Once considered the most backward state,
Bihar has emerged as one of the fastest growing state of the country in
the last couple of years. The data released by the Ministry of
Statistics and Programme Implementation, put the state on the top.
With a growth rate of 13.1 per cent in
2011-12, Bihar beats the advanced states like Gujarat, Punjab, Tamil
Nadu and Karnataka in growth rate.
In the latest count the major states like Uttar Pradesh and Punjab have slipped lower than national average of the GDP.
The growth story of Bihar is, however,
registered surprise jump with many contradictions. Abhijit Sen,
economist and member, Planning Commission, said: “Bihar has now the
catch-up growth rate after remaining backward for a long time but it is
not necessary that it would cover a long distance in achieving the
objective of development with justice.” It will take long years to cover
up the huge development deficit.
Interestingly, the growth of Bihar is
primarily supported the by construction sector. The huge growth in
construction activities was largely propelled by public investment in
the last few years. The annual plan expenditure gone up from 4,000 crore
to 24,000 crore, and construction of roads, bridges and government
buildings were a major component in the latest count.
The construction segment in Bihar is
growing at an average rate of nearly 20 per cent. “Assuming the
optimistic estimate to be correct, how could construction—with a less
than 10 per cent share in the GSDP—push up growth by over 4 percentage
points in three years?” asks R Nagraj, Professor, Indira Gandhi
Institute of Development Research.
Another factor contributing to the high
growth rate in the state is the lower base. The Gross State Domestic
Product (GSDP) of Bihar at 2004-05 prices was calculated merely at 1.63
lakh crore. Whereas the GSDP of Maharashtra was 7 lakh crore and Gujarat
has about 4 lakh crore.
Bihar is at the lowest rung with a per
capita income of only 13,362, which was one third of the national
average of 35,993 and one fifth of 62,729 in Maharashtra.
Moreover, the major factor diluting the
growth story is the fast-growing population of the state. According to
the 2011 Census, Bihar’s population is 103.8 million, 8.5 per cent of
India’s total population.
According to latest census report Bihar
has a population density of 1,102 persons per sq km, which is highest in
the country, against the national population density of 382 per sq km.
From 2001 to 2011, the rise in population density in Bihar was as high
as 25 per cent whereas it was only 18 per cent at the national level the
bifurcation of state also added into it.
“The growth story reveals less and
conceals more. Agriculture and allied sectors, on which about 89 per
cent of the state’s population depends, have registered negative growth
thrice in the past six years. It is a matter of concern,” said N K
Chaudhary, Patna-based senior economist.
N KChaudhary further said that majority
of the growth is occurring in the tertiary sector and such a growth
would not be sustainable unless the government is able to ensure
concomitant growth rate in primary and secondary sectors.
He also substantiated that the current
growth in the state was not pro-poor as was evident from the increase in
the quantum of poor people over here. The current growth run was
creating islands of development in the ocean of poverty.
“The state government is trying its best
to increase its revenue which is lowest after West Bengal and doing
massive investment in agriculture. It has also started some
institutional reforms particularly in agriculture to maintain the pace
of growth,” said senior economist and member secretary of the Asian
Development Research Institute (ADRI).
But despite the consistent double-digit
record beating growth, poverty is not decreasing. So it makes many
analysts ponder where the impact of growth.
Recently-released Planning Commission of
India’s data suggest that the number of poor in Bihar has increased by
50 lakh between 2004-05 and 2009-10.The data also indicates that Bihar
has added the largest number of poor in the country. If 53.5 per cent of
Bihar was under the poverty line in 2009-10, the figure was 54.4 per
cent in 2004-5.
The claim of inclusive growth with
justice doesn’t keep its pace with the growth story and in a changed
scenario, the economic management and good governance would keep Bihar
on top or the whole myth would get exploded in coming years.
