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Resurgent Bihar Resurgent Bihar June 2012 PHD RESEARCH BUREAU PHD CHAMBER OF COMMERCE AND INDUSTRY PHD House, 4/2 Siri Institutional Area, August Kranti Marg, New Delhi 110016 Phone: 91-11-26863801-04, 49545454, Fax: 91-11-26855450, 26863135 E-mail: [email protected] Website: www.phdcci.in Resurgent Bihar DISCLAIMER Resurgent Bihar is prepared by PHD Chamber of Commerce and Industry to study the economy of Bihar. This report may not be reproduced, wholly or partly in any material form, or modified, without prior approval from PHD Chamber of Commerce and Industry. It may please be noted that this report is for guidance and information purposes only. Though Foreword due care has been taken to ensure the accuracy of the information to the best of the PHD Chamber's knowledge and belief, it is strongly recommended that the readers should seek Bihar is a treasure house of opportunities with immense potential arising out of specific professional advice before making any decisions. the rich mineral reserves and a large base of immensely talented rural human Sandip Somany resource. The state provides for a perfect mix of the traditional with the modern, Please note that the PHD Chamber of Commerce and Industry does not take any responsibility for President making it an ideal platform for pilgrimage as well as rural tourism. outcome of decisions taken as a result of relying on the content of this report. PHD Chamber of Commerce and Industry shall in no way, be liable for any direct or indirect damages that may arise due to any act or omission on the part of the Reader or User due to any reliance placed or Historically known as a low income economy with weak infrastructure and a guidance taken from any portion of this publication. victim of vagaries of nature, the state has come a long way by posting more than 11% economic growth over the recent years. Although, there remains a lot to be done in the sphere of human development and social upliftment of the dwellers, the state is well equipped and better poised to generate sustainable livelihood and demonstrate higher growth prospects in the coming times. Agriculture is one of the most important areas of the economy of Bihar and the state boasts of huge potential in terms of agri-business and agro- based industries. Although, this area has room for further development, the state government is highly focused on the exports of fruits and processed fruit products. The key industries of the state are mineral based industries, leather, textile and food-processing. However, the relatively under explored areas of further growth are IT/ ITEs, infrastructure and tourism, which can be improved further with policy stimulus by the government. Copyright 2012 With lowest levels of per-capita income and literacy rates and high PHD Chamber of Commerce and Industry unemployment rates, human development is a major challenge to the economy of Bihar. There is a tearing need to improve the quality of life of the people by ISBN 978-81-924590-0-4 enriching their social, economic and cultural well-being. ALL RIGHTS RESERVED. No part of this publication including the cover, shall be reproduced, stored in a retrieval system, The economy has undergone several changes which have come about with the or transmitted by any means, electronic, mechanical, photocopying, recording, or otherwise, collaborative efforts of the government and other stake holders. The economy is without the prior written permission of, and acknowledgement of the publisher (PHD Chamber all set to scale new heights to emerge as an economy with sustainable and of Commerce and Industry). inclusive growth, going forward. Sandip Somany PHD Research Bureau I Resurgent Bihar DISCLAIMER Resurgent Bihar is prepared by PHD Chamber of Commerce and Industry to study the economy of Bihar. This report may not be reproduced, wholly or partly in any material form, or modified, without prior approval from PHD Chamber of Commerce and Industry. It may please be noted that this report is for guidance and information purposes only. Though Foreword due care has been taken to ensure the accuracy of the information to the best of the PHD Chamber's knowledge and belief, it is strongly recommended that the readers should seek Bihar is a treasure house of opportunities with immense potential arising out of specific professional advice before making any decisions. the rich mineral reserves and a large base of immensely talented rural human Sandip Somany resource. The state provides for a perfect mix of the traditional with the modern, Please note that the PHD Chamber of Commerce and Industry does not take any responsibility for President making it an ideal platform for pilgrimage as well as rural tourism. outcome of decisions taken as a result of relying on the content of this report. PHD Chamber of Commerce and Industry shall in no way, be liable for any direct or indirect damages that may arise due to any act or omission on the part of the Reader or User due to any reliance placed or Historically known as a low income economy with weak infrastructure and a guidance taken from any portion of this publication. victim of vagaries of nature, the state has come a long way by posting more than 11% economic growth over the recent years. Although, there remains a lot to be done in the sphere of human development and social upliftment of the dwellers, the state is well equipped and better poised to generate sustainable livelihood and demonstrate higher growth prospects in the coming times. Agriculture is one of the most important areas of the economy of Bihar and the state boasts of huge potential in terms of agri-business and agro- based industries. Although, this area has room for further development, the state government is highly focused on the exports of fruits and processed fruit products. The key industries of the state are mineral based industries, leather, textile and food-processing. However, the relatively under explored areas of further growth are IT/ ITEs, infrastructure and tourism, which can be improved further with policy stimulus by the government. Copyright 2012 With lowest levels of per-capita income and literacy rates and high PHD Chamber of Commerce and Industry unemployment rates, human development is a major challenge to the economy of Bihar. There is a tearing need to improve the quality of life of the people by ISBN 978-81-924590-0-4 enriching their social, economic and cultural well-being. ALL RIGHTS RESERVED. No part of this publication including the cover, shall be reproduced, stored in a retrieval system, The economy has undergone several changes which have come about with the or transmitted by any means, electronic, mechanical, photocopying, recording, or otherwise, collaborative efforts of the government and other stake holders. The economy is without the prior written permission of, and acknowledgement of the publisher (PHD Chamber all set to scale new heights to emerge as an economy with sustainable and of Commerce and Industry). inclusive growth, going forward. Sandip Somany PHD Research Bureau I Resurgent Bihar Resurgent Bihar Preface Resurgent Bihar is an extensive study of the state of Bihar, that the PHD Chamber has come up with and it gives me immense pleasure and honour to present it to Contents Susmita Shekhar our esteemed readers. This study is unique in its kind, which captures the Secretary General essence of the grass roots of the traditional state of Bihar. Sr. No Topic Page No The study is an exhaustive report on the state's economy and its socio-economic 1 Structure of the Economy 2 scenario. It includes its economic policies like, industrial policy, SEZ policy, agro 2 Economic Policy 12 and food processing policies and social infrastructural framework. 3 Infrastructure 16 The study also brings together latest developments in the state and highlights 4 Social Infrastructure 18 potential roadmap for its further growth. It has made recommendations to 5 Performance in Six Thrust Areas focused by PHD Chamber 24 improve the agriculture production scenario, to capitalize on the opportunities 6 Budget 2012-13 26 emerging from its rich mineral reserves, to explore alternative energy based industries and to strengthen the tourism sector. Finally the study recommends 7 Conclusions and Recommendations 27 measures to attract investments in the various sectors of the economy. The PHD Chamber has always aimed to be an important stakeholder to the development of the northern and central states of India and the nation. I hope this study helps in further policy formulatation in the state, so as to serve as a vehicle for its inclusive growth and socio-economic development. We will carry out similar reports on all the states that we serve in the days to come. I commend and appreciate the tireless efforts of PHD Research Bureau, which has come up with this report with their focused approach. I hope that this report serves as a handy and informative readers' guide! Susmita Shekhar II Resurgent Bihar Resurgent Bihar Preface Resurgent Bihar is an extensive study of the state of Bihar, that the PHD Chamber has come up with and it gives me immense pleasure and honour to present it to Contents Susmita Shekhar our esteemed readers. This study is unique in its kind, which captures the Secretary General essence of the grass roots of the traditional state of Bihar. Sr. No Topic Page No The study is an exhaustive report on the state's economy and its socio-economic 1 Structure of the Economy 2 scenario. It includes its economic policies like, industrial policy, SEZ policy, agro 2 Economic Policy 12 and food processing policies and social infrastructural framework.
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