Madhya Pradesh topples Bihar, new No. 1 in economic growth

[MST]

NEW DELHI: BJP-ledMadhya Pradesh dislodges champion Bihar from its numerouno position in terms of highest growth of gross state domestic product. The provisional data released by the Central Statistical Organisation for 2012-13 for states shows Bihar's growth has slowed, slipping from an impressive 13.26% last year to a single digit 9.48% this year as against 10% clocked by MP.

Other backward states have maintained their upward trajectory, with Jharkhand and Odisha growing at 9.12% and 9.14%, respectively, this year.

However, a comprehensive comparison have to wait until growth data from Kerala, Maharashtra, Gujarat, Rajasthan and Delhi, all of which have maintained robust growth in the past years, come in. Provisional GDP figures for these states for 2012-13 are still awaited.

In Bihar's case, the phenomenal economic expansion it had clocked in recent years shows signs of deceleration. It added Rs 13,679 crore to its GDP, taking its economy from Rs 144,278 crore in 2011-12 to Rs 157,957 crore in the current fiscal.

In comparison, MP has fared better, adding more than Rs 20,000 crore to its economy during the last one year, and expanding its GDP from Rs 2,01,290 crore last year to Rs 2,21,463 crore this year.

Growth in per capita income has been more disappointing for Bihar. It has added merely Rs 1,090 in 2012-13 to its per capita income, lowest among other states. In comparison, Jharkhand and MP have seen its per capita income rise by more than Rs 2,000. Odisha has also managed to add Rs 1,450 in its per capita income in the last one year - up from Rs 24,134 last year to Rs 25,584 this year.

In contrast, Bihar's per capita stands at Rs 14,268 in the current year, just marginally up from last year's Rs 13,178.

In the past five years, Bihar has been on a high growth path, consistently recording double-digit rate: 12% in 2008-09; 11% (2010-11) and 13% (2011-12). The only exception was 2009-10 when the state's GDP grew by a modest 7.09%.

MP has been another consistent performer. It grew by 12.47% in 2008-09 .The following year it defied downturn to post a respectable 9.88%. Though it came down to 7.13% the next year, it bounced back to double digit by managing a rate of 11.81% in 2011-12.

TOI
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Well nothing drastic. Anyways the competition for the top slot is always between the BJP ruled states. For Congis looking for congi ruled state you will need to start at the bottom of the list

 

[peep]

small base bigger growth .. I dont see the gujrat magic here

 

[danger007]

Andhra sucks.... no wonder... these fellas fighting to save their ministry...

 

[Android]

NDA rocks!!!

 

[Kaniska]

Come on guys let us celebrate the success of NDA as a whole rather than comparaing MP vs Gujurat vs Bihar....This is what the Congress paid media want so that NDA states fight for supremacy with each other and as a whole doom themselves....

This is an organized statergy for Congi media to fight among NDA ruled states...in media..which we should avoid...

 

[Leonidas]

Come on guys let us celebrate the success of NDA as a whole rather than comparaing MP vs Gujurat vs Bihar....This is what the Congress paid media want so that NDA states fight for supremacy with each other and as a whole doom themselves....

This is an organized statergy for Congi media to fight among NDA ruled states...in media..which we should avoid...

That's Competition...
Always better for the customers.

These so called 'BIMARU' states are long overdue to witness some real economic growth. Largest states in some or the other way with enormous potential but all wasted by incompetent & corrupt leaders.

 

[Mritunjaya]

Gujarat contribution to Indian economy is 8.8% ....but it gets only 4.3% of central capital outlay as its share.

Bihar contribution to Indian economy is 2.6% ....but it gets 5.5% of central capital outlay.

In spite of this Gujarat grows at 10% and Bihar grows at 11% !

If we compare efficiency of utilizing capital to generate growth we will see that Narendra Modi is 300% more efficient than Nitish Kumar. (to put it in simple terms, Narendra Modi is 3 times the man Nitish kumar is)

..yet for 'secular' Indians ....Nitish kumar is the better man ............maybe justice katju did have a point about 90% of Indians being stupid

PS: For people who still dont get it, it means Gujarat is fueling Bihar growth by pumping in its share of money to help Bihar grow.

 

[karan21]

Gujarat contribution to Indian economy is 8.8% ....but it gets only 4.3% of central capital outlay as its share.

Bihar contribution to Indian economy is 2.6% ....but it gets 5.5% of central capital outlay.

In spite of this Gujarat grows at 10% and Bihar grows at 11% !

If we compare efficiency of utilizing capital to generate growth we will see that Narendra Modi is 300% more efficient than Nitish Kumar. (to put it in simple terms, Narendra Modi is 3 times the man Nitish kumar is)

..yet for 'secular' Indians ....Nitish kumar is the better man ............maybe justice katju did have a point about 90% of Indians being stupid

PS: For people who still dont get it, it means Gujarat is fueling Bihar growth by pumping in its share of money to help Bihar grow.

This is utter bs. I have never seen a more stupid economic analysis. You can't compare both states with just the money they get from the central govt.

Gujarat is a coastal state and is home to the major ports of India and the other hand Bihar is a land locked state.

Gujarat get a massive foreign investment due to industrial and infra development while Bihar is deprived of both due to years of stupid governanace.

These 2 make much more differance than the contribution from the central outlay. Without any foreign investment and being land locked Bihar is doing an amazing job I must say.

 

[Mritunjaya]

This is utter bs. I have never seen a more stupid economic analysis. You can't compare both states with just the money they get from the central govt.

Gujarat is a coastal state and is home to the major ports of India and the other hand Bihar is a land locked state.

Gujarat get a massive foreign investment due to industrial and infra development while Bihar is deprived of both due to years of stupid governanace.

These 2 make much more differance than the contribution from the central outlay. Without any foreign investment and being land locked Bihar is doing an amazing job I must say.

You need money to build roads, schools, hospitals, canals, generate electricity, sewage, pay salary of all govt. employees. This is called 'industrial & infra development' and money for this comes from central govt. via capital outlay.

You need MONEY FOR EVERYTHING........

If the state is safe and secure, foreign investment will come in. Nitish had 8 years to make his state safe......why is it that foreign investment does not still come into Bihar ?

Gujarat is coastal state but more than 50% of Gujarat is Arid or semi arid. It has ZERO '0' natural deep sea port, and it fisherman gets arrested as large part of water body around gujarat is pakistan water unlike other coastal states in India. Its too HOT to have beach tourism ....

Bihar has one of THE richest mineral deposits. It has one of the MOST FERTILE land in India. It has the mighty Ganga to provide easy transport via water way. Nature has given it everything.

By all normal estimates Bihar should have been far ahead of Gujarat ...............non as blind as those who choose not to see.

PS: its clear you dont understand much about economics ...so spare us your 'expert comments'.

 

[Mritunjaya]

On a seperate note , some idiots think its possible to grow without having much money

But Nitish kumar understands economics better than his foolish supporters.....hence demand for 'special status' for Bihar a.k.a MORE MONEY ........which naturally means LESS MONEY for performing states.

 

[Sashan]

On a seperate note , some idiots think its possible to grow without having much money

But Nitish kumar understands economics better than his foolish supporters.....hence demand for 'special status' for Bihar a.k.a MORE MONEY ........which naturally means LESS MONEY for performing states.

Reward the mismanagement

 

[MST]

Reward the mismanagement

It is very unfair to call it mismanagement specially when Bihar has grown remarkably well in the last 10 years. Though I do not support special status for any states other than those that already have them (and it should be removed totally in time), Bihar should be given more money through other means as incentive to grow further. Thats the only way by which the population migration will stop from Bihar to other parts of country.

 

[Contrarian]

You need money to build roads, schools, hospitals, canals, generate electricity, sewage, pay salary of all govt. employees. This is called 'industrial & infra development' and money for this comes from central govt. via capital outlay.

You need MONEY FOR EVERYTHING........

If the state is safe and secure, foreign investment will come in. Nitish had 8 years to make his state safe......why is it that foreign investment does not still come into Bihar ?

Gujarat is coastal state but more than 50% of Gujarat is Arid or semi arid. It has ZERO '0' natural deep sea port, and it fisherman gets arrested as large part of water body around gujarat is pakistan water unlike other coastal states in India. Its too HOT to have beach tourism ....

Bihar has one of THE richest mineral deposits. It has one of the MOST FERTILE land in India. It has the mighty Ganga to provide easy transport via water way. Nature has given it everything.

By all normal estimates Bihar should have been far ahead of Gujarat ...............non as blind as those who choose not to see.

PS: its clear you dont understand much about economics ...so spare us your 'expert comments'.

Mritunjay i have seen 10th standard students do better economic analysis compared to you.

Bihar is developing its infrastructure from scratch. I hope you know about the virtuous cycle of investment and growth. As the time the infrastructure reaches a critical self sustainable point, investment from FDI, Indian domestic will automatically start flowing in.

Gujarat already has it, yet Bihar due to decades of neglect does not.
That apart Gujarat has ports(plural), which initself is the biggest advantage.
Most of the resources that Bihar had - natural resources, went to Jharkhand. Today it is Jharkhand which would be the richest endowed state with respect to natural resources and not Bihar.

Bihar has had to graple with basic lawlessness and zero accountability bred by decades of perversion of law. This is not something you shake off easily.

 

[Mritunjaya]

Mritunjay i have seen 10th standard students do better economic analysis compared to you.

Bihar is developing its infrastructure from scratch. I hope you know about the virtuous cycle of investment and growth. As the time the infrastructure reaches a critical self sustainable point, investment from FDI, Indian domestic will automatically start flowing in.

Gujarat already has it, yet Bihar due to decades of neglect does not.
That apart Gujarat has ports(plural), which initself is the biggest advantage.
Most of the resources that Bihar had - natural resources, went to Jharkhand. Today it is Jharkhand which would be the richest endowed state with respect to natural resources and not Bihar.

Bihar has had to graple with basic lawlessness and zero accountability bred by decades of perversion of law. This is not something you shake off easily.

I am sure you would understand 10th standard students economic analysis better. No arguments there.

Agriculture contributes to 81% of Bihar workforce and generating nearly 42% of its GDP. It is also the single largest private sector occupation in Bihar. Inspite of that, total agri. land in Bihar is shrinking (its growing in Gujarat in-spite of being Arid).

Bihars growth comes from a revolution in Agriculture that is lead by a social revolution with minimal contribution from the govt. Its easy to show growth in states with poof infra...all you need to do is build roads & other basic infra and it will result in a high growth rate. Technically you can dig holes and fill it up for 1 year and even this unproductive act will show high GDP growth.

If you look at infrastructure built in Bihar and Gujarat with the amount of fund they have both received you will see how much productive Gujarat expenditure is. But like all arm chair experts you are keen to offer opnions without any facts to back you

For the dummies who pretend to be 'experts' here is some free classes....Developing from scratch is the easiest way to show growth as nothing exist and building anything results in GDP growth...especially if you are allowed to spend 2x of what you earn

Gujarat has some of the most inefficient ports in the world due to it being shallow water ports. On the west coast only Mumbai, Cochin and Trivandrum have the potential to be Large efficient ports. Don't give me ignorant nonsense disguised as knowledge.

Bihar could even allow FDI in retail if it wanted ..... That is easy money waiting to flow in ...why does Nitish not take it up ?

Even today Bihar has 3x the natural resources than Gujarat.

Kindly explain "infrastructure reaches a critical self sustainable point" ....best of my knowledge there is no magic infra. self sustainabe point (self sustainable for what ? )

 

[Contrarian]

I am sure you would understand 10th standard students economic analysis better. No arguments there.

I dont doubt it either considering that you fail to follow even the basics of economics.

Agriculture contributes to 81% of Bihar workforce and generating nearly 42% of its GDP. It is also the single largest private sector occupation in Bihar. Inspite of that, total agri. land in Bihar is shrinking (its growing in Gujarat in-spite of being Arid).

Do you know the population growth rate of Bihar? Do you know the population density of Bihar and that of Gujarat?
Would it be wondersome that Bihar with its ridiculously high population growth rate would be eating up farm lands? Do you know the average holding of a farmer in Bihar and have you compared it with Gujarat?

The questions you ask is that of resources. If i start comparing Delhi with Gujarat, Gujarat would fall to shame in most parameters like health, education, roads / sq km, economic productivity per person and what not.

But would that be a fair comparison? No, it would not.
It is exactly the same with Bihar and Gujarat.

Bihars growth comes from a revolution in Agriculture that is lead by a social revolution with minimal contribution from the govt. Its easy to show growth in states with poof infra...all you need to do is build roads & other basic infra and it will result in a high growth rate. Technically you can dig holes and fill it up for 1 year and even this unproductive act will show high GDP growth.

Precisely. Bihar is an agricultural economy with a very high population and land dependency. And very low land holding per farmer and very high disguised unemployment. And with this, Nitish is trying to bring in industries which need space unlike Gujarat which has vast arid lands where land is available.

If you look at infrastructure built in Bihar and Gujarat with the amount of fund they have both received you will see how much productive Gujarat expenditure is. But like all arm chair experts you are keen to offer opnions without any facts to back you

The ENTIRE point is that Bihar has needed to spend so much more on other sectors before being able to spend on infrastructure. Dont you have the basic knowledge on economics on which stage of growth Bihar is on and which part of the curve Gujarat is on? And then you are comparing? Shallow knowledge is all I can to you.

For the dummies who pretend to be 'experts' here is some free classes....Developing from scratch is the easiest way to show growth as nothing exist and building anything results in GDP growth...especially if you are allowed to spend 2x of what you earn

Unless you are looking to explain something miraculous what you are referring to is base effect, and no one has denied that. By the same token Gujarat is a joke compared to Maharashtra in having a larger base yet Maharashtra has barely been a couple of percentage points behind Gujarat.

Gujarat has some of the most inefficient ports in the world due to it being shallow water ports. On the west coast only Mumbai, Cochin and Trivandrum have the potential to be Large efficient ports. Don't give me ignorant nonsense disguised as knowledge.

Does that take away from the fact that there are ports? That the largest refinery built in India is in Gujarat is is primarily meant to cater to exports?
The fact that they are shallow ports does not take away the fact that there ARE ports which are being used for export. And add to that Gujarat is next to Mumbai, goods produced in Gujarat are often shipped from Bombay, where Bihar is a land locked State surrounded by other backward States.
And meanwhile most of the natural resources that Bihar had have gone to Jharkhand.

Bihar could even allow FDI in retail if it wanted ..... That is easy money waiting to flow in ...why does Nitish not take it up ?

That depende on your viewpoint. There are many those who argue that small scale suppliers get wiped out by allowing the likes of Walmart and Co. There is a reason why Union Govt has left it to States to decide what they want to do with it.

Even today Bihar has 3x the natural resources than Gujarat.

Highly debatable. If the choice was given, i am sure Bihar Govt would prefer ports and access to developed States like Maharashtra and proximity to Bombay in exchange for those resources.

Kindly explain "infrastructure reaches a critical self sustainable point" ....best of my knowledge there is no magic infra. self sustainabe point (self sustainable for what ? )

It implies that after a certain critical level of infrastructure in a State, investments start flowing in fast and thick which further gives more money to be able to create more infrastructure. Many infrastructure projects which were unfeasible or uneconomical earlier without the trunk infrastructure, become viable and economically sensible after that.

And all of this leads to a cycle of investment and infrastructure that would only break if the politicians were to become twice more incompetent than they already are.