Bihar is country's fastest growing state at 13.1%

June 2, 2012

Economic_growth
New Delhi, June 2: 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 Punjab—until 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.

Gujarat—a favoured destination for investors, both domestic and foreign—is 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.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
April 7,2024

mamata.jpg

Purulia: West Bengal Chief Minister Mamata Banerjee on Sunday alleged the central investigating agencies were asking TMC leaders to either join the BJP or face action.

Addressing an election rally in Purulia district, she alleged agencies such as the ED, CBI, NIA and the I-T Department were working as 'arms' of the BJP.

"Agencies such as the NIA, ED and CBI are being used to harass TMC leaders. They are carrying out raids without prior information, and barging into houses. What the women would do if someone entered their house when everyone was asleep in the dead of night?" she asked.

Banerjee was referring to Saturday's incident in Bhupatinagar where a team of the NIA was attacked by a mob when it went to arrest two accused in a blast case.

"The agencies are asking our leaders and activists to either join the BJP or face action," she alleged.

Asking people not to fall for any provocation, Banerjee alleged the BJP was fanning communal passions during Ram Navami.

The chief minister also accused the BJP-led government at the Centre of depriving West Bengal of funds for MGNREGA and PM-Awas schemes.

She said the state government will provide Rs 1.2 lakh for building houses for the poor.

"The EC will not give permission to us to give the money now. After the elections, we will construct the houses of the poor," she said.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
April 5,2024

SCmadrasa.jpg

New Delhi, Apr 5: In a big relief to about 17 lakh madrassa students in Uttar Pradesh, the Supreme Court today paused an Allahabad High Court order scrapping the UP Board of Madarsa Education Act, 2004. This allows about 16,000 madrasas in the state to continue functioning under the 2004 law.

A bench led by Chief Justice of India DY Chandrachud said that the high court decision was prima facie not correct and issued notices to the UP and central governments, and the Madrassa board.

The high court had last month declared the 2004 law "unconstitutional" for allegedly violating the principle of secularism and directed the government to accommodate the madrasa students in the formal education system.

The Supreme Court put it on hold on Friday, saying that the aims and objectives of the Madrassa Board are regulatory in nature and that the establishment of the board itself will not affect secularism.

"The high court, in striking down the provisions of the Act, directed the relocation of the students. This would affect the 17 lakh students. We are of the view that the direction of relocation of students to other schools was not warranted," said the Chief Justice.

If the purpose of the PIL is to ensure that madrassas provide secular education in core subjects such as mathematics, science, history, and languages, the solution would not be to repeal the provisions of the Madarsa Act 2004, he added.

The central and state governments backed the high court judgment in the Supreme Court, with the centre saying suspected entanglement of religion and other relevant issues must be debated.

Senior advocate Abhishek Manu Singhvi, representing the madrassas, said religious education cannot mean religious instruction and that the high court order will leave 10,000 madrassa teachers and 17 lakh students in lurch. But the state government said it has made arrangements for the teachers and students.

Mr Singhvi argued it is wrong to say madrassa education doesn't have quality, isn't universal in nature, and is not broad-based. Singling out the madrassas for a ban is discriminatory and the Supreme Court had said so in the Aruna Roy vs Union of India, 2002 verdict, he pointed out.

The Chief Justice said that the issues that have been raised merit closer reflection and posted the matter for further hearing in the second week of July.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
April 9,2024

arvind.jpg

The Delhi High Court rejected Chief Minister Arvind Kejriwal's plea challenging his arrest by the Enforcement Directorate (ED) and remand order passed by the trial court in connection with the excise policy case. The court delivered the verdict in the excise policy case on Tuesday.

In its order, the high court said the petition challenged the arrest and said it was in violation of Section 19 of the Prevention of Money Laundering Act, 2002 (PMLA). "The court clarifies that the plea is not for bail but for declaring the arrest illegal," Bar and Bench reported while citing the court order.

The high court said the material collected by the ED “reveals Arvind Kejriwal conspired and was actively involved in use and concealment of proceeds of crime." 

“The ED case also reveals that he was involved in his personal capacity as well as convenor of AAP," the order said.

Kejriwal had earlier questioned the timing of the arrest that came just ahead of the Lok Sabha Elections 2024.  Reacting to this, the court said, “Petitioner has been arrested in money laundering case and court has to examine his arrest and remand as per law irrespective of timing of elections."

Reacting to Kejriwal's argument casting doubt on the statements of “approvers" in the excise policy case, the court said the statements of “Raghav Magunta and Sarath Reddy are approver statements which were recorded under the PMLA as well as Section 164 CrPC".

“To cast doubt on the manner of recording statement of approver would amount to casting aspersions on the court and judge," the order added. “The law of approver is over 100 years old and not one year old. It cannot be suggested that it was enacted to implicate the present petitioner (Kejriwal)," it added.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.