By Manohar Manoj
The economic picture of Bihar being portrayed by political parties and the media , in reality, creating confusion. Through figures such as the state’s gross domestic product, per capita income, percentage of urban population, contribution of the industrial sector, and the more or less average human development achievement rate, Bihar is depicted at the bottom rung among all states in the country. This picture seems like a myth not because these figures are wrong, but when viewed in reality, Bihar’s socio-economic landscape is quite promising in many respects. Because, apart from the aforementioned stereotypical figures, there are several socio-economic indicators in Bihar whose correct data, if brought forward, would entitle the state to a respectable position in the country. For instance, in nearly 45,000 villages of Bihar, the state of rural basic infrastructure is extremely good, where a major revolution has taken place in rural road construction. Compared to other states in the country, Bihar’s villages exhibit an excellent road network.
In terms of rural electrification, Bihar was the most backward state in the country, where half the population was deprived of electricity; now, 24×7 electricity availability in 100% of households—and that too without any major power plant of its own—is in itself an extremely remarkable achievement.
Secondly, when it comes to rural drinking water and the physical infrastructure of primary schools, Bihar ranks among the leading states in the country.
Thirdly, regarding women’s empowerment—which constitutes half the population—whether it’s their educational upliftment, or their 50% political participation through panchayats, or the major success achieved through self-help groups via the livelihood mission, Bihar presents a distinctly unique picture in the country.
In fact, the myth of Bihar’s economic development figures fails to paint a rosy picture precisely because Bihar lacks the big tycoons and corporate groups that other states in the country have. None of the three major national-level businessmen from here have invested in Bihar. Secondly, apart from Patna, there is no city in Bihar comparable to it, because after Jharkhand’s separation, nearly three major cities namely Ranchi, Jamshedpur and Dhanbad with populations around a million detached from this state. Currently, after Patna with a population of about 2.5 million, the state’s second-largest city doesn’t even reach a population of five lakh.
Thirdly, Bihar lacks any special industrial cities like those in other states alike Noida, Gurugram, Panchkula, Navi Mumbai etc .of the country.
Fourthly, being an agriculture-dependent state, Bihar does not have much land available for industrial expansion.
These four factors are such that they have a significant impact on any state’s gross domestic product, manifesting in the form of numbers. In fact, when comparing Bihar with other similarly challenged states like UP, MP, and Rajasthan, those states have advantages that Bihar lacks. For instance, the neighboring state of UP has nearly half a dozen cities comparable to its capital Lucknow. UP has major industrial cities like Noida, Greater Noida, and Ghaziabad on the border of the national capital Delhi, which alone contribute 15% to the state’s gross domestic product.
Similarly, MP has advantages in minerals and tourism, and Rajasthan in mining and tourism, which are not available to Bihar. Currently, only about 12% of Bihar’s population lives in urban areas, while nearly 28% of UP’s population resides in cities. The same situation prevails in Madhya Pradesh and Rajasthan.
Advocates of Bihar’s development have consistently emphasized since the beginning that due to the freight equalization policy after independence, undivided Bihar could not benefit from its local mineral wealth, which could have enabled the creation of local industries, processing units, and widespread employment. Then, Bihar, which earned the tag of the most well-governed state in the country during the first two decades after independence, transformed into India’s worst-governed state over the next three decades, completely reversing Bihar’s entire narrative.
After 2005, a turnaround occurred on all fronts in Bihar—a fact even acknowledged by Nitish Kumar’s opponents. However, the question that now arises is: beyond electricity, roads, water, law and order, and disaster relief efforts, why haven’t industrial plants, urban expansion, and a widespread network for education and employment developed in Bihar?
Apart from a few old sugar mills, cement and fertilizer factories restarting, large industries have not come up in abundance. The state government has always maintained that acquiring land through compulsion in an agriculture-dependent state would not be appropriate to incite social unrest. It is true that because of this, situations like farmers’ suicides, land turning barren and fallow, and industrial unrest have never arisen in Bihar.
However, in one area, the Nitish government’s inaction has certainly raised question marks: why has adequate infrastructure for higher and professional education not been created for students in Bihar who are eager to study in every field? Why hasn’t an IT city been established in the state? Bihar’s children go to other states in the country and spend huge amounts of money.
Meanwhile, today every state in the country—be it Uttarakhand, Rajasthan, Madhya Pradesh, or all the southern states—has established education cities and abundant infrastructure. In Bihar, apart from a few public sector educational institutions, the situation is disheartening.
When it comes to the migration of laborers from Bihar, some political parties and intellectuals present it as if it’s some evil practice there, as though Bihar is not part of India and its workers are engaging in illegal activities by going outside the state. These people should understand that the entire country of India is one economic platform, where production factors from every region and state remain dynamic according to their respective advantages. In any economy, the mobility of laborers is a positive situation. Under the law of demand and supply of labor, if there is nationwide demand for Bihar’s laborers, it is a good thing for Bihar. Moreover, these people should know that remittances sent by laborers play a significant role in Bihar’s economy, and their contribution to improving the living standards of rural families there is remarkable progress done there. This is just like the contribution of petro-dollars to Kerala’s economy.
A widespread network of professional education, urbanization, and industrialization are on Bihar’s future development agenda, from which no upcoming ruling party will be able to distance itself.
It is heartening to see that in its very first cabinet meeting New government in Bihar took resolve to make Bihar Tech and fin hub in the Eastern India apart from to open 32 new sugar mills in different regions of Bihar. The industry for which was famous for during independence period contributed 26 percent of total sugar production in the country, could regain that status again.