BIMARU states fueling India's GDP growth

[Shredder]

India's new miracle economies: Bihar, poor states

India's new miracle economies: Bihar, poor states


India achieved record annual GDP growth, averaging 8.45%, in the five years, 2004-05 to 2008-09 . But was this inclusive, and did it benefit the poor masses?

We have no data on poverty beyond 2004-05 . But the CSO has current data on the economic growth of the states. Historically, the chronically poor states were Orissa plus the BIMARU quartet (Bihar, Madhya Pradesh, Rajasthan, Uttar Pradesh), of which three have been sub-divided . Have these eight poor states participated in India’s boom?

Yes, absolutely. Indeed, five of India’s eight ultra-poor states have become miracle economies, defined internationally as those with over 7% growth. The best news comes from Bihar, historically the biggest failure . From 2004-05 to2008-09 , Bihar averaged 11.03% growth annually. It was virtually India’s fastest growing state, on par with Gujarat (11.05%). That represents a sensational turnaround. Nitish Kumar deserves an award for the most inclusive revolution of the decade.

Other poor states have done very well too. Uttrakhand (9.31%), Orissa (8.74%), Jharkhand (8.45%) and Chhattisgarh (7.35%), have all grown faster than the standard miracle benchmark of 7%.

Orissa’s performance is remarkable , since 10 years ago it had the worst fiscal indicators among all states. Naveen Patnaik has been a major force in accelerating growth and stabilizing state finances. His image as a clean politician has been tarnished recently by reports of widespread corruption. Land acquisition problems and Maoist violence have highlighted continuing tribal travails , and the murder of Christians is a blot on his secular record. Yet, he deserves kudos for making Orissa stage a huge turnaround.

The elephant in the room has always been Uttar Pradesh, a huge, poor state of almost 200 million people . The excellent news is that UP’s growth rate has risen impressively to 6.29% annually. This falls short of the miracle benchmark of 7%, but not by much. UP has benefitted from overall buoyancy in the Indian economy . In NOIDA, it has created a major services production and export hub, and an auto hub, too.

Sugar factories have expanded fast. Growth seems to have accelerated a bit after Mayawati came to power, but it is too early to credit her with a paradigm shift. Something similar can be said of Raman Singh in Chhattisgarh . Rajasthan, which grew fast earlier , has slipped down a bit, to 6.25%. The most disappointing performance comes from Madhya Pradesh (4.89 %). So, not all poor states have joined India’s growth bonanza.



But the overall picture is very heartening. Of the eight historically poor states, four -Bihar , Uttrakhand , Orissa and Jharkhand - Have grown as fast as or faster than the all-India average of 8.49%.

We must qualify this story. Fast growth in poor states does not automatically mean that growth has reached all poor people. Major beneficiaries include a creamy layer of politically well-connected people , exemplified by the Koda scandal in Jharkhand. The spread of Maoism suggests widespread tribal distress.

However, agricultural growth in 2004-09 averaged 4.4% per year, the highest in any five-year period, benefiting the rural masses. The minimum wage was raised in most states, and doubled by Mayawati to Rs 100/day in UP. Rural employment and infrastructure schemes, plus the telecom revolution, added to rural dynamism.

After two decades when incumbent governments were regularly voted out at elections, several incumbents have recently been re-elected . This suggests mass-based satisfaction in place of the earlier dissatisfaction.

Rainfed states experience enormous swings in growth depending on the monsoon, and can swing to negative rates in a bad year. So, averaging growth rates over five years is sometimes not enough to establish a trend. In Bihar, GDP actually declined by 5.15% in 2003-04 . So, if we average its data over the last six years rather than five years, its growth rate drops to 8.33%. This is still a stellar performance, but no longer on par with Gujarat’s .

At the other end of the spectrum , Rajasthan had a spectacular 28.67% growth in 2003-04 . So, if we average data over six years instead of five, Rajasthan’s growth rate gets revised massively to 9.99%, an excellent performance.

The poor states remain far behind the rest of India. Maoism, terrorism and corruption are growing. Yet, the economic gap between some poor and rich states is shrinking dramatically . Let us celebrate the emergence of Bihar and other poor states as miracle economies. This is surely one of the biggest achievements of the decade.

 

[ppgj]

niteesh kumar is my favourite politician. a man who is humble and committed to the development and betterment of his state. considering what he inherited from the actor called lalu yadav, who hoodwinked people by his dramas and took the state into a hell, this is nothing less than a miracle.

even as minister for railways he was the man who turned over the loss making organisation into a profit making efficient giant. alas, NDA lost the elections and he did not see the fruits of the seeds he had sown. lalu by the virtue of being railway minister garnered all the credit just as mamatha will do now.

a quiet worker who shys away from publicity and an able and just administrator. india will be better served with people like him in politics. my best wishes for a fine man. :goodstuff:

 

[marshall]

at last north is moving ahead. they can do even better job if they overcome some of the fundamental problems like castist politics, criminalisation of politics etc...

No wonder gujarat is no.1 in country as far as growth rate is concerned..thanks to Narendra Modi and his pro bussiness policies.

 

[marshall]

whats your point??
and gujarat is in west of the country not north...
My point is these are the states which account for almost 50% of indian population and unlike the west and south where most of the states are growing rapidly for years, most of the states in north have finaly started to grow faster.

 

[ajtr]

Bihar is changing, says NYT

PATNA: Bihar is changing and it is now being acknowledged by the international media. An article published in New York Times (NYT) has termed Bihar as a state which could serve as a model.

Recalling that for decades Bihar was “something between a punch line and cautionary tale, the exact opposite of the high tech, rapidly growing, rising global power India has sought to become,” the article said that previously “criminals could count on police protection, not prosecution. Highway men ruled the shredded roads and kidnapping was one of the most profitable businesses”.

“The name captured everything that was wrong with the old India — a combustible mix of crime, corruption and caste politics in a state crucible that stifled economic growth,” it said.

However, after the turnaround when it notched an 11 per cent average growth rate for the last five years, the news was greeted as a sign that even India’s most intractable corners of backwardness and misery were being transformed, the article says.

Bihar’s turnaround illustrates how a handful of seemingly small changes can yields big results in India’s most impoverished and badly governed regions. It stressed that state governments are responsible for everything from schools to hospitals to policing to maintaining most roads. “Bihar is a textbook case of how leadership determines development,” it says.

The article has uncharitable things to say about Lalu Prasad who ran the state for 15 years `from beneath a banyan tree’.

“Under Mr Prasad’s watch, criminal syndicates kidnapped, extorted and robbed with impunity, protected by political leaders or in some cases led by politicians,” it says, adding Lalu’s government did little to improve the daily lives of Biharis. It talks about dismal road conditions, schools crumbling as teachers did not turn up for work and health centres left unstaffed.

http://timesofindia.indiatimes.com/city/patna/Bihar-is-changing-says-NYT/articleshow/5786048.cms

 

[thakur_ritesh]

there is no doubt that bihar has changed and changed for good especially when compared to the rather hopeless days of lalu/rabri rule, which can be just termed as a misrule and as the article goes on to say, jungle rule!

here’s a man in Nitish Kumar who has indeed done one of the toughest jobs handed out to anyone in India, and what flying colors this chap has come up with, kudos to him, and to his team and hope they come back with a massive lead and a lead where he need not have to depend on alliance partners to run the show who are generally more of a hindrance than an assistance.

the complete article from nyt:-

---------------------------------------------------

Turnaround of India State Could Serve as a Model​

http://www.nytimes.com/2010/04/11/world/asia/11bihar.html?ref=asia

By LYDIA POLGREEN, Hari Kumar contributed reporting.
Published: April 10, 2010


PATNA, India — For decades the sprawling state of Bihar, flat and scorching as a griddle, was something between a punch line and a cautionary tale, the exact opposite of the high-tech, rapidly growing, rising global power India has sought to become.

Criminals could count on the police for protection, not prosecution. Highwaymen ruled the shredded roads and kidnapping was one of the state’s most profitable businesses. Violence raged between Muslims and Hindus, between upper castes and lower castes. Its economy, peopled by impoverished subsistence farmers struggling through alternating floods and droughts, shriveled. Its government, led by politicians who used divisive identity politics to entrench their rule, was so corrupt that it required a newly coined phrase: the Jungle Raj.

The name captured everything that was wrong with the old India — a combustible mix of crime, corruption and caste politics in a state crucible that stifled economic growth.

So when Bihar announced earlier this year that it had notched an 11 percent average growth rate for the last five years, making it the second fastest-growing economy in the country, the news was greeted as a sign that even India’s most intractable corners of backwardness and misery were being transformed.

“If even Bihar can change, then anywhere in India can change,” said Shaibal Gupta of the Asian Development Research Institute, an independent think tank here. “With good governance, good policy and law and order anything is possible.”

Bihar’s turnaround illustrates how a handful of seemingly small changes can yield big results in India’s most impoverished and badly governed regions. It also demonstrates how crucial the governments of India’s 28 states, many of which are larger than most countries, will be to India’s aspirations to superpower status. State governments are responsible for everything from schools to hospitals to policing to building and maintaining most roads. Failing states, especially large ones like Bihar and its troubled neighbor, Uttar Pradesh, could make or break those hopes.

“Real change in India will come when we get the right kind of state level and local leadership — a forward-looking, modern and compassionate leadership that strengthens the foundations of our great republic,” Manmohan Singh, India’s Prime Minister, said in a speech to business leaders last November.

Bihar is a textbook case of how leadership determines development.

Lalu Prasad, a wily populist politician whose party peddles a message of lower caste empowerment, ran the state for 15 years from beneath a banyan tree. Under Mr. Prasad’s watch, criminal syndicates kidnapped, extorted and robbed with impunity, protected by political leaders, or in some cases led by politicians.

Mr. Prasad’s government did little to improve the daily lives of Biharis. Its already dismal roads disintegrated into impassable tracks. Its schools crumbled; teachers did not show up for work. Its health centers were left unstaffed. Bihar had some of the country’s sickest, poorest and shortest-lived people in India, a dismal catalog for a state that in its glory days, a few millennia ago, was home to one of South Asia’s most powerful empires and the place where the Buddha reached enlightenment.

Despite this record Mr. Prasad was re-elected once, and then when forced to step aside in a corruption scandal, he appointed his wife as his stand-in. She was also re-elected. But in 2005 the current chief minister, Nitish Kumar, himself from a lower caste, cobbled together an uneasy but successful alliance of the wealthy upper caste that Mr. Prasad had exiled from power and the very lowest of the Dalits, or untouchables. He promised to dismantle Mr. Prasad’s Jungle Raj.

“It was not a case of bad governance,” Mr. Kumar said in an interview. “Governance was completely absent from the state of Bihar.”

When Mr. Kumar took over, he found government offices filled with dusty files and Remington typewriters. It was as if most of the 20th century had passed Bihar by.

He tackled crime first. The order went down to the lowliest constable — the law was to be enforced, and criminals would be punished, no matter their political connections. Powerful men were arrested, many of them sitting members of Parliament and the state assembly. They were convicted quickly in fast-track courts. “That gave a clear signal that the law will prevail,” Mr. Kumar said.

Next came schools and hospitals. More than 2.5 million school-age children were not attending classes; by 2010 that number was reduced to fewer than 800,000. Clinics that had been seeing 30 patients a month because they had no medicine or doctors were staffed up and restocked. By 2006, the patient load had increased tenfold.
He loosened bureaucratic rules to move important infrastructure projects along more quickly. Before, projects costing little more than $50,000 required cabinet-level approval, and piled up on the desks of senior officials as the fiscal year ticked away. Mr. Kumar raised that limit to $4.4 million, and billions of dollars in infrastructure have been built.

This progress, and its limitations, is clearly on display in the villages of rural Bihar. Reaching the village of Pawna from the district capital, Ara, once took more than two hours, but today it is a 30-minute drive. Solar lights illuminate narrow lanes. The street market that used to shut promptly at sundown because of bandits now bustles late into the evening. The village has a new police station, more schools and new water pumps.

But Gulab Chand Ram, a landless Dalit farmer in Pawna, said the government had done little to tackle the problems of the very poorest, those with nowhere to go on the new roads and nothing to steal.

“It is paper talk,” he said of the reforms. “We farmers still lack land, we lack water.”

The first layer of reforms have produced spectacular results, but more complex problems like changing feudal land laws to give land to people like Mr. Ram will be much trickier, analysts said. And Bihar’s growth, of course, is relative, and given its dismal state until recently, the smallest gains have outsized impact. Almost no private investment has come into Bihar despite the improvements.

Gangotri Iron and Steel, a company manufacturing rebar to fuel the state’s construction boom, recently opened a plant in the town of Bihta on the outskirts of Patna. Umesh Sangarayam, the plant’s operations manager, said that while the law and order situation had improved, the absence of reliable electricity and the unpredictability of the state’s politics may be scaring investors away.

“If the wrong people come into power in Bihar, you could be finished,” he said.

Indeed, it is a testament to the enduring power of caste in India’s politics that Mr. Kumar, despite his achievements, will face a tough election battle later this year. His main opponent is likely to be Mr. Prasad, who dismisses Mr. Kumar’s success. “He cheated the people of Bihar,” he said, flanked by a phalanx of advisers who vigorously nodded at his every word and attended by a manservant whose only job appeared to be flicking mosquitoes away with a white towel. “I am committed to the poor people, the depressed people, the lower-caste people.”

It is a message that cannot be discounted, Mr. Gupta said. “Identity politics is strong,” he said. “We hope that voters will choose development over caste. But in Bihar one never knows.”Next came schools and hospitals. More than 2.5 million school-age children were not attending classes; by 2010 that number was reduced to fewer than 800,000. Clinics that had been seeing 30 patients a month because they had no medicine or doctors were staffed up and restocked. By 2006, the patient load had increased tenfold.
He loosened bureaucratic rules to move important infrastructure projects along more quickly. Before, projects costing little more than $50,000 required cabinet-level approval, and piled up on the desks of senior officials as the fiscal year ticked away. Mr. Kumar raised that limit to $4.4 million, and billions of dollars in infrastructure have been built.

This progress, and its limitations, is clearly on display in the villages of rural Bihar. Reaching the village of Pawna from the district capital, Ara, once took more than two hours, but today it is a 30-minute drive. Solar lights illuminate narrow lanes. The street market that used to shut promptly at sundown because of bandits now bustles late into the evening. The village has a new police station, more schools and new water pumps.

But Gulab Chand Ram, a landless Dalit farmer in Pawna, said the government had done little to tackle the problems of the very poorest, those with nowhere to go on the new roads and nothing to steal.

“It is paper talk,” he said of the reforms. “We farmers still lack land, we lack water.”

The first layer of reforms have produced spectacular results, but more complex problems like changing feudal land laws to give land to people like Mr. Ram will be much trickier, analysts said. And Bihar’s growth, of course, is relative, and given its dismal state until recently, the smallest gains have outsized impact. Almost no private investment has come into Bihar despite the improvements.

Gangotri Iron and Steel, a company manufacturing rebar to fuel the state’s construction boom, recently opened a plant in the town of Bihta on the outskirts of Patna. Umesh Sangarayam, the plant’s operations manager, said that while the law and order situation had improved, the absence of reliable electricity and the unpredictability of the state’s politics may be scaring investors away.

“If the wrong people come into power in Bihar, you could be finished,” he said.

Indeed, it is a testament to the enduring power of caste in India’s politics that Mr. Kumar, despite his achievements, will face a tough election battle later this year. His main opponent is likely to be Mr. Prasad, who dismisses Mr. Kumar’s success. “He cheated the people of Bihar,” he said, flanked by a phalanx of advisers who vigorously nodded at his every word and attended by a manservant whose only job appeared to be flicking mosquitoes away with a white towel. “I am committed to the poor people, the depressed people, the lower-caste people.”

It is a message that cannot be discounted, Mr. Gupta said. “Identity politics is strong,” he said. “We hope that voters will choose development over caste. But in Bihar one never knows.”

 

[Singh]

What a different Leadership makes.

On one hand we are witnessing Bihar, one of India's most impoverished states, spectacular turnaround under Nitish Kumar's leadership and otoh natural resource rich Jharkhand has been absolutely ruined.

 

[Iamanidiot]

how many beharis will vote for Nitish and how many will realise this

 

[nandu]

how many beharis will vote for Nitish and how many will realise this

Those have the sense will and those dont have will not.

 

[ajtr]

how many beharis will vote for Nitish and how many will realise this

well beharis voted for nitish JDU thats why he is ruling bihar and they do realise the change hence JDU+BJP combine showed good performance in last loksabha election.

 

[Blitz]

many of the problems can be solved by finding a solution to the yearly drought and flood cycle if that is stopped bihar has great prospects ahead

 

[ajtr]

Bihar in a never-seen-before avatar

Improved law and order situation leads to a spurt in the number of tourists, writes Rajeev Kumar

Bihar, which once used to typify all that is benighted in the developmental paradigm, today represents a totally opposite picture with improved law and order. Carving out Jharkhand in 2000 left the erstwhile State further weakened, with the mineral wealth all going to the new State and Bihar left saddled with only agriculture as its economic backbone.

The years of neglect and callousness by the political order has also taken a heavy toll on the State. But a beginning has been made by the present NDA Government to change the notorious law and order situation. Swift trials and a vigilant administration have brought down incidents of crimes which once characterised the State.

The gains made by this improved law and order situation were no doubt apparent in the overall security environment, but it led to something positive, more as a spin-off and not as a foreseen outcome. It triggered a spurt in the number of tourists visiting the State, both domestic and international. According to the Tourism Department, this rose from 63,000 in 2006 to more than three lakh last year.

In Bodh Gaya, the place where Gautam Buddha attained enlightenment under the Bodhi Tree, has always been a draw for tourists. Now, there has been a marked increase in tourists here, both from within and outside India. Quality hotels, restaurants and shops have come up as a response to this heightened demand and the economy of the region has picked up. There is yet another industry that has benefited from this surge — foreign language teaching courses to cater to the demand of tourists thronging from Japan, Thailand, Korea, Myanmar, Sri Lanka and China.

This boost in tourism did not come as a policy initiative. Rather it is an offshoot of an improved law and order situation. Realising its immense potential to not only project Bihar as a State on the upswing but to actually turn its sagging fortunes around, the Government is making efforts to fully leverage the opportunity.

The land represents an amalgamation of different spiritual faiths with places of worship for Buddhists, Jains, Sikhs and Hindus. Ponds in the vicinity of historical monuments, heritage buildings and temples are being renovated and boating facilities being created. History apart, nature has been kind in its bounty of rivers, waterfalls and mountain ranges. All these lend themselves extremely well to the Government's initiative.

Much like the famed houseboats on the spectacular Dal Lake, the Bihar Government plans to create floating homes and hotels on the softly lapping waves of the river Ganga. It plans to develop full tourist facilities on the ghats to support this potentially growing activity, not just in Patna but also in other cities dotting the course of the river. The house-boat culture and ancillary services can then be developed on other rivers which criss-cross Bihar.

During the Second International Buddha Festival, held in February 2010, an initiative of the Bihar Government to promote tourism, plans to develop Rajgir, Vaishali, Nalanda and Bodh Gaya as tourist hubs were mooted. The tourism industry in Bihar has begun on its own momentum with the role of the Government being that of channelising its obvious potential.

 

[ejazr]

http://timesofindia.indiatimes.com/...report/Bimaru-to-boom/articleshow/7002575.cms

Latest election results proved Bihar is hungry for development. Meanwhile, its cousins in the cow belt — Madhya Pradesh, Rajasthan and UP – collectively lumped together as BIMARU — are trying to change for the better. Might relatively developed Punjab, Maharashtra, Karnataka, West Bengal and Tamil Nadu be sickening and headed in the opposite direction?


BIHAR: Total U-Turn

The feel-good factor in Bihar is not the result of a sleight of hand by any magician, but of elaborate planning and concerted action by the Nitish Kumar government in the last five years," says Patna housewife Rita Sahay. Sushasan, or good governance, is there for everyone to see, law and order being the most visible. Kidnapping for ransom, the only thriving industry in the Lalu-Rabri raj, has declined as Bihar's sunshine sector.

It became clear the Nitish Kumar government meant business when it ensured that 53,600-odd criminals were convicted between January 2006 and September 2010; 9,280 were awarded life and 132 death. Bihar's new sense of safety has given a fillip to trade. Glitzy showrooms and international food chains can now be found in Patna. Between 1999 and 2004, Bihar's economy grew at an annual rate of 3.5%. This grew fast and furiously to 11.35% from 2004 to 2009. In the old days, the government-run primary health centres received roughly 40 patients a month; now, it could be as many as 5,000 and certainly never less than 4,000. More babies are being born in hospital too.

Women have been empowered with the government reserving 50% seats for them in panchayats and other local bodies.

Girls who enter high school are given bicycles. The social revolution was evident in the recent elections, with women outnumbering male voters. Bihar Chamber of Commerce president PK Agrawal says things can only get better: "As the caravan of 'vikas' rolls on, industry is set to get a boost."
— Navendu Sharma


MADHYA PRADESH: Four Steps Forward

Shivraj Singh Chouhan is Madhya Pradesh's first non-Congress chief minister to complete five years in office. In December 2005, the BJP received an impressive majority. At election meetings, Chouhan had insisted that his "only motto" was development and serving the poor. He promised that "Shivraj Singh Chouhan will not sit idle till Madhya Pradesh transforms into a developed and forward state in the country".

A global recession was underway but this former BIMARU state's GDP continued to grow at 8.6% with Madhya Pradesh being ranked fourth among India's 17 major states. Chouhan's government claims that the 2009-10 growth story leaves India's economic giants — Punjab, Tamil Nadu and West Bengal—flailing to catch up. The state's per capita income has increased from Rs 11,870 to Rs 15,929.

The state has undergone radical infrastructural change. Just over 60,000 km of roads have been built. By 2013, an additional 5,000 MW will have been installed, making Madhya Pradesh energy self-sufficient. The state has introduced the Janani Suraksha Yojana to lower mother and child mortality and has managed to increase hospital births from 26% in 2004 to 87% today. The infant mortality rate has fallen from 80 per thousand to 70.

In April 2006, Chouhan started the Ladli Laxmi Yojana, which uniquely transforms every infant girl into a lakhpati the day she turns 21. Just weeks ago, Chouhan did a Narendra Modi. He sold brand Madhya Pradesh aggressively to investors and signed MOUs worth Rs 1,06,417 crore in a single day.
— Suchananda Gupta


RAJASTHAN: The Desert Blooms

For two years, the desert state has been identified as one of India's top investment destinations. Rajasthan has worked hard to shed the BIMARU tag. It has been a long journey to get to the point where it could hope for Rs 50,000 crore to Rs 1 lakh crore in investment. In the early 2000s, Rajasthan was routinely described as beset by an unfavourable investment climate.

The state started to register growth in the late 90s. It peaked between 2005 and 2008. In terms of investment, 2008-2009 was one of the best years for Rajasthan. A report by the Assocham Investment Meter says that just four states had positive growth in investment planned by corporate India during the third quarter of 2008-09 over the same period of the previous fiscal. These were: Rajasthan with 245%; Bihar with 100%, Punjab with 41.6% and UP with 26.8%. Rajasthan is fast developing as an energy hub with a special focus on wind and solar sources.

Even so, Rajasthan's economy is still concentrated on agriculture and animal husbandry, as well as sectors such as tourism and hospitality. More than 80% of its people live in rural areas; most are dependent on agriculture. This financial year's Gross State Domestic Product is expected to be in excess of 30%. Per capita income has risen to Rs 25,000 in the last financial year, up from Rs 16,874 in 2004-05.

There has been a marked increase in literacy levels, particularly among women. In 1991, Rajasthan's literacy rate was 38.55% (54.99% male, and 20.44% female). In 2001, this rose to 60.41% (75.70% male and 43.85% female). But before Rajasthan can enter the history books as a success story, it has to free itself of the ball and chain holding it back—domestic politics that is submerged in caste considerations, massive corruption and a high crime rate. This is the big challenge for chief minister Ashok Gehlot.
— Palak Nandi


UTTAR PRADESH: Still Sick

Experts say Uttar Pradesh still makes the cut for a BIMARU state. The state has seen 7% economic growth under chief minister Mayawati's leadership in the past year, but that's still not high enough to pull it out of the BIMARU league. Even though UP has averaged 5% to 6% industrial development, it has been unable to attract much new investment. The bulk of UP's growth is restricted to the power and infrastructure sectors. A K Singh, director of the Giri Institute of Developmental Studies, says this is a "key area of concern".

But there is reason to rejoice on the agricultural production front, with UP registering 4% growth. Singh says this is "healthy" even though there are some "areas of concern — productivity, farmer poverty as well as the gap between potential yield versus actual yield."

If UP is to leave the BIMARU league table behind, it has to do a great deal more on the original yardsticks — health and demographics. It is the worst performer on the following key indices—child mortality, infant mortality, pregnant women mortality, malnutrition and life expectancy. State and Central government-run health programmes have failed to have the desired impact. The 2001 census put UP at 14th on India's Human Development Index. In 2006-07, it slipped to 17th.
— Swati Mathur

MAHARASHTRA: Fall And Fall Of A Giant

For decades, Maharashtra was seen to be India's most progressive and well-administered state. But in the recent past, particularly after the Shiv Sena-BJP combine dislodged the Congress government in 1995, it is thought to have been sliding downwards. As a result, the debt burden, which stood at Rs 32,000 crore in 1999, now exceeds Rs 1.81 lakh crore. The new chief minister, Prithviraj Chavan, has to face a lot of challenges.

Till 1995, Maharashtra had a budget surplus. But it now pays well over Rs 20,000 crore every year as interest on loans. Even so, the state has seen steady increase in its per capita income, which rose from Rs 32,170 in 2005 to Rs 50,000 in 2010. It has also witnessed massive investments in industrial sector and developmental projects. But the positive is patchy because it is almost entirely concentrated in Sharad Pawar-controlled western Maharashtra. This is why backward Vidarbha and Marathwada regions remain shockingly undeveloped.

Vidarbha is now known as India's suicide capital. Maharashtra's industrial sector betrays patchy growth too. Investment is concentrated in the Pune-western Maharashtra belt. The state has underperformed on health and education as well with Vidarbha and northern Maharashtra known to have the most malnourished children in India.
— Prafulla Marpakwar

TAMIL NADU: From Stability To Unrest

Tamil Nadu has long been thought to be progressive on account of its inclusive social and economic policies. Now, it is trying to project itself as the ideal destination for industrial investment. Its assets include abundant skilled manpower, good communication facilities and a suitable political climate. The Centre for Monitoring Indian Economy says planned investment has risen steeply — 3.48 times — in 14 years. In June 2006, the cumulative investment meant for Tamil Nadu was Rs 1.91 lakh crore. In April 2010, it was Rs 6.66 lakh crore.

However, the state has new problems, with labour unions mobilizing workers in units run by multinationals in the vicinity of Chennai. Unions affiliated to the Left parties and DMK have stepped up attempts to gain a foothold in the industrial belt around Chennai and many companies believe the state government must step in if an investor-friendly environment is to be restored.

Industry is also concerned about the state's power-deficit status. Its average demand is 11,200 MW but average availability is just 8,100 MW. Lack of capacity addition in the last decade has meant a bad situation is being temporarily negotiated using a combination of demand management, power cuts and open market purchase.
— K Venkatramnan

WEST BENGAL: Crisis After Crisis

A state that has to borrow to protect its development plan. A state where nothing moves without massive confrontation as happened in Singur and Nandigram. A state that witnesses large-scale migration of skilled and unskilled workers. And more recently, a state where it is not safe to travel by train to Orissa or Jamshedpur across the Maoist-dominated Jangalmahal. Finally, a state where tourists cannot go to its hill stations.

A thin sample of the reaction evoked by West Bengal these days. When he came to power in 2006, chief minister Buddhadeb Bhattacharjee attempted a facelift. He invited a host of big names — the Tatas, Wipro, Infosys, the Salim group — into the state. But the move backfired on account of problems with land acquisition.Today, West Bengal survives on a vast agricultural sector, albeit one that betrays such land fragmentation that it can't generate the surplus that other states do. It has an expanding informal sector, which can ensure no more than subsistence earnings for workers.

Observers say the rot runs deep in the administration and the ruling party's delivery mechanism. So much so that Trinamool Congress chief Mamata Banerjee is confident she will evict the Left in next year's assembly elections. It may be harder to create a resurgent Bengal.
— Saugata Roy

PUNJAB: Debt Horror Story

Last month, the finance minister of Punjab was sacked. His offense — he had openly used that forbidden phrase, "debt trap" and angered chief minister Parkash Singh Badal. But he spoke the truth. Punjab is in debt. Manpreet lost his job as he asked Union finance minister Pranab Mukherjee for a partial waiver on the Rs 70,000 crore owed by the state.

The controversy has brought the tattered state of Punjab's economy into the limelight. Once regarded as one of India's most prosperous states, there has been structural change in Punjab's economy over the years. From 1980-2000, it recorded slow but consistent annual growth of 5.2%. Then, it slowed to about 4.1%. In 2000, Punjab had India's highest per capita income. Now it is at number four and poised to slide to seventh position by 2012.

What's wrong with Punjab? Institutionalized corruption, say experts. More than 40 lakh young people are unemployed, many of them being unemployable too because of a lack of education. A new survey says that as many as 65% of rural youth in Punjab take drugs. At 850 women for every 1000 men, Punjab's gender ratio is one of the lowest in the country. Punjab, as they say, is not a bad state, but it's in a bad state! — Divya A

KARNATAKA: From Model State To Corruption Pit

For two decades, Karnataka was known as one of the better governed, more developed states of the south. Today, it is seen as a state trapped in a vortex of corruption, administrative apathy and misplaced priorities.The alleged corruption and nepotism in relation to land scams involving chief minister B S Yeddyurappa, his sons and cabinet colleagues are seen as just the tip of the iceberg. International non-governmental organization Transparency International ranks Karnataka fourth among India's most corrupt states. In India's IT capital Bangalore, infrastructure is woeful.

But few know that nearly 37% cent of its population, according to the state's most recent economic survey, is below the poverty line. Karnataka's food grain productivity is 1,024 kg per hectare compared to the national average of 1,756 kg. Though its literacy rate —66%— is above the national average of 65, it topped the league table of communal violence last year, with 1,464 cases registered since 2000.
Many say its politics is holding it back, with little sign it will progress beyond caste calculations. — Manu Aiyappa

 

[Yusuf]

US, UK evince interest in Bihar growth story

PATNA: With the Nitish-led NDA government firmly in the saddle in the state, with not even an iota of political instability, world powers have started taking keen interest in Bihar's progress and exploring opportunities for possible investment.

In the past less than 12 hours, highly-placed representatives of the US and the UK called on the chief minister and praised him for the positive developments in the state.

US undersecretary of state for political affairs Wendy Sherman met Kumar here on Tuesday and said, "Bihar has emerged as an inspiring model of positive change and good governance." On Monday evening, in New Delhi, British Chancellor of the Exchequer, George Osborne, called on the chief minister at Bihar Niwas and expressed deep interest in the growth story of Bihar. He also explored the investment opportunities available to British companies in the state.

The one-day visit of Sherman to the state capital is seen as the US' appreciation of Bihar's growth and success story, about which it received information through various sources. The extensive coverage of the changing face of Bihar by the world's top magazines also drew the attention of world powers towards Bihar, which they once saw as a caste-riddled, lawless and poor Indian state.

Sherman, on her maiden India visit, called on Bihar governor Devanand Konwar and also attended a meeting with some entrepreneurs, analysts, community leaders, NGO activists and state officials to discuss trends in development and governance throughout the state as well as the challenges they face in accomplishing their goals.

During her meeting with Kumar and earlier in an interactive session, Sherman, who was accompanied by US embassy Charge d'affairs A Peter Burleigh, said, "Bihar is on the move. Its entrepreneurs, innovators and NGOs embody the spirit of Bihar. Bihari society in general and youth in particular, appear eager to create new opportunities for economic growth and development."

"International players also want to play and fill gaps in Bihar," said social scientist Shaibal Gupta, who also attended the interactive meeting with Sherman. In the long term, these players see the extent of provincial political stability and growth of market, he added.

In Delhi, on Monday, Chancellor Osborne, during his meeting with Kumar, wanted to explore investment opportunities available to British companies for participation in the growth story of Bihar. The CM informed him that huge investment opportunities were available in power sector, provision of professional education like engineering, management, law and skill development as well as agro-based industries.

The CM told Osborne that though there has been good growth in the state despite handicaps, there is a huge development deficit. "Bihar has benefited from the participation of Department for International Development (DFID) in the development process and it requires continued engagement of all development partners," Kumar said.

The CM explained to both the foreign dignitaries about the turnaround of Bihar, saying he emphasized good governance including enforcement of rule of law, transparency in functioning of the government, investment in infrastructure, and strengthening delivery of public services like health and education.

http://m.timesofindia.com/PDATOI/articleshow/12526147.cms

 

[nrj]

Not surprising. Nitish Kumar was one of the first Indian politicians to appoint Harvard grads in reviving his state policy with regards to economic agenda.

 

[Blackwater]

Growth story????

Bihar is still one of the most poorest and deprived state in India

 

[nrj]

Growth story????

Bihar is still one of the most poorest and deprived state in India

You see filth, I see potential ...

 

[Yusuf]

I have to plan a visit there

 

[Iamanidiot]

I have to plan a visit there

Mad fellow

 

[nrj]

Mad fellow

Come on, don't be unfair. Biharis are migrating to every part of India. We can atleast visit their state