Which is Fastest Growing State in India ? MP or Bihar

Recent reports regarding Madhya Pradesh toppling Bihar as the fastest growing State in Country has hit media headlines and has caught the attention of Economic Analysts who consider it as an indicator for the second decline of Bihar.  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. However several factors have been left untouched while arriving at this conclusion.

1. The Report is based on Advanced estimates, not upon proven results. The Report was released by Central Statistical Office based on the predictions for the 2012-13. It should be noted that advance estimates, which are based on partial projections and partial actual numbers, may vary from actual numbers.

2. It considers solely Gross state domestic product into account. In Past Bihar has been on top based on several other economic indicators apart from GDP like Per Capita Income.

3. Madhya Pradesh has already been a developed state compared to  Bihar. It has far better Industrial infrastructure while Bihar has mostly Agrarian Economy.  The Monsoon has never been favorable to Bihar’s Farmers ever since 2009. Taking this into account,  even at 9.48% Bihar shows very impressive growth.

Taking all these into account, it would be too prejudicial to conclude that Bihar has lost its pace in development, although the state has shown less growth in Industrial Infrastructure.