PATNA: The trade and industry circles on Sunday expressed their satisfaction over the 14.15% growth rate achieved in the gross state domestic product (GSDP) during the 2010-11 fiscal under the Nitish Kumar-led government.
Bihar Chamber of Commerce (BCC) president O P Sah said that it was a matter of immense satisfaction and pride that the state’s economy had achieved “such a healthy growth”.
Stating that the state’s growth rate has been sustained, Sah added that the economy has been marked by infrastructure development, growth and expansion of tourism sector, establishment of malls and big showrooms of reputed brands, boom in construction sector, and support from small and medium industries.
Sah lauded the dynamic leadership provided by both CM Nitish Kumar and deputy CM Sushil Kumar Modi, and added that Modi, as finance minister, had also provided good fiscal management that supported development programmes.
He also said, “The manifold increase in state government’s own resource contribution from 9.26% in 2005-06 to the current contribution of 40% is clear-cut evidence that the state has made remarkable achievement on this front too.”
Sah promised that the trade and industry would extend wholehearted support to the state government to achieve a target of state’s own resource contribution of 41% in the current fiscal. He added, “The process of investment from outside into the state has just begun, but the flight of capital from the state has stopped completely. Even non-resident Biharis have started investing in the state.”
He said the trade and industry circles have lauded the announcement of the government that it would accelerate infrastructure development by encouraging public-private partnership in both physical and social infrastructure development.
Source: The Times of India
Bihar to outpace its own growth rate this fiscal: Nitish
The 14.5 per cent growth rate attained by Bihar in 2010-11 on the price base of the year 2004-05 was the highest among the states according to the Central Economic and Statistics Directorate, Kumar said.
“The state will attain even higher growth rate in the present fiscal as agricultural output is likely to increase due to good monsoon,” he said.
Kumar was speaking at a function here where he released the Patna journal of medicine dedicated by the Indian Medical Association (IMA) to the late gynecologist S N Upadhyaya.
Growth surges, safety sinks – Poverty poser on progress story
Patna, Oct. 16: Bihar has bagged the first position in the country in annual percentage increase in gross state domestic product (GSDP) at constant prices registering 14.15 per cent growth over the value of its GSDP a year earlier (see graphics).
According to figures released by the ministry of statistics and programme implementation, the annual GSDP growth rate of the state was more than that of developed states like Tamil Nadu, Maharashtra, Punjab, Haryana and Andhra Pradesh, which recorded 11.74 per cent, 10.47 per cent, 7.21 per cent, 9.69 per cent and 9.22 per cent GSDP growth, respectively. Bihar’s GSDP growth has been better than mineral-rich states like Orissa (5.87 per cent), Chhattisgarh (11.57) and Jharkhand (6.01) also. Big states like Rajasthan (9.69 per cent) and Uttar Pradesh (8.08 per cent) too failed to match Bihar’s growth rate.
Chief minister Nitish Kumar came up with a measured comment on the state’s achievement while speaking in a programme today.
“We are not making any claim (on growth), rather this is what the figures say. This has been possible because of the contribution of the people of the state,” he said.
Given that the state faced severe drought in the past two years, Nitish said, the achievement was good. As the state received good rainfall this year, the growth tempo was likely to be maintained in the coming year as well, he added.
Deputy chief minister Sushil Kumar Modi expressed hope that the state would be able to sustain high growth rates in years to come and would join the league of developed states of the country by 2015.
Experts, however, appear to be a bit sceptical about the growth registered by the state. “Achieving highest GSDP growth rate in the country is commendable, but the growth story reveals less and conceals more,” economist N.K. Choudhary said.
He said: “Agriculture and allied sectors, on which about 80 per cent of the state’s population depends, has registered negative growth rate thrice in the past six years. It is a matter of concern.”
Choudhary said: “Most of the growth is taking place 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 claimed that the growth was not pro-poor as was evident from the surging number of poor people in the state. “The current growth trend was creating islands of development in the ocean of poverty,” he said.
Economist and director of Asian Development Research Institute P.P. Ghosh, too, did not appear much enthusiastic about the growth figures and opined that low base of economy was one of the factors for such a high growth rate. He also claimed that the growth was not as visible as one would perceive while going through the figures.
Confronted with the poverty issue amid growth story, the ruling JD(U)’s national general secretary and Rajya Sabha MP Shivanand Tiwary said: “Bihar has been able to script its growth story with limited resources. It should be commended. As far as poverty is concerned, the state needs an all-out support from the Centre to overcome the problem.”
Source: SANJEEV KUMAR VERMA AND AMIT BHELARI for The Telegraph