupy almost 30 percent of the total state area, making accessibility a
difficult task. However infrastructure provision and connectivity in
particular are essentials for growth and development to be truly
inclusive.
Special Economic Zones are a new policy tool for attracting investment
on a large scale in high productivity sectors. Though Jharkhand was
born in the same year when the SEZs started in the country (2000),
there are only two SEZs being developed at Adityapur and Ranchi.
Jharkhand government has however made pioneering efforts in
introducing information technology (IT) in governance throughout the
state. Citizens now have more convenient access to government
information and it gives them an opportunity to participate in the
decision making process. The state through public private partnerships
has connected state headquarters to block level through the state wide
area network popularly known as Jharnet.
used for enrolment and premium collection, and in the initial years, the
government also gave a small subsidy towards the insurance premium.
For a small fee, the farmers have access to the best medical care in
the state of Karnataka.
3
Indicus estimates from NSS 61st Round, 2004-05(Employment round)
80
72.0
69.0
70 65.0 64.0 63.0
58.0 57.0 58.0
60 54.0
48.0 49.0
50 44.0 46.0
41.0 43.0 42.0 41.0
39.0
(%)
20
10
0
J harkhand Bihar Chhattisgarh Madhya Uttaranchal Uttar West Bengal Orissa
Pradesh Pradesh
Source: Census of India and Indicus estimates,
1981 1991 2001
respective years
The process of liberalization initiated in the 1990s changed the closed Indian economy to
a globalised one, with the private sector playing a major role. However, the impact on the
mineral rich state of Jharkhand has been mixed. Though economic growth has been
boosted with the manufacturing sector benefiting from the changed conducive
environment, the state has lagged behind most of the states in various socio economic
parameters. The spurt in growth has not percolated through to the masses, and this is a
reflection of the poor governance in the state that has not been able to translate the impact
of growth into positive benefits to the poor. It is of course true that much of the problems
have been inherited from its parent state, Bihar. Moreover, the ongoing Naxalite problem
has put hurdles in the government reaching out to many areas. There are therefore many
challenges to overcome, but the major reasons responsible for the slow progress in
development parameters are the weak institutional mechanisms and lack of effective
governance. Economic liberalization can raise growth levels, but for balanced and
inclusive growth, the government has to play an active role. Provision of a secure
environment with effective delivery of basic social provisions like health and education
are imperative for the masses to take part in the benefits stemming from a liberalized
economic environment. It is here that the government of Jharkhand faces an uphill task
ahead.
Introduction
The government of Jharkhand has recognized the strategic importance of
Information Technology in improving the society and economy of the state as
a whole. Underling the need of information society, the state has initiated an
innovative broad based, enterprise wide approach to service delivery. The
government of Jharkhand is investing towards ICT infrastructure in the state
to leverage the best and the latest in technology in devising solutions to the
governance issues in various areas beginning with the ones which have
maximum public interface. The larger realization is that unless the benefit of
ICT reach the village people in the rural areas, the state will not achieve
substantial social and economic growth. The state efforts are reflected in its
different projects initiatives in the areas of infrastructure, applications,
establishing new institutions and policy formulations.
Towards this end, the state has been taking regular initiatives in major
verticals to ascertain the status of underlying infrastructure, human
resources, policy regimes, investment climates etc. for setting up new
institutions and computerization of its major departments by rolling different
applications regularly on pilot basis in the districts with the view that once it
stabilizes in pilot district, the state will roll it out in each district to reach to its
people with minimum hitch.
The challenges are equally a matter of concern but not insurmountable.
Among identified challenges are expanding the IT infrastructure network,
quality human resource development, scaling up of projects already
implemented, and ensuring sustainable outcome of various interventions.
Recent IT Trends
There are many improvisations taking place in the state’s IT applications and
deployments. For instance, earlier ICT applications were not in 3-tier
architecture and required sending different forms from district and block
offices to be entered in the main system. This caused a delay in process and
was rather counter effective. The current application is web interactive and
paper handling has reduced a lot now and work is fast.
Mr. Sunil Kr. Barnwal is Additional CEO, JAP-IT, Jharkhand and IG Prison
♣
MR. Syed Kazi is Programme Officer, Digital Empowerment
Foundation, New Delhi
The state information on portal will save time and money of citizen
which they used to spend visiting different state offices all these days
is now available to them which they can further use in other social and
self development.
Being a newly created state, Jharkhand has its own traditional and emerging
infrastructure limitations. However, the positive trend is the Government of
Jharkhand’s extra effort in enabling IT infrastructure across the state in rapid
time. Already the state has been implementing the national programme of
State Wide Area Network (SWAN) which is a statewide high-speed
communication backbone to ensure voice and data connectivity at all blocks
& villages, and high speed internal gateway. Under this Jharkhand State Wide
Area Netwok (JHARNET), the State Government is promoting speed and ease
of governance.
JAP-IT
The need for SWAN has arisen to leverage connectivity benefits; delivery of e-
Governance applications; better monitoring and evaluation; seamless flow of
information; availability of Information to people; efficient delivery of
services; internal computerisation and information flow. Overall, the state ICT
infrastructure is focused on four key components: Data Centre, State
Jharkhand State Wide Area Network (JHARNET), Block to Panchayat
Connectivity (BPC) and Common Service Centres (Pragya Kendras).
There are key issues in enabling a robust ICT infrastructure across the
state. These include- awareness and timely commitment among
stakeholders, infrastructure fragilities, telco issues, integrating existing
connectivity infrastructure, systems integration, loose ends: power,
third party infrastructure, downward connectivity and band-width and
expansion issues. However, efforts continue to ensure the best in class
social and physical infrastructure to attract leading companies to
invest in IT and ITES in Jharkhand.
Jharnet
Govt. of Jharkhand has conceived the Jharkhand State Wide Area
Network (JHARNET) to push forward in the Information Technology in
the Government to promote the speed and ease of governance. It is a
Information Superhighway for Jharkhand which carry Multi Services-
Data, Voice and Video. All Government communication and IT
infrastructures is being linked to Jharnet. The Connection will be from
State Headquarters up to Block Level through District and Sub-
divisions. The key applications envisaged on the network are Video
Conferencing, Voice and Data Communications, Intarnet Operation,
Electronic Data Interchange (EDI) services, Value Added Networks, Help
Desk for JHARNET users, Information Kiosks, Data Warehousing and
Unified Messaging Services (UMS) etc. Benefits of Jharnet include
Finance
8 Centralized To bring core Treasury Implemented
Treasury functions into one unified and in use in all
manageme centralized system 31 locations.
nt system
Welfare Department
11 Website The website provides details Operational
of the Department and the
Department expects to
augment the scope of website
by allowing citizens to carry
out all their transactions
through it.
Others
12 Prison The main purpose behind the Operational
Management implementation of the Prison
System Management System (PMS)
was to enhance the
administrative capabilities of
the jails in terms of
monitoring and security of
the prison while improving
the efficiency and
productivity of the Prisons.
Already various local and national ITES companies have evinced interest in
setting up middle-level units in the BPO and call centre sectors at the IIFC.
Jamshedpur-based Alpine Techno has already started its operations with 12
seats. It plans to increase it to 48 seats within a year. MdBoss-ew, Delhi, E-
Octopus, Ranchi, Cysys Technologies, Bhubaneswar and 7Hills, Kolkata are
the others who have implemented their pilot projects and have started their
operations on the Rs 3,000-per-seat plug-and-play facility. Talks are also
going on with key ITES companies to set up ITES units in the state.
The scope is tremendous in the IT and ITES sector in the state. As per a
NASSCOM-McKinsey study, the state can contribute enormously in the US$ 24
billion industry in India in 2008. Despite Kolkata and Bhubaneswar taking the
lead, the Government of Jharkhand with its vast untapped potential is keen to
boost the ITES sector in the state.
The key identified challenges in the IT and ITES sector are equally worrisome
at times. The absence of direct connectivity, either by rail or air, between
Jharkhand and the southern states like Hyderabad and Bangalore has
affected the prospects of the IT and ITES sector in the state. There are
concerns that the connectivity issue is holding back greater investments in
this sector. Another challenge is that ITES units in the state are facing the
problem of getting adequate number of people with required proficiency in
English language. To address this situation, necessary steps are taken to
promote/encourage establishment of institutions for training in spoken
English.
The state has developed the IT policy keeping in mind the enhanced
opportunities that IT will unleash over the next decade. These
opportunities will allow corporates to create immense value, provide
significant opportunities for talent development and employment, and
enhance efficiencies in governance and social service. Therefore, the
core objective of the new IT policy is to allow different constituents
within the state to leverage this opportunity. As stated, the core
objective of the IT Policy is to facilitate improved communications and
infrastructure while implementing a statewide high-speed
communication backbone, ensure voice and data connectivity at all
blocks and villages, and high speed internal gateway. The objective is
to develop human resources and facilitate effective governance in all
major departments and timely service delivery to the citizens.
The state has planned to train at least 25 to 30 e-governance
Champions amongst State officials and to make them responsible to
implement the e-governance roadmap of Jharkhand. It goes without
saying that implementation of e-governance projects will create a
totally transformed work environment for employees in all departments
and will radically redefine the way services are offered to citizens and
businesses.
Currently, e-District project which seeks to make the district
administration more responsive and accessible is very high on the
state’s agenda. Decision support system for disaster assessment and
management is also being conceptualized. It has also planned to
resume information system and a web-based cultural Atlas of the state.
Tele-medicine is also going to be a milestone in the area of medicine
apart from another ambitious project called tele-education to provide
basic education in a mission mode. In a nutshell, information
technologies are being envisaged to deliver a variety of information
services to the citizens effectively and efficiently in near future.
challenge. Until and unless the state has put greater efforts in
education and information literacy it would be difficult to bridge digital
divide in the state and facilitate development. The challenge is to
reduce gaps in poor access to computers and information and
communication technology amongst large section of the state
population who are living in the periphery of the state’s social and
economic set ups. Then there are the content barriers in terms of
facilitating local language digital content in meeting information and
communication needs of the local population.
Looking Ahead
After creation of DoIT, Jharkhand’s initiatives in the area of application
of ICT in improving service and governance were scaled up to harness
the advantages of ICT applications. While the state has been pioneer
in establishment of SWAN and Common Service Centre Projects, its
progress in computerization of key departments such as treasuries,
commercial taxes, registration etc. has been note worthy. In addition,
IT department is pro-actively trying to push for computerization of
operations in almost all the state departments so as to have an
absolutely integrated service delivery system in near future.
Successful implementation and sustenance of e-Governance
programmes for the state will depend on support, guidance and
direction from the top staff of various state departments. The need
was felt to train officials occupying decision making levels and
managerial posts who will be trained as ‘e-Champions’ to be equipped
with necessary skills to lead the successful implementation of e-
governance projects in the state.
*******
A. Governance in Jharkhand
b. Juvenile Delinquency
c. Incidence of Murder
Under the Indian Penal Code (IPC) murders come under the category of
violent crimes. The measure of murder used here includes all the
reported cases of murder. The incidence of murder in a particular
region indicates the effectiveness of the police administration
prevalent in that particular region.
d. Incidence of Rape
Rape is one of the major crimes against women and incidence of rape
in a particular region is an indicator of the extent of safety provided to
them. Over the years the punishment of committing rape has become
stricter with an aim to check this heinous crime. While it is true that
crimes against women are under-reported, the changes over time do
reflect the trends. For the present analysis the number of reported
cases of rape in respective years has been considered.
Change
in
2001-06
State 2001 2002 2003 2004 2005 2006 (%)
Jharkha
nd 2,270 2,601 2,132 1,887 2,641 3,091 36.17
Bihar 5,439 5,800 4,563 6,107 6,134 6,806 25.13
Chhattisg
arh 4,574 8,915 4,935 2,307 4,596 4,995 9.20
Uttarakh
and 795 897 745 750 862 1,089 36.98
West
Bengal 6,737 7,017 4,199 9,244 12,123 13,217 96.19
Orissa 5,425 4,835 4,383 2,744 6,335 6,979 28.65
India 154,609 158,147 144,353 102,504 170,528 183,732 18.84
Source: Crime In India, National Crime Record Bureau, 2006
The Constitution of India provides that the state shall promote the
social and economic upliftment of the weaker sections like Schedule
Castes and Schedule Tribes. Since independence, various laws have
been passed to prevent them from injustice and exploitation. As per
Census 2001, SC & ST constitute around 40% of the total population of
Jharkhand and thus crime committed against these sections indicates
the lack of equality in the state and ineffectiveness of governance
2. Public Finance
Health and Family Welfare are crucial inputs into the well being of the
population and the expenditure by the government in this sector
indicates how seriously this commitment is taken. Public health &
family welfare are some of the public services provided by the
government. Expenditure in this sector reflects the proportion of total
expenditure that the state invests in these public services.
Table A.2 (a): Share of expenditure on Health and Family Welfare in total
disbursements (%)
2006-
States 2001-02 2002-03 2003-04 2004-05 2005-06 07
Jharkhand 4.9 4.2 3.3 2.9 5.8 6.3
Bihar 4.9 4.2 2.9 2.6 2.6 4.4
Chhattisgarh 4.3 4.0 0.9 1.3 1.4 3.9
Madhya Pradesh 4.1 4.1 1.4 1.4 1.5 4
Orissa 3.7 3.8 1.6 2.2 2.8 3.4
Uttar Pradesh 3.6 3.8 0.9 2.1 2.6 6.4
Uttarakhand 4.4 3.8 0.7 2.3 2.4 4.6
West Bengal 5.0 4.9 1.1 1.3 1.6 4.4
c. Expenditure on Administration
e. Expenditure on Development
This indicator looks at the grants received in the year from the Central
Government. It shows how dependent the state is on the Center for
their Revenues.
3. Movement of Prices
The Consumer Price Index is one of the widely used indicators for
assessing the movement of prices or inflation.
The Consumer Price Index for Urban Non Manual Employees (CPI -
UNME) measures the change in prices of a basket of goods consumed
by the Urban Non-Manual Employees. This index is calculated monthly
by the Central Statistical Organisation (CSO) for 59 urban centres
across India. CPI-UNME uses the base year 1984-85. It is basically
used for determining dearness allowances of employees of some
foreign companies working in India in service sectors such as airlines,
communications, banking, insurance and other financial services. It is
also used under the Income Tax Act to determine capital gains and by
the CSO for deflating selected service sectors’ GDP at current prices to
get the corresponding GDP at constant factor cost.
Table A.3 (a): Inflation measured by Consumer Price Index for Urban Non-
Manual Employees4 (%)
4
The CPI- UNME has been considered for the capital cities of the states under
consideration.
Table A.3 (b): Inflation measured by Consumer Price Index for Industrial
Workers (%)
State
2007 2008
Jharkhand 6.20 11.68
Bihar 8.46 7.09
Delhi 5.60 5.30
Maharashtra 5.43 7.35
Source: Labour bureau
Base: 2001=100
5
Economic Survey, 2004-05
4. Infrastructure
a. Road Connectivity
Rural road connectivity is not only a key component of rural
development but also an ingredient in ensuring sustainable poverty
reduction. It promotes access to economic and social services by
generating increased agricultural incomes and productive employment
opportunities. The Pradhan Mantri Gram Sadak Yojana (PMGSY), was
launched in the year 2000-01 by the Govt. of India to provide all
weather road connectivity to unconnected rural habitations. It aimed to
provide connectivity to all unconnected habitations having population
above 1000 by 2003 and for population above 500 by the end of the
Tenth Five Year Plan (2007).
b. Transport Vehicles
f. Electricity
Electricity has become basic necessity of our daily lives. For the
present discussion the percentage deficit or surplus of electricity
supply in relation to its demand has been used. It explains how
effectively government can meet the demand of electricity in the state.
g. Banks
Table A.4 (g): Per capita bank branches across different states, 2006-07
Bank branches/ Per
ten thousand
State population
Jharkhand 0.5
Punjab 1.1
Bihar 0.4
Tamil Nadu 0.8
Chhattisgarh 0.5
Uttarakhand 1.0
Maharashtra 0.7
India 0.6
Source: RBI
h. Post Offices
According to the Economic Survey 2003-04 ‘ The Indian postal network
is among the largest networks in the world in terms of areas covered or
population served..’ Besides providing access to affordable means of
communication anywhere in the country, it also provides financial
services such as savings accounts, money order transactions, Postal
Life Insurance etc. It is actually the largest Bank in India in terms of
network, accounts and annual deposits. The number of post offices in
the state is a good measure of the communication and financial
services infrastructure .
Table A.4 (h): Post Offices per ten thousand Population across States, 2005
State Post offices
Jharkhand 1.0
Bihar 1.0
Chhattisgarh 1.4
Uttarakhand 2.9
Maharashtra 1.3
Punjab 1.5
Tamil Nadu 1.9
West Bengal 1.1
Orissa 2.1
INDIA 1.4
1. Communication
a. Telephone Connections
Telephone lines play a major role in the public communication of any
state. It is one of the most easily accessible and cheap modes of
communication. Almost the entire nation today has been covered by
telecommunication-network. The present analysis reports the number
of telephones per 100 persons.
Table B.1 (a): Telephone Density (%) across states
c. Internet Users
The Internet has emerged as a new tool of communication for last few
years. It is a highly versatile mode of accessing information. It is used
for business promotion, transactions, making contracts etc. In this
discussion all the registered internet connections have been
considered.
Table B.1 (c): Internet Connections (per lakh population) across States
State 2001 2002 2003
Jharkha
nd 83 42 51
Bihar 13 14 22
Chhattisg
arh 20 37 43
Uttarakh
and 69 126 223
West
Bengal 334 163 174
Orissa 50 47 60
Maharash
tra 948 789 961
India 347 310 330
Source: Ministry of Telecommunication, Govt. of India.,
Rajya Sabha Unstarred Question No. 1733, dated 18.12.2003
2. Educational Institutions
a. Pre-College Institutions/Schools
d. Medical Colleges
Table B.2 (e): Number of Management, Law, IT, Agricultural Colleges per
Million People
State 2002-03 2003-04 2004-05 2005-06
Jharkhand 0.5 0.5 0.3 0.8
Bihar 0.7 0.7 0.7 0.4
Madhya Pradesh 3.3 3.3 3.2 2.2
Chhattisgarh 1.5 1.5 1.4 2.2
Uttar Pradesh 0.7 1.5 3.9 3.8
Uttarakhand 3.2 3.1 3.0 3.0
Maharashtra 1.3 1.3 1.3 4.0
Kerala 2.5 2.5 2.5 2.5
India 1.9 1.9 2.2 2.3
C. Socio-Economic Profile
1.Demography
a. Population
Table C.1 (a): Growth rate of Population between 1991 & 2001
1991-2001
States Rural Urban Total
Jharkha
nd 21.6 29.0 23.2
Bihar 28.3 29.3 28.4
Chhattisg
arh 14.2 36.2 18.1
Uttarakh
and 15.2 32.8 19.2
Punjab 12.3 37.6 19.8
Maharash
tra 15.2 34.3 22.6
Tamil
Nadu -5.2 42.8 11.2
West
Bengal 16.9 20.2 17.8
Orissa 13.8 29.8 15.9
INDIA 17.9 31.2 21.3
b. Sex Ratio
• A positive aspect emerges from the fact that the sex ratio
in 0-6 years age group in Jharkhand is much higher as
compared to that for overall population. In the 0 to 6 years
age group, Jharkhand performs much better than all the
states under consideration except Chhattisgarh
c. SC and ST population
States SC ST
Jharkhand 11.8 26.3
Bihar 15.7 0.9
Chhattisgarh 11.6 31.8
Uttarakhand 17.9 3.0
Punjab 28.9 0.0
Maharashtra 10.2 8.9
Tamil Nadu 19.0 1.0
West Bengal 23.0 5.5
Orissa 16.5 22.1
INDIA 16.2 8.2
Source: Census of India, 2001
2. Workforce
3. Basic Necessity
b. Food Sufficiency
4. Health
Infant mortality rate (IMR) refers to the number of infants, per 1000
live births, dying before completing one year of age. Infancy is a stage
when the human body is most susceptible to diseases, and therefore
proper hygiene, care and nutrition are essential. The infant mortality
rate can be significantly reduced through the dissemination of requisite
health care for mother and child and is therefore a marker of a
society’s socio-economic development. Reduction in infant mortality is
a major policy goal and thus part of the strategy to achieve health for
all in India.
Male
Male IMR/Femal Male
IMR/Female e IMR/Female
State IMR(2005) IMR(2006) IMR(2007) IMR(2005) IMR(2006) IMR(2007)
Jharkhand 50 49 48 0.74 0.88 0.96
Bihar 61 60 58 0.97 0.92 0.98
Chhattisgarh 63 61 59 0.98 0.95 0.95
Uttarakhand 42 43 48 0.77 0.95 0.98
West Bengal 38 38 37 0.97 0.93 0.97
Orissa 75 73 71 0.96 0.99 0.97
Maharashtra 36 35 34 0.92 0.97 0.94
Punjab 44 44 43 0.85 0.78 0.93
Tamil Nadu 37 37 35 0.90 0.97 0.94
INDIA 58 57 55 0.92 0.95 0.98
The Death rate gives the number of deaths during a year per thousand
mid year population and is also known as the crude death rate. While
the death rate gives only a rough indicator of the mortality situation, it
accurately measures the impact of current mortality on population
growth. Access to good quality health services is an important factor in
reducing the death rate. Better household hygiene practices, access to
sanitation, and water supply amenities aid in further reduction in death
rate.
5. Education
a. Literacy rate
The pupil teacher ratio is defined as number of students attended by a teacher. It reflects
the degree up to which a teacher can devote personalized attention to his pupils. Adequate
trained teachers are essential for the educational upliftment. It takes into account all the
teachers teaching and the students enrolled in higher educational levels i.e. secondary,
senior secondary or intermediate schools.
• Among the new states, Jharkhand has the lowest pupil teacher
ratio followed by Chhattisgarh and Uttarakhand.
Table C.5 (e) Total Expenditure on primary and middle level education
per child in 6-14 years age group, (Rs. Per Person)
State 2005-06
Jharkhand 1,821
Bihar 1,393
Chhattisgarh 1,788
Maharashtra 2,301
Punjab 1,189
Orissa 1,743
West Bengal 1,279
India 1,810
6. Agriculture
Table C.6 (a) Net Irrigated Area over Net Sown Area
States 2001-02 2002-03 2003-04 2004-05 2005-06
Jharkhand 9.2 9.2 9.2 9.2 9.3
Bihar 61.1 60.5 60.1 60.1 54.5
Chhattisgar
h 24.0 22.5 22.8 25.3 26.2
Punjab 95.4 98.1 95.2 95.2 95.2
Tamil Nadu 54.2 50.3 45.8 51.7 55.7
Uttarakhand 44.5 44.9 44.5 44.5 45.0
Source: Ministry of Agriculture, Govt. of India
• The relatively low irrigated area for the state will continue
to be a constraint on its agricultural development.
However, since it receives high seasonal rains, efforts
should be made to develop tanks, ponds and lakes across
the state. These will not only help in maintaining high
ground-water levels, but will also be used directly for
irrigation purposes.
7. Investment Scenario
GSDP is the market value of all the goods and services in the current
year in the state. It is one of the widely used measures of economic
growth.
Table C.7 (a) Per Capita GSDP at current prices across states
2000- 2002-
State 2001 2003 2003-04 2004-05 2005-06 2006-07
12,85 13,77 15,07 19,84 21,62 23,31
Jharkhand 0 0 0 0 0 5
10,22
Bihar 6,850 7,610 7,690 8,320 8,840 8
Chhattisgar 14,48 15,37 18,26 20,63 22,87 25,21
h 0 0 0 0 0 1
18,67 21,42 23,31 25,25 28,14 30,92
Uttarakhand 0 0 0 0 0 8
27,70 30,12 33,43 36,94 41,51 45,98
Maharashtra 0 0 0 0 0 7
32,37 32,96 35,18 37,13 39,52 47,12
Punjab 0 0 0 0 0 6
23,76 25,01 27,53 31,17 34,42 37,47
Tamil Nadu 0 0 0 0 0 8
Source: CSO
• The growth rate of Jharkhand is also higher than the other two
newly formed states of Uttarakhand and Chhattisgarh.
Source: CSO
It is the per capita credit granted by the Banks in the region for the
purpose of business activities.
Table C.7 (f) Commercial Bank Credit across states (Rs per Person)
State 2005-06 2006-07
Jharkhand 3,641 4,048
Bihar 1,553 1,974
Chhattisgarh 4,521 5,272
Uttarakhand 6,366 8,131
Maharashtra 48,527 61,166
Punjab 15,937 21,192
Tamil Nadu 21,686 28,294
Orissa 5,457 6,891
West Bengal 8,434 11,264
India 13,655 17,249
Source:. Reserve Bank of India
8. Consumer markets
The households who earn less than Rs. 75,000 annually fall under the
bottom income category and those households who earn more than Rs.
3,00,000 annually fall under the top income category. This indicator
describes about the extent of inequality prevalent in the region.
Table C.8 (b) Annual Per Capita Consumption Expenditure across states
(Rs’000 per person), 2008
d. Vehicular Population
Owning a vehicle denotes some level of affluence of the owner and the
type of vehicle owned explains the degree of affluence.
9. Fiscal Status
State\Yea
r 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
Jharkhan
d 2,264 2,700 2,666 2,572 2,838 3,391
Bihar 1,231 1,369 1,573 1,919 2,102 2,470
Chhattisga
rh 2,100 2,555 2,762 3,396 3,527 5,155
Orissa 1,915 2,275 2,524 3,044 3,329 4,539
Uttarakha
nd 3,219 3,705 4,054 5,469 6,480 7,083
West
Bengal 1,813 1,790 2,021 2,446 2,528 3,117
India 2,486 2,685 2,986 3,570 3,927 4,708
Source: RBI
Source: RBI
The level of Social Sector expenditure has crucial implications for the
long-term prospects of the economy. This is a crucial component of
developmental expenditure as it encompasses social services including
education and health, rural development, food storage and
warehousing.
Ranchi is the largest district of the state and is rich in coal, limestone
and asbestos, while Bokaro is famous for having the largest steel plant
of the country owned by SAIL. Paschim Singhbhum is blessed with
mineral wealth, especially iron ore and manganese, while Purbi
Singhbhum is known for Jamshedpur, the first steel city of India- the
Tata Steel plant.
Percentage of
households with
proper sanitation
District facility (%)
Bokaro 46.2
Chatra 26.5
Deoghar 58.1
Dhanbad 36.2
Dumka 36.8
Garhwa 39.3
Giridih 36.5
Godda 37.3
Gumla 21.3
Hazaribagh 49.5
Koderma 33.8
Lohardaga 40.5
Pakaur 37.6
Palamu 41.0
Paschim 26.6
Singhbhum
Purbi 45.3
Singhbhum
Ranchi 42.7
Sahibganj 28.1
Source: Census 2001
b. Immunization of children
2. Education
a. Literacy Rate
The pupil teacher ratio is the number of students per teacher. It takes
into account all the teachers teaching the students enrolled in classes I
to VIII. This ratio shows the average number of students every
teacher is teaching. It reflects the degree up to that a teacher can
devote personalized attention to his pupils. The lower the ratio, the
better it is for developing the educational standard of a particular area
since lesser number of students will get attention by a teacher.
Adequate trained teachers are essential for the educational upliftment.
3. Demography
Crude birth rate measures the number of live births during a particular
year per thousand mid year population. It is one of the basic indicators
of population growth. India’s crude birth rate has been falling and
stands at about 25 per thousand population.
Table D.3 (a) Crude Birth Rate (per thousand of population), 2008
Birth Birth
District rate District Rate
Bokaro 24.4 Hazaribag 28.4
Chatra 32.3 Kodarma 31.4
Deoghar 31.5 Lohardaga 31.2
Dhanbad 23.1 Pakaur 33.2
Dumka 27.1 Palamu 32.9
Pashchimi
Garhwa 35.7 Singhbhum 26.8
Giridih 33.9 Purbi Singhbhum 20.9
Godda 29.8 Ranchi 25.0
Gumla 29.1 Sahibganj 33.6
Source: Indian Development Landscape, Indicus Analytics, 2008
Child sex ratio measures the number of female per 1000 male children
in 0-6 age group. This ratio is indicative of discrimination against the
girl child starting from birth to her overall upbringing. It specifically
gets reflected in her access to food, nutrition, health care, and medical
support services. The child sex ratio of Jharkhand as a whole is 965
females per 1000 males.
4. Poverty
This ratio takes into account percentage of all the people who are
below the poverty line. This is the standard measure of poverty.
The number of households where every member has had at least two
square meals a day is an indicator of food sufficiency and a high
proportion of food sufficient households reflects less poverty.
Table D.4 (b) Percentage of Households not getting two square meals
a day for all members
Househol Household
District ds District s
Bokaro 0 Hazaribagh 27.11
Chatra 0 Kodarma 0.53
Deoghar 0 Lohardaga 0
Dhanbad 0 Pakaur 0
Dumka 0 Palamu 23.45
Pashchimi
Garhwa 0 Singhbhum 7.28
Giridih 23.01 Purbi Singhbhum 5.62
Godda 3.91 Ranchi 0
Gumla 9.09 Sahibganj 0
Source: NSSO 61st (Unemployment & Employment ) Round, 2004-05
5. Economy
a. Growth in Employment
Growth in employment reflects the opportunities being created with
respect to providing the labour force with gainful employment. A faster
growth rate of the labour force than that of employment leads to
greater unemployment. This indicator calculates the employment level
and its increase in the region in the given tenure.
• In rural area, the highest and lowest per capita income is seen in
the districts of Sahibganj and Purbi Singhbhum respectively.
• Ranchi has the largest market size among all the districts of
Jharkhand followed by Dhanbad.
d. Mobile Connections
Table D.5 (d) Number of Mobile Connections per 1000 persons, 2005
Connections per 1000
Districts persons
Bokaro 8
Chatra 4
Deoghar 8
Dhanbad 11
Dumka 5
Garhwa 4
Giridih 3
Godda 4
Gumla 2
Hazaribagh 8
Jamtara 2
Koderma 7
Latehar 2
Lohardaga 4
Pakaur 4
Palamu 5
Paschim
Singhbhum 5
Purbi Singhbhum 19
Ranchi 17
Sahibganj 4
Sareikela and
Kharsawan 1
Simdega 2
Source: Lok Sabha Unstarred question no. 5931 dated 04/05/2005
The parameters used for measuring the overall standing of the district
in the state are
1. Education
• Literacy Rate
• Female Literacy Rate
• Pupil Teacher ratio
2. Health and Civic Attainment
• Safe Drinking Water
• Women having trained assistance during delivery
• Percentage of households with Water Closet/Latrine
• Percentage of women receiving full Ante natal checkup – At
least 3 visits for ANC + at least one TT injection + 100 or
more IFA tablets/syrup
3. Demography
• Crude Birth rate
4. Poverty
• Head Count Ratio
• Households not getting square meals
5. Economy
• Growth in Employment
• Number of Mobile Connections
• Percentage of households with 4 wheelers
• Percentage of households with TV
Motivation
The Crude Birth Rate reports the rate of increase in population. A high
population growth rate is not good for an already populous country like
India since the resources are limited and income levels are relatively
low.
Methodology
Each of the variables have been appropriately normalized so that
districts that differ in absolute size are rendered comparable. Upon
adequate normalizing we obtain ratios, which are then used for
calculating the indices. Further, all the ratios that are used for
generating the indices are such that the higher the value of the ratio
the better the level of economic freedom that they signify. In case of
certain ratios this has been achieved by taking the inverse or in case of
percentages by subtracting from 100.
Iij=
Sij – Min(S1j, S2j,…,S10j)
Max(S1j, S2j,…,S10j)-Min(S1j, S2j,…,S10j)
Where Sij represents the value of ratio j for state i. The index is
constructed for 22 districts of Jharkhand and therefore i ranges from 1
to 22. There are 10 ratios for which the indices have been constructed,
j=1,2,…,10. Iij is the index value that is derived for district i over ratio
j. The index value lies between 0 to 1 within each ratio. The district
corresponding to index value 0 can be interpreted as having the lowest
level of economic freedom and the district with index value of 1 can be
said to have the highest level of economic freedom relative to other
districts.
Step 2: Once all the indices for the 10 ratios were obtained, a
composite index was obtained on the basis of all these indices.
An additive composite index has been constructed for every
parameter. This has been constructed by using the formula of
arithmetic mean.
Ai=Σ Iij
j
55
Then the districts were ranked for different parameters. After this the
average of all the parameters was taken and the overall aggregate was
calculated. The districts were then ranked on the basis of this overall
aggregate.
Health and
Civic
Education Attainment Poverty Demography Economy
Rating Rating Rating Rating Rating
Overal (Index (Index (Index (Index (Index Rating
l Rank ) District ) Rank ) Rank ) Rank ) Rank (Index) Rank
1 0.84 Purbi Singhbhum 0.68 2 0.97 1 0.79 10 1.00 1 0.83 1
2 0.72 Dhanbad 0.69 1 0.74 2 0.88 7 0.77 2 0.62 2
3 0.59 Ranchi 0.46 6 0.49 6 0.98 2 0.61 4 0.60 3
4 0.58 Bokaro 0.40 9 0.66 3 0.88 6 0.65 3 0.45 6
5 0.50 Koderma 0.38 12 0.54 4 0.95 4 0.20 14 0.38 7
6 0.42 Hazaribagh 0.56 3 0.31 11 0.36 20 0.36 9 0.47 4
7 0.42 Latehar 0.52 4 0.50 5 0.35 21 0.12 17 0.46 5
8 0.40 Deoghar 0.27 16 0.31 13 0.96 3 0.19 15 0.36 8
9 0.38 Chatra 0.29 15 0.25 16 1.00 1 0.15 16 0.31 11
10 0.37 Lohardaga 0.48 5 0.37 10 0.50 19 0.21 13 0.25 13
11 0.36 Garhwa 0.33 14 0.26 15 0.92 5 0.00 22 0.30 12
12 0.36 Jamtara 0.05 22 0.42 8 0.83 8 0.45 7 0.08 21
13 0.35 Sahibganj 0.18 17 0.42 9 0.65 15 0.09 20 0.32 10
Paschim
14 0.35 Singhbhum 0.39 11 0.30 14 0.67 13 0.47 5 0.16 18
Sareikela and
15 0.33 Kharsawan 0.09 20 0.44 7 0.67 13 0.47 5 0.06 22
16 0.32 Godda 0.41 8 0.20 18 0.74 11 0.28 12 0.18 16
17 0.32 Palamu 0.36 13 0.31 12 0.35 21 0.12 17 0.32 9
18 0.32 Simdega 0.46 7 0.10 22 0.50 17 0.32 10 0.21 15
19 0.28 Dumka 0.07 21 0.25 17 0.83 8 0.45 7 0.15 19
20 0.25 Gumla 0.40 10 0.14 21 0.50 17 0.32 10 0.12 20
21 0.25 Pakur 0.16 19 0.20 19 0.73 12 0.11 19 0.17 17
22 0.24 Giridih 0.17 18 0.19 20 0.51 16 0.08 21 0.23 14
The rankings have been derived using district-level data from ‘Indicus
District Development Database’. The variables selected for the ranking
exercise are mentioned below:
a. Socio-economic category
1. Female literacy
2. Primary to upper primary school transition
3. Poverty ratio6,
4. Marginal workers
5. Immunization of children
6. Weight for age
1. Households electrified
2. Households with telephones
3. Areas connected by pucca roads
6
derived from work done by Amaresh Dubey
Table 1
Besides this, the city is home to the first private Iron and Steel
Company of India.
The industrial profile of these four major cities gives a clear picture of
the potential of these cities, which is instrumental to the development
of the whole state. Further, a detailed demographic as well as
economic profile of these cities will provide valuable insights for the
investors before they decide to bring in investment.
Ranchi city has the largest market size among all four major cities in
the state and thus has higher chances of attracting investments.
Composite Rank
States Agriculture Law & Order Infrastructure 2008
Assam 19 14 17 13
West Bengal 8 15 14 15
Chhattisgarh 18 11 18 16
Orissa 17 13 16 17
Jharkhand 20 17 20 19
Bihar 15 19 19 20
Table 1 shows that no eastern zone state makes it in the top ten at all-
India level. The potential of agriculture-sector generally remains
untapped in the region. Except West Bengal no other state has
performed well in agriculture. Dry-land farming; sustainable
agricultural practices, commercialization of agriculture etc. are some of
the possible measures which the states could take to improve this
sector. The law & order situation is quite poor in the region. It is mainly
disrupted by widespread naxalism. Equitable socio-economic
development, strengthened internal-security, and a coordinated effort
by all the affected states would go a long way in resolving this
persistent problem. Infrastructure bottlenecks are another major
hindrance in achieving overall development in the region. The
provision of world-class infrastructure in certain spheres like power,
telecommunications, information-technology, and transport would go a
long way to remove these bottlenecks.
Overall Rank
States Agriculture Law & Order Infrastructure 2008
Assam 5 3 3 1
West Bengal 1 4 1 2
Chhattisgarh 4 1 4 3
Orissa 3 2 2 4
Jharkhand 6 5 6 5
Bihar 2 6 5 6
West Bengal has better infrastructure facilities than other states. The
state has better connectivity to pucca roads, rich asset ownerships etc.
On the other hand, Jharkhand has not been able to provide better
infrastructure facilities to its citizens. Despite hosting Damodar Valley
Corporation, India’s first multi-purpose hydro-project, Jharkhand has
not been able to provide power, telephone and road connectivity in
remote areas. This has pushed it to the bottom in terms of
infrastructure in the region.
In terms of overall performance, Assam holds rank one among the eastern zone states.
The state has performed better vis-à-vis its neighbors especially in providing education
and health facilities to its people, which has pushed it to the top ranking. Jharkhand
comes at fifth place, one place above its parent state Bihar. Unscientific agriculture, poor
infrastructure, naxal problem, and political instability pose major developmental
challenges for the state, which need to be transcended to achieve all-round development
of the state.
What will be the life of the average citizen in the future? This is a
question that occupies the mind of most people as they wonder
whether the future
holds something
good for them, will Rank Annual
Per capita Matching
of rate of
conditions be the income in country’s
countr growth
same or could they State internatio current per
y in
nal dollars capita income
be worse? the
2020-21 2007
Forecasting has its world*
limitations as there Chandigarh 57,068 Norway 3 13.1%
is continual change Delhi 21,467 Czech Republic 34 8.4%
Gujarat 13,997 Malaysia 51 8.9%
in underlying
Himachal 58 8.3%
conditions. Ten Pradesh
12,168 Turkey
years ago, for Maharashtra 11,291 Mauritius 60 6.7%
instance, the state Andhra Pradesh 9,641 South Africa 72 8.2%
of Jharkhand did not Punjab 9,537 South Africa 72 5.6%
even exist and no Tamil Nadu 9,287 Brazil 74 9.3%
forecasts could Karnataka 8,004 Macedonia 75 7.0%
predict when the West Bengal 7,391 Peru 81 7.1%
state would come to Chhattisgarh 7,059 Tunisia 83 8.5%
Orissa 6,710 Ukraine 86 8.0%
being. However,
Jharkhand 6,313 Azerbaijan 90 7.8%
even with these
Assam 4,955 Bhutan 100 6.4%
constraints, one can Madhya 123 3.9%
always indulge in 2,817 Guyana
Pradesh
some speculation, Bihar 2,676 Congo 124 7.2%
to imagine one *India ranks 125th in the world today in per capita income out of
probable scenario of 175 countries
the infinite
combinations of the future.
On the other hand, parent state Bihar which is the poorest state in
India today needs a much higher boost. Given the present trend of
economic growth, it will reach the same level as the Democratic
Republic of Congo today. This country in West Africa has been through
wars that have ravaged the economy. Human development indicators
are much lower than in India. In per capita income terms, the country
ranks 124, just one rank above India currently. This means that at
current rates of growth, it will take 13 years for the average per capita
income in Bihar to even match the present levels in India today.
This exercise has been done to give food for thought to the people and
to the governing classes in the various states. By making comparisons
of projected future income levels with present conditions in countries
around the world, the importance of raising growth rates becomes
much clearer. One does not know what will eventually transpire, but it
7
International dollars refers to converting the income from the local currency in PPP
terms or purchasing power parity terms. Market exchange rates fluctuate depending
on the trade between countries; if a dollar is Rs. 43, it does not mean that Rs. 43
buys the same amount of goods and services in India as $1 does in the US. Therefore
PPP exchange rates are calculated to account for these differences. International
dollar therefore is a better method of comparing incomes measured in different
currencies in the world.
Appendix
Districts SC ST
Bokaro 13 12
Chatra 32 4
Deoghar 13 12
Dhanbad 16 9
Dumka 7 40
Garhwa 24 15
Giridih 13 10
Godda 9 24
Gumla 5 68
Hazaribagh 15 12
Koderma 14 1
Lohardaga 4 56
Pakur 3 45
Palamu 26 19
Paschim
Singhbhum 5 53
Purbi
Singhbhum 5 28
Ranchi 5 42
Sahibganj 6 29
Source: Census 2001
Credit as per
Distri Deposits (in Rs Place of sanction
cts '000') (in Rs '000')
Bokaro 38,165,200 13,230,500
Chatra 4,965,600 888,300
Deoghar 10,361,300 3,470,700
Dhanbad 56,496,800 12,627,400
Dumka 10,183,900 3,133,600
Garhwa 4,428,700 1,077,000
Giridih 13,433,800 4,882,600
Godda 5,173,300 1,992,200
Gumla 7,431,200 1,522,300
Hazaribag 29,782,700 7,862,400
Kodarma 5,426,700 1,342,600
Lohardaga 2,444,700 746,600
Pakaur 3,121,600 938,400
Palamu 14,077,900 2,987,100
Pashchimi Singhbhum 22,009,000 7,411,200
Purbi Singhbhum 53,774,100 31,167,400
Ranchi 83,499,900 24,313,000
Sahibganj 4,605,000 1,513,700
Source : Reserve Bank of India, Basic Statistical Returns, March- 07
% Hhlds
% Hhlds using owning
Districts LPG TV
Bokaro 23.8 43.0
Chatra 2.2 8.3
Deoghar 7.6 18.2
Dhanbad 18.8 59.5
Dumka 4.4 14.7
Garhwa 2.2 6.6
Giridih 2.8 8.5
Godda 1.3 9.3
Gumla 1.7 3.2
Hazaribagh 9.0 31.1
Kodarma 9.2 18.8
Lohardaga 6.7 12.8
Pakaur 2.0 6.4
Palamu 2.2 8.5
Paschim Singhbhum 5.2 10.7
Purbi Singhbhum 43.4 52.0
Ranchi 20.9 32.0
Sahibganj 4.5 9.9
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