rkt.india Posted June 2, 2012 Posted June 2, 2012 NEW DELHI: Bihar, which was synonymous with poverty, has emerged as the fastest growing state for the second year running, clocking a scorching 13.1% growth in 2011-12. Not just that, on the back of four years of double-digit growth, its economy is now bigger than that of PunjabÃÖntil recently the preferred destination of Bihari migrant workers. Among the top five states, Bihar is followed by Delhi and Puducherry. Mineral-rich Chhattisgarh, which many had written off for the violent Naxal movement, and Goa complete the top five growth listings, according to data available with the ministry of statistics. GujaratÃÂ favoured destination for investors, both domestic and foreignÃÊs again out of the reckoning for the top five slots, expanding 9.1% during the last financial year, according to data submitted to the Planning Commission on Friday. Among the more industrialized states, only Tamil Nadu was ahead of Gujarat with 9.4% growth (at 2004-05 prices). Punjab, known as the grain bowl of India, Andhra Pradesh and Karnataka, both IT hubs, and Uttar Pradesh, the country's most populous state, clocked growth that was lower than India's GDP growth of 6.5% in 2011-12. Economists, however, said that 9% growth by some of the larger states such as Gujarat and Tamil Nadu was credible given that they were growing on a much larger base. In comparison, states such as Bihar and Chhattisgarh had a much lower base. For instance, at 2004-05 prices, economic activity in Tamil Nadu's was estimated at Rs 4.28 lakh crore, the highest among states for which data is available with the Central Statistics Office (CSO), while Bihar's gross state domestic product (GSDP) at 2004-05 prices was estimated at Rs 1.63 lakh crore. In fact, Tamil Nadu beat Uttar Pradesh as the second largest state economy, after Maharashtra. UP's economy was estimated to be worth Rs 4.19 lakh crore in 2011-12, while Maharashtra, for which data is unavailable, is expected to retain its number one slot given that its economy was worth over Rs 7 lakh crore in 2010-11. In recent years, Maharashtra has lost out on investment to states such as Gujarat and Tamil Nadu and growth has slowed. With the Bihar government taking up road building and other construction work in a big way, and with the state's law and order situation improving, consumers who were earlier wary of flaunting their wealth are now buying cars and bikes at an unprecedented pace. Rural demand too has got a boost with agricultural productivity rising for several crops, and with an improvement in connectivity and state-funded programmes for education, health and livelihood. Bihar is currently among the fastest growing markets for tractors. "There are two things happening in Bihar. One, investment sentiment has picked up largely because of governance issues. Two, Bihar's growth is against a very low base. But there is a lesson in it for others," said N R Bhanumurthy, professor at the National Institute of Public Finance & Policy. "States with internal demand will do better while those that are dependent on corporate demand tend to perform relatively worse at a time when corporate investments are low," added Pronab Sen, principal advisor in the Planning Commission and a former chief statistician. Incidentally, data for Madhya Pradesh and Rajasthan, which made up what were once the Bimaru states, was unavailable. http://timesofindia.indiatimes.com/india/Bihar-is-countrys-fastest-growing-state-at-13-1/articleshow/13711796.cms
Andrew Peter Posted June 2, 2012 Posted June 2, 2012 Thats a Good news for people of other states . Hopefully it means that there will be a decrease in number of Biharis migrating to other states .
saneindian Posted June 2, 2012 Posted June 2, 2012 The entire growth in Bihar if the last 4-5 years has been services driven and that is not a sustainable model in the long run. The state needs urgent investments in power infrastructure improvement without which getting the industries into the state will remain a dream. Despite his best efforts, the NDA govt has been able to do much on that front. Another failure for them has been in improving the agriculture sector. Even though a good 3-4% of he state budget is allocated for investment in augmenting the irrigation network, almost the entire money is swindled and the state is still dependent on the British era canal systems, thus not being able to unlock the agri potential.
Zelch Posted June 2, 2012 Posted June 2, 2012 Any Biharis out here who can give aankhon dekha hal of the ground situation. Any visible changes? 1) Sudden drop in world famous rampant crime rate until yesterdays Brahmeshwar Singh assasination. 2) Industrial growth = ? 3) Service Economy = ? 4) Agri= ?
Zelch Posted June 2, 2012 Posted June 2, 2012 The entire growth in Bihar if the last 4-5 years as been services driven and that is not a sustainable model in the long run. The state needs urgent investments in power infrastructure improvement without which getting the industries into the state will remain a dream. Despite his best efforts, the NDA govt has been able to do much on that front. Another failure for them has been in improving the agriculture sector. Even though a good 3-4% of he state budget is allocated for investment in augmenting the irrigation network, almost the entire money is swindled and the state is still dependent on the British era canal systems, thus not being able to unlock the agri potential. So the whole GDP growth is because of increase in Consumption(?) which inturn is fueled by remittances by migrant workers from India Shining states.
akshayxyz Posted June 2, 2012 Posted June 2, 2012 Anyone at the bottom is going to have 'faster' growth rate. May be good news for investors.
jairamesh Posted June 2, 2012 Posted June 2, 2012 So who else is playing spoil sport dragging India's overall GDP down to 6.5%????
Lurker Posted June 2, 2012 Posted June 2, 2012 Jeez the cynicism of some people here! Yes it is easy to grow fast when you are bottom of the barrel. Pray do tell though how is this any different than growth of India which grew at the famous Hindu growth rate for 40-50 years! And then started to grow in mid 90s at a breakneck pace. Oh but wait that was fault of Mr. Nehru and the "chosen" generation of Indians just broke the barrier. Jeez! Good to show Bihar growing. Bihar's growth is important not only for the Biharis but because a growing Bihar would make the entire region around it, UP/Bengal/Orissa/Jharkhand grow with it. And hopefully some of that would be passed on to North East states too. None of these states can grow in a vaccum and it is only good to see them start picking up. Bengal would be specially important as a strong Bihar-Bengal economy can work wonders for the region. A lot of falling of Bihar has to do with fall of Bengal and vice versa. Kind of reminds me of the time when first CM of Bengal Dr. BC Roy was asked where did he live in Bengal and he had famously said - Patna. And lets stop being too cynical for crying out loud. xxx
Needforspeed Posted June 3, 2012 Posted June 3, 2012 In the last few years, one has been hearing some positive news about Bihar. One hopes, the Economic changes also result in some social and cultural changes too.
jusarrived Posted June 3, 2012 Posted June 3, 2012 Good news . its high time some of these big states caught up . States like Guj , TN and Kar will start to slow down eventually . So we need the bigger states to come to party asap to fuel growth .
Stuge Posted June 3, 2012 Posted June 3, 2012 Chalo Bihar :D Its like saying CHalo India when you know real quality of life will suck in comparision to other parts of India .
dial_100 Posted June 4, 2012 Posted June 4, 2012 Thats awesome. GOOD for people of Bihar and the country as well. Thumbs up.
KhanSaab Posted June 4, 2012 Posted June 4, 2012 Good for Bihar. UP i notice is still lagging behind. No suprise there.
jind Posted June 5, 2012 Posted June 5, 2012 The thousands of Bhayiaas that migrated to Punjab in the last 10-12 changed the entire demographics of some places like Ludhiana....the majority setup in chuggis/ghettos and hundreds line up along the railway tracks to do jungle paani in the morning.. it is good that Bihar is progressing
Andrew Peter Posted June 6, 2012 Posted June 6, 2012 The thousands of Bhayiaas that migrated to Punjab in the last 10-12 changed the entire demographics of some places like Ludhiana....the majority setup in chuggis/ghettos and hundreds line up along the railway tracks to do jungle paani in the morning.. it is good that Bihar is progressing Thats what Bihari migrants have done to most places in India , its same in Maharashtra ( Mumbai to be precise ) , Assam and various other states . There is a popular joke for this very reason : Ek Bihari Sau Bimari .
Trichromatic Posted June 6, 2012 Posted June 6, 2012 Any Biharis out here who can give aankhon dekha hal of the ground situation. Any visible changes? 1) Sudden drop in world famous rampant crime rate until yesterdays Brahmeshwar Singh assasination. 2) Industrial growth = ? 3) Service Economy = ? 4) Agri= ? Not sure about the official figures and all that, but Bihar has certainly became a safer place. Earlier during RJD's rule, kidnapping, extortion and murder were fastest growing industries in Bihar. We used hear about kidnapping of doctors and wealthy people in Patna like everyday. This was not limited just to places like Patna, but even to small towns. Murder after disputes was common and land mafia etc were very powerful. During NDA rule, govt has certainly tried hard to curb crime and many criminals and mafia migrated to Jharkhand once it became hard for them to operate in Bihar. Sadly this disturbed once very peaceful Ranchi and we started saying that Ranchi has became new Patna. Anyone who has seen Bihar 10 years ago can certainly see the differences. IMO safety was most important part as no one wanted to start business there because of criminals.
India-KXIP fan Posted June 13, 2012 Posted June 13, 2012 Anyone at the bottom is going to have 'faster' growth rate. :haha: strong this
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