Professional Documents
Culture Documents
November 2009
NDICUS
www.indicus.net
Nehru House, 2nd Floor, 4 Bahadur Shah Zafar Marg, New Delhi 110002 India
2
Contents
Acknowledgement...................................................................................................... 5
Introduction................................................................................................................ 6
Data Qualification.......................................................................................................9
Jharkhand – A Review...............................................................................................10
State Profile........................................................................................................... 10
Governance in Jharkhand......................................................................................24
Price Movement..................................................................................................44
Infrastructure.....................................................................................................46
1. Communication..............................................................................................59
2. Educational Institutions..................................................................................63
Demography.......................................................................................................71
2. Workforce.......................................................................................................74
3. Basic Necessity.............................................................................................. 76
4. Health.............................................................................................................81
6. Agriculture......................................................................................................91
............................................................................................................................... 91
7. Investment Scenario......................................................................................96
8. Consumer markets.......................................................................................107
3
9. Fiscal Status.................................................................................................114
2. Education........................................................................................................ 128
3. Demography....................................................................................................131
4. Poverty............................................................................................................ 134
...................................................................................................................... 134
5. Economy..........................................................................................................137
Bibliography...........................................................................................................202
4
Acknowledgement
First and foremost we would like to acknowledge Prabhat Khabar for initiating and
supporting this project for the fifth consecutive year for the people of Jharkhand. We
would also like to thank Shri Harivansh ji for providing us with insightful information
and vision in putting together and backing such a project. We would like to thank
the eminent contributors for taking out their valuable time and sharing their
thoughts about Jharkhand.
Team Members
Swati Gupta
Tarrung Kapur
indic@indicus.net
November 2009
5
Introduction
The passing of the Bihar Reorganization Bill gave birth to the 28 th state of the
nation, Jharkhand on November 15th 2000 on the occasion of the birth
anniversary of the legendary Bhagwan Birsa Munda. Jharkhand as a state is
known as a vast reservoir of natural resources in terms of forest areas as
well as minerals. However, in spite of this immense potential, it has not been
able to utilize them properly and is thus counted among the backward states
in the country. Its inheritance is considered to be one of the major reasons
for this backwardness which is reflected in the development backlog over the
years. The widespread unrest among the naxal community in recent times
has further added to the problem. It thus puts a challenge before the state to
provide good governance and to enable equitable growth and socio-
economic progress. With a population size a third of Bihar and community-
centered traditional ethos of tribal people, it will be relatively easier for the
nascent state to pass on the benefits of growth to its citizens equally.
The study is divided into five sections each dealing with various issues
related to development. Section I is an editorial by Dr. Laveesh Bhandari
examining the present socio-economic situation of Jharkhand.
6
The second section of the study studies the dependence of state’s economy
on agriculture and the influence of NREGA especially in the year when large
part of the state faced drought like situation.
The third section of the study explores the quality of governance, examines
knowledge and communication base as well as the socio-economic profile of
Jharkhand.
The fourth section of the Study deals with the intra state analysis where the
districts of the state are compared and ranked. The fifth section lays out the
industrial profile of Jharkhand identifying the key growth drivers of industrial
sector in each district of the state.
Gross domestic product and per capita income of Jharkhand vis-a-vis other
states in 2020 has been discussed in the seventh section.
The states, which are being considered for comparison, are in one way or the
other, related to Jharkhand. We have considered the parent state of
Jharkhand, Bihar, new states that were formed at the same time as
Jharkhand, Chhattisgarh and Uttarakhand and the other neighbors of
Jharkhand -West Bengal and Orissa. In some cases, where relevant, we have
also considered states that have performed significantly well in the area
being discussed.
7
The Jharkhand Development Report is a depiction of the current scenario in
Jharkhand across different socio-economic parameters, which will enable
readers to understand the various elements crucial for growth and
development in the state. It will also provide an indication to the policy
makers to take constructive steps in those areas where the state is lagging
behind.
8
Data Qualification
Jharkhand was formed only eight years ago and generally the different government
departments take an average of two years to release their data. Hence the data for
the year 2007-08, and 2008-09 is not available more majority of the indictors. As a
result, for most of the indicators, the latest data we have is for the period of 2006-
07. Hence depending on the availability of the data the analysis has been done from
2001to 2006-07.
Another point worth mentioning is that we have used the revised estimates rather
than budgeted estimates for indicators related to expenditure incurred by the state
government on various sectors like education, health etc. The revised estimates
actually gives the estimates which has been revised and is thus an actual indicator
of the amount of expenditure incurred on health and family welfare. The latest year
for which the revised estimate is available is 2006-07.
With a relatively short time span, the data shows a lot of fluctuations during this
period. While analysis for these parameters is being done on the basis of this data,
the trends will become clearer with passage of time and release of the data in
forthcoming years.
9
Jharkhand – A Review
State Profile
State Jharkhand
Capital Ranchi
Number of Districts 24
States 2003-04 2004-05 2005-06 2006-07 2007-08 2003- 2004- 2005- 2006- 2007-
04 05 06 07 08
Jharkhan 424492 513233 548789 632290 692533 11.80 20.91 6.93 15.22 9.53
d 2 2 1 9 2
Bihar 661738 736537 795600 997668 114721 1.86 11.30 8.02 25.40 14.99
8 6 1 5 52
Chhattisga 388020 435890 509988 578064 680359 19.42 12.34 17.00 13.35 17.70
rh 9 4 4 0 5
Maharasht 340600 386296 438731 508836 590995 13.73 13.42 13.57 15.98 16.15
ra 05 84 16 15 22
Punjab 900886 966600 108653 121189 138467 9.53 7.29 12.41 11.54 14.26
0 8 34 25 39
Tamil 175370 202373 234836 276917 304988 10.89 15.40 16.04 17.92 10.14
Nadu 80 57 93 23 68
Note: The current series of GDP is based on the new 1999-2000 series.
11
Section I: The Past and Future of Economic
Development of Jharkhand1
Soon after it was formed, Jharkhand decided to focus on all round economic
development, this involved improving all three – primary, secondary and
tertiary sectors. Since then there has been significant learning. Agriculture
is not really growing rapidly enough, and it is evident that the state
government does not have the required depth and human and financial
capital to be able to finance a rapid improvement in technology and
infrastructure in agriculture. The tertiary sector has a mind of its own – some
services such as telecom are growing rapidly as they are in the rest of the
country. The IT and other business services sectors do not like to locate very
far from the major metros and therefore there is not much that the state can
do there.
All of this is not to say that small islands of success have not been found, we
do find instances of an entrepreneur here or a farmer there who has done
something out of the ordinary and shown to the people of Jharkhand and
nationally, that despite many inherent disadvantages success is possible.
However, these are at-best minor examples. The economic environment in
Jharkhand today is not one that can enable equitable progress in all major
segments of its economy,
Hence large scale manufacturing that is based upon the great mineral wealth
of the state appears to be one area, in which not only can significant
employment be generated for the less educated and untrained, but also
generate significant tax and non-tax revenues for the state government to
improve infrastructure and education and health for all. And there-in the
government has a major hurdle - Land.
Both large scale manufacturing and mining industries need large tracts of
land. And acquisition of this land is bound to displace many people from
their land that their forefathers have lived in for many centuries. Moreover,
mining has the potential to significantly harm the environment in the
concerned area as well as a large ‘catchments’ area. On top of it, past
history of land acquisition has been extremely poor, and there have been
rare cases where it has occurred in a fair manner. My guess is that in 9 out
of 10 cases, the owner has received significantly less than what his due was.
1
Laveesh Bhandari, Director, Indicus Analytics Pvt Ltd
12
And so there is great opposition to land acquisition; this opposition is from all
sources – tribals, civil society, many political entities, and not to mention the
Naxalite groups (who are exploiting this mass concern to further their own
ends). The result is that, no one really believes that large scale
industrialization of Jharkhand is possible in the next decade or so. And this
thought is prevalent in Ranchi, as well as the economic powerhouses in Delhi
and Mumbai.
When the problem is large, it makes sense to break it into smaller ones and
to chip away at it one at a time. Let us furst address the problem of land.
Jharkhand’s total land area is almost 80,000 square kilometers (79,714 sq.
km to be precise). Of this about 29% (or 24 thousand sq. km) is covered by
forests and woodlands. About a quarter is cultivated, and more than a third
is classified as Barren land, waste land, or fallow land.
Only a very small percentage is under industry and urban areas. The point
is, that industrialization and urbanization do not require too much land and
are able to generate employment and incomes disproportionately higher
than the quantity of land. My rouguess is that in the next 4-5 decades an
less than 4000 square kilometers are required additionally for all of industry
and urban requirements. Spread over 50 years this translates to about 80
square kilometers that are required or about 0.1% of land per year. And this
should be able to generate income growth of about 10% per annum.
Where will this land come from? Should total forest cover be reduced?
Absolutely not. In fact we need to aim at an increase in forest cover in
Jharkhand, and the beauty is that it is possible to do so, while having rapid
economic growth. Countries in Europe are already achieving this – forest
cover in Europe for instance has been increasing by about 0.1% per annum.
So how would this be possible?
This might seem strange, but it is true – the greater the incomes from land
(whether in forests or agriculture) the lower will be the dependence on land
in Jharkhand! Incomes from the forest are much more than merely tendu
leaf collection – which needs to be stopped anyway. These require well
functioning markets that can aggregate the forest dwellers collections and
transfer them to areas of consumption nationally or internationally. The
government knows this but does not really have the skills to manage this,
and only private enterprise will be able to manage this. Greater agriculture
incomes also do not necessarily need fertilizer-pesticide-HYV seeds-irrigation
combination. In fact there is enough demand for organic produce in India
and abroad to consume all that agriculturists in Jharkhand can produce. And
this demand is only going to increase in future years.
Jharkhand should aim at increasing its land area under forests – from 30 to
35% in the next few decades. And it should also aim at improving the
‘quality’ of its forests.
Land that is uncultivable and barren can be used for manufacturing. But,
some of the land under forests will need to be released for mining and
related activities as the minerals are located therein. What will happen to
the dwellers residing there? What about their traditions and culture? There
are two parts to the answer. First, a do-nothing attitude will anyway lead to
a rapid degradation of the forest area to due to the population pressure,
widespread migration to distant lands, decline of traditions and an
irreversible break-down of social structure. Second, increasing productivity
from forest related activities can strengthen all that we want to retain. And
incomes and revenues generated from mining and manufacturing can and
should be devoted to improving precisely this aspect of Jharkhand’s
economy.
The current conditions are such that if I was dependent upon agriculture and
forestry, I would wholeheartedly oppose urbanization, industrialization and
commercialization. For the greater wealth that they can generate will most
probably not benefit me. The solution therefore is to link wealth creation in
14
the non-traditional (I don’t like to use the word ‘modern’ for mining and
industry) economy with improvements in incomes from the forest and
agriculture. To put it another way, if a mining or manufacturing job provides
Rs 5000 per month, occupations related to forests and agriculture should
provide 6 or 7000 per person per month at the very minimum.
How can this be achieved? The first step is to make a roster of all whose
land has been acquired in the last 60 years. And to ensure that they are
properly rehabilitated. Note the emphasis on the word proper. Providing a
few thousand rupees, or a job cleaning the factory floor, is not rehabilitation.
When whole communities are uprooted, they not only need resettlement, but
also occupational outcomes that are in line with the set of skills they
possess. Land Banks (where the acquirer buys pieces of land that are
voluntarily available for sale) are one option, converting of fallow or waste
land into cultivable land is another. Both require significant investment, but
this is the only option that is both fair and economically efficient.
The next issue is that of the environment. And here as well the problem can
be addressed. Mining activities the world over are known to cause
tremendous damage if proper precautions are not taken. Moreover, the
damage may not be remain contained within the mine’s catchments, but
spread to other parts. The availability of satellite technologies, cheap
telecommunications networks, and the spread of a scientifically oriented civil
society have made it possible to monitor the activities of the commercial
15
sector on a real time basis. A well informed and well empowered
environmental overseeing authority can exercise the right level of control on
commercial entities.
Whatever be the problem, there are enough solutions. The critical constraint
is absence of faith of the masses in the sincerity of those who are
economically and politically powerful. If this can be addressed, and I believe
it is possible to do so, economic development can go hand in hand with
improving the lifestyles of the masses as well as the environment.
16
Section II: A review of growth and development in the
state of Jharkhand2
In November 2000, the state of Jharkhand came into being as the 28th state
of India. Carved out of Bihar, the new state had to deal with the burden of a
huge backlog of basic 30%
development Econom ic Grow th
objectives, a 20%
challenge in itself. With
10%
per capita income of Rs.
21,465 in 2008-09, 0%
Jharkhand has come a 1994-95 1996-97 1998-99 2000-01 2004- 2006- 2008-09 long
way from its -10% 2005 2007
There has been a decline in the poverty levels as the percentage of people
living below the poverty line came down from 44 percent in 1999-00 to 33.15
percent in 2004-05, but this is still a significant proportion of population
whose needs need to be addressed. The ten percentage points reduction is
more than what Bihar has achieved, where poverty rates fell from 41 percent
to 33.36 percent over the same period.
The drought in 2009 has further dealt a blow to the state. With all districts
declared drought hit by July, even though there was some relief in rain later,
the situation never recovered to normal. By the middle of October rice
sowing was down 45 percent over the corresponding period last year, maize
sowing was less by 30 percent and coarse cereals by 29 percent. Though
there has been governmental help in the form of free grains for BPL families,
subsidies for diesel etc. these are short term solutions. There has been
hardly any increase in the irrigation facilities in the state since its inception.
The need to mitigate the impact of low rainfall in the long term is growing in
urgency. There are a variety of options such as dryland farming techniques,
micro irrigation projects etc. that have not been exercised sufficiently.
Schemes such as the NREGA that are meant to provide basic relief to the
very poorest have also been floundering in the state. Even as official
statistics (see table at end of section) list the achievements of the NREGA in
great detail, media is rife with reports about the high levels of corruption in
18
the state eg. Prof. Jean Dreze, member of the Central Employment
Guarantee Council had pointed out in 2008 that the state was amongst the
worst performing states in the countryi. There are mainly two reasons for the
poor state of affairs:
1. Complete lack of trust between the administration and the people. In fact,
the state machinery views any dissent as part of the Naxal mission
complicating the matter even more as independent observers are also
mistrusted.
2. Helplessness of rural people – illiteracy, poverty and ignorance of their
rights make it difficult for the ordinary citizen who is the intended
beneficiary to even demand the right to work from the state.
Delayed wage payments were reportedii in the course of independent
observations, payments for work done more than two years ago were still
pending.
Access to basic facilities like piped drinking water and sanitation services is
much below the national average, an indication that the citizens of the state
are still to lead a life with basic modern amenities. Just 5 percent of rural
household have access to toilet facilities, while the corresponding figure for
urban households is 74 percent, the national median levels are 39 and 89
respectively. Bihar meanwhile shows better, albeit marginally, coverage in
rural areas where 16 percent of households have access to toilet facilities.
The National Family Health Survey III revealed that not even one percent of
rural households in Jharkhand had access to piped drinking water, the safest
source of water. Urban households had a better coverage of 44.4 percent.
The situation in Bihar is not very much better – 1.2 percent in rural areas and
19.8 percent of urban households have access to piped drinking water.
In the social sector, the state has been making inroads into its poor
performance of the past. While literacy rates have risen from less than 40
percent in 1991 to 54 percent in 2001, this level is still lower than the
national 65 percent. The gender gap in literacy is another indicator that
shows that much needs to be done to raise the basic levels of development
in the state. Less than 40 percent of the females were literate in the 2001
Census recording, the second lowest rate just above parent state Bihar.
Moreover, even in 2004-05, just 34.84 percent of children had completed
primary school. In Bihar, the state of affairs is even worse at 28.04 percent of
the children having completed primary schooling. Without a basic level in
education, it is useless to expect employability in the labour force. More than
70 percent of the children dropped out of schooling according to the 2004-05
government data. The reasons for dropouts are many. Apart from providing
20
basic facilities in schools, what is needed is a complete overhaul of the
school syllabus and exam system to make schooling more appropriate for
children from diverse backgrounds.
On the health front, there are mixed signals. There has been considerable
progress in reducing the prevalence of leprosy, in treating tuberculosis and
in child immunization. For instance, in 1998-99, just 8.8 percent of children
below the age of 2 years received full immunization, by 2005-06 this share
went up to cover 34 percent of the children. But the primary health centres,
meant to deliver health facilities to the poor people are not in a good shape;
only 9.8 percent have adequate infrastructure, compared to 31.8 percent all
India. Though the situation in Jharkhand is worse than Uttarakhand where
this share is 27.8 percent, it is far better than Chattisgarh where just 2.8
percent of the facilities pass muster. Unfortunately the low access to medical
care shows up in the infant mortality rate falling marginally from 54 per 1000
live births to 49 over the same period. The percentage of births attended to
by trained personnel has gone up from 17.5 in 1998-99 to 29 percent in
2005-06, much lower than the national average of 48.3 percent. There has
been slower progress in Bihar where this indicator has risen from 24.8
percent to 30.9 percent over the same period. Malnutrition in children has
increased which is a serious cause of concern.
Total
22
0
Source:
nrega.nic.in
23
Section III: Jharkhand in its Ninth Year
Governance in Jharkhand
This section explores the effectiveness of governance in Jharkhand. Good
governance is the prerequisite for the overall development of a region. Good
governance can be gauged from various angles like maintenance of law and
order, management of finances of the government, control in the movement
in prices and development in infrastructure.
The manner through which property is secured in a particular region depicts the
efficiency of the state in securing the basic needs of its citizens.
Jharkhan
d 20.6 16.2 18.3 16.3 16.2
Uttarakha
nd 32 27.6 29 29.4 32.1
Chhattisg
arh 28.9 33.2 50.7 22.8 41.3
West
Bengal 23.7 22.9 22 20.7 16.4
• Among the newly formed states, Chhattisgarh has been the most
efficient in recovering stolen property followed by Uttarakhand.
• Neighboring states like Orissa and West Bengal also fare well on
this front compared to Jharkhand.
25
Juvenile Delinquency
26
c. Incidence of Murder
Under the Indian Penal Code (IPC) murders come under the category of
violent crimes. The measure of murder used here includes all reported cases
of murder. The incidence of murder in a particular region indicates the
effectiveness of police administration prevalent in that particular region.
Can you annualize the rate of change in these tables to make it per annum
change?
27
• Among the neighboring states, Orissa has shown considerable
rise in murders since 2001.
28
d. Incidence of Rape
Rape is one of the major crimes against women and incidence of rape in a
particular region is an indicator of the extent of safety provided to them.
Over the years the punishment of committing rape has become stricter with
an aim to check this heinous crime. While it is true that crimes against
women are under-reported, the changes over time do reflect the trends. For
the present analysis the number of reported cases of rape in respective
years has been considered.
Per
Annua
l
Chang
e
2001-
State 2001 2003 2004 2005 2006 2007 07 (%)
Jharkhan
d 567 1,482 797 753 799 855 7.09
Bihar 888 3,772 1,390 1,147 1,232 1555 9.79
Uttarakhan
d 74 293 115 133 147 117 7.93
Chhattisga
rh 959 797 969 990 995 982 0.40
Orissa 790 1,102 770 799 985 939 2.92
16,0 33,82 18,23 17,65 19,34
India 75 1 3 1 8 20737 4.34
Source: Crime In India, National Crime Record Bureau, 2007
29
e. Incidence of Crime against Women and Child
Per
Annu
m
Chang
e
2001-
State 2001 2002 2003 2004 2005 2006 2007 07 (%)
Jharkhand 2,270 2,601 2,132 1,887 2,641 3,091 3391 6.92
Bihar 5,439 5,800 4,563 6,107 6,134 6,806 8223 7.13
Chhattisga
rh 4,574 8,915 4,935 2,307 4,596 4,995 4799 0.80
Uttarakhan
d 795 897 745 750 862 1,089 1198 7.07
West
Bengal 6,737 7,017 4,199 9,244 12,123 13,217 16905 16.57
Orissa 5,425 4,835 4,383 2,744 6,335 6,979 7505 5.56
154,6 158,1 144,3 102,5 170,5 183,7 20572
India 09 47 53 04 28 32 2 4.88
Source: Crime In India, National Crime Record Bureau, 2007
30
• Jharkhand lies far below its neighbouring states, West Bengal and
Orissa as well as mother state Bihar where the incidence of crime
committed against women and children is considerably high.
The Constitution of India provides that the state shall promote the social and
economic upliftment of the weaker sections like Schedule Castes and
Schedule Tribes. Since Independence, various laws have been passed to
protect them from injustice and exploitation. As per Census 2001, SC & ST
constitute around 40% of the total population of Jharkhand and thus crimes
committed against these sections indicates the lack of equality in the state
and ineffectiveness of governance.
For the following discussion, all the reported cases of crimes against
Schedule Castes and Schedule Tribes in the respective years have been
taken.
31
Per
Annu
m
Chang
e
200 2001-
State 1 2003 2004 2005 2006 2007 07 (%)
Jharkhand 440 184 249 760 665 538 3.41
1,35
Bihar 0 1,799 2,691 1,906 2,099 2786 12.83
Uttarakhand 186 134 140 100 69 71 -14.83
Chhattisgarh 987 1,483 1,374 951 1,027 511 -10.39
2,46
Orissa 8 1,641 1,917 2,041 1,502 1355 -9.51
39,7 32,14 32,42 31,84 32,86
India 18 1 2 0 1 30031 -4.55
Source: Crime in India, National Crime Record Bureau, 2007
32
g. Civil and Armed Police Strength
Police force is essential for maintaining law and order, combating crime
and regulating traffic. It is important for a state to have adequate police
force, which should keep on increasing with the increase in population.
Development and growth are feasible only when there is peace and order
in the civil life of a state and the presence of a strong police force is
essential for enforcing the law of the land and combating crime.
Per
Annu
m
Chan
ge
2001-
States 2002 2003 2004 2005 2006 2007 07(%)
Jharkha 17,65 20,99 24,56 25,73 29,19
nd 8,930 9 2 3 0 8 21.83
Bihar 48,968 42,707 49,590 51,046 43,273 45,670 -1.16
Uttarakh
and 9,092 10,373 12,173 11,947 9,518 9,920 1.46
Chhattisg
arh 10,909 12,715 20,350 23,350 18,147 18,710 9.41
West
Bengal 61,727 62,343 81,749 80,039 61,393 50,381 -3.33
Orissa 27,392 27,044 35,265 34,911 27,913 27,408 0.01
1,015, 1,025, 1,337, 1,342, 1,091, 1,095,
India 416 777 183 858 899 818 1.28
Source: Crime In India, National Crime Record Bureau, 2007
• Other states like West Bengal and Orissa have experienced reduction in the
civil and armed police strengths.
• An important insight derived from the table is that in Jharkhand the strength
of police is high. In spite of this high presence of police personnel in
33
Jharkhand, the crime committed is not low. This calls for the police strength
to be more efficient in maintaining law and order in the state.
34
2. Public Finance
Health and Family Welfare are crucial inputs into the well being of the
population and the expenditure by the government in this sector indicates
how seriously this commitment is taken. Public health & family welfare are
some of the public services provided by the government. Expenditure in this
sector reflects the proportion of total expenditure that the state invests in
these public service.
Table A.2 (a): Share of expenditure on Health and Family Welfare in total
disbursements (%)
2001- 2002- 2003- 2004- 2005- 2006- 2007-
States 02 03 04 05 06 07 08
Jharkhan
d 4.9 4.2 3.3 2.9 5.8 6.3 5
Chhattisga
rh 4.3 4 0.9 1.3 1.4 3.9 3.8
Madhya
Pradesh 4.1 4.1 1.4 1.4 1.5 4 3.7
Uttar
Pradesh 3.6 3.8 0.9 2.1 2.6 6.4 5.2
Uttarakha
nd 4.4 3.8 0.7 2.3 2.4 4.6 5.5
West
Bengal 5 4.9 1.1 1.3 1.6 4.4 4.4
35
states except Uttarakhand and Uttar Pradesh where it is slightly higher.
A possible reason might be that as a new state, Jharkhand is in the
process of developing its overall infrastructural facilities for improving
human resource potential which includes setting up hospitals, primary
healthcare centres etc.
36
a. Share of expenditure on education to total disbursements
Madhya
Pradesh 12.5 12.2 4.2 3.9 4.2 11.9 11.6
37
c. Expenditure on Administration
Jharkhan
d 10.7 9 7.2 6.7 9.7 9 8.4
Chhattisga
rh 6.4 6.4 1.3 1.7 2.4 2.2 1.5
Uttarakhan
d 9.5 7.4 1.4 4.1 3.7 2.8 3.1
West
Bengal 6.5 6.3 1.4 1.8 2 1.4 1.2
38
• The percentage share of all India expenditure on administrative
activities is also much lower than Jharkhand’s percentage share.
39
d. Expenditure on the Welfare of SC and ST
40
e. Expenditure on Development
Some of the major heads under development expenditure include social services
such as education, medical and public health.
Madhya
Pradesh 61.3 58.6 25.3 22.3 23.1 15.7 13.1
41
• In 2007-08 India spent just 21.3 percent of its total
expenditure on development compared to states like Jharkhand
and Bihar, where the proportions crossed 50%
42
f. Grants from the Centre
This indicator looks at the grants received in the year from the Central
Government. It shows how dependent the state is on the Centre for its
revenues.
Madhya
Pradesh 13.3 13.9 12.4 13.8 14.5 19.1 19.5
43
• Jharkhand receives lower grants compared to neighbouring
states like Bihar and Madhya Pradesh.
Price Movement
The Consumer Price Index is one of the widely used indicators for assessing
the movement of prices or inflation.
It is based on the Consumer Price Index of industrial workers (CPI – IW). The
CPI – IW which also includes selected services and is measured on the basis
of retail prices, and is used to used to determine the dearness allowance of
employees in both the public and private sectors, is the appropriate indicator
of general inflation.3 CPI for industrial workers is released by labour bureau,
Ministry of Labour, Government of India.
Table A.3 (b): Consumer Price Index for Industrial Workers (District-wise weighted
average)
State Percentage Percentage
Change (April Change (April
2007 to March 2008 to March
2008) 2009)
Base: 2001=100
3
Economic Survey, 2004-05
44
Jharkhand is almost identical to its mother state Bihar in terms of percentage
change in CPI for industrial workers.
45
Infrastructure
a. Road Connectivity
Jharkhand 50 59.6
46
• The habitations connected by rural roads in the state is higher than the
parent state Bihar.
47
b. Transport Vehicles
Transport vehicles include all the registered transport vehicles in the state
across the given years. The major transport vehicles include buses, trucks,
and taxis among others. It depicts the status of infrastructure of
transportation in the state.
Table A.4 (b): Registered Buses, Trucks, Taxis and Other Vehicles (Per lakh
People)
Jharkhan
d 416 601 424 87 441 101 325 125
Chhattisga
rh 278 277 295 305 366 344 288 108
Uttarakha
nd 348 359 371 366 405 378 300 134
West
Bengal 316 43 312 43 463 90 415 45
Source: Department of Road Transport and Highways, Ministry of Shipping, Road Transport and Highways
48
49
Railway Lines
Railways form one of the most widely used transport services in India. It is an
extremely efficient mode of transportation which unites the country
economically, politically and culturally. The increase in route of railway lines
within a state reflects how well its cities and villages are internally connected
and also depicts its connectivity with other states. For the present
discussion total rail length in kilometers has been used.
Madhya
Pradesh 4,845 4,825 4,849 4,905 4,903 4,884 0.80
Uttar
Pradesh 8,578 8,799 8,566 8,545 8,546 8,575 -0.04
Source: Rajya Sabha Starred Question No. 103, dated 24.10.2008 ; Ministry of Railways, Government of India
50
51
d. Movement through Aviation
This indicator includes the number of passengers traveling per year and
number of outbound flight movement per year from the state in the
respective years. Development of aviation shows how fast the state is
adapting to the rapid increase in economic growth. Passengers per outbound
movement is the ratio of total number of passengers traveling in a day to the
total number of flights going out in a day.
Jharkhand 28 38 35
Bihar 52 53 60
Madhya Pradesh 31 43 35
Orissa 46 52 54
Chhattisgarh 44 51 52
West Bengal 84 86 91
India 86 88 88
52
e. Households with Electricity and LPG
Table A.4 (e): Percentage of households having LPG connection and Electricity
connections across states
LPG Electricity
Jharkhan
d 17.2 17.1 31.9 32.5
Chhattisga
rh 20.1 20.8 63.7 71.2
Uttarakha
nd 77.7 72.0 66.6 83.4
Maharasht
ra 54.1 51.8 83.6 77.6
Tamil
Nadu 51.1 49.5 87 91.2
Source: District level Household Survey –III, II, Ministry of Petroleum and Natural Gas
53
• Amongst the newly formed states, Uttarakhand has the
highest percentage of households having electricity and LPG
connections, followed by Chhattisgarh.
54
f. Electricity
Electricity has become basic necessity of our daily lives. For the present
discussion the percentage deficit or surplus of electricity supply in relation to
its demand has been used. It explains how effectively the demand of
electricity is being met in the state.
Chhattisgar
h -3.3 -2.7 -1.7 -12.9 -18.2 -14.8 -2.6
55
g. Banks
Banks have always been intermediaries of money in an economy. Most of the major
transactions in the economy are done through banks. Higher number of banks in
any state reflects the growth in the financial sector of the state and also its effort
made in the direction of achieving financial inclusion among the society. For this
discussion all the banks registered with RBI in the respective years have been
taken.
Table A.4 (g): Per capita bank branches across different states
Jharkhan
d 0.5 0.54
Chhattisga
rh 0.5 0.50
Uttarakhan
d 1 1.02
Maharashtr
a 0.7 0.70
Source: RBI
56
h. Post Offices
Table A.4 (h): Post Offices per ten thousand population across states, 2007
Source: India Posts, Ministry of communications & IT, Registrar General of India
57
• Uttarakhand, in fact, has the highest post office density,
almost two times of the all India average.
58
B. Jharkhand as a Knowledge Economy
Information is the foundation of any economy. Factors such as the method of
provision of information, its spread and the extent of technical development
in an economy, in terms of accepting and spreading information are crucial
in determining the pace of development. This section assesses Jharkhand’s
information base.
1. Communication
a. Telephone Connections
Telephone lines play a major role in the communication of any state. It is one
of the most easily accessible and cheap modes of communication. Almost
the entire nation today has been covered by telecommunication network.
The present analysis reports the number of telephones per 100 persons.
200
6- 2007- 2008-
State 07 08 09
26.
Maharashtra 8 36.1 53.6
27.
Tamil Nadu 1 40.7 61.1
59
8
13.
West Bengal 9 20.1 33.5
17.
India 1 24.2 36.9
60
07 08 09
c. Internet Users
The Internet has emerged as a new tool of communication for last few years.
It is a highly versatile mode of accessing information. It is used for business
promotion, transactions, making contracts etc. In this discussion all the
registered internet connections have been considered.
Table B.1 (c): Internet Connections (per lakh population) across States
Jharkha
nd 83 42 51
Bihar 13 14 22
Chhattisg
arh 20 37 43
West
Bengal 334 163 174
Orissa 50 47 60
Maharash
tra 948 789 961
62
2. Educational Institutions
a. Pre-College Institutions/Schools
Jharkhan
d 817 768 785 802 939
Madhya
Pradesh 1,470 1,665 2,158 2,104 2,158
Chhattisga
rh 1,555 2,067 2,143 1,991 2,085
Uttar
Pradesh 886 942 990 1,017 1,038
Uttarakhan
d 2,162 2,171 2,199 2,214 2,241
Maharashtr
a 1,340 1,375 1,375 861 865
63
b. Higher Educational Institutions/Post School Institutions
Jharkhan
d 6 6 5 6 6
Bihar 10 4 10 10 11
Madhya
Pradesh 13 13 17 17 18
Chhattisga
rh 12 11 11 19 19
Uttar
Pradesh 7 7 11 15 14
Uttarakha
nd 9 9 13 18 23
Maharasht
ra 19 19 18 24 23
Kerala 12 12 12 17 16
India 1 13 15 19 19
64
65
c. Engineering, Technical & Architecture Institutions
10 Million People
Jharkhand 1 2 2 4 3
Bihar 1 1 1 1 1
Madhya
Pradesh 5 10 9 11 13
Chhattisgarh 1 1 1 7 7
Uttar
Pradesh 4 4 4 6 6
Uttarakhand 2 2 2 13 14
Maharashtra 17 18 18 19 20
Kerala 20 20 20 30 29
India 9 10 12 14 14
66
to have an adequate infrastructure with respect to professional
education.
• However, Jharkhand falls far below states like Kerala where the
educational standard is better than most other states.
67
d. Medical Colleges
Jharkhan
d 1 3 3 2 2
Bihar 3 3 3 3 3
Madhya
Pradesh 4 4 4 15 14
Chhattisga
rh 1 1 1 9 9
Uttar
Pradesh 2 2 2 5 5
Uttarakha
nd 1 1 1 21 21
Maharasht
ra 12 12 11 34 34
Kerala 12 12 12 37 37
India 7 7 7 18 18
68
• Among the newly formed states, Jharkhand has the lowest
number of medical colleges compared to other two states.
69
e. Management, Law, IT, Agricultural Colleges
Table B.2 (e): Number of Management, Law, IT, Agricultural Colleges perMillion
People
Madhya
Pradesh 3.3 3.3 3.2 2.2 2.2
Uttar
Pradesh 0.7 1.5 3.9 3.8 3.3
70
C. Socio Economic Profile
Demography
a. Population
Population of a particular region refers to the number of people residing within that specified
geographical area.
2001- 2006-
States 2001 05 10
2694582
Jharkhand 9 1.77 1.78
Bihar 82998509 1.77 1.78
Chhattisgarh 20833803 1.77 1.76
Uttarakhand 8489349 2.21 2.24
Punjab 24358999 1.12 1.15
Maharashtra 96878627 1.06 1.08
Tamil Nadu 62405679 0.83 0.8
West Bengal 80176197 1.3 1.28
Orissa 36804660 0.89 0.89
10286103
India 28 1.55 1.52
Source: Estimated Population, Registrar General of India
71
b. Sex Ratio
The sex ratio is measured as number of females per thousand males. Sex
ratio is an indicator of the extent of gender bias prevailing in a particular
region and reflects on the extent of discrimination shown against a girl child.
Table C.1 (b) Sex Ratio, 2001
• A positive aspect emerges from the fact that the sex ratio in
Jharkhand is expected to show improvement over the period
while the sex ratio in parent state Bihar is more or less stagnant
over the years, according to the Census of India projections.
72
c. SC and ST population
73
2. Workforce
74
economically developed states like Punjab and Maharashtra. The
percentage of marginal workers is also much higher than all India
average, which is very similar to Bihar.
75
3. Basic Necessity
33
Jharkhand 43.96.15
33.
Bihar 40.9236
Chhattisg 36.
arh 40.5446
Uttarakha 31.
nd 15.2067
4.
Punjab 6.1698
Maharash 25.
tra 25.0205
Tamil 17.
Nadu 21.1217
West 20.
Bengal 27.0296
40.
Orissa 47.1509
India 26.10 21
76
.76
• Overall, more than two out of every five people cannot meet
their basic needs in Jharkhand. High poverty is reflected in all
other measures of socio-economic development. This calls for
constructive steps to be taken by the government to eradicate
the stark poverty.
b. Food Sufficiency
77
sufficiency
Jharkhand 0.57
Bihar 2.69
Chhattisgarh 2.24
Uttarakhand 0.39
Punjab 0.65
Maharashtra 0.84
WestBengal 8.91
Orissa 5.24
India 1.93
78
c. Safe Drinking Water & Sanitation Facility
Jharkhand 44.4 0
79
Table C.3 (d) Households having access to toilet facility in 2005-06
80
4. Health
a. Infant Mortality Rate
Infant mortality rate (IMR) refers to the percentage of infants dying before
completing one year of age. Infancy is a stage when the human body is most
susceptible to diseases, and therefore proper hygiene, care and nutrition are
essential. The infant mortality rate can be significantly reduced through the
dissemination of requisite health care for mother and child and is therefore a
marker of a society’s socio-economic development. Reduction in infant
mortality is a major policy goal and thus part of the strategy to achieve
health for all in India. The ratio of Male IMR to Female IMR is an indicator of
the extent of gender bias in the society – a higher ratio denoting a more
equitable society.
Male
Male IMR/Femal Male
IMR/Female e IMR/Female
State IMR(2005) IMR(2006) IMR(2007) IMR(2005) IMR(2006) IMR(2007)
81
• Though the ratio of male to female IMR has increased during the
same period, it is still below the national average.
2002- 2007-
State 04 08
Jharkhand 26.7 25
India 48 52.6
82
• In contrast, in Bihar this percentage has increased by 6.7
percentage points.
The death rate gives the number of deaths during a year per thousand mid
year population and is also known as the crude death rate. While the death
rate gives only a rough indicator of the mortality situation, it accurately
measures the impact of current mortality on population growth. Access to
good quality health services is an important factor in reducing the death
rate. Better household hygiene practices, access to sanitation, and water
supply amenities aid in further reduction in death rate.
Jharkhand 7.3
Bihar 7.5
Chhattisgarh 8.1
Uttarakhand 6.8
Orissa 9.2
Maharashtra 6.6
Punjab 7.0
83
INDIA 7.4
5. Education
Literacy rate
2002- 2007-
States 04 08
Bihar 51 58.7
Chhattisgar
h 60.7 65.7
Maharashtr
a 73.5 74.7
84
Punjab 70.6 75.9
West
Bengal 68.7 72.1
• Though the state performs better than its mother state, Bihar, it
trails behind the newly formed states. Amongst the three,
Uttarakhand fares the best with almost three fourths of the
population being literate.
85
Table C.5 (b) Percentage of Children having completed primary schooling
across different states, 2004-2005
Primary
Completion Rate
States (%)
Jharkhand 34.84
2
Bihar 8.04
3
Chhattisgarh 2.16
4
Uttarakhand 4.87
4
Maharashtra 9.08
4
Punjab 7.90
6
Kerala 1.86
4
West Bengal 9.81
4
Orissa 9.67
India 42.50
• The earlier the children complete primary school, the more they
can learn at higher levels of schooling. In Jharkhand barely a
third of the 10 year olds have completed primary education.
Though it is better than some neighboring states in this respect,
its primary educational system needs strengthening to achieve
levels as in other parts of the country
86
• Among the newly formed states, Uttarakhand has the highest
proportion of children completing primary schooling within the
given age group followed by Jharkhand.
• Jharkhand also falls far below other neighbouring states like West
Bengal and Orissa.
Jharkha
nd 0.7 0.6 0.8 0.8 0.8 0.8
Chhattisg
arh 0.8 0.9 0.9 0.9 0.8 0.9
Uttarakh
and 1 1 1 0.9 0.9 1.0
West
Bengal 0.9 0.9 1 1 0.9 1.0
87
Source: Selected Educational Statistics, respective years
88
d. Pupil Teacher Ratio
Jharkhan
d 24 26 24 24 28
Bihar 18 20 18 19 17
Chhattisga
rh 31 32 32 32 36
Uttarakha
nd 35 38 37 38 44
West
Bengal 31 30 29 30 29
Orissa 18 17 17 17 18
INDIA 21 22 22 25 26
• Among the new states, Jharkhand has the lowest pupil teacher
ratio followed by Chhattisgarh and Uttarakhand.
89
e. Total expenditure of Education Department on Primary & Middle
Level
This variable measures the per person expenditure made by the government
on primary and middle level education. As a social and development sector
issue it is important that the government spends adequately on this aspect.
Table C.5 (e) Total Expenditure on primary and middle level education per
child in 6-14 years age group, (Rs. Per Person)
State 2005-06
Jharkhand 1,821
Bihar 1,393
Chhattisgarh 1,788
Maharashtra 2,301
Punjab 1,189
Orissa 1,743
India 1,810
90
6. Agriculture
Table C.6 (a) Net Irrigated Area over Net Sown Area (%)
Jharkha
nd 9.2 9.2 9.2 9.2 9.3 9.3
Chhattisg
arh 24 22.5 22.8 25.3 26.2 27.1
Tamil
Nadu 54.2 50.3 45.8 51.7 55.7 56.4
Uttarakh
and 44.5 44.9 44.5 44.5 45 44.7
91
• The relatively low irrigated area for the state will continue to be a
constraint on its agricultural development. However, since it
receives high seasonal rains, efforts should be made to develop
tanks, ponds and lakes across the state. These will not only help
in maintaining high ground-water levels, but will also be used
directly for irrigation purposes.
92
b. Food grain yield
200
1- 2002- 2003- 2004- 2005- 2006- 2007-
States 02 03 04 05 06 07 08
119
Jharkhand 9 1053 1490 1,479 1,077 1,550 1,588
166
Bihar 4 1568 1600 1,535 1,311 1,656 1,540
111
Chhattisgarh 8 651 1228 1,278 1,111 1,148 1,239
139
Orissa 9 716 1341 1,414 1,349 1,359 1,500
404
Punjab 0 3828 3929 3,943 3,986 4,017 4,252
174
Uttarakhand 2 1508 1672 1,649 1,548 1,760 1,675
242
West Bengal 4 2374 2422 2,444 2,423 2,511 2,476
220
Tamil Nadu 9 1612 1549 1,536 1,847 2,610 2,178
173
India 4 1535 1731 1,744 1,716 1,756 1,854
94
• Bank credit to agriculture is considerably lower in Jharkhand as
compared to economically developed states like Punjab,
Maharashtra.
95
7. Investment Scenario
a. Total outstanding Bank Credit
The amount of bank credit utilized in a state measures the extent to which
funds are being used for economic activity as all sectors of the economy –
agriculture, industry, trade etc – take recourse to bank credit to meet their
investment needs. In a poor country where resources are scarce, the banking
system is a tool which is used to promote development, particularly as credit
is made cheaper for priority sectors. Over time, the growth of total bank
credit is a pointer to the expanding economic growth in the region as a
higher rate denotes higher demand for financing economic activity.
Table: D.7(a) Total outstanding Bank Credit
CAGR(
%) for
Total
Bank
Credit
Utilized
(2001-
States 2001 2008 08)
Jharkhan 473,33
d 5 1,738,310 20.42
Chhattisga
rh 374,897 2,045,902 27.43
Uttarakhan
d 223,333 1,158,477 26.51
West 2,947,5
Bengal 59 12,551,150 23.00
53,843, 241,700,6
India 379 52 23.93
96
• The growth rate is also lower than the national average.
• The CAGR for total commercial bank credit utilized among the
newly formed states is highest in case of Chhattisgarh followed
by Uttarakhand.
97
b. Per Capita Gross State Domestic Product
GSDP is the market value of all the goods and services in the current year in
the state. It is one of the widely used measures of the economic growth.
Table C.7 (b) Per Capita GSDP at current prices across states (in Rs.)
Source: CSO
• The per capita GSDP of Jharkhand is lower than the other new
sates.
98
99
c. State Per Capita Income and Growth in Per Capita income
Source: CSO
• Jharkhand has much higher growth rate in per capita income than its
mother state, Bihar during 2001-08.
• Among the newly formed states, Uttarakhand has the highest growth
in per capita income followed by Jharkhand and Chhattisgarh.
100
• Although growth of per capita income in Jharkhand is higher than
developed states like Maharashtra and Tamil Nadu, this cannot be
taken to conclude that Jharkhand is in a better position than these
states, since the developed states already have much higher per
capita income though the growth is less.
Income in the state originates from various sectors – the primary sector:
agriculture (including livestock products), forestry, fishing, mining activities;
the secondary: manufacturing activities, construction, electricity, gas and
water supply; the services sector: transportation, storage and
communication, trade, hotels and restaurants, finance, banking and
insurance, real estate, public administration etc. Traditionally the process of
development has seen the contribution of the primary sector declining as
secondary sector activities grow in importance. Recently, the surge in the
services sector has added considerable value to economic activity in the
country. Less developed states continue to have relatively larger shares of
income still coming from the primary sector.
Secondary
Primary Sector Sector Tertiary Sector
2001- 2007- 2001- 2007- 2001- 2007-
States 02 08 02 08 02 08
Jharkhan
d 29.3 21.9 35.3 39.5 35.5 38.6
Bihar 37.9 24.8 11.2 15.7 51.0 59.5
Chhattisga
rh 37.2 31.7 20.8 34.3 42.0 33.9
Uttarakha
nd# 30.1 20.7 18.8 29.5 51.1 49.8
Punjab 35.0 32.5 22.7 24.7 42.3 42.8
West
Bengal 31.3 24.8 15.2 19.4 53.5 55.8
Maharasht
ra 16.2 14.5 25.7 26.8 58.2 58.7
Source : CSO
# Data for Uttarakhand is for the year 2006-07 due to the non-availability of
data for 2007-08
101
• The share of primary sector in Jharkhand has decreased by 7.4
percentage points during 2001-02 to 2007-08.
• The rise in share of secondary sector in GSDP has been far higher in
case of the Chhattisgarh and Uttarakhand as compared to Jharkhand.
• The share of secondary sector is almost three times more than its
mother state Bihar.
• Among the new states, Chhattisgarh has the highest share in primary
sector followed by Jharkhand. The share of secondary sector is highest
in Jharkhand followed by Chhattisgarh. As far as tertiary sector is
concerned, Uttarakhand leads the other two states.
Per capita public administration GSDP is the ratio of the GSDP contribution
from public administration to the population of the state for the current year.
This ratio captures essentially the per capita expenditure incurred on public
administration.
Chhattisgar
h 898 817 676 740 791 1,002 1,021
Uttarakhan
d 1,060 1,134 1,269 1,343 1,555 1,755 NA
102
Maharashtr
a 1,247 1,332 1,401 1,574 1,789 1,898 2,361
Source: CSO
103
f. Gross Capital Formation
Gross Capital
formation
per person
(Rs. per
State person)
Jharkhand 1,769
Bihar -64
Chhattisgarh 2,475
Uttarakhand 2,257
Maharashtra 2,813
Punjab 1,666
Orissa 2,060
India 1,544
104
Source: Annual Survey of Industries
• Jharkhand has higher per capita gross capital formation than that
of India, the national average.
Table C.7 (g) Commercial Bank Credit across states (Rs per Person)
Jharkha
nd 3,641 4,048 5,024
Chhattisg
arh 4,521 5,272 6,560
Uttarakh
and 6,366 8,131 9,729
Maharash
tra 48,527 61,166 77,315
105
Tamil
Nadu 21,686 28,294 34,367
West
Bengal 8,434 11,264 13,542
• Jharkhand has more than two times the commercial bank credit
than Bihar on a per capita basis.
106
8. Consumer markets
The households who earn less than Rs. 75,000 annually fall under the bottom
income category and those households who earn more than Rs. 3,00,000
annually fall under the top income category. This indicator describes the
extent of inequality prevalent in the region.
Table C.8 (a) Percentage of households in the bottom and top income
categories, 2008
Bottom
States Category Top Category
107
of households under the top category compared to the other two
states.
.
The per capita expenditure of a region gives a clear picture of the consumer
patterns of the residents of the state. This indicator is important to
understand the nature of consumer markets in the state.
Table C.8 (b) Annual Per Capita Expenditure across states (Rs per person), 2008
State Rural Area Urban Area
108
• The annual per capita expenditure of Jharkhand is much less
than economically developed states like Maharashtra and
Punjab.
109
c. Households with T.V. Available
Jharkhand 17 24
Bihar 9 15
Chhattisgarh 22 28
Orissa 16 24
West Bengal 27 32
Punjab 68 78
Uttarakhand 43 53
India 32 41
111
d. Vehicular Population
Owning a vehicle denotes some level of affluence of the owner and the type
of vehicle owned explains the degree of affluence. As the state economy
grows and matures, people begin by purchasing two wheelers and then
move on to fourwheelers.
Table C.8 (d) Percentage of household owning two-wheelers and four wheelers
Jharkhand 2 2 9 14
Bihar 1 1 4 5
Chhattisgar 1 2 11 17
h
Uttarakhan 3 5 12 20
d
Punjab 32 40 6 9
Orissa 1 1 8 13
West 2 3 5 10
Bengal
India 3 4 12 18
112
• When we compare Jharkhand with West Bengal one very
interesting fact that is observed is that Jharkhand has better
penetration of two wheelers than West Bengal, but the picture
gets reversed in the case of penetration of four wheelers.
113
9. Fiscal Status
a. Per Capita Revenue Receipts
Jharkhan
d 2,264 2,700 2,666 2,572 2,838 3,391 4,301
Chhattisga
rh 2,100 2,555 2,762 3,396 3,527 5,155 5,351
Uttarakhan
d 3,219 3,705 4,054 5,469 6,480 7,083 8,257
West
Bengal 1,813 1,790 2,021 2,446 2,528 3,117 4,495
Source: RBI
114
115
b. Per Capita Revenue Expenditure
Revenue expenditure of states is incurred for carrying out the day to day
expenses in a specific accounting period. It includes non-developmental
expenditure, development expenditure and transfer to funds. The revenue
expenditure per person shows how much amount is spent per person in an
accounting period. It basically includes the expenditure on administration,
wages, maintenance and consumables.
Jharkha
nd 2,226 2,821 2,615 2,963 3,225 3,755 4,301
Chhattisg
arh 2,359 2,608 3,059 3,581 3,639 4,430 5,351
Uttarakh
and 3,337 4,231 4,911 6,637 6,948 6,713 8,257
West
Bengal 2,918 2,854 3,134 3,521 3,689 4,088 4,495
Source: RBI
• Among the new states, Uttarakhand has the highest per capita
revenue expenditure followed by Chhattisgarh.
116
117
Per Capita Capital Expenditure
Table C.9 (c) Per Capita Capital Expenditure (Rs per person)
12,53 14,23
India 607 814 9,000 7,442 6,389 8 5
Source RBI
118
• Incurring higher capital expenditure is a positive sign for the
growth of a state provided it is divided equally among all the
sectors.
119
d. Expenditure on Social Services
The level of Social Sector expenditure has crucial implications for the long-
term prospects of the economy. This is a crucial component of
developmental expenditure as it encompasses social services including
education and health, rural development, food storage and warehousing.
Jharkha
nd 40.88 38.9 33.91 35.74 39.83 41.3 38.35
Chhattisg
arh 38.95 37.73 34.37 36.01 37.84 40.92 39.95
Uttarakh
and 39.45 39.96 38.84 37.99 38.75 37.27 39.28
West
Bengal 35.49 32.81 31.2 31.81 32.15 34.32 35.53
Source: RBI
Jharkha
nd 12.7 18.4 8.3 7.7 9.1 12 15.74
Chhattisg
arh 15 10.6 0.8 1.6 2.1 2.8 1.86
120
Uttarakh
and 5.8 5.6 0.5 2.7 2.6 2.8 3.85
West
Bengal 3.2 2.7 0.1 0.2 0.6 0.4 0.53
Source: RBI
121
Per Capita Gross Fiscal Deficit
Gross Fiscal Deficit (GFD) is the difference between the total revenue in the
current year and total expenditure by the government. State governments’
GFD can be broadly broken up into the following components: revenue
deficit, capital outlay and net lending.
Chhattisgar
h 589 617 750
Maharashtr
a 1,630 1,507 985
Uttarakhan
d 2,629 1,944 1,627
West
Bengal 1,330 1,365 1,359
Source: RBI
122
• Among the newly formed states, Uttarakhand has the highest
GFD per person followed by Jharkhand.
123
Section IV: The Districts of Jharkhand
At inception Jharkhand had 18 districts. Over the years 4 new districts were
added - Sareikela and Kharsawan, Jamtara, Latehar and Simdega. Further
two major subdivisions namely Khunti and Ramgarh of Ranchi and
Hazaribagh district respectively have been created as new districts in
October 2007. At present the state is divided in 24 districts. Jharkhand is
endowed with vast natural resources, a widevariety of minerals ranging from
iron ore, coal, copper ore, mica, bauxite, graphite, lime stone, uranium and
other minerals. It is the leading producer of minerals in the country.
Ranchi is the largest district of the state and is rich in coal, limestone and
asbestos, while Bokaro is famous for the largest steel plant of the country
owned by SAIL. Paschim Singhbhum is blessed with mineral wealth,
especially iron ore and manganese, while Purbi Singhbhum is known for
Jamshedpur, the first steel city of India- the Tata Steel plant.
124
1. Health and Civic Attainment
Proper sanitation facility has been considered as one of the basic necessities
for good health. Ensuring better sanitation facility is not only implied but
also the ethical duty of the state. This variable measures the percentage of
households who have water closet/latrines.
District Percenta
ge of
househo
lds with
proper
sanitatio
n facility
(%)
Bokaro 36.9
Chatra 7.5
Deoghar 12.5
Dhanbad 29.1
Dumka 15.8
Garhwa 5.9
Giridih 6.8
Godda 5.0
Gumla 11.4
Hazaribagh 25.6
Jamtara 5.7
Kodarma 15.0
125
latehar 7.6
Lohardaga 15.1
Pakaur 7.0
Palamu 8.0
Paschim 17.1
Singhbhum
Ranchi 28.6
Sahibganj 8.1
Simdega 6.3
Saraikela 15.7
b. Immunization of children
Table D.1 (b) Percentage of Children 12-35 months fully immunized (2008-
09)
Chatra 23.2
Deoghar 8.4
Dhanbad 54.9
Dumka 15.5
Garhwa 37.2
Giridih 43.2
Godda 6.6
Gumla 25.8
Hazaribag 72.8
Kodarma 38.1
Lohardaga 61.1
Pakaur 46.7
Palamu 40.0
Pashchimi 13.9
Singhbhum
Ranchi 47.1
Sahibganj 31.9
127
2. Education
Literacy Rate
Table D.2 (a) Literacy rate across different Districts in Jharkhand, 2007-08
District Literac
y Rate
Bokaro 72.8
Chatra 58.7
Deoghar 62.5
Dhanbad 72.7
Dumka 61.5
Garhwa 58.5
Giridih 57.2
Godda 50.3
Gumla 62.4
Hazaribagh 69.5
Jamtara 57.2
Kodarma 63.7
latehar 63.3
Lohardaga 65.6
Pakaur 44.0
Palamu 62.9
Paschim 69.1
Singhbhum
Purbi 76.5
Singhbhum
128
Ranchi 70.4
Sahibganj 45.9
Simdega 64.9
Saraikela 67.4
The pupil teacher ratio is the number of students per teacher. It takes into
account all the teachers teaching the students enrolled in classes I to VIII.
This ratio shows the average number of students every teacher is teaching.
It reflects the degree up to that a teacher can devote personalized attention
to his pupils. The lower the ratio, the better it is for developing the
educational standard of a particular area since lesser number of students will
get attention by a teacher. Adequate trained teachers are essential for the
educational upliftment in a region.
Table D.2 (b) Pupil Teacher Ratio across different Districts in Jharkhand
(2008-09)
Deoghar 88 Pakaur 81
Dumka 89 Pashchimi 28
129
Singhbhum
Godda 67 Sahibganj 67
130
3. Demography
Crude birth rate measures the number of live births during a particular year
per thousand mid year population. It is one of the basic indicators of
population growth. India’s crude birth rate has been falling and stands at
about 25 per thousand population.
Table D.3 (a) Crude Birth Rate (per thousand of population), 2008
Birth Birth
District rate District Rate
Pashchimi
Garhwa 35.7 Singhbhum 26.8
131
b. 0-6 year Age Group Sex Ratio
Child sex ratio measures the number of female per 1000 male children in 0-6
age group. This ratio is indicative of discrimination against the girl child
starting from birth to her overall upbringing. It specifically gets reflected in
her access to food, nutrition, health care, and medical support services. The
child sex ratio of Jharkhand as a whole is 965 females per 1000 males.
Paschim
Garhwa 960 Singhbhum 973
• Purbi Singbhum has the lowest child sex ratio at 940. As the
child sex ratio is directly associated with mortality, it is indicative
of discrimination against the girl child and the prevalence of
female infanticide. Even better developed districts like Ranchi,
132
Bokaro, and Dhanbad have very poor ratios, which is a cause for
concern.
133
4. Poverty
This ratio takes into account percentage of all the people who are below the
poverty line. This is the standard measure of poverty.
Table D.4 (a) Head Count Ratio across different Districts in Jharkhand
(2004-05)
Pashchimi
Garhwa 32.2 Singhbhum 50.7
134
• The Head Count Ratio is very high in districts of Lohardaga,
Sahibganj and Gumla where it is more than 70 percent, showing
the poor conditions of these districts. With the available
resources and potentialities, these district deserve immediate
attention for resources planning which could magnify these
districts in every field of development.
135
Households not getting Square Meals
The number of households where every member has had at least two square
meals a day is an indicator of food sufficiency and a high proportion of food
sufficient households reflects less poverty.
Table D.4 (b) Percentage of Households not getting two square meals a day
for all members
Househol Household
District ds District s
Deoghar 0 Lohardaga 0
Dhanbad 0 Pakaur 0
Pashchimi
Garhwa 0 Singhbhum 7.28
• Districts like Giridih, Palamu and Hazaribagh have the highest number
of households that do not get two square meals a day for all their
members. There is an urgent need for combating drought, hunger and
mass migration, increasing the productivity of agriculture, generating
farm and forest-based livelihoods and promoting animal husbandry.
• Districts like Bokaro, Chatra, Deoghar are better performers with
negligible households without food sufficiency.
136
5. Economy
a. Growth in Employment
Growth in employment reflects the opportunities being created with respect
to providing the labour force with gainful employment. A faster growth rate
of the labour force than that of employment leads to greater unemployment.
This indicator calculates the employment level and its increase in the region
in the given tenure.
Table D.5 (a) Growth in Employment from 1991 to 2001
Districts Average annual Growth in Average annual Growth in Average annual Growth in
Employment Rural Employment Urban Employment
137
S
139
Sahibganj 3,230 24,270 38,135
• Among the districts of Jharkhand, Giridih has the highest per capita
income in urban areas followed by Deoghar. On the other hand, Godda
has the lowest per capita income in urban areas.
• In rural area, the highest and lowest per capita income is seen in the
districts of Sahibganj and Purbi Singhbhum respectively.
• Ranchi has the largest market size among all the districts of Jharkhand
followed by Dhanbad.
140
Percentage of Households with Motor Vehicles
District % of
househo
lds have
a motor
vehicle
Bokaro 34.4
Chatra 7.6
Deoghar 12.6
Dhanbad 23.0
Dumka 6.0
Garhwa 6.1
Giridih 10.2
Godda 5.3
Gumla 7.2
Hazaribagh 21.9
Jamtara 9.4
Kodarma 12.0
Latehar 5.2
Lohardaga 12.9
Pakaur 3.8
Palamu 8.6
Paschim 15.7
Singhbhum
Ranchi 24.6
Sahibganj 2.8
Saraikela 16.3
141
Simdega 7.3
Source: District Level Household Survey 3, Ministry of Health and Family Welfare
142
d. Mobile Connections
Table D.5 (d) Number of Mobile Connections per 1000 persons, 2005
Chatra 4
Deoghar 8
Dhanbad 11
Dumka 5
Garhwa 4
Giridih 3
Godda 4
Gumla 2
Hazaribagh 8
Jamtara 2
Koderma 7
Latehar 2
Lohardaga 4
Pakaur 4
Palamu 5
143
Paschim
Singhbhum 5
Purbi Singhbhum 19
Ranchi 17
Sahibganj 4
Sareikela and
Kharsawan 1
Simdega 2
• Except Purbi Singhbhum, only Ranchi and Dhanbad are the other
districts which have more than 10 per 1000 penetration of
mobiles among their population.
144
6. Overall Performance of the Districts
The parameters used for measuring the overall standing of the district in the
state are
1. Education
• Literacy Rate
• Female Literacy Rate
• Pupil Teacher ratio
3. Demography
• Crude Birth rate
4. Poverty
• Head Count Ratio
• Households not getting square meals
145
5. Economy
• Growth in Employment
• Number of Mobile Connections
• Percentage of households with 4 wheelers
• Percentage of households with TV
Motivation
For measuring the performance of the district in health and civic attainment
four variables have been taken namely, coverage of safe drinking water, the
percentage of women having trained assistance during delivery, percentage
of households with Water Closet/Latrine and Percentage of women receiving
full Ante natal checkup – At least 3 visits for ANC + at least one TT injection
+ 100 or more IFA tablets/syrup.
The Crude Birth Rate reports the rate of increase in population. A high
population growth rate is not good for an already populous country like India
since the resources are limited and income levels are relatively low.
The last parameter is the status of economy which includes variables like the
growth in employment which reflects how fast the new avenues of jobs are
developing in the region, number of mobile connections which depicts the
dynamism of technological advancement made in the economy, percentage
of households owning assets such as four wheelers and TV.
Methodology
Step 1: An index is obtained for each of the 10 ratios discussed in the data
section. The following formula was used to obtain each of the 10 indices:
Where Sij represents the value of ratio j for state i. The index is constructed
for 22 districts of Jharkhand and therefore i ranges from 1 to 22. There are
10 ratios for which the indices have been constructed, j=1,2,…,10. I ij is the
index value that is derived for district i over ratio j. The index value lies
between 0 to 1 within each ratio. The district corresponding to index value 0
147
can be interpreted as having the lowest level of economic freedom and the
district with index value of 1 can be said to have the highest level of
economic freedom relative to other districts.
Step 2: Once all the indices for the 10 ratios were obtained, a composite
index was obtained on the basis of all these indices.
Ai=Σ Iij
j
55
Then the districts were ranked for different parameters. After this the
average of all the parameters was taken and the overall aggregate was
calculated. The districts were then ranked on the basis of this overall
aggregate.
Overall performance
Purbi Singhbhum 1 1
Dhanbad 2 2
Bokaro 3 4
Ranchi 4 3
Hazaribagh 5 6
Paschim Singhbhum 6 14
Sareikela and 7 15
Kharsawan
148
Koderma 8 5
Deoghar 9 8
Chatra 10 9
Lohardaga 11 10
Jamtara 12 12
Garhwa 13 11
Dumka 14 19
Gumla 15 20
Palamu 16 17
Simdega 17 18
Latehar 18 7
Godda 19 16
Giridih 20 22
Sahibganj 21 13
Pakur 22 21
Districts like Paschim Singhbhum and Sareikela have shown major signs of
improvement in the education and health sector, resultantly they have
obtained sixth and seventh rank respectively as compared to fourteenth and
fifteenth place last year.
Latehar and Sahibganj are the laggard districts as their rankings have
dropped by eleven and eight places respectively. The development process
in these districts has not been undertaken as a result they lag in almost all
the spheres including economic, social and demographic.
Purbi
1 0.82 Singhbhum 0.73 3 0.84 1 0.79 10 1.00 1 0.84 1
Paschim
6 0.48 Singhbhum 0.83 1 0.35 8 0.67 13 0.47 5 0.24 16
Sareikela and
7 0.45 Kharsawan 0.74 2 0.41 7 0.67 13 0.47 5 0.25 15
150
• Purbi Singhbhum topped the list (which is most likely because of the
presence of the industrial area like Jamshedpur), followed by Dhanbad.
Bokaro has acquired the third position.
151
Section V: Industrial Profile of Jharkhand
Owing to its rich mineral base, Jharkhand has the presence of some of the
biggest industrial plants in India. The total value of industrial product of the
state at the end of the financial year 2008-09 was Rs. 571,206.14 million.
The industrial sector in Jharkhand employs around 1.76 million people. The
value of raw material consumed in the state is Rs. 232,779.4 million.
A. Composition of Industries –
Jharkhand has third largest coal reserves in India forming base for coke oven
industry which is the third largest industry in Jharkhand and has 7 per cent
share in total industrial product of the state. The non-ferrous metals and
minerals industries account for 3.72 per cent and 3.57 per cent share
respectively to Jharkhand’s industrial output.
%
Industry share
152
Source: Industrial Skyline of India, Indicus Analytics, 2008-09
Growth
rate
Industry (%)
Motor vehicles 16
• Iron and steel industry which accounts for maximum industrial output
of the state has shown 24 per cent annual growth rate. This can be
accounted to rise in demand for steel during last eight years with
expanding infrastructural activities, growth in auto industry and robust
demand from construction sector.
• With pick up in auto sales at national level, the motor vehicle industry
in Jharkhand has registered an average growth rate of 16 per cent
during past eight years.
• Coal is one of the key sources of energy in India with power sector
having high dependence on coal as raw material. Jharkhand with huge
153
coal reserves witnessed robust growth in coke oven industry which
rose at the rate of 15 per cent between 2001 and 2009.
• The minerals and metals related industries were among the other
fastest growing industries in Jharkhand.
154
c) Top Industries in Districts of Jharkhand –
i. Bokaro – SAIL had set up its steel plant in Bokaro district of Jharkhand
in 1964. Thus iron and steel is the major sector in the district
accounting for 95 per cent of the total industrial value of the district.
Share in industrial
product value of
Industry the district (%)
iii) Deoghar – The iron and steel industry and the non-metallic mineral
products have maximum share in the industrial production in Deoghar
district of Jharkhand. Another major industrial activity comprises of grain,
starch products and animal feeds.
155
Share in
industrial
product
value of the
Industry district (%)
Share in
industrial
product value
of the district
Industry (%)
156
Share in
industrial
product value
of the district
Industry ( %)
157
vi) Garhwa – The industrial profile of Garhwa district is largely dominated by
chemical industry which accounts for more than half of the industrial
production value in the district. The other significant industries include
fabricated metal products and man-made fibres.
Share in
industrial
product
value of
the district
Industry (%)
vii) Giridih – Giridih has large deposits of mica and coal reserves which has
led to the flourishing of industries such as non-mineral metallic products and
coke oven products. Mineral Products constitute 56 per cent of the industrial
base in Giridih while coke oven and iron & steel work constitute 12.9 per
cent and 11.52 per cent of the district industrial product respectively.
Share in
industrial
product value
of the District
Industry (%)
158
viii) Godda – The top three industries in Godda district of Jharkhand
constitutes 70 per cent of the overall secondary output. These industries
include grain, starch products, non-metallic mineral products and
manufacturing sector.
Share in
industrial product
value of the
Industry district ( %)
Manufacturing 15.86
ix) Gumla – Bauxite and Laterite are the important minerals available in
Gumla district, hence the non-metallic mineral industry has the highest share
of 27 per cent towards the industrial product value in the district. Grain and
starch products and tobacco sector are the other two significant industries.
Share in industrial
product value of the
Industry district (%)
Share in
industrial
product value
of the district
Industry (%)
159
Non-metallic mineral products 41.54
xi) Koderma – The basic iron and steel industry accounts majorly for the
industrial output in Koderma district. Other industries include metal products
and non-metallic mineral products.
Share in industrial
product value of
Industry the district (%)
Share in
industrial
product value
of the district
Industry (%)
Publishing 12.11
Share in industrial
product value of
Industry the district (%)
Share in
industrial
product value of
the district (in
Industry %)
Share in
industrial
product
value of
the district
Industry (%)
162
xvi) Purbi Singhbhum – Motor vehicles is the largest industry in the Purbi
Singhbhum district accounting for two third of the industrial product value.
Other industries operating in the district includes ‘Basic precious and non-
ferrous metals’ and ‘Special purpose machinery’.
Share in industrial
product value of the
Industry district (%)
Special purpose
machinery 7.91
xvii) Ranchi – Ranchi, the capital of Jharkhand is better known as ‘Steel City’
with more than 50 per cent of its industrial product value coming from basic
iron and steel industry. The industry primarily constitutes of small and
medium scale steel fabrication units. Metals are the second biggest industrial
sector in Ranchi.
Share in
industrial
product
value of
the district
Industry (%)
Manufacturing 13.85
B. Employment-
The non-metallic mineral products engage almost 7 per cent of the industrial
workers in the state of Jharkhand. The beverages and apparel industry each
employs more than 6 per cent of the industrial workforce.
The iron and steel industry, though has highest share in industrial output,
due to its capital intensive nature employs only 3.5 per cent of the
workforce.
Share in
industri
al
product
value of
the
district
Industry (%)
164
Tobacco products 38.64
Beverages 6.48
165
b) Top employment-generating industries in districts of
Jharkhand –
Share in
employme
nt
generatio
Industry n (%)
Non-metallic mineral
products 11.41
ii) Chatra – In Chatra district, 44 per cent of the industrial workers are
engaged in tobacco production. The second largest employment
generating sector in the district is structural metal products,
followed by apparel sector.
Share in
employme
nt
generation
Industry (%)
Apparel 12.64
Share in
employme
nt
generatio
Industry n (%)
Share in
employment
Industry generation (%)
Apparel 17.73
Industry Share in
employme
167
nt
generatio
n (%)
Share in
employme
nt
generatio
Industry n (%)
Apparel 30.74
168
vii) Giridih – In Giridih, beverage industry is the largest employer
engaging around 41 per cent industrial workers of the district. The
readymade garment sector falls at second place with 21 per cent
share in employment generation in the secondary sector of the
district.
Share in
employment
Industry generation (%)
Beverages 41.52
Apparel 21.67
Non-metallic mineral
products 8.39
Share in
employme
nt
generation
Industry (%)
Apparel 22.07
169
Share in
employme
nt
generatio
Industry n (%)
Share in
employme
nt
generatio
Industry n (%)
Share in
employme
nt
generatio
Industry n (%)
Share in
employme
nt
generatio
Industry n (%)
Footwear 4.03
Share in
employme
nt
generatio
Industry n (%)
Beverages 0.59
Share in
employme
nt
generatio
Industry n (%)
Apparel 12.27
Share in
employme
nt
generatio
Industry n (%)
Beverages 27.55
Share in
employment
generation
Industry (%)
Share in
employme
nt
generatio
Industry n (%)
173
xviii) Sahibganj – In Sahibganj, tobacco is the leading employment
generating industry providing employment to almost 50 per cent of
the industrial workforce of the district. Beverages and ‘grain, starch
and animal feeds’ industries have 18.5 per cent and 11.8 per cent
shares respectively in employment generation.
Share in
employme
nt
generatio
Industry n (%)
Beverages 18.52
1. The Iron and Steel industry has the highest raw material consumption
in Jharkhand accounting for close to 40 per cent of the total value of
the inputs used.
2. The auto sector is the second largest consumer of the raw material in
Jharkhand with its share in total raw material consumption being close
to 17 per cent.
3. Coke oven product industry which has coke as its major input,
accounts for almost 10 per cent of the total input values in Jharkhand.
4. Basic precious and non-ferrous metals industry follows the top three
industries in the State in terms of raw material consumption with its
share being 5 per cent.
5. The auto components sector with its presence among the top ten
industries in Jharkhand, has considerable input consumption
amounting to 4.6 % of the total value.
6. Other industries with high raw material consumption value include
metal products, minerals, ‘grain, starch and animal feeds’ and ‘special
purpose machinery’.
175
Section VI: Jharkhand’s best and worst
constituencies
The rankings have been derived using district-level data from ‘Indicus District
Development Database’. The variables selected for the ranking exercise are
mentioned below:
a. Socio-economic category
1. Female literacy
2. Primary to upper primary school transition
3. Poverty ratio4,
4. Marginal workers
5. Immunization of children
6. Weight for age
1. Households electrified
2. Households with telephones
3. Areas connected by pucca roads
The next step is to map districts with parliamentary constituencies. This requires
the percentage of a constituency's population in a district. If this is known, weighted
averages of district values can be used to obtain estimates for constituencies. The
population data for the individual constituencies was available from Delimitation
Commission which itself used the Census data, 2001. With equal weights, one can
now construct a socio-economic index and a physical infrastructure index at the
constituency level with the respective district level socio economic and
infrastructural variables adjusted accordingly. An important point to note here is
that the lists of constituencies are the new constituencies as specified by the
4
derived from work done by Amaresh Dubey
176
Delimitation Commission in the year 2008 and may or may not coincide with
prevailing constituencies.
Table 1
Table 1 shows the list constituencies of Jharkhand with their corresponding index
values and respective positions in the state. The index values are given separately
for both socio economy and infrastructure. As evident from the table, the
constituency of Dhanbad has occupied the top position in the state followed by
Bokaro and Jamshedpur in both the categories. The worst performers in the socio
economy category are Godda and Dumka and that in the infrastructure category
are Lohardaga and Palamu. The top performing constituencies are the mineral rich
177
places which give them an edge over others. For instance, coal in Dhanbad, steel in
Bokaro etc. On the contrary, the worst performing constituencies are basically
clustered around the tribal regions of Lohardaga, Palamu which are generally the
deprived areas.
178
Table 2
Jharkhand Murti
Jamsedpur 355 351 Sunil Kumar Mahato Morcha
Indian National
Khunti (ST) 356 423 Sushila Keketta Congress
Indian National
Ranchi 360 403 Subodh Kant Sahay Congress
Indian National
Lohardaga (ST) 527 509 Rameshwar Oraon Congress
Jharkhand Murti
Giridih 533 472 Tek Lal Mahato Morcha
Jharkhand Murti
Dumka (ST) 540 483 Shibu Soren Morcha
Indian National
Godda 541 470 Furkan Ansari Congress
*: The constituencies are the new constituencies identified by the Delimitation Commission
180
Section VII: Potential Cities – An evaluation
Ranchi, the capital city of Jharkhand having good reserves of forest and
minerals offers an excellent place to set up medium and large-scale
industries. Some of the well-known industries in the state include:
Chotanagpur Rope Works Private - Namkum; Heavy Engineering Corporation
– Dhurwa; Bharat Mineral and Ceramic Ind. – Mahilong etc. An autonomous
body “Ranchi Industrial Area Development Authority” is responsible for
developing the industries in Ranchi by arranging loans, supplying power, and
water etc.
181
industries established in the city are, TELCO, Indian Tube Company, The
Tinplate Company of India Ltd. etc. Besides this, the city is home to the first
private Iron and Steel Company of India.
The industrial profile of these four major cities gives a clear picture of the
potential of these cities, which is instrumental for the development of the
whole state. Further, a detailed demographic as well as economic profile of
these cities will provide valuable insights for the investors before they decide
to bring in investment.
Table 1: Demographic Profile 2001
Recent
Migrants per
100,000 Slum
Cities Population population Population
182
Source: City Skyline of India, Indicus Analytics, 2008
Employment
Literacy rate (%)
City Rate (%)
Dhanbad 77 73
Bokaro 72 72.80
Ranchi 72 70
Jamshedp
ur 76 82
Source: City Skyline of India, Indicus Analytics, 2008-09, DLHS 3
Jamshedpur city has the highest household income and household savings
among four cities identified in the state.
Ranchi city has the largest market size among all four major cities in the
state and thus has higher chances of attracting investments.
The literacy rate among all the four cities is more than the state average
(62 per cent).
Jamshedpur has highest literacy rate of 82 per cent among the four cities
followed by Dhanbad.
183
Section VIII: Ranking of Eastern Zone States
Law Composi
Agricult & Infrastruct te Rank
States ure Order ure 2009
Assam 20 17 17 15
West
Bengal 11 20 13 14
Chhattisg
arh 18 10 19 16
Orissa 17 16 15 17
Jharkhan
d 19 15 20 19
Bihar 16 19 18 20
184
Table 1 shows that no eastern zone state makes it to the top ten at all-India
level. The potential of agriculture-sector generally remains untapped in the
region. Except West Bengal no other state has performed well in agriculture.
Dry-land farming; sustainable agricultural practices, commercialization of
agriculture etc. are some of the possible measures which the states could
take to improve this sector.
The law and order situation is quite poor in the region. It is mainly disrupted
by widespread naxalism. Equitable socio-economic development,
strengthened internal-security, and a coordinated effort by all the affected
states would go a long way in resolving this persistent problem.
Infrastructure bottlenecks are another major hindrance in achieving overall
development in the region. The provision of world-class infrastructure in
certain spheres like power, telecommunications, information-technology, and
transport would go a long way in removing these bottlenecks.
Law Over
& all
Agricult Orde Infrastruct Heal Educati Rank
States ure r ure th on 2009
Assam 6 4 3 2 1 2
West
Bengal 1 6 1 1 2 1
Chhattisg
arh 4 1 5 5 4 3
Orissa 3 3 2 4 3 4
Jharkhan
d 5 2 6 3 5 5
Bihar 2 5 4 6 6 6
Table 2 gives the position of the states in the eastern zone. In agriculture,
West Bengal has done the best in the eastern region. Fertile alluvial soil and
good irrigation facilities have helped in enhancing food grain yield in the
state. River Hooghly and its tributaries - Mayurakshi, Damodar, Kangsabati
185
and Rupnarayan while the northern part comprising of the districts of
Darjeeling, Jalpaiguri and Cooch Bihar are watered by the swift flowing rivers
Tista, Torsa, Jaldhaka and Ranjit. On the other hand, Jharkhand’s mineral rich
land is generally unsuitable for agriculture.
West Bengal has better infrastructure facilities than other eastern states. The
state has better connectivity to pucca roads, rich asset ownerships etc. On
the other hand, Jharkhand has not been able to provide better infrastructure
facilities to its citizens. Despite hosting Damodar Valley Corporation, India’s
first multi-purpose hydro-project, Jharkhand has not been able to provide
power, telephone and road connectivity in remote areas. This has pushed it
to the bottom in terms of infrastructure in the region.
In provision of basic healthcare facilities, West Bengal is the best state in the
eastern zone. Jharkhand does fairly better than other eastern states in health
sector as indicated by relatively better infant mortality ratio, sex ratio and
state government expenditure on health and family welfare.
In terms of overall performance, West Bengal holds rank one among the
eastern zone states. The state has performed better vis-à-vis its neighbors in
agriculture, infrastructure, health and education, which has pushed it to the
top ranking. Jharkhand comes at fifth place, one place above its parent state
Bihar. Unscientific agriculture, poor infrastructure, naxal problem, and
political instability pose major developmental challenges for the state, which
need to be transcended to achieve all-round development of the state.
186
Section IX: Looking into the Future
What will life look like ten years from now? This is a question that occupies
people around, as ordinary citizens wonder what there is to look forward to,
policy makers and administrators need to visualise and plan for a better
world. There are clear limitations to the ability of forecasters and the year
2008 is an excellent example of this. In fact, ten years ago, the state of
Jharkhand was itself just a concept, an ideal towards which people were
working. Yet, it is important to have some idea of what to expect ahead and
work towards improvements. Thus, even with all the constraints of
forecasting abilities, one can always indulge in some speculation, to imagine
one probable scenario of the infinite combinations of the future.
187
188
189
Per capita Matching Rank of Annual
income in country’s country rate of
internationa current per in the growth
l dollars capita world*
income
State 2020-21 2008
The aim of economic growth is to raise the standard of living of the average
citizen; the measure for this is typically the per capita income of the state or
country. In this exercise, there has been no attempt to forecast any change
in the rate of growth, that is, the states are assumed to grow at the rate they
have grown in the past. In other words, the question that is answered here is
- if the present growth trend continues, what will be the per capita
190
income in the year 2020-21? More importantly, this per capita income has
been translated into international dollar5 terms to compare with current
conditions in countries around the world. This makes it easier to visualise the
change ahead. One important point to note is that if a state grows at a faster
rate than before, its position will naturally improve, whereas if it grows at a
slower rate, there will be a comparative fall in the ranking. Thus, the exercise
shows for instance that if Chandigarh grows at its present growth rate, by
2020-21, its citizens will enjoy the same per capita income as Singapore
does today. As Singapore ranks sixth today in per capita income levels and
India ranks 144th, it is clear what this jump will mean to the people of
Chandigarh.
Looking ahead, growth rates keep changing. Two years ago, the world was
on a high and 2008 saw a collapse that left no state or country untouched.
Despite this, a slow recovery has been initiated and India has been doing
much better than other countries. It has the strongest growth prospects for
2010. Jharkhand meanwhile, lost some of its high growth steam in 2007-08.
However, with a projected growth of 7.9% till 2020-21, the state can be
expected to reach the level of income enjoyed today by Thailand, a country
that ranks 115th in the world today. However, if Jharkhand can raise its level
of economic growth, it has the potential to boost income and standard of
living levels, higher than what are found in Thailand today.
Parent state Bihar which is the poorest state in India today needs a much
higher boost. Given the present trend of economic growth, it will reach the
same level as Pakistan and India are today. This means that at current rates
of growth, it will take more than a decade for the average per capita income
in Bihar to even match the present levels in India today.
This exercise has been done to give food for thought to the people and to the
governing classes in the various states. By making comparisons of projected
5
International dollars refers to converting the income from the local currency in PPP terms
or purchasing power parity terms. Market exchange rates fluctuate depending on the trade
between countries; if a dollar is Rs. 43, it does not mean that Rs. 43 buys the same amount
of goods and services in India as $1 does in the US. Therefore PPP exchange rates are
calculated to account for these differences. International dollar therefore is a better method
of comparing incomes measured in different currencies in the world.
191
future income levels with present conditions in countries around the world,
the importance of raising growth rates becomes much clearer. What lies in
the future is always uncertain but it is important to understand where
present growth rates will lead to and work towards improving upon the
present growth rates, to push the economies on higher paths and deliver a
better living for the citizens of the country.
192
Appendix
193
Table 2.Proportion of SC & ST population (2001)
Districts SC ST
Bokaro 13 12
Chatra 32 4
Deoghar 13 12
Dhanbad 16 9
Dumka 7 40
Garhwa 24 15
Giridih 13 10
Godda 9 24
Gumla 5 68
Hazaribagh 15 12
Koderma 14 1
Lohardaga 4 56
Pakur 3 45
Palamu 26 19
Paschim
Singhbhum 5 53
Purbi
Singhbhum 5 28
Ranchi 5 42
Sahibganj 6 29
194
Table 3.Total Literate Population in the districts of Jharkhand (2007-08)
District Literac
y Rate
Bokaro 72.8
Chatra 58.7
Deoghar 62.5
Dhanbad 72.7
Dumka 61.5
Garhwa 58.5
Giridih 57.2
Godda 50.3
Gumla 62.4
Hazaribagh 69.5
Jamtara 57.2
Kodarma 63.7
latehar 63.3
Lohardaga 65.6
Pakaur 44.0
Palamu 62.9
Paschim 69.1
Singhbhum
Purbi 76.5
Singhbhum
Ranchi 70.4
Sahibganj 45.9
Simdega 64.9
Saraikela 67.4
Source: District Level Household Survey III, Ministry of Health and Family Welfare
195
Table 4.Work Participation Rate across sectors
Pashchimi
Singhbhum 47.3 28 44.1
197
Table 5.Total amount of deposits and total credit as per place of sanction,
2008
198
00 00
199
Table 6.District-wise penetration of LPG & television, 2007-08
Districts % of % of
househol househo
ds owning lds
TV having a
motor
vehicle
200
Saraikela 30.0 16.3
Source: District Level Household Survey III, Ministry of Health and Family Welfare
201
Bibliography
Bhandari, Laveesh and Amaresh Dubey (2001) Incidence of Poverty and Hunger in Indian
Districts. RGICS working papers. Rajiv Gandhi Institute of Contemporary Studies, New Delhi.
Central Statistical Organisation (2005) Capital Formation at State Level, Ministry of Statistics
and Programme Implementation Seminar Series.
Ministry of Health and Family Welfare National Family Health Survey, Round 3
Ministry of Home Affairs Crime in India 2007 National Crime Records Bureau.
Ministry of Health and Family Welfare (2008), District Level Household Survey (2007-08), III
Planning Commission (2002) State Plans – Trends, Concerns and Strategies, 10th Five Year
Plan (2002-07), Vol. III.
— (2006) Towards Faster and More Inclusive Growth – An Approach to the 11th Five Year
Plan.
Reserve Bank of India(RBI) (2005) A Study of Debt Sustainability at State Level in India.
202
— (2008) Basic Statistical Returns of Scheduled Commercial Banks in India.
All India Council for Technical Education AICTE Handbook for Approval Process
Indicus Analytics (2009) State of the States 2009 Report prepared for India Today.
203
i
The only solution to NREGA corruption in Jharkhand http://openspace.org.in/node/801
ii
Hindu May 23rd 2009 http://www.thehindu.com/2009/05/23/stories/2009052358062000.htm
iii
Times of India, October 23th, 2009. http://timesofindia.indiatimes.com/city/ranchi/Jharkhand-BPL-families-paid-Rs-16-
cr-as-bribe-Report-/articleshow/5117280.cms