Bihar Leads The Way For Economic Growth, Punjab Struggles At Mere 5%: Here’s Why

Posted on June 7, 2012 in Business and Economy

By Manisha Chachra:

Ranked amongst the Bimaru states, regarded as the hub of potential resources but with no hope of development- Bihar, recently achieved an economic growth of 13.1%, which was the highest among the all the states. No wonder, the figures did astound many of us. As a matter of fact, one couldn’t believe that a state which sometime back was a laughing stock for many of us, owing to its former Chief Ministers, has created a history. The economic figures very well elucidate the lessening gaps between incomes and are a sign of egalitarian society.

The reasons for such enormous developments lay in the effective governance of Bihar under Nitish Kumar.

The growth rate of Bihar becomes more astonishing if one comprehends that Bihar has toppled even the national capital — Delhi, which stands at the economic growth of 11%. The prime reasons for this growth is the better law and order situation in Bihar compared to what it used to be. The pre-stagnant economy has now become an area of investment. The state is more concerned about the internal problems than merely focusing on corporate sector. In this way, the state has set a good precedent for other states as well.

Privatization and liberalization – the key tenets of liberalism have obtained a new shape in Bihar. The state isn’t merely concentrating on the hype of gross domestic product. It has rather envisaged a greater role in solving the problems of the ‘aam aadmi’.

The state famous for its Liquor ban campaign and innumerable schemes- Gujarat under Narendra Modi has obtained a growth of 9.1%. Known for its tourism industry, Gujarat has failed to gain the status among the top five Indian states.

The model of green revolution– Punjab has achieved sheer 5%. The basis again lies in more concentration of central government on the schemes of liberalization where farmers are the first to get victimized due to withdrawal of subsidies. The other reasons can be the prominence of caste in political mobilization, where leaders are more engrossed in caste and class mobilization than development initiation.

The story of the most populous state —Uttar Pradesh is very similar to the grain bowl of India.

The growth rate in Uttar Pradesh is lower than 6% and the obvious grounds are that of prevalent caste, class and religion mobilization. The Yadav- Muslim formula in Uttar Pradesh and the widespread Dalit mobilization has created a nexus of vote bank politics, where a handful of people are gaining prominence over others. This further leads to a gulf in society between winners and losers.

The history of Bihar is a model for other states to follow. Nevertheless, only ‘GDP’ should not be a point of attraction, the states must focus on effective governance which will indefinitely lead to economic acceleration. The policy making shouldn’t merely concern itself with investments and foreign capital where the elite class defines the rise in income standards. The aim really should be on creating equality, where liberty of every individual is preserved with respect to the other. Thus, creating a compatibility between liberty and equality.