Bihar becomes Fastest growing State for 2nd Consecutive Year

IndustryBihar until known as the bimaru state in past, has emerged as the Fastest Growing state for the Second Consecutive year with a growth rate of 13.1 percent during 2011-12, which is in sharp contrast to the national growth rate of 5.6 percent during same period.

There has been a slight dip in Bihar’s growth Rate in one year, yet  it was able to retain its top spot. The Economy of Bihar grew by 14.8 % during 2010-11. The economy of  Bihar has also grown  bigger to that of the Agriculture Heaven Punjab.

As per the ranking, Bihar Tops the list with  13.1 % followed by Delhi with 11.3 percent  and Puducherry (11.0 %). Chhattisgarh (10.8 %,) and Goa (10.7%) comprise the rest positions in Top 5.

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.

The State Topped the List in Per Capita Income Growth also. Bihar’s per capita Income grew by 12.0 percent, followed by Delhi, Goa, Chattisgarh and Tamil Nadu. Interestingly Bihar is the only state in India with Double digit Per Capita Income Growth.

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.