NEW ERA IN BIHAR AT A GLANCE (POST 2005 TILL THIS DATE

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MANISH KUMAR

BIHAR STRUGGLES AGAINST AN IMAGE PROBLEM THAT IS DEEPLY DAMAGING TO ITS GROWTH PROSPECTS. HOWEVER, THE SITUATION HAS CHANGED IN RECENT YEARS.

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MANISH KUMAR

WHAT HAS CHANGED IN THE STATE DURING 2005-10? ´ A state-level comparative analysis is done under the following heads Economic Indicators 1.Central Grants and Social Sector Expenditure ´ . Sectoral Growth 3. Investment Scenario 5.Consumer Markets 4. State GDP Growth Rate 2.

SOCIAL AND DEVELOPMENT INDICATORS Law and Order ´ Infrastructure and Communication ´ Poverty ´ Education ´ Health ´ .

OTHER Tourism ´ Agriculture ´ .

BIHAR IS GRADUALLY TREADING ON THE PATH OF DEVELOPMENT .THE OVER ALL ANALYSIS GIVES POSITIVE SIGNALS.

The Central Statistical Organization (CSO). in a report released recently.GDP GROWTH RATE IN BIHAR (2004-05 TO 200809)  The state's economy has never grown so fast and so consistently as it has since 2004-2005.  . placed Bihar in the second place in terms of growth in the Gross Domestic Product (GDP) between the years 2004 and 2010.

GDP GROWTH RATE TREND annual GDP growth rate(%) 12 10 8 6 annual GDP growth rate(%) 4 2 0 1984-89 1989-94 1994-99 1999-2004 2004-2009 .

04 11.GDP GROWTH RATE 2008-09) (2004-05 TO YEAR 2004-05 2005-0 200 -07 2007-08 2008-09 AVERAGE GROWTH (2004-09) GDP GROWTH RATE (% PER ANNUM) 12.44 11.49 22.03 .00 8.17 1.

7 percent respectively. ´ Further. 17.148 crore. communication and trade/hotels/restaurants.781 crore from the current level of Rs 1.8.THE BIHAR ECONOMIC SURVEY 2009-10 The main growth sectors have been construction. ´ The annual growth rate for these high-growth sectors was 35. ´ . mainly due to the positive boost from good governance. 4.7 and 17. way above the overall average rate of 11.0 percent. according to the Associated Chambers of Commerce and Industry of India (ASSOCHAM).05. ´ Bihar GDP is estimated to reach Rs 2.

the main focus of an economy's activity shifts from the primary. this is accompanied by a shift in employment from the primary sector to the other sectors as surplus labour moves to more productive avenues of employment .SECTORAL GROWTH ´ The process of growth and development. there is a structural change in the sectoral share of income. through the secondary and finally to the tertiary sector. Further.

9 35. 25.7 24.8 MAHARASTRA 1 .8 11.2 14.7 2 .7 51 JHARKHAND 29.3 39.5 35.8 58.7 42.5 2001-02 2007-08 2001-02 2007-08 2001-02 BIHAR 37.5 22.5 38.3 21.78 .3 42.9 24.2 58. PUNJAB 35 32.2 15.SECTORAL SHARES IN GSDP(%) STATE PRIMERY SECOR SECONDRY SECTOR TERTIARY SECTOR 200708 59.

CONSUMER MARKET The consumer market is composed of individuals (or households) who buy a specific good or service. ´ The 5 percent of the households in the state belong to the middle class which offers a large and vital consumer base. ´ . many factors such as urbanized lifestyle. In recent times. and growth of the service sector have completely changed the consumer market scenario in Bihar. increased influence of the media.

2008 state Bihar Jharkhand Maharastra Orissa Punjab Tamilnadu West bangal india 800 1 300 21300 17100 23500 18400 19500 1 200 12800 38100 4100 35100 41100 38400 44700 41700 .ANNUAL PER CAPITA EXPENDITURE ACROSS STATES (RS PER PERSON).

A favorable investment climate encourages businesses to improve efficiency and productivity in order to increase revenues and capital available for investment. It also gives investors confidence in the market and encourages them to invest more capital .INVESTMENT CLIMATE ´ Investment climate refers to the general economic conditions affecting the financial markets.

the share of Bihar in the overall proposed investment (vis-à-vis other states) was a mere of 0. this share increased to about 1. by 2010. Bihar has witnessed an annual average growth rate of about 8 percent in overall proposed investment which includes Industrial Entrepreneur Memoranda (IEMs)Filed.5 percent (Rs 13. In 2004. ´ In the period spanning 2004-2010. 74 crore) .1 percent (Rs 314 crore). and Letters of Intent (LOIs) & Direct Industrial Licences (DILs) issued . However.CONTD .

It went up from Rs 37.CENTRAL GRANTS AND SOCIAL EXPENDITURE ´ The buoyant growth of the state in recent times is also attributed to the fact that the flow of Central funds to Bihar has increased manifold in recent years .341 crore during the five-year period 2000-2005 to Rs 55.459 crore during the next three years .

3 15.4 1 .5 13.7 13.9 21.7 19.2 1 .8 15.4 18.3 17.3 8.2 25.2 23.8 .P ORISSA U.9 20.8 19.3 23. 12.2 7. 1 . 14.2 13.8 23. 18.5 21.1 21.4 19. 17.9 17.4 1 .9 15.PERCENTAGE OF TOTAL REVENUE RECEIPTS FROM GRANTS STATES BIHAR JHARKH AND M.3 13.4 19.7 13.7 14.3 11.2 1 . 12.P WEST BANGAL INDIA 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 12.5 27.2 24.3 1 .8 14.5 17.5 24.1 12.9 13.1 20.2 25.2 14.

These demonstrate that projects can succeed and entrepreneurship can thrive and that strong leadership and a vision for change could yield dramatic results.. The Bihar State Cooperative Milk Producers' Federation (COMFED). Muzaffarpur s National Literacy Campaign.CONTD . and the Paliganj Participatory Irrigation Management experience are examples of excellence. ´ Despite facing many daunting challenges there are several instances of successful development efforts in Bihar. .

THANK YOU ´ ANY QUESTION .

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