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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 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.

Bihar is country's fastest growing state at 13.1% - The Times of India
 
:cheers: for Nitish Kumar, he is cleaning the mess created by lalu quite well.

Nitish can be an idol for the sub-Saharan countries where no or little development takes place because of pathetic law & order condition. Just wait for the day when Howard calls him to give a lecture on development!
 
Let Modi be not selected, whom i have a soft corner for, Nitish should be the future PM....

I wanna see India reach new heights, dont really care who takes it there!

Nitish deserves credit no doubt, but let us not forget that he is starting from a very low base, after decades of Congress-Lalu misrule and theft.

A large economy like Gujarat growing at 9% is a more impressive achievement.
 
HSBC’s purchasing managers' index slows to 54.8% in May
NEW DELHI, JUNE 1:India’s manufacturing sector slipped marginally in May as the marked growth in output was impacted by slowing domestic order book, an HSBC survey said.

The HSBC India Manufacturing Purchasing Managers’ Index (PMI) — a measure of factory production — slipped slightly to 54.8 in May, from 54.9 in April.

A reading above 50 shows that the sector is growing. Below 50 indicates that the segment is contracting.

“Activity in the manufacturing sector kept up the pace in May with output, quantity of purchases and employment expanding at a faster pace. New orders decelerated slightly led by domestic orders,” said Leif Eskesen, Chief Economist for India & ASEAN at HSBC.

India’s economic growth rate slowed to a 9-year low in March quarter at 5.3 per cent, and 6.5 per cent for the entire 2011-12 fiscal.

The decline in growth was witnessed in almost all segments of the economy, including agriculture, manufacturing, mining and construction.

At 6.5 per cent, the GDP growth in 2011-12 was lower than 6.7 per cent seen in 2008—09 amid the global financial crisis.

Mr Eskesen cautioned that going ahead a slight moderation in output growth is likely.

“Input and output prices rose at a slower pace than in April, but inflation is still high by historical standards and capacity remains tight with backlogs of work rising and supplier delivery times lengthening,” Mr Eskesen said.

New orders at Indian manufacturers increased sharply again in May but the rate of expansion was slightly weaker than in April as power cuts, had hampered operations, preventing a faster rise in output.

“Power shortages, as well as insufficient employee numbers, led to a marked accumulation of backlogs of work that was only fractionally weaker than March’s series record,” the survey said.

Meanwhile, firms raised charges at one of the fastest rates in the series history, as Indian manufacturers passed on higher input costs to their clients in May.

According to HSBC output prices rose for the thirty-third month in a row, and at one of the fastest rates in the history of the series.

“In light of these numbers, the RBI does not have a strong case for further rate cuts, which if implemented could add to lingering inflation risks,” Mr Eskesen said.

The Reserve Bank is scheduled to announce mid-quarter credit policy on June 18.

Centre pushes for 157 power projects in N-E
power_1100945f.jpg

Even as anti-mega dam groups and organisations in Assam have intensified their agitation, demanding halt to the ongoing 2,000-MW Lower Subonsiri hydroelectric project of NHPC Limited at Gerukamukh on the Assam-Arunachal Pradesh border, the Union government is pushing for 157 hydro power schemes with an installed capacity of 57,672 MW in the northeast, including Sikkim, for meeting the shortfall in the country's power generation.

Of these, 114 schemes, with an aggregate installed capacity of 35,257.5 MW, have been allotted to the private sector. The central public sector undertakings have got 13 schemes (8,977 MW).

The Centre has identified the ecologically fragile Arunachal Pradesh as the powerhouse of the country. According to an estimate of the Central Electricity Authority (CEA) and private power developers, this State bordering China has the potential to generate over 57,000 MW of hydro power.

Of the 133 projects already allotted to the State, 125, with an installed capacity of 32,883.40 MW, have been given to private developers. The central public sector undertakings have got eight projects (8,735 MW).

Of the total 133 projects, 36 are mega ones, with each having an installed capacity 350 MW and above. The rest (25 MW and above) involve construction of large dams. So far, only four projects have got the final clearance and are in various stages of construction.

The Ministry of Environment and Forests (MoEF) has granted pre-construction (scoping) clearances to over 50 projects under the EIA notification 2006. Final environmental clearance has been given to 13 projects.

Revenue collection

Arunachal will get 12 per cent free power from each project. The State government collected revenue in terms of processing fee and upfront premium to the tune of Rs. 1320 crore (as on September 30, 2010) from the allottee owner-developers.

“Once the companies pay the upfront premium and sign the MoU for a particular project, they are not concerned about public hearing and are under the impression that even if there is 100 per cent opposition in the public hearing they would still get all necessary clearance for construction of the project. The State government should let the people know as to what it has done with upfront money so collected,” Vijay Taram of the Forum for Siang Dialogue told The Hindu. His organisation has been opposing the construction of dams on the Siang river.

Student and youth organisations of the State have been alleging that public hearings were conducted without proper information to people and in the presence of the police and paramilitary forces.

The ongoing and the allotted hydropower projects in Arunachal have triggered anti-mega dam movements as the State falls in Seismic Zone V. The agitating groups have been raising concern, also over a possible adverse impact on the ecology and livelihood in downstream areas, primarily in Dhemaji and Lakhimpur districts and the Majuli river island in Assam.

The All Assam Students' Union, RTI activist and peasant leader Akhil Gogoi-led Krishak Mukti Sangram Samiti, the Asom Jatiyatabadi Yuba Chatra Parishad and their allies have been demanding a halt to the construction of the Lower Subonsiri project.

They have alleged that construction was taken up without conducting a comprehensive scientific study on downstream impact of the dam in the form of flood, erosion, environment and bio-diversity, livelihood.

An expert group constituted to study the downstream impact of the project came out with a recommendation against construction of a mega dam at the present site. From the geological, tectonic and seismological points of view, it suggested in its report not to consider the Himalayan foothills, south of the Main Boundary Thrust (MBT), for any mega hydro project.

The group also recommended redesigning the project by sufficiently reducing the dam height and production capacity. It alleged that various seismic parameters considered by NHPC Limited for designing the dam were not correct and the dam structure be redesigned to ensure safety and stability.

However, NHPC Limited authorities rejected the observations and claimed that the dam structure is safe and stable.

“Set up technical team”

Faced with stiff opposition that which intensified after the expert group's report, Assam Chief Minister Tarun Gogoi impressed upon Prime Minister Manmohan Singh that the Centre or the NHPC Limited set up a “Technical Team” consisting of internationally acclaimed seismologists, experts on river dams to examine the technical parameters for the safety and stability of the dam.

However, the Gogoi government is opposed to the demand for halting the construction work and has adopted a tough stand against agitation programmes aimed at blocking transportation of construction material to the project site.

It constituted a Group of Ministers (GoM) to hold consultations with the agitating groups and the expert committee. The GoM submitted a report to the Chief Minister and the organisations are demanding that the report be made public.
 
Nitish deserves credit no doubt, but let us not forget that he is starting from a very low base, after decades of Congress-Lalu misrule and theft.

A large economy like Gujarat growing at 9% is a more impressive achievement.
As I said Modi is my favorite but Nitish is a capable administrator. Nitish is more acceptable to the Muslim community too, so realistically I will be happy ifModi becomes PM but I am ok with Nitish if he can prove himself!
 

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Mahindra and Mahindra mulls Rs 4,000 crore investment in Tamil Nadu
CHENNAI: Automobile major Mahindra and Mahindra (M&M) plans to build a vehicle plant at an outlay of Rs.4,000 crore in Tamil Nadu, a top company official said.

Anand Mahindra, vice chairman and managing director, along with other officials, met Chief Minister J.Jayalalithaa on this Friday.

Speaking to reporters here after the meeting, Mahindra said: "We are on an exploratory visit. The meeting is to discuss an exploration for a new investment for an automotive plant."

He added the company is looking at other states for investment as well.

According to him the proposed investment will probably be the single largest investment in the automotive sector.

M&M President (Automotive Business) Pawan Goenka said the meeting with the chief minister was the first "and we are looking for land and the incentive package that the state can offer".

He said the investment for the proposed plant will be around Rs.4,000 crore.
 
Trade between India and Ontario up 13%

Trade between India and Ontario, Canada's richest and most multi-cultural province, grew by 13% last year, Ontario's Minister of Economic Development Brad Duguid has said.

"The two-way trade between Ontario and India was $1.81 billion in 2011, showing a growth of 13% in one year," he said, addressing visiting senior Civil Service officials from India and Sri Lanka at a function organised by the Indo-Canada Chamber of Commerce.

Over 112 senior IAS officers were here on a study tour at the Institute of Public Administration of Canada. It was the second such programme organised by the institute to strengthen institutional linkages between India and Canada.

Duguid said, "In the 21st century, Ontario is a trading jurisdiction whose long-term prosperity depends on its strong relations with its trading partners. Trade between India and Ontario continues to grow and is becoming increasingly important to both our countries."

The government would lead three sector-specific missions to India later this year with focus on infrastructure, clean technology, and telecommunications.

Ontario Premier Dalton McGuinty has led two missions to India. These missions have enabled them to make political linkages, attract investments and promote export, he said.

With $6.6 billion invested in Canada, Indian businesses have established a huge presence here in a variety of sectors, he said.

"In Ontario, we have already benefited from investments by Indian corporations, including the Aditya Birla Group, Essar Steel, the Tata Group, among others. By being more open to trade opportunities; we increase the opportunities for Ontarians and Ontario businesses," the minister added.

Commending efforts made by the ICCC in strengthening bilateral trade relations between the two countries, Consul General of India Preeti Saran said the last few years have witnessed a series of unprecedented high level visits between two countries, including two trade missions to India by Ontario Premier Dalton McGuinty.

She said last year was a special year for India-Canada relations, as both countries celebrated the 'Year of India in Canada' that was not just about showcasing India's vibrant and rich culture, but also a celebration of India-Canada relationship.

ICCC President Satish Thakkar said ICCC was committed to strengthening bilateral economic and cultural ties.

Referring to free trade agreement, he said the agreement was very important for Indian companies who want to expand into Canada. Its successful conclusion would be a big step in bringing the two countries closer together economically.
Trade between India and Ontario up 13%
 
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 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.

Bihar is country's fastest growing state at 13.1% - The Economic Times


It used to be said that u cant change system in india, infact the system will change u. Nitish kumar proves it wrong. :cheers: to him. this state is moving towards industrilisation so quick that soon in a decade we might have to move to bihar.
 
yes I saw this news in today morning in news paper....poor state doing well...good for India
 
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