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Jharkhand in its Ninth Year

A Study for Prabhat Khabar

November 2009

NDICUS
www.indicus.net

Indicus Analytics Pvt. Ltd.

Nehru House, 2nd Floor, 4 Bahadur Shah Zafar Marg, New Delhi 110002 India

Ph: +91-11-42512400 Email: indic@indicus.net

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Contents

Acknowledgement...................................................................................................... 5

Introduction................................................................................................................ 6

Data Qualification.......................................................................................................9

Jharkhand – A Review...............................................................................................10

State Profile........................................................................................................... 10

Section I: The Past and Future of Economic Development of Jharkhand...................12

Section II: A review of growth and development in the state of Jharkhand..............17

Section III: Jharkhand in its Ninth Year......................................................................24

Governance in Jharkhand......................................................................................24

1. Law and Order................................................................................................24

2. Public Finance ...............................................................................................35

Price Movement..................................................................................................44

Infrastructure.....................................................................................................46

B. Jharkhand as a Knowledge Economy................................................................59

1. Communication..............................................................................................59

2. Educational Institutions..................................................................................63

C. Socio Economic Profile ....................................................................................71

Demography.......................................................................................................71

2. Workforce.......................................................................................................74

3. Basic Necessity.............................................................................................. 76

4. Health.............................................................................................................81

6. Agriculture......................................................................................................91

............................................................................................................................... 91

7. Investment Scenario......................................................................................96

8. Consumer markets.......................................................................................107

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9. Fiscal Status.................................................................................................114

Section IV: The Districts of Jharkhand.....................................................................124

1. Health and Civic Attainment ...........................................................................125

2. Education........................................................................................................ 128

3. Demography....................................................................................................131

4. Poverty............................................................................................................ 134

...................................................................................................................... 134

5. Economy..........................................................................................................137

6. Overall Performance of the Districts................................................................145

Section V: Industrial Profile of Jharkhand ...............................................................152

Section VI: Jharkhand’s best and worst constituencies ..........................................176

Section VII: Potential Cities – An evaluation............................................................181

Section VIII: Ranking of Eastern Zone States..........................................................184

Section IX: Looking into the Future ........................................................................187

Appendix ............................................................................................................... 193

Bibliography...........................................................................................................202

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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

Dr. Sumita kale

Swati Gupta

Tarrung Kapur

Indicus Analytics, New Delhi

indic@indicus.net

November 2009

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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 present study makes an attempt to analyze the strengths and


weaknesses of the state, objectively using government's own data. Various
aspects of Jharkhand's economy and the changes therein over time have
been tracked to see the extent of progress in different indicators of growth
and development. In each of the aspects, Jharkhand's status in comparison
to other states has been discussed. Further, a comparative analysis of
various districts of the state has also been presented. Given the importance
of industries in engineering the growth of a region, a detailed profile of
industries is done, identifying the largest and fastest growing industries in
each district of Jharkhand. Latest available data from various government
and semi-government sources have been used for this analysis. Since this
study is the fifth in the series, data has been updated from the previous
edition, where available.

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.

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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.

The sixth section provides a comparative picture of the parliamentary


constituencies in the state in terms of various socio-economic and
infrastructure based parameters. The seventh section explores the potential
cities of the state and finally the eighth section gives the state rankings in
the eastern zones in terms of socio-economic variables.

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.

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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.

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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.

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Jharkhand – A Review

State Profile

State Jharkhand

Capital Ranchi

Area (sq. km.) 79,714

Population 2001 29,945,829

Density of Population per sq. km. 338

Average Annual growth rate of 2.1


population 1991-2001 (%)

Annual Per Capita Income 2008-09


(Rs.) Rs. 21,465

Percentage of Urban Population (%) 22.25

Literacy Rate (%), 2007-08 62.1

Number of Districts 24

Number of Towns 152

Number of Villages 32,616

Ranchi, Jamshedpur, Dhanbad,


Prominent Cities Bokaro

Prominent Airports Ranchi

Principal Crops Maize, Rice, Wheat, Pulses

Heavy Engineering, Coal Mining,


Major Industries Tussar Silk, Steel, IT, Tourism

Gross State Domestic Product Estimates


GSDP at current prices (Rs. crore)
10
GSDP (Rs. crore) Growth (%)

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

Uttarakha 204387 237200 261719 297093 . 10.64 16.05 10.34 13.52 .


nd 8 1 4 4

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

Source: Central Statistical Organisation

Note: The current series of GDP is based on the new 1999-2000 series.

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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
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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?

First we need to appreciate the occupational structure of Jharkhand – a very


large segment of the population undertakes multiple occupations
simultaneously. Incomes from forest, agriculture and other economic
activities supplement each other. Conventional data collection mechanisms
are unable to capture this complexity of life in Jharkhand. In other words,
people use land for agriculture, use forest land for incomes derived from the
forest, and may also undertake other economic activities such as livestock
etc. They do this, because incomes from none of these activities are
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sufficient to meet their requirements. The solution is therefore to increase
income potential simultaneously from forests and agriculture. Is that
possible? The answer is yes.

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
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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.

For governments therefore the policy objective needs to be a sincere


commitment to improving incomes from traditional occupations. And this
will need to be done in a credible manner. The problem here is, no one
really has any faith in Jharkhand’s political and bureaucratic classes’. Hence
the fight is not really a fight of modern vs traditional, or Naxalites vs state,
but that of credibility and sincerity of those who have political and economic
power in Jharkhand.

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.

Note that rehabilitation can be done by private entities as well as the


government. They both need to be answerable to the people if they fail in
doing so. Hence just as the Constitution provides for a Chief Election
Commissioner and a Supreme Court, we need to create a Chief R&R
Commissioner who can take the central or state government to task.

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
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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.

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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

inception, when per -20% capita


income was just Rs. Jharkhand India 10,345.
It has left behind its parent
state Bihar whose per capita income in 2008-09 remains a mere Rs. 12,643.
Though income growth has significant fluctuations on a year to year basis,
the economy has moved to a higher growth path since its conception in
2000, with an annual growth rate of 7.8 percent compared to 5.9 percent in
the period 1993-94 to 1999-00.

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.

Sectoral Growth Annualised since 2000


The fastest growing
Fastest Growth Slowest growth sectors in the economy
since 2000 have been
23.0 1.5
communication – with
Communication % Mining & quarrying % the rise of the mobile
industry, manufacturing
15.7 Electricity, gas and 0.4
in the registered
% water supply % segment mainly and
Manufacturing
railways. However, the
-
matter of concern is
11.1 0.6 that the slowest growth
Railways % Agriculture % has been recorded in
2
Sumita Kale, Chief Economist, Indicus Analytics Pvt. Ltd.
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agriculture, which forms the livelihood of 80 percent of the people, and
which is still predominantly dependent on rainfall. Net irrigated area forms
just 9.3 percent of net sown area and the vagaries of monsoon hit the
economy hard, causing volatility in the economic growth of the state. An
unfortunate trend has been of declining growth in agriculture - from an
annual rate of 3.87 percent in the period 1995-96 to 1999-00 to a negative
0.6 percent for the period 2000-01 to 2008-09.

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.

With high dependence on agriculture, which is yielding little growth in


income and lack of other employment opportunities in rural areas, the
disparity is alarming - annual per capita income in rural Jharkhand is
estimated at Rs. 18,362 while urban areas enjoy per capita income of Rs.
52,860 in 2008-09. The Economic Census of 2005 shows Jharkhand to be the
only state with negative growth in employment over the period 1998-2005.
The growth in enterprises, other than those involved in crop plantation and
agriculture was a meagre 3.2%, the second lowest in the country compared
to Madhya Pradesh. Consequently labour has not seen a shift from
agriculture to industry or the tertiary sector, resulting in low growth in rural
incomes.

Jharkhand’s large reserves of minerals has attracted industrial investment –


Jharkhand is home to India’s largest steel plants in Bokaro and Jamshedpur.
But 92% of manufacturing activity in the state is recorded in the registered
sector, the highest proportion in the country. Employment opportunities are
limited when manufacturing is concentrated in large-scale capital-intensive
units.

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

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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.

The extreme levels of corruption also show up in the Transparency


International India’s survey that reported that BPL families paid Rs. 16 crore
in 2008iii to the police as well as for NREGA, land records, banking and free
services such as health, school education, water supply etc. Clearly,
governance is an issue in this state requiring urgent reform, if the basic
developmental and growth profile is to be raised.

The lack of diversified activity and dependence on mining resources shows


up in growth in other sectors also. The services sector contributes just a third
of the state income, the lowest share amongst all states. This is to some
extent a result of the large share of mining in the state’s income, compared
to other states. Moreover, the composition of services within the sector
shows large share of transportation and storage facilities, again an offshoot
of the mining and industrial sector requirements, rather than catering to the
needs of the people.

This lopsided sectoral pattern is also reflected in other statistics; for


example, rail connectivity is much higher than in other states – a result of
the need to organize freight traffic. But the share of habitations that remain
to be linked by pucca roads is almost 41 percent. Again it is ironic that only
32 percent of the households have electricity in a state that has a third of
India’s coal reserves and abundant water resources, and also hosts India’s
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first multipurpose hydro project, Damodar Valley Corporation. The provision
of electricity, road and telecom connectivity can give the required impetus to
growth in the villages that will reduce inequality by boosting traditional
livelihoods in the small-scale sector. There are significant challenges to
overcome here since forests occupy almost 30 percent of the total state
area, making accessibility a difficult task. However infrastructure provision
and connectivity in particular are essentials for growth and development to
be truly inclusive.

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
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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.

However, for sustainable and inclusive growth, the precondition is provision


of security of life and property. With more than 60% of its districts under
threat from the Naxalites, it is here that the state faces its biggest challenge
today. With police force adjusted for population and for area less than the
national average, it is clear that the state lacks adequate policing strength to
deal with the problem. However, the main issue at stake is the complete
withering away of the state and lack of trust in the government in various
districts.

The political leadership in the state was in complete turmoil leading to


President’s Rule being imposed on the state in January 2009. While elections
are due, it is unclear whether a clean verdict and government will take
charge. Meanwhile, unless the web of corruption is broken, Jharkhand will not
be able to move into a high sustainable and balanced growth trajectory. The
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state should shake away its legacy from Bihar and benchmark its progress
with other states that have moved ahead, adopt, for instance, the
Uttarakhand and Himachal Pradesh models for bringing the fruits of growth
to the people. The problem of governance and law and order is of prime
importance, in building a state where the needs of all groups of citizens are
addressed effectively.

NREGA status as on October 2009

District Cumulative Cumulat Cumulat No. of


No. of HH ive No. ive No. HH
issued job of HH of HH worki
cards demand provide ng
ed d under
(Till the employ employ NREG
reporting ment ment A
month) (Till the (Till the durin
reportin reportin g the
g g repor
month) month) ting
mont
h

Total

BOKARO 143078 19712 19707 1773


6

CHATRA 152272 26179 26267 2531


4

DHANBAD 133655 41961 42093 3365


0

DUMKA 176940 57420 58704 5150


0

GARHWA 180520 28929 28944 2707


2

GIRIDIH 174124 27355 27430 2238


8

GODDA 185931 34850 34525 3321


3

GUMLA 178484 44304 44181 3814


8

HAZARIBAGH 166149 31588 31511 3023

22
0

JAMTARA 101037 15324 15301 1005


1

KODERMA 48446 8465 8428 6710

LATEHAR 110640 11303 11292 1048


4

LOHARDAGA 67334 21035 21829 1710


4

PAKUR 140317 55224 65884 6359


2

PALAMU 203739 28474 28448 2436


9

RANCHI 262538 33382 33268 3075


8

SAHEBGANJ 145574 53635 53608 5216


2

SARAIKELA 124870 32538 32429 3097


KHARSAWAN 6

SIMDEGA 97446 22053 21908 1738


4

WEST SINGHBHUM 220973 44901 44639 4288


7

DEOGHAR 172003 66663 66562 5224


1

EAST SINGHBUM 196879 52279 52259 4742


6

KHUNTI 82820 12027 11973 1045


8

RAMGARH 65501 14911 14958 1439


2

TOTAL 3531270 784512 796148 7102


45

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.

1. Law and Order

Value of property stolen & recovered

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.

Table A.1 (a): Percentage of stolen property recovered

States 2003 2004 2005 2006 2007

Jharkhan
d 20.6 16.2 18.3 16.3 16.2

Bihar 15 15.9 16.5 16 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

Orissa 39 38.1 39.9 33.4 25.9

India 25.8 19.9 23.9 25.3 26

Source: Crime In India, National Crime Record Bureau, 2007

• In Jharkhand, the percentage of stolen property recovered has


reduced from 2006 to 2007. This points to a volatile law and
order situation in the state; the government has not been able
to curb this problem effectively.
24
• However, the percentage recovery of stolen property in
Jharkhand is similar to its parent state, Bihar.

• 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

Juvenile delinquency refers to criminal acts committed by children below 18


years of age. Since these criminal acts are related to children who are future
citizens of India, juvenile delinquency has become a major social problem
and thus a major concern for the state government. The crimes committed
by the juveniles fall under two categories – under the Indian Penal Code (IPC)
and Under Special Laws (SL).

Table A.1 (b): Incidence of crimes committed by Juveniles

States 2003 2004 2005 2006 2007

Jharkhand 821 821 189 881 475

Bihar 260 214 286 210 1469

Uttarakhand 28 36 23 106 129

Chhattisgarh 1,179 1,819 2,924 2053 2025

West Bengal 106 75 131 99 133

Orissa 219 261 430 430 652

25,68 24,98 25,60


India 6 5 1 25817 33934

Source: Crime In India, National Crime Record Bureau, 2007

• Jharkhand has shown considerable fall in the incidence of crimes


committed by the juveniles between 2006 and 2007. After
reaching an extremely high rate of juvenile delinquencies in the
year 2006, the rate has come down to almost half in the year
2007. The government of Jharkhand needs to maintain this rate
of improvement to match up with rest of the states.

• Compared to its parent state, the incidence of juvenile crimes in


Jharkhand has reduced in the year 2007. Bihar has more than
three times higher crime rate than that of Jharkhand.

• Among the newly formed states, Chhattisgarh has the highest


incidence of juvenile delinquency followed by Jharkhand.

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.

Table A.1 (c): Incidence of Murder

Can you annualize the rate of change in these tables to make it per annum
change?

State 2001 2003 2004 2005 2006 2007 Per


Annu
m
Chang
e
2001-
07 (%)

Jharkha 1,507 1,482 1,488 1,523 1,492 1617 1.18


nd

Bihar 3,643 3,772 3,948 3,471 3,249 3034 -3.00

Uttarakh 316 293 262 279 274 268 -2.71


and

Chhattisg 880 797 927 1,013 1,098 1097 3.74


arh

West 1,594 1,464 1,425 1,453 1,425 1652 0.60


Bengal

Orissa 987 1,102 1,066 1,079 1,159 1210 3.45

India 36,20 33,82 33,60 32,20 32,48 32318 -1.87


2 1 8 0 1

Source: Crime in India, National Crime Record Bureau, 2007

• In Jharkhand the number of reported murders has increased in


2007 compared to the previous year. Continued efforts to
improve policing are needed to bring in good law & order
situation in the state.
• Among the newly formed states, Uttarakhand has fared well
compared to the other two states.

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.

Table A.1 (d): Incidence of Rape

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

• Jharkhand reported an increase of about 50.8 percent in the


number of rapes in a time span of six years (2001 to 2007).
• Together Bihar and Jharkhand make this part of eastern India
increasingly unsafe for women in terms of incidence of rape.
• Jharkhand has fared well compared to Uttarakhand where the
rate of growth in incidence is very high. However, it is far behind
Chhattisgarh where the rate of growth in incidence of rape is
quite low.

29
e. Incidence of Crime against Women and Child

Crimes against women include rape, kidnapping & abduction, molestation,


sexual harassment, forced prostitution, dowry deaths and importation of girls
(NCRB, 2003). Under the Indian Penal Code (IPC) punishable crimes against
children include infanticide, rape, kidnapping & abduction, foeticide,
exposure and abandonment, procuration, selling and buying of girls, forced
domestic and economic duties, and other unnatural duties. For the present
discussion, all reported cases of crimes against women and children in the
respective year have been considered.

Table A.1(e): Incidence of Crime against Women and Children

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

• Jharkhand registered a decline in the incidence of crime


committed against women and children in 2004 since 2001 but
the numbers increased thereafter.
• Among the newer states, Uttarakhand has recorded the lowest
incidence of crime committed against women and children
followed by Jharkhand in 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.

f. Incidence of Crime against Schedule Castes and Schedule Tribes

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.

The crimes against Schedule Castes/ Schedule Tribes are broadly


categorized under two categories
1. Under the Indian Penal Code (IPC)
It includes crimes like murder, hurt, rape, kidnapping & abduction,
dacoity, robbery, arson, others (other classified IPC crimes)

2. Under Special Laws (SL)


It includes the crimes which come under Protection of Civil Rights Acts,
1955, Prevention of Atrocities Act 1989.

For the following discussion, all the reported cases of crimes against
Schedule Castes and Schedule Tribes in the respective years have been
taken.

Table A.1 (f): Incidence of Crime against SC and ST

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

• Crimes committed against SCs and STs have decreased in 2007


compared to 2006 although the incidence had increased in
previous years.
• Jharkhand has far less incidence of crime against SC/ST as
compared to its parent state, Bihar.
• Among the newly formed states, Uttarakhand has performed well
compared to others.
• Crime against SC/ST has decreased at all India level marginally in
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.

Table A.1(g) Civil and Armed Police strength

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

• The strength of police has increased in Jharkhand in 2007 compared to 2006.


This may be attributed to increased Naxalite movement in the state.

• 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

a. Expenditure on Health, and Family Welfare

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

Bihar 4.9 4.2 2.9 2.6 2.6 4.4 3.9

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

Orissa 3.7 3.8 1.6 2.2 2.8 3.4 3.5

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

India 4.4 4.1 1.4 1.8 2.1 4.1 4

Source : Reserve Bank of India; Budget Documents of State Governments

• The percentage share of expenditure on health & family welfare


in total expenditure has been higher in Jharkhand than that of other

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

A major priority of governments in developing economies is to build on


human capital by improving access to and the quality of educational
facilities to all sections of the society. The share of expenditure on
education in total expenditure of the state budgets is just one indicator of
the commitment of the state to fulfilling this objective.

Table A.2 (b): Share of expenditure on education to total disbursements (%)

2001- 2002- 2003- 2004- 2005- 2006- 2007-


States 02 03 04 05 06 07 08

Jharkhand 16.2 19 11.5 11.7 13.5 15.2 15.1

Bihar 20.7 18.4 14.3 13.9 14.2 17.5 16.7

Madhya
Pradesh 12.5 12.2 4.2 3.9 4.2 11.9 11.6

Chhattisgarh 12.4 11 3.1 4.5 4.8 13.2 13.5

Orissa 12.4 11 3.1 4.5 4.8 12.6 13.5

Uttar Pradesh 16 14.6 2.9 6.5 8 15.2 14.1

Uttarakhand 21.1 20 3.6 9.2 9 16.9 16.7

India 16.1 15 5 6.3 7.2 14.2 14

Source : Reserve Bank of India; Budget Documents of State Governments

• The share of educational expenditure out of total budget


expenditure in Jharkhand is slightly higher than the All India figure.

• Expenditure on education out of total expenditure in Jharkhand is


also comparatively higher than the newly formed state of Chhattisgarh.
However, it is lower than the proportionate spending on education by
the parent state, Bihar.

• Jharkhand also spends larger share of its budget on education


compared to its neighbouring states like Orissa and Uttar Pradesh.

37
c. Expenditure on Administration

Expenditure on administration includes the revenue expenditure of the state


government in the administration of the state in the respective year.
Administrative activities include activities like Secretariat-General Services,
District Administration Services, Police, Public Works etc. It is an important
measure of the importance given to administrative activities, relative to
other budgetary items.

Table A.2 (c): Percentage of Total Expenditure on Administration

2001- 2002- 2003- 2004- 2005- 2006- 2007-


States 02 03 04 05 06 07 08

Jharkhan
d 10.7 9 7.2 6.7 9.7 9 8.4

Bihar 9.6 8.1 5.3 5.7 5.5 6.8 7.3

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

Orissa 6.7 4.2 2.1 2.4 2.8 3.1 4.6

India 7.1 6.5 2.2 2.7 3.2 2.2 2.1

Source: Reserve Bank of India , Respective Years

• Jharkhand spends a considerable share of almost 8.4 percent of


its total expenditure on administrative activities.

• Jharkhand spends a larger share of expenditure on


administration compared to other newly formed states and other
neighbouring states.

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

The Constitution of India classifies Scheduled Castes and Scheduled Tribes


(SC/ST) as socially and economically weaker sections of the society. The
state is required to take constructive actions to empower them. The amount
spent on them can indicate how much the state invests in the upliftment of
this section. It includes total actual expenditure made by the government for
the welfare of Schedule Castes and Schedule Tribes.

Table A.2 (d): Percentage of Total Expenditure on Welfare of SC and ST

2001- 2002- 2003- 2004- 2005- 2006- 2007-


States 02 03 04 05 06 07 08

Jharkhand 5.3 3.2 2.5 3 2.3 2.2 2.0

Bihar 1 0.7 0.5 0.4 0.4 0.6 0.8

Chhattisgarh 9.6 8.4 1.7 2.2 2.6 2.3 1.4

Madhya Pradesh 4.4 4.9 1.7 1.7 1.9 0.8 0.7

Orissa 2.2 2 0.7 1.1 1.4 1.6 2.4

Uttar Pradesh 1.8 2.3 0.4 1.5 1.6 1.5 0.9

Uttarakhand 1.2 0.9 0.2 1 1.1 0.8 0.9

West Bengal 0.7 0.7 0.2 0.3 0.3 0.2 0.2

India 1.9 1.8 0.6 0.9 1 0.8 0.8

Source: Reserve Bank of India, Respective Years

• Jharkhand spends around 2 percent of the total expenditure on the


welfare of SCs and STs which is much higher than the corresponding
All-India average figure.

• It should be mentioned that Jharkhand has a significant tribal


population and this could be the reason behind greater expenditure
on the welfare of SC/STs.

• Among new states, Chhattisgarh spends a higher proportion of total


expenditure on the welfare of the deprived sections.

40
e. Expenditure on Development

Some of the major heads under development expenditure include social services
such as education, medical and public health.

Table A.2 (e): Percentage of Total Expenditure on Developmental Expenditure

2001- 2002- 2003- 2004- 2005- 2006- 2007-


States 02 03 04 05 06 07 08

Jharkhand 63.1 65.5 47.8 50 50.7 55 53.5

Bihar 49.2 47.7 34.3 35.2 36.9 49.4 54.9

Chhattisgarh 62.6 63.5 16.7 22.4 23.6 28.7 20.6

Madhya
Pradesh 61.3 58.6 25.3 22.3 23.1 15.7 13.1

Orissa 46.5 46.1 20 22.7 28.1 33 53.3

Uttar Pradesh 47.5 46.7 17.9 23.3 27.1 35.5 19.2

Uttarakhand 61.6 55.8 10.5 32.7 34.7 30.1 33.7

West Bengal 46.7 40 9.6 13.1 14 10.8 11.1

India 54.2 51.2 19.2 24.1 27.1 20.7 21.3

Source: Reserve Bank of India, Respective Years

• In Jharkhand almost 53 percent of the total expenditure is


being incurred on development activities in the year 2007-08.

• When we compare the development expenditure of the


new states with the older states we find that generally new
states have to make greater expenditure on development.
However, Jharkhand spending towards development is far higher
than the other new states.

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.

Table A.2 (f): Percentage of Total Revenue Receipts from Grants

2001- 2002- 2003- 2004- 2005- 2006- 2007-


States 02 03 04 05 06 07 08

Jharkhand 14.3 25.2 25.1 16.5 20.6 17.4 14.4

Bihar 12.2 15.2 16.2 23.2 21.1 23.6 24.7

Chhattisgarh 11.1 14.5 11.4 17.1 14.9 18.1 22.1

Madhya
Pradesh 13.3 13.9 12.4 13.8 14.5 19.1 19.5

Orissa 17.6 21.3 18.2 23.6 27.3 21.7 24.8

Uttar Pradesh 12.9 8.3 7.8 12.7 11.9 13.9 15.6

Uttarakhand 48.4 45.1 43.6 54.9 48.2 39.9 44.7

West Bengal 20.2 15.4 11.4 13.5 13.6 17.7 16.8

India 16.9 16.3 16.2 17.5 18.3 19.2 19.8

Source: Reserve Bank of India, Respective Years

• The percentage of grants received by Jharkhand from the


Centre has decreased in 2007-08 compared to 2006-07 though it
had increased the previous year.

• Among new states, Uttarakhand has the highest


dependence on grants compared to the other two. Being a hilly
state, Uttarakhand has topographical and climatic constraints
and needs more investment for achieving the same level of
development.

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.

b. Movement of Prices for Industrial Workers

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)

Jharkhand 6.66 8.67

Bihar 6.86 8.68

Delhi 4.85 7.65

Maharashtra 6.19 8.57

Source: Labour bureau

Base: 2001=100

• The percentage change in CPI for industrial workers in


Jharkhand is higher than developed states like Delhi and
Maharashtra.

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

Rural road connectivity is not only a key component of rural development


but also an ingredient in ensuring sustainable poverty reduction. It promotes
access to economic and social services by generating increased agricultural
incomes and productive employment opportunities. The Pradhan Mantri
Gram Sadak Yojana (PMGSY) was launched in the year 2000-01 by the
Government of India to provide all weather road connectivity to unconnected
rural habitations. It aimed to provide connectivity to all unconnected
habitations having population above 1000 by 2003 and for population above
500 by the end of the Tenth Five Year Plan (2007).

Table A.4 (a): Percentage of Habitations connected by pucca roads

State 2000 2009

Jharkhand 50 59.6

Bihar 30.8 44.0

Chhattisgarh 27.5 76.2

Uttarakhand 48.8 57.7

Orissa 42.1 66.5

West Bengal 30.5 58.5

All India 59.2 72.8

Source: PMGSY, Ministry of Rural Development

• Among newly formed states, Chhattisgarh has witnessed the maximum


rise in habitations being connected by rural roads, followed by
Jharkhand.

• A marginal rise in connectivity has been experienced in Jharkhand as


well as its parent state Bihar over a span of eight years. Still more than
40 percent of habitations remain to be connected by good roads.

46
• The habitations connected by rural roads in the state is higher than the
parent state Bihar.

• Jharkhand has better connectivity than West Bengal among the


neighboring states.

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)

2001 2002 2003 2004

Buses Buses Buses Buses


/ / / /
trucks Other trucks Other trucks Other trucks Other
States / taxis s / taxis s / taxis s / taxis s

Jharkhan
d 416 601 424 87 441 101 325 125

Bihar 134 69 138 210 101 110 62 47

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

Orissa 283 156 308 170 339 183 234 151

INDIA 573 400 580 418 660 445 354 324

Source: Department of Road Transport and Highways, Ministry of Shipping, Road Transport and Highways

• The penetration of transport vehicles in Jharkhand is more


than four times that of Bihar.

• In Jharkhand the ratio of transport vehicles per million


population is better than other newly formed states.

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.

Table A.4 (c): Length of Railway Lines (Kms)


Chang
e
(2001-
2001- 2002- 2003- 2004- 2005- 2006- 07)
States 02 03 04 2005 2006 07 (%)

Jharkhand 1,797 1,798 1,943 1,941 1,955 1,941 7.43

Bihar 3,429 3,224 3,377 3,379 3,330 3,411 -0.53

Madhya
Pradesh 4,845 4,825 4,849 4,905 4,903 4,884 0.80

Chhattisgarh 1,180 1,180 1,159 1,159 1,186 1,185 0.46

Uttarakhand 356 345 345 345 345 345 -3.22

Uttar
Pradesh 8,578 8,799 8,566 8,545 8,546 8,575 -0.04

63,14 63,12 63,22 63,46 63,33 63,32


India 0 2 1 5 2 7 0.29

Source: Rajya Sabha Starred Question No. 103, dated 24.10.2008 ; Ministry of Railways, Government of India

• Jharkhand has shown an increasing trend in the growth of length of


railway lines over the years.

• In some states like Bihar, Uttarakhand railway lengths have


reduced marginally over the years.

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.

Table A.4 (d): Passengers per Outbound Movement

2005- 2006- 2007-


State 06 07 08

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

Source: Airport Authority of India

• The average numbers of passengers traveling in Jharkhand


is generally low (less than 40 passengers per flight per day),
reflecting on the low levels of economic growth and development
in the state. Compared to Jharkhand, Chhattisgarh fares much
better.

• Among the neighbouring states, West Bengal has much


more passengers per outbound movement than Jharkhand. This
reflects the presence of Kolkata, the hub for transport in the
region.

52
e. Households with Electricity and LPG

It includes the total percentage of households having electricity and LPG


connections. Along with economic growth, electricity consumption increases
as power has become an integral part of improved and modernized
infrastructure for production as well as consumption. The per capita
consumption of electricity therefore reflects upon the level of such
improvement and modernization, in short, of development.

Table A.4 (e): Percentage of households having LPG connection and Electricity
connections across states

LPG Electricity

200 2002- 2007-


State 6 2007 04 08

Jharkhan
d 17.2 17.1 31.9 32.5

Bihar 13.4 12.7 14.1 21.7

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

Punjab 87.5 80.9 96.2 98.4

Tamil
Nadu 51.1 49.5 87 91.2

INDIA 41.5 39.1 71.6 69.4

Source: District level Household Survey –III, II, Ministry of Petroleum and Natural Gas

• Households in Jharkhand are more likely to have LPG and


electricity connections than Bihar. However, there is significant
scope for increasing the coverage of both LPG and electricity as
the all India average stands at 39.1 percent and 69.4 percent
respectively.

53
• Amongst the newly formed states, Uttarakhand has the
highest percentage of households having electricity and LPG
connections, followed by Chhattisgarh.

• The higher-ranking states like Maharashtra and Punjab are


much better off than Jharkhand as in Punjab has more than 98
percent of households have electricity.

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.

Table A.4 (f): Surplus/deficit of Electricity across different States (%)

2002- 2003- 2004- 2005- 2006- 2007- 2008-


States 2003 2004 2005 2006 2007 08 09

Jharkhand -0.6 -4.2 -2.2 -6.9 -2.4 -10.9 -4.7

Uttarakhand -2.8 -2.1 -3.4 -13.5 -4.3 0 -1

Chhattisgar
h -3.3 -2.7 -1.7 -12.9 -18.2 -14.8 -2.6

Punjab -6.3 -2.9 -9 -20.3 -1.2 -12.9 -10.6

Maharashtra -13.6 -10.2 -12.1 -23.1 -30.4 -24.9 -21.4

Bihar -7.8 -22.5 10.1 -15.1 -12.2 -27.8 -16.4

Orissa -2.1 -1.7 -0.8 -1.7 -3.4 -2.3 -1.5

West Bengal -1.4 -2.2 -1.6 -3 -0.7 -6 -3.2

India -9 -7.1 -7.3 -12.3 -13.5 -14.4 -11.1

Source: Central Electricity Authority (CEA)

• Jharkhand was able to meet almost 95 percent of the


demand of electricity in the state during 2008-09. The figures
were more impressive in the initial years where they met almost
entire demand.
• Jharkhand has shown much better performance in meeting
power demands than India as a whole.
• Interestingly, Jharkhand’s performance is better than some
of the developed states like Punjab and Maharashtra.
• The neighbouring state of West Bengal has however
performed better than Jharkhand in meeting the demands of
electricity.
• Among the new states, Uttarakhand leads in meeting the
power demand while Chhattisgarh has taken over Jharkhand in
terms of meeting the electricity requirement in the state.

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

State 2007 2008

Jharkhan
d 0.5 0.54

Punjab 1.1 1.20

Bihar 0.4 0.40

Tamil Nadu 0.8 0.86

Chhattisga
rh 0.5 0.50

Uttarakhan
d 1 1.02

Maharashtr
a 0.7 0.70

India 0.6 0.68

Source: RBI

• Economically developed states like Punjab, Tamil Nadu and


Maharashtra have better banking coverage than Jharkhand.

• Among the new states, Uttarakhand has comparatively


higher per capita bank branches compared to the other two
states.

• Low number of bank branches will impede the flow of


investments and therefore the government should take
constructive steps to address this problem.

56
h. Post Offices

According to the Economic Survey 2003-04 ‘ The Indian postal network is


among the largest networks in the world in terms of areas covered or
population served..’ Besides providing access to affordable means of
communication anywhere in the country, it also provides financial services
such as savings accounts, money order transactions, Postal Life Insurance
etc. It is actually the largest bank in India in terms of network, accounts and
annual deposits. The number of post offices in the state is a good measure of
the communication and financial services infrastructure .

Table A.4 (h): Post Offices per ten thousand population across states, 2007

State 2005 2007


Jharkhan
d 1.0 1.0
Bihar 1.0 1.0
Chhattisg
arh 1.4 1.4
Uttarakha
nd 2.9 2.8
Maharash
tra 1.3 1.2
Punjab 1.5 1.5
Tamil
Nadu 1.9 1.9
West
Bengal 1.1 1.0
Orissa 2.1 2.1
INDIA 1.4 1.4

Source: India Posts, Ministry of communications & IT, Registrar General of India

• The number of post offices per thousand population in


Jharkhand is less than that of the all India average.

• Though the density of post offices in Jharkhand is slightly


better than Bihar, it still lags behind the other new states.

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

Good communication is a key input in the development of any economy.


Today telephones, cellular phones and internet are connecting the country
with farthest parts of world. Increasingly various business and services are
being provided through these communication modes.

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.

Table B.1 (a): Telephone Density (%) across states

200
6- 2007- 2008-
State 07 08 09

Jharkhand 3.2 3.4 4.1

Bihar 6.7 11.1 22.1

Chhattisgarh 2.9 3.9 5.1

Uttarakhand 8.4 10.2 11.1

26.
Maharashtra 8 36.1 53.6

27.
Tamil Nadu 1 40.7 61.1

Punjab 36. 47.6 61.7

59
8

13.
West Bengal 9 20.1 33.5

Orissa 8.8 13.4 23.6

17.
India 1 24.2 36.9

Source: Annual Report, Department of Telecommunications

• Only a little higher than 4 percent people have telephone


connections in Jharkhand, a very low coverage ratio.

• There is tremendous scope for increasing the coverage of


telecommunications in Jharkhand. Even though coverage has
increased in the last few years, it is still considerably lower than
the national average.

• Among the newly formed states, Uttarakhand has the


highest density of telephone connections followed by
Chhattisgarh.

• Jharkhand’s figures stands much below in comparison to


the figures of the developed states like Punjab, Maharashtra and
Tamil Nadu. In Punjab more than 60 % population has telephone
connection.

b. Mobile Connections per 1000 people

Mobile phone technology has rapidly become a necessity in recent years


especially in urban areas. Greater use of mobile telephone is an indicator of
a technologically advancing economy and its growing acceptance among the
general population. Further it also indicates how well a state is adapting to
advancing technology and demand for the same especially since the telecom
sector has now been privatized. Mobile density i.e. mobiles per 1000 persons
has been used in the present discussion and it includes all the connections
with all the service providers operating in the state in the respective years.

Table B.1 (b): Mobile Connections per 1000 people


State 2006- 2007- 2008-

60
07 08 09

Jharkhand 16.6 19.1 27.2

Bihar 55.8 98.4 210.9

Chhattisgarh 16.7 25.3 38.7

Uttarakhand 46.8 66.6 81.1

West Bengal 50.4 90.9 306.0

India 132.5 203.8 336.8

Source: Annual Report, Department of


telecommunications

• Penetration of mobile connections in Jharkhand is significantly


lower than all India.

• Bihar, its parent state, has almost seven times higher


penetration than Jharkhand.

• Among the newly formed states, Uttarakhand has about 81


mobile connections per 1000 persons followed by Chhattisgarh
with 38 mobile connections per 1000 person

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

State 2001 2002 2003

Jharkha
nd 83 42 51

Bihar 13 14 22

Chhattisg
arh 20 37 43

Uttarakh 69 126 223


61
and

West
Bengal 334 163 174

Orissa 50 47 60

Maharash
tra 948 789 961

India 347 310 330

Source: Ministry of Telecommunication, Govt. of India.,

Rajya Sabha Unstarred Question No. 1733, dated 18.12.2003

• Internet has miniscule prevalence in Jharkhand, but it is much


higher than its parent state. In comparison to the all India
average Jharkhand’s internet penetration is not even one sixth.
There is an urgent need to bridge this digital-gap.

• Even though it is one of the newly formed states Uttarakhand,


surprisingly has almost four times penetration of internet than
Jharkhand. This difference is probably on account of high literacy
rate in Uttarakhand.

62
2. Educational Institutions

a. Pre-College Institutions/Schools

Pre-college level of education forms the foundation for higher professional


education. It also marks completion of school education. Current discussion
includes all the registered pre-college institutions or schools in the state.

Table B.2 (a): Number of Pre-College Institutions/Schools per Million People

2002- 2003- 2004- 2005- 2006-


State 03 04 05 06 07

Jharkhan
d 817 768 785 802 939

Bihar 629 616 606 598 616

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

Kerala 419 424 463 459 455

India 1,036 1,099 1,150 1,098 1,083

Source: Selected Educational Statistics, respective years

• Density of pre-college institutes or schools is considerably lower


in Jharkhand than all India average though it has shown a rising
trend over the years.

• Among the newly formed states, Uttarakhand has the highest


density of pre college institutes followed by Chhattisgarh and
Jharkhand.

63
b. Higher Educational Institutions/Post School Institutions

The presence of higher educational institutions shows the existence of


facilities and denotes ease of access to higher education. Presence of higher
educational institutes is also indicative of the demand for the higher
education. Good educational institutes not only attract students from within
the state but also those from outside. It includes all the registered
post=school and higher educational institutions in the state.

Table B.2 (b): Number of Higher Educational Institutions/Post School Institutions


per Million People

2002- 2003- 2004- 2005- 2006-


State 03 04 05 06 07

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

Source: Selected Educational Statistics, respective years

• Jharkhand has a very low number of higher educational


institutions per million people compared to the newer states.
• It also falls below its parent state, Bihar. The Government should
take steps to increase the access of higher education to its
people thereby investing in future human capital.

64
65
c. Engineering, Technical & Architecture Institutions

Increasingly economies are becoming more technically advanced which


requires technically trained work force. This makes the presence of technical
colleges important to meet this growing demand. For this discussion all the
registered engineering, technological and architecture institutes in the
respective years have been considered.

Table B.2(c): Number of Engineering, Technical & Architecture Institutions per

10 Million People

2002- 2003- 2004- 2005- 2006-


State 03 04 05 06 07

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

Source: Selected Educational Statistics, respective years

• Jharkhand has a long way to go to have considerable penetration


of technically oriented institutes though the number has
increased in 2005-06 compared to previous years.

• Generally the presence of professional institutes is low in the new


states except Uttarakhand where it has shown a considerable
rise. In case of Jharkhand and Chhattisgarh, it could be
attributed to the nascent phase of statehood, making it difficult

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.

• Realizing the importance of good quality education, the state


government has already proposed to open an Indian Institute of
Technology at Dumka, an Indian Institute of Management at
Bokaro and an Indian Institute of Information Technology at
Hazaribagh.

67
d. Medical Colleges

Health is a public service and hence presence of adequate number of doctors


and other nurses etc. is indispensable for the system to work effectively. For
adequate training of medical professional, proper infrastructure is essential.
All the registered medical colleges in the state have been included in this
discussion. Medical colleges cover education in the various systems of
medicine practiced in India – Allopathy, Ayurved, Homeopathy, Unani – as
well as colleges offering training in nursing and pharmacy.

Table B.2 (d): Number of Medical Colleges per 10 Million People

2002- 2003- 2004- 2005- 2006-


State 03 04 05 06 07

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

Source: Selected Educational Statistics, respective years

• Jharkhand is far behind the educationally developed states


like Kerala.

68
• Among the newly formed states, Jharkhand has the lowest
number of medical colleges compared to other two states.

• Jharkhand’s figure is also far behind India as a whole.

69
e. Management, Law, IT, Agricultural Colleges

Management, Law , Information Technology and Agricultural Education are


specialized courses of education. Increasingly economies require people
with management and legal skills who can provide consultancy in the
growing service sector. This section includes all the registered management,
law, IT and agricultural colleges in the state in the respective years.

Table B.2 (e): Number of Management, Law, IT, Agricultural Colleges perMillion
People

2002- 2003- 2004- 2005- 2007-


State 03 04 05 06 07

Jharkhand 0.5 0.5 0.3 0.8 0.9

Bihar 0.7 0.7 0.7 0.4 1.8

Madhya
Pradesh 3.3 3.3 3.2 2.2 2.2

Chhattisgarh 1.5 1.5 1.4 2.2 2.5

Uttar
Pradesh 0.7 1.5 3.9 3.8 3.3

Uttarakhand 3.2 3.1 3 3 6.2

Maharashtra 1.3 1.3 1.3 4 4.2

Kerala 2.5 2.5 2.5 2.5 0.9

India 1.9 1.9 2.2 2.3 2.3

Source: Selected Educational Statistics, respective years

• In Jharkhand the penetration of management educational


institutions is less than the all India average.

• In 2005-06, the number of management institutes per million


students in Jharkhand has slightly increased, giving some solace
to aspiring management students.

• Among the newly formed states, Uttarakhand has shown


comparatively better performance followed by Chhattisgarh.

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.

Table C.1 (a): Growth rate of Population (in per cent)

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

• Jharkhand accounts for 2.6 % of India’s Population. However the


parent state Bihar is three times more populated than Jharkhand.

• Average annual population growth in Jharkhand as remained


almost same between the period 2001-05 and 2006-10.

• Among the newly formed states, Uttarakhand has the highest


population growth rate as compared to Jharkhand and
Chhattisgarh.

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

State 2006 2007 2008 2009 2010


Jharkha
nd 919 920 921 922 923
Bihar 913 914 914 914 914
Chhattisg
arh 937 939 941 942 943
Uttarakh
and 938 939 941 941 942
Maharash
tra 944 946 947 948 948
Punjab 905 907 908 909 911
Tamil
Nadu 981 982 982 983 983
INDIA 32821 937 938 939 940
Source: Census of India, 2001

• The number of females per thousand males of Jharkhand is lower


than India as a whole.

• In spite of faring better than its mother state, Bihar, and


economically better performing states such as Punjab, Jharkhand
trails behind the two other newly formed states.

• 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

The proportion of scheduled castes(SC) and scheduled tribes(ST) residing in


a particular region shows the proportion of backward sections in the entire
population. Backward communities need special progammes and policies
aimed at their development to allow these sections to merge with the
mainstream over time.

Table C.1 (c) Percentage of SC & ST population, 2001


States
SC ST

Jharkhand 11.8 26.3

Bihar 15.7 0.9

Chhattisgar 11.6 31.8


h

Uttarakhan 17.9 3.0


d

Punjab 28.9 0.0

Maharashtr 10.2 8.9


a

Tamil Nadu 19.0 1.0

West 23.0 5.5


Bengal

Orissa 16.5 22.1

INDIA 16.2 8.2

Source: Census of India, 2001

• STs constitute a considerable proportion of Jharkhand’s


population. This proportion is more than three times that of all
India.

• Among the newly formed states, Chhattisgarh has the highest


proportion of tribal population followed by Jharkhand,where as
Uttarakhand has the highest proportion of SC population.

• Among Jharkhand’s neighboring states, West Bengal has the


highest proportion of SC population. Orissa is another state with
considerable proportion of tribal population.

73
2. Workforce

The workforce is defined as the percentage of the total population working in


return for monetary incentives. Therefore, it does not include
housewives/homemakers, working in a family business etc., i.e. people
enganged in work that does not involve monetary incentives is not included
in this indicator

Table C.2 Percentage of workers in total population, 2001

States Main Marginal Non-workers


workers workers

23.92 13.59 62.48


Jharkhand
Bihar 25.37 8.34 66.3

Chhattisgarh 33.86 12.6 53.54

Uttarakhand 27.36 9.56 63.08

Punjab 32.17 5.3 62.53

Maharashtra 35.87 6.63 57.5

Tamil Nadu 38.07 6.6 55.33

West Bengal 28.7 8.1 63.2

Orissa 26.1 12.8 61.1

INDIA 30.43 8.67 60.9

Source: Census of India, 2001

• In Jharkhand, percentage of people who are not workers exceeds


that of Chhattisgarh by almost 10 percentage points. However,
the situation in Jharkhand is very similar to Uttarakhand and
India as a whole. Even Punjab, which is one of the economically
developed states, has almost equal share of people who do not
fall in the working category.
.

• Among the three newly formed states, Jharkhand accounts for


maximum percentage of people who had not worked for the
major part of the reference period (i.e. less than 6 months). The
percentage points are almost doubled when compared with the

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.

• Percentage of main workers in the total population in Jharkhand


is considerably lower than the India average. In fact, Jharkhand
has the minimum percentage of people having full employment
as compared to all the other states considered. This could be due
to lower avenues for regular employment.

• Overall therefore, lower percentage of people working will lead to


greater pressures on household budgets for meeting basic
needs.

75
3. Basic Necessity

a. Head Count Ratio (HCR)

The head-count ratio is computed on the basis of National Sample Survey


data on consumption expenditure. People with an income below a predefined
poverty norm( also called poverty line) are "poor" and the proportion of the
poor to the aggregate population defines the head-count ratio.

Symbolically, HCR = q/n * 100 (Where q is the number of persons below


poverty line and n is the total population.)

Table C.3 (a) Head Count Ratio


State 1999-00 2004-05

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

Source: NSSO 55thand 61st (Consumer Expenditure)round, 1999-


2000 & 2004-05

• Percentage of population below poverty line is significantly high


for Jharkhand, much higher than that of India as a whole
although over the years it has successfully reduced this
percentage.

• Among the newly formed states, Chhattisgarh has the highest


percentage of population below poverty line in 2004-05 followed
by Jharkhand.

• When compared with the neighbouring states, Orissa has the


highest percentage of population below poverty line. The HCR of
Jharkhand is also higher than that of Bihar, the mother state.

• Jharkhand is far behind the economically better performing


states such as Punjab, Maharashtra and Tamil Nadu.

• 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

Food Sufficiency is defined as a household where every member has had at


least two square meals a day . This measures the extent of nutritional
poverty of a country. India has the largest number of the absolutely poor.
This in turn implies that the number of households not having food
sufficiency is also very high.

Table C.3 (b) Percentage of household without food sufficiency, 2004-05


State % of households
without food

77
sufficiency

Jharkhand 0.57

Bihar 2.69

Chhattisgarh 2.24

Uttarakhand 0.39

Punjab 0.65

Maharashtra 0.84

Tamil Nadu 0.30

WestBengal 8.91

Orissa 5.24

India 1.93

Source: NSSO 61st (Employment & Unemployment) round

• The percentage of households not getting two square meals per


day in Jharkhand is lower than that of its mother state Bihar. It
also trails behind the all India figure.

• Among the newly formed states, Chhattisgarh has the maximum


percentage of households who live without sufficient food
followed by Jharkhand.

• Jharkhand performs much better on this front compared to its


neighbours like West Bengal and Orissa.

78
c. Safe Drinking Water & Sanitation Facility

If a household has access to piped drinking water, it is considered to have


access to safe drinking water. While every household should have the
provision of safe drinking water and basic sanitation facilities in its premises,
this facility is not provided for the majority of households in rural areas and
also in many parts of urban centres. The situation is grim in many states and
well-governed states are those who would demonstrate a high proportion of
rural and urban households enjoying such facilities.

Table C.3 (c) Percentage Households using piped drinking water


(2005-06)

State Urban Rural

Jharkhand 44.4 0

Bihar 19.8 1.2

Chhattisgarh 55.5 6.0

Orissa 51.7 1.9

West Bengal 67.0 9.5

India 71.0 27.9

Source : National Family and Health Survey-III

• Urban Jharkhand performs much better than the urban Bihar in


providing their people access to piped drinking water. However,
situation in the rural Jharkhand is alarming with no household having
access to piped drinking water.
• Also both Bihar and Jharkhand have much lower coverage of piped
drinking water as compared to the national average.

79
Table C.3 (d) Households having access to toilet facility in 2005-06

State Urban Rural

Jharkhand 73.7 5.0

Bihar 73.0 16.2

Chhattisgarh 65.5 5.6

Orissa 58.9 11.3

West Bengal 90.5 44.8

India 83.1 25.9

Source : National Family and Health Survey-III

• In terms of providing access to toilet facility to households in urban


areas Jharkhand performs much better than its neighboring states of
Orissa and Chhattisgarh. However, the coverage of toilet facility is
abysmally low in rural areas of the state.

• Jharkhand needs to develop the infrastructure facilities in sanitation


and water supply which in turn will raise the health and standard of
living of the people.

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.

Table C.4 (a) Infant Mortality rate (IMR)

Male
Male IMR/Femal Male
IMR/Female e IMR/Female
State IMR(2005) IMR(2006) IMR(2007) IMR(2005) IMR(2006) IMR(2007)

Jharkhand 50 49 48 0.74 0.88 0.96

Bihar 61 60 58 0.97 0.92 0.98

Chhattisgarh 63 61 59 0.98 0.95 0.95

Uttarakhand 42 43 48 0.77 0.95 0.98

West Bengal 38 38 37 0.97 0.93 0.97

Orissa 75 73 71 0.96 0.99 0.97

Maharashtra 36 35 34 0.92 0.97 0.94

Punjab 44 44 43 0.85 0.78 0.93

Tamil Nadu 37 37 35 0.90 0.97 0.94

INDIA 58 57 55 0.92 0.95 0.98

Source: SRS Bulletin, respective years

• The infant mortality rate in Jharkhand has reduced marginally


from 50 in 2005 to 48 in 2007.

81
• Though the ratio of male to female IMR has increased during the
same period, it is still below the national average.

• Among the new states, Chhattisgarh has the highest IMR.

• Among the neighboring states, Orissa has very high IMR


compared to others.

b. Percentage of assisted births

Percentage of births assisted by trained health professionals. Trained health


professional includes the following: doctor, auxiliary nurse midwife, nurse,
midwife, lady health visitor or other health professional. It does not include
dais and other traditional attendants.

Table C.4 (b) Percentage of Assisted Births across different states

2002- 2007-
State 04 08

Jharkhand 26.7 25

Chhattisgarh 27.1 29.6

Uttarakhand 32.8 35.5

Bihar 25.2 31.9

Maharashtra 62.6 69.4

Punjab 64.2 77.1

Tamil Nadu 89.3 95.6

West Bengal 54.8 51.6

Orissa 40.3 50.9

India 48 52.6

Source: District Level Household Survey (DLHS III)

• In Jharkhand, the percentage of assisted births has reduced


marginally by 1.7 percentage points, since 2002-04.

82
• In contrast, in Bihar this percentage has increased by 6.7
percentage points.

• Other new states have shown better performance in this context


where the percentage of assisted births has increased by
average 2.6 percentage points thereby depicting improvement of
health facilities provided in the state.

• Among the neighboring states, Orissa has shown remarkable


improvement in health conditions prevailing than Jharkhand.

• In Tamil Nadu, more than 95 percent of women are assisted by


trained personnel during delivery.

c. Estimated Death Rate

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.

Table C.4 (c) Death Rate across different states, 2007

State Death Rate

Jharkhand 7.3

Bihar 7.5

Chhattisgarh 8.1

Uttarakhand 6.8

West Bengal 6.3

Orissa 9.2

Maharashtra 6.6

Punjab 7.0

Tamil Nadu 7.2

83
INDIA 7.4

Source: Sample Registration System (SRS) Bulletin

• The average death rate of Jharkhand is slightly lower than that of


India as a whole.

• The death rate of Jharkhand is slightly more than that of


Maharashtra, Punjab and Tamil Nadu.

• Amongst the newly formed states, Chhattisgarh has the highest


death rate followed by Jharkhand.

• Among the neighboring states, Orissa has a high death rate of


9.2 percent.

5. Education

Literacy rate

The Literacy Rate is measured as a percentage of population aged seven


years and above who are able to read and write simple sentences. As per the
Census, literacy is defined as the ability to read and write the person’s name
and to form simple sentences. Higher literacy levels in a state denote rising
socio-economic development and universal literacy is a crucial step towards
achieving overall progress.

Table C.5 (a) Literacy Rate across different states

2002- 2007-
States 04 08

Jharkhand 56.4 62.1

Bihar 51 58.7

Chhattisgar
h 60.7 65.7

Uttarakhand 71.2 79.1

Maharashtr
a 73.5 74.7

84
Punjab 70.6 75.9

Kerala 89.3 92.9

West
Bengal 68.7 72.1

Orissa 62.8 69.2

India 67.2 71.9

Source: District Level Household Survey III, II

• Jharkhand has a comparatively lower literacy rate with just 62%


people being
literate and falls below the all India figure.

• 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.

• The high performing states like Maharashtra, Punjab, West


Bengal, have more than 70% literate population.

• In other words, Jharkhand has a long way to go if it is to achieve


its socioeconomic development goals. The state should avail the
benefits of various literacy campaigns introduced from time to
time by the central government.

b. Proportion of 10 plus children having completed Primary


Education

Primary schools are up to either standard IV or V in different states and as


per the formal education system a child between the ages 9 and 11 years
would have ordinarily completed the primary level of education. Thus the
primary school completion rate is the percentage of children in the age
group 10 to 12 years who have completed this level of education. This ratio
measures educational attainment based on enrolment at the right age and
timely completion of primary school. Thus a higher percentage of timely
completion of primary schooling gives an indication that the programmes
and plans of the government are effective.

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

Source: NSSO 61st round (Employment & Unemployment)

• 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.

• Jharkhand also falls behind the high-ranking states like


Maharashtra and Punjab.

• Primary school completion rate is a very good proxy for the


quality of education that is being provided in state schools. The
figures suggest that primary educational institutions are not
being able to provide education that will (i) retain the children in
school, and (ii) provide them with education that their parents
consider beneficial enough to send their children to school.

c. Ratio of girls to boys enrolled in primary and middle school

Gender disparity in education is a concern in India. This ratio measures


disparity at two levels of formal education. It is the ratio of number of girls
enrolled in a particular level to the number of boys enrolled in a particular
level.
Table C.5 (c) Ratio of girls to boys enrolled in primary and middle
school

2001- 2002- 2003- 2004- 2005- 2006-


States 02 03 04 05 06 07

Jharkha
nd 0.7 0.6 0.8 0.8 0.8 0.8

Bihar 0.6 0.7 0.7 0.7 0.7 0.7

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

Orissa 0.7 0.9 0.9 0.9 0.9 0.9

India 0.8 0.8 0.9 0.9 0.9 0.9

87
Source: Selected Educational Statistics, respective years

• The ratio of girls to boys enrolled in primary and middle school


for Jharkhand has remained stagnant since the last 3 years. The
ratio is below the India level.

• The ratio of girls to boys in Jharkhand is higher than its mother


state Bihar.

• Among the new states, Uttarakhand has minimum gender bias in


the state which is reflected in the higher ratio of girls to boys
enrolment in primary and middle schooling. Uttarakhand is
followed by Jharkhand.

88
d. Pupil Teacher Ratio

The pupil teacher ratio is defined as the number of students attended by a


teacher. It reflects the degree up to which a teacher can devote personalized
attention to his pupils. Adequate trained teachers are essential for the
educational upliftment. It takes into account all the teachers teaching and
the students enrolled in higher educational levels i.e. secondary, senior
secondary or intermediate schools.

Table C.5 (d) Pupil Teacher Ratio across different states

State 2001-02 2002-03 2003-04 2004-05 2005-06

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

Source: Selected Educational Statistics, respective years

• Lower pupil teacher ratio is an indication of better quality of


education. The pupil teacher ratio in Jharkhand has shown a marginal
increase over the years, which calls for attracting talented and
committed individuals to take up teaching as profession.

• Among the new states, Jharkhand has the lowest pupil teacher
ratio followed by Chhattisgarh and Uttarakhand.

• Jharkhand performs at par with India in terms of Pupil-Teacher


Ratio at the higher educational level.

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

West Bengal 1,279

India 1,810

Source : Analysis of budgeted expenditure on education,


Ministry of HRD

• The expenditure on primary and middle education per person for


Jharkhand is higher than that of Bihar. The expenditure is also
higher than that of Chhattisgarh in 2005-06.

• At about 1800 Rupees per head, the expenditure incurred by the


Jharkhand state government on primary and middle school
education is much less than that of higher-ranking states like
Maharashtra.

• The expenditure incurred by the state is a little higher than the


national average.

90
6. Agriculture

Net irrigated area/net sown area

Agriculture productivity is dependent on irrigation of the sown area. Higher


percentage of net irrigated area to net area sown increases the productivity
of the land and mitigates tjhe negative impact of rainfall variation. For
sustained agricultural growth, the availability of water is crucial and this is
one aspect on which many states have failed to deliver.

Table C.6 (a) Net Irrigated Area over Net Sown Area (%)

2001- 2002- 2003- 2004- 2005- 2006-


States 02 03 04 05 06 07

Jharkha
nd 9.2 9.2 9.2 9.2 9.3 9.3

Bihar 61.1 60.5 60.1 60.1 54.5 56.9

Chhattisg
arh 24 22.5 22.8 25.3 26.2 27.1

Punjab 95.4 98.1 95.2 95.2 95.2 94.9

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

Source: Ministry of Agriculture, Govt. of India

• Jharkhand does not fare well in terms of irrigation of its


agricultural land. Less than 10 percent of the total sown area of
Jharkhand is under irrigation and this ratio has been almost
stagnant over last five years.

• Economically better performing states like Punjab have as high


as 95 percent of their sown area under irrigation.

• Among the newly formed states, Uttarakhand has the highest


percentage of their sown area under irrigation followed by
Chhattisgarh.

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

Agricultural productivity is measured through yield of basic food grains which


includes cereals and pulses.

Table C.6 (b) Food grain yield (Kilograms per hectare)

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

Maharashtra 874 846 897 917 948 940 1,166

173
India 4 1535 1731 1,744 1,716 1,756 1,854

Source: Ministry of Agriculture, Govt. of India

• Foodgrain yield in Jharkhand per hectare area is marginally


higher than its mother state Bihar.

• Among the newly formed states, Uttarakhand has the highest


food grain yield followed by Chhattisgarh.
93
.

• Jharkhand has however higher food-grain yield per hectare


compared to Maharashtra which is perceived to be an
economically better performing state.

• Jharkhand is far behind the agriculturally rich states like Punjab


or West Bengal. It needs to improve its agriculture productivity
which is essential for the benefit of the masses.
c. Bank Credit to Agriculture

Farmers’ access to resources is regarded as an important input for


increasing productivity. Credit to the agricultural sector has always been a
priority sector for banks as loans for agricultural needs are provided at
cheaper rates of interest. A high growth rate of credit to the farmers can
denote better prospects for agricultural output and this year the government
has planned for trebling farm credit in a bid to revive growth in the
agricultural sector.

Table C.6 (c) Bank credit to Agriculture (Rs. lakh)

State 2007 2008


Jharkhand 123,77 137,46
5 2
Bihar 664,68 678,34
9 9
Chhattisgarh 188,53 258,23
3 2
Maharashtra 2,439,8 2,652,0
64 43
Orissa 381,67 477,13
0 3
Uttarakhand 140,36 174,28
1 0
Punjab 1,317,6 1,535,2
21 39
West Bengal 815,01 940,25
9 2
India 20,581 27,414
,791 ,112
Source : Reserve Bank of India

94
• Bank credit to agriculture is considerably lower in Jharkhand as
compared to economically developed states like Punjab,
Maharashtra.

• Among the new states, bank credit to agriculture is considerably


higher in Chhattisgarh followed by Uttarakhand.

• The lower amount of agricultural loan extended may affect the


agricultural productivity further as there might be a consistent
financial constraint on investment in agriculture.

• Improving agriculture productivity would require greater


investments in farm
inputs, this will require greater lending activity in the future.

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

Bihar 554,718 3,054,865 27.60

West 2,947,5
Bengal 59 12,551,150 23.00

Orissa 626,234 3,362,388 27.14

53,843, 241,700,6
India 379 52 23.93

Source : Reserve Bank of India

• The compound annual growth rate (CAGR) for total commercial


bank credit utilized in Jharkhand is comparatively lower than its
neighboring states.

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.)

2000- 2002- 2003- 2004- 2005- 2006- 2007-


State 2001 2003 04 05 06 07 08

12,8 13,7 15,0 19,8 21,6 23, 22,74


Jharkhand 50 70 70 40 20 315 3

6,8 7,6 7,6 8,3 8,8 10,2


Bihar 50 10 90 20 40 28 12,231

Chhattisgar 14,4 15,3 18,2 20,6 22,8 25,2


h 80 70 60 30 70 11 28,899

Uttarakhan 18,6 21,4 23,3 25,2 28,1 30,9


d 70 20 10 50 40 28 NA

Maharashtr 27,7 30,1 33,4 36,9 41,5 45,9


a 00 20 30 40 10 87 56,411

32,3 32,9 35,1 37,1 39,5 47,1


Punjab 70 60 80 30 20 26 52,266

Tamil 23,7 25,0 27,5 31,1 34,4 37, 46,03


Nadu 60 10 30 70 20 478 4

Source: CSO

• The per capita GSDP of Jharkhand is lower than the other new
sates.

• Jharkhand is however much above its mother state Bihar in terms


of per capita GDP.

• However, it is far below the developed states like Maharashtra


and Punjab.

• Among the new states, Uttarakhand takes the lead followed by


Chhattisgarh.

98
99
c. State Per Capita Income and Growth in Per Capita income

Change in per capita income over time is measured by the annualized


average growth rate of per capita income in a given period. It can be
measured in current prices, which will express change in per capita income
in nominal terms, or at constant prices, which adjusts for inflation to give a
more realistic picture of the improvement in standard of living over time. The
base year, presently, is 1999-2000 for constant prices. If the growth in
population slows down over the years, this will result in a higher growth in
income per capita and thus states which have been doing well at controlling
population will perform betters in raising personal income levels, other things
remaining equal.

Table C.7 (c): Growth in Per Capita income (%) (2001-2008)

States Growt Growt


h per h per
year year in
in Per Per
Capita Capita
Incom Incom
e in e in
Curre Consta
nt nt
Prices Prices

Jharkhand 10.4 6.5

Bihar 8.2 4.5

Chhattisgarh 13.0 6.2

West Bengal 9.6 5.1

Uttarakhand# 10.8 7.1

Maharashtra 11.1 6.5

Tamil Nadu 11.0 6.5

# Growth in Uttarakhand based on period 2001-07

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.

d. Sectoral Shares in GSDP

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.

Table C.7(d) Sectoral shares in GSDP (%)

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.

• Jharkhand’s share of the secondary sector is more than that of the


economically developed states like Punjab and Maharashtra.

• 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.

e. Public Administration GSDP

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.

Table C.7 (e) Public Administration GSDP across states

(Rs per person)

2001- 2002- 2003- 2004- 2005- 2006- 2007-


State 02 2003 04 05 06 07 08

Jharkhand 866 570 997 886 1,026 1,187 910

Bihar 539 476 561 574 597 723 840

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

Punjab 1,485 1,658 1,795 1,844 1,990 2,101 2,343

Tamil Nadu 1,350 1,311 1,371 1,481 1,670 1,963 1,911

Source: CSO

• In Jharkhand per capita public administration GSDP had


increased over the years. It spends more than that spent by
its mother state Bihar.

• Among the new states, Uttarakhand spends highest portion of


its GSDP on public administration followed by Jharkhand
(based on 2006-07 data)

• Jharkhand is far behind the economically developed states like


Maharashtra and Punjab.

103
f. Gross Capital Formation

It is the aggregate of fixed assets purchased in the current, stocks of


materials and finished goods in the current year, and work-in-progress in the
current year. Gross Capital Formation measures the total of gross additions
to fixed assets and changes in stocks. Estimates of capital formation cover (i)
durable goods –the lifetime of which is one year or more- acquired by
producers (ii) major improvements and alteration of the durable goods, (iii)
new construction (iv) reclamation and improvement of land and the
development and extension of timber tracts, mineral exploration, orchards,
plantations etc. and (v) breeding stocks, draught animals, dairy cattle and
the like.

It is therefore an indicator of the extent to which productive assets are being


built up in the state by the public sector, the private corporate sector and the
household sector. Supra-regional sectors such as railways, banking,
communications and Central Government also contribute to the building of
capacity in the state. As larger states would show higher levels of capital
formation, adjusting for population normalizes the data for comparison
across states.

Table C7 (f) Per Capita Gross Capital Formation, 2005-06

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

Tamil Nadu 2,944

West Bengal 520

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.

• Among the new states, Chhattisgarh has the highest gross


capital formation followed by Uttarakhand.

• Jharkhand has more than ten times of gross capital formation


than its mother state Bihar. The greater investment level is good
progress for the future, provided it is sustained.

• Jharkhand is much better off than neighbouring states like West


Bengal when it comes to gross capital formation.

g. Commercial Bank Credit

Loans disbursed by the financial sector form a crucial input in growth of


economic activity as they provide funds enabling productive activity. The
indicator used here to, per capita credit granted by the commercial banks in
the region, is a measure of the access to financial resources within the state.

Table C.7 (g) Commercial Bank Credit across states (Rs per Person)

2005- 2006- 2007-


State 06 07 08

Jharkha
nd 3,641 4,048 5,024

Bihar 1,553 1,974 2,042

Chhattisg
arh 4,521 5,272 6,560

Uttarakh
and 6,366 8,131 9,729

Maharash
tra 48,527 61,166 77,315

Punjab 15,937 21,192 25,388

105
Tamil
Nadu 21,686 28,294 34,367

Orissa 5,457 6,891 7,727

West
Bengal 8,434 11,264 13,542

13,65 17,24 21,08


India 5 9 8

Source:. Reserve Bank of India

• Jharkhand has more than two times the commercial bank credit
than Bihar on a per capita basis.

• Jharkhand is much behind the states of Maharashtra, Punjab and


Tamil Nadu in terms of commercial bank credit.

• Among the newly formed states, Uttarakhand has the highest


amount of commercial credit per person followed by
Chhattisgarh.

106
8. Consumer markets

a. Households in the top & bottom income levels

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

Jharkhand 50.6 8.8

Bihar 78.6 1.6

Chhattisgarh 48.5 10.5

Maharashtra 25.1 20.0

Orissa 60.0 5.0

Punjab 21.8 17.6

Tamil Nadu 33.4 10.7

Uttarakhand 22.1 10.7

West Bengal 43.0 11.0

India 40.3 10.7

Source Market Skyline of India,2008

• Jharkhand has a very high percentage of households in the


bottom category thereby depicting its poor socio economic
background. However this category has a lower share than in
Bihar, where income levels are much lower.

• Among the newly formed states, Uttarakhand has lowest


percentage of households falling under the bottom category
followed by Chhattisgarh. Uttarakhand has a higher percentage

107
of households under the top category compared to the other two
states.
.

• Jharkhand is far behind economically advanced states like


Maharashtra and Punjab where only 25 percent and 22 percent
of the households earn less than Rs. 75,000 per annum.

b. Per Capita Expenditure

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

Jharkhand 16,300 38100

Bihar 6800 12800

Chhattisgarh 18300 44000

Maharashtra 21300 64100

Orissa 17100 35100

Punjab 23500 41100

Tamil Nadu 18400 38400

Uttarakhand 21400 34300

West Bengal 19500 44700

India 16200 41100

Source Market Skyline of India,2008

• Jharkhand’s per capita expenditure is much less compared to


most other states but it performs much better than its parent
state Bihar.

• Among the newly formed states, Uttarakhand and Chhattisgarh


has the highest annual per capita expenditure in rural area and
urban area respectively.

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

Television has become one of the most important sources of entertainment


and information across the country, amongst all economic classes. The
ownership of television requires significant expenditure- including the cost of
television, access to electricity, and the cost of cable connection. The
penetration of television reflects the affluence level of an area.

Table C.8 (c) Percentage of Households owning TV sets, 2001

State 2001 2006

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

Source: Census of India,2001 and Market Skyline of India,


2006

• Only about one-fifths of the total households in Jharkhand own


televisions. This is much lower than the all India average

• Though it has increased in 2006 compared to that of 2001, still


the figure is much lower than the all India figure.

• With respect to Bihar, Jharkhand has higher percentage of


households owning TV sets. However, when compared with the
newly formed states Jharkhand trails behind with Uttarakhand
having the highest percentage.
110
• Affluent states like Punjab outperform Jharkhand by a huge
margin with more than two-fifths of the households in the state
owning TV sets.

• TV penetration is almost half the all-India average. This not only


reflects lower consumption of power but also the lack of
entertainment and communication channels to large masses of
the population. Apart from lower prices, availability of stable
electricity is an important factor in television penetration.

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

Four wheelers Two wheelers(excluding bicycles)

States 2001 2006 2001 2006

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

Source: Census of India, 2001 and Market Skyline 2006

• Jharkhand has much more private vehicle ownership than Bihar.


The penetration is almost double in case of car owners.

• Jharkhand is showing an increasing trend in terms numbers of


two wheelers and four wheelers when comparing the year 2006
with 2001.

• However the penetration is less than all India penetration. The


penetration of cars in Jharkhand is just the half of all India
penetration of cars

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.

• The similar picture comes out in case of Jharkhand and


Chhattisgarh as well but this time Chhattisgarh has better
penetration of two wheelers and Jharkhand has better
penetration of cars.

113
9. Fiscal Status
a. Per Capita Revenue Receipts

Revenue receipts of a state comprise those receipts to the government that


do not incur any obligation to be returned at a future date. At the state level,
Revenue Receipts include the following: Tax revenue, Non-tax revenue, and
Grants from Centre and transfer from funds.

Table C.9 (a) Revenue Receipts (Rs. per person)

State\Yea 2001- 2002- 2003- 2004- 2005- 2006- 2007-


r 02 03 04 05 06 07 08

Jharkhan
d 2,264 2,700 2,666 2,572 2,838 3,391 4,301

Bihar 1,231 1,369 1,573 1,919 2,102 2,470 2,640

Chhattisga
rh 2,100 2,555 2,762 3,396 3,527 5,155 5,351

Orissa 1,915 2,275 2,524 3,044 3,329 4,539 5,020

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

India 2,486 2,685 2,986 3,570 3,927 4,708 5,289

Source: RBI

• Revenue receipts per person have shown an increasing trend in


Jharkhand over the years. A prominent reason may be the
transfer of Jamshedpur to Jharkhand.

• Jharkhand has higher revenue receipts than its mother state


Bihar.

• Among the newly formed state, Uttarakhand has the highest


amount revenue receipts per person followed by Chhattisgarh.

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.

Table C.9 (b) Per Capita Revenue Expenditure(Rs. per person)

State\Ye 2001- 2002- 2003- 2004- 2005- 2006- 2007-


ar 02 03 04 05 06 07 08

Jharkha
nd 2,226 2,821 2,615 2,963 3,225 3,755 4,301

Bihar 1,513 1,660 1,702 1,958 2,087 2,552 2,640

Chhattisg
arh 2,359 2,608 3,059 3,581 3,639 4,430 5,351

Orissa 2,684 2,700 2,903 3,627 3,615 4,347 5,020

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

India 3,061 3,213 3,563 3,982 4,160 4,757 5,289

Source: RBI

• Jharkhand has much higher per capita revenue expenditure than


Bihar, but the increase for both the states shows a similar rate.

• Among the new states, Uttarakhand has the highest per capita
revenue expenditure followed by Chhattisgarh.

• A lower revenue expenditure of Jharkhand shows that its current


expenditure is under control.

116
117
Per Capita Capital Expenditure

Capital expenditure is the expenditure which is incurred on capital goods. In


other words, it means expenditure incurred for the acquisition of any long
term asset, incurred with a long term perspective.

Table C.9 (c) Per Capita Capital Expenditure (Rs per person)

2001- 2002- 2003- 2004- 2005- 2006- 2007-


State\Year 02 03 04 05 06 07 08

Jharkhand 718 755 1,745 2,269 2,176 2,550 2,955

Bihar 278 441 1,338 1,452 1,471 1,589 1,462

Chhattisgarh 341 609 11,325 9,760 9,620 9,470 19,729

Orissa 594 877 5,504 4,450 3,353 3,658 1,352

Uttarakhand 548 1,350 29,301 9,373 9,860 13,532 13,732

West Bengal 584 561 11,919 10,209 9,607 16,467 18,728

12,53 14,23
India 607 814 9,000 7,442 6,389 8 5

Source RBI

• If we look at the figures we find an increasing trend in terms of


capital expenditure of Jharkhand. And the trend holds equally
good for most of the states.

• Jharkhand has a higher per capita capital expenditure than its


mother state Bihar. This implies that a considerable portion is
spent on building assets.

• Among the newly formed states, Chhattisgarh has the highest


per capita capital expenditure compared to the other two.

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.

Table C.9 (d.i) Percentage of Revenue Expenditure on Social Services


State 2001- 2002- 2003- 2004- 2005- 2006- 2007-
02 03 04 05 06 07 08

Jharkha
nd 40.88 38.9 33.91 35.74 39.83 41.3 38.35

Bihar 35.25 33.54 35.6 37.12 35.68 37.03 38.51

Chhattisg
arh 38.95 37.73 34.37 36.01 37.84 40.92 39.95

Orissa 33 34.54 34.15 31.8 34.15 33.95 34.23

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

India 34.19 33.25 31.78 33.03 33.23 35 35.90

Source: RBI

Table D.9 (d.ii) Percentage of Capital Expenditure on Social Services

State 2001- 2002- 2003- 2004- 2005- 2006- 2007-


02 03 04 05 06 07 08

Jharkha
nd 12.7 18.4 8.3 7.7 9.1 12 15.74

Bihar 5.7 5.7 2.4 1.6 1.6 5.7 7.46

Chhattisg
arh 15 10.6 0.8 1.6 2.1 2.8 1.86

Orissa 6.7 5 0.6 0.9 1.3 2.4 11.61

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

India 9.5 8.9 1 1.6 2.4 1.4 1.60

Source: RBI

• Jharkhand spends a lower proportion of its revenue expenditure


on social services than its parent state Bihar.

• Among the newly formed states, Jharkhand spends a lower


portion of its revenue expenditure on social services than
Chhattisgarh and Uttarakhand. However, Jharkhand spends
larger portion of its capital expenditure on social services than
the other two.

• Jharkhand also spends more revenue as well as capital


expenditure on social compared to its neighbouring states like
West Bengal and Orissa.

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.

Table C.9 (e) Gross Fiscal Deficit (Rs per person)

2005- 2006- 2007-


States 06 07 08

Jharkhand 1,701 1,757 2,042

Bihar 566 749 381

Chhattisgar
h 589 617 750

Maharashtr
a 1,630 1,507 985

Orissa 371 237 284

Punjab 1,438 2,126 1,879

Uttarakhan
d 2,629 1,944 1,627

West
Bengal 1,330 1,365 1,359

India 1,041 1,009 966

Source: RBI

• The deficit per person is high currently in Jharkhand compared to


most states. However, for it to remain at low levels, sustained
efforts should be pursued against expanding state government
employment, wasteful expenditures, and ensuring timely
completion of investment projects.

• The GFD of Jharkhand is also higher than its neighbouring states


of West Bengal and Orissa.

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.

In this section, we compare the relative performance of the districts based


on various socio-economic parameters. However the district level
comparison has been done between 22 old districts only since the data for
the newly formed districts are as yet not available. Some of the parameters
we have explored include safe drinking water, birth rate, sex ratio, literacy
rate, mobile connections and ownership of TV and motor vehicles. The
results show that most districts of Jharkhand have significant improvements
to make with respect to socio-economic factors before they can best utilize
the potential of their human resources. Another fact that comes to light is
the wide disparities amongst districts. Dhanbad, Bokaro, Ranchi and Purbi
Singhbhum are found to be performing well under most heads, whereas
Godda, Gumla, Garhwa, Deogarh and Pakaur are among the laggards.

124
1. Health and Civic Attainment

Coverage of health and basic facilities such as proper sanitation facilities is


one of the core responsibilities of any state. The following section discusses
Jharkhand’s performance at district level in this area.

a. Access to proper sanitation facility

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.

Table D.1 (a) Percentage of households with Water Closet/Latrine,2007-08

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

Purbi Singhbhum 53.3

Ranchi 28.6

Sahibganj 8.1

Simdega 6.3

Saraikela 15.7

Source: District Level Household Survey 3, Ministry of Health and


Family Welfare

• As per DLHS 3, Purbi Singhbhum has the highest percentage of


households with water closet/latrines. Other better performing
districts include Bokaro, Dhanbad and Ranchi.

• Districts like Garhwa, Jamtara and Godda have least share of


households which can access the basic sanitation facilities.

b. Immunization of children

This variable looks at percentage of immunization of children between 12 to


35 months. Complete immunization here implies vaccination against
diseases like tuberculosis, diphtheria, whooping cough (pertussis), tetanus,
polio and measles. This indicator reflects the extent of availability of better
health facilities and awareness about children’s health.

Table D.1 (b) Percentage of Children 12-35 months fully immunized (2008-
09)

District Children 12-35 months fully


immunized
126
Bokaro 51.9

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

Purbi Singhbhum 27.3

Ranchi 47.1

Sahibganj 31.9

Source: Indian Development Landscape, Indicus Analytics, 2008

• Among the available data set, districts like Hazaribagh,


Lohardega and Dhanbad have comparatively better health
conditions compared to others with more than 50 percent of the
children being fully immunized.

• On the other hand, the districts of Deoghar, Godda and Dumka


have performed poorly with less than 20 percent of the children
being fully immunised.

127
2. Education

Literacy Rate

Literacy Rate is defined as the percentage of literate population aged seven


years and above. As per the Census of India, literates are those who can read
and write their name and can form simple sentences.

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

Source: District Level Household Survey 3, Ministry of Health and


Family Welfare

• Purbi Singhbhum has the highest literacy rate among the


districts of Jharkhand followed by Bokaro and Dhanbad. Ranchi,
the capital of Jharkhand has also shown better performance in
terms of percentage of literates.

• Lowest literacy rates in Jharkhand are prevalent in the districts of


Godda, Sahibganj and Pakaur.

b. Pupil Teacher Ratio

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)

District Ratio District Ratio

Bokaro 119 112


Kodarma
Chatra 115 Lohardaga 107

Deoghar 88 Pakaur 81

Dhanbad 74 Palamu 105

Dumka 89 Pashchimi 28
129
Singhbhum

Garhwa 105 Purbi Singhbhum 75

Giridih 125 Ranchi 81

Godda 67 Sahibganj 67

Gumla 64 Hazaribag 125

Source: Indian Development Landscape, Indicus Analytics, 2008

• Pupil Teacher Ratio is lowest in the district of Paschhim


Singhbhum, which gives an indication of the better education
conditions prevailing in the district. Other districts performing
better are Godda, Gumla and Sahibganj.

• Districts like Giridih, Chatra, Bokaro and Hazaribagh have a very


high Pupil Teacher Ratio thereby displaying poor education
conditions in these districts.

130
3. Demography

a. Crude Birth Rate

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

Bokaro 24.4 Hazaribag 28.4

Chatra 32.3 Kodarma 31.4

Deoghar 31.5 Lohardaga 31.2

Dhanbad 23.1 Pakaur 33.2

Dumka 27.1 Palamu 32.9

Pashchimi
Garhwa 35.7 Singhbhum 26.8

Giridih 33.9 Purbi Singhbhum 20.9

Godda 29.8 Ranchi 25.0

Gumla 29.1 Sahibganj 33.6

Source: Indian Development Landscape, Indicus Analytics, 2008

• Generally the crude birth rate in Jharkhand is not very low.


Among the districts Purbi Singhbhum has the lowest crude birth
rate of 20.9 per thousand population, while Garhwa has a very
high crude birth rate of 35.7 per thousand population.

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.

Table D.3 (b) 0-6 years Age sex ratio

District Sex ratioDistrict Sex ratio

Bokaro 946 Hazaribagh 965

Chatra 984 Koderma 972

Deoghar 973 Lohardaga 942

Dhanbad 953 Pakaur 968

Dumka 976 Palamu 974

Paschim
Garhwa 960 Singhbhum 973

Giridih 961 Purbi Singhbhum 941

Godda 996 Ranchi 960

Gumla 977 Sahibganj 972

Source: Census 2001

• Among the districts of Jharkhand Godda has the highest 0 to 6


years sex ratio with 995 of girls per 1000 boys. Some of the
other districts that perform better than the state average of 965
girls per 1000 boys are Chatra, Dumka, Gumla, Hazaribagh,
Kodarma, Pakaur, Palamu, Paschim Singhbhum, Sahibganj and
Deoghar
.

• 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

a. Head Count Ratio

The Head Count Ratio is a measure of the percentage of population living


below the poverty line and is defined as :

HCR = q/n * 100


Where q= the number of persons below a predefined poverty norm (also
called poverty line)
n= total population

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)

Districts Ratio Districts Ratio

Bokaro 37.4 Hazaribag 41.7

Chatra 18.7 Kodarma 24.8

Deoghar 24.7 Lohardaga 98.6

Dhanbad 37.7 Pakaur 62.6

Dumka 45.2 Palamu 53.4

Pashchimi
Garhwa 32.2 Singhbhum 50.7

Giridih 29.7 Purbi Singhbhum 36.4

Godda 48.2 Ranchi 22.1

Gumla 71.3 Sahibganj 74.9

Source: Bhandari and Dubey 2004-05

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.

• The lowest Head Count Ratio is in the districts of Ranchi,


Kodarma and Chatra where it is below 25 percent.

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

Bokaro 0 Hazaribagh 27.11

Chatra 0 Kodarma 0.53

Deoghar 0 Lohardaga 0

Dhanbad 0 Pakaur 0

Dumka 0 Palamu 23.45

Pashchimi
Garhwa 0 Singhbhum 7.28

Giridih 23.01 Purbi Singhbhum 5.62

Godda 3.91 Ranchi 0

Gumla 9.09 Sahibganj 0

Source: NSSO 61st (Unemployment & Employment ) Round, 2004-05

• 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

1991-2001 1991-2001 1991-2001

Bokaro 1.21 1.11 1.38

Chatra 3.38 3.39 3.08

Deoghar 2.89 2.89 2.86

Dhanbad 2.09 2.22 1.94

Dumka 1.43 1.38 2.55

Garhwa 3.35 3.32 4.64

Giridih 2.58 2.65 1.26

Godda 2.15 2.12 3.78

Gumla 2.04 1.98 4.24

Hazaribagh 2.81 2.99 1.96

Kodarma 2.77 2.67 3.45

Lohardaga 2.62 2.48 4.56

Pakaur 2.19 2.12 4.37

Palamu 3.26 3.31 2.06

Pashchim Singhbhum 1.48 1.37 2.53

Purbi Singhbhum 2.28 1.75 3.05

Ranchi 2.16 1.85 3.20

Sahibganj 3.52 3.49 4.03

137
S

oSource: Census of India

• Growth in employment is maximum in the case of districts of


Sahibganj, Chatra and Palamu. But in cities like Bokaro and
Dumka growth in employment is as low as 1.2 percent and 1.44
percent respectively.
• In the capital city Ranchi, employment growth is one of the
lowest in the state, unusual for the capital of any state.
• If we look at urban growth of employment, we can see that
Garhwa is the district which has shown maximum growth in
urban employment followed by Lohardaga and Giridih is the
district showing the least growth in urban employment.
• Similarly the districts showing the maximum and minimum
growth in rural employment are Sahibganj and Bokaro
respectively.
138
b. Per capita Rural and Urban Income and Market Size

The market size of a particular area is an indirect indicator of the


movement towards industrial development. A larger market size gives
positive incentives to the producers and in turn contributes to the overall
growth of that area. Similarly, the per capita income of a particular area
indicates the extent of affluence of a particular area.

TableD.5(b)Per Capita Rural and Urban Income and Market Size,2008

Districts Market size (Rs Per capita Income in Per capita


Crore) Urban Areas (Rs) Income in
Rural Areas
(Rs.)

Bokaro 5,208 64,511 14,478

Chatra 1,149 23,646 14,249

Deoghar 3,397 69,138 23,507

Dhanbad 6,199 36,855 20,601

Dumka 2,770 50,335 13,891

Garhwa 1,341 32,084 11,796

Giridih 3,787 72,058 16,928

Godda 1,650 23,469 15,844

Gumla 2,160 35,518 15,622

Hazaribag 5,848 52,181 20,210

Kodarma 1,141 42,281 19,760

Lohardaga 706 32,777 17,899

Pakaur 2,475 26,112 37,497

Palamu 3,304 45,306 13,957

Pashchimi Singhbhum 4,890 49,195 19,215

Purbi Singhbhum 5,310 64,260 10,789

Ranchi 9,213 60,187 19,841

139
Sahibganj 3,230 24,270 38,135

Source: Market Skyline of India, Indicus Analytics, 2008

• 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

Table D.5(c): Percentage of households owning a motor vehicle (2007-08)

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

Purbi Singhbhum 36.7

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

Purbi Singhbhum and Bokaro have higher percentage of households owning


motor vehicles compared to other districts where the figure is very low.

• In Pakaur and Sahibganj districts, have fared badly in this indicator as


even less than 5 per cent households possess a motor vehicle.

142
d. Mobile Connections

Mobile phone technology has rapidly become a necessity in recent years.


Greater use of mobile telephone is an indicator of a better connectivity which
in turn indicates technologically advancing economy and its growing
acceptance among the general population. Further it also indicates how well
a state is adapting to advancing technology and demand for the same
especially since the telecom sector has now been privatized. Mobile density
i.e. mobiles per 1000 persons has been used in the present discussion and it
includes all the connections with all the service providers operating in the
state in the respective years.

Table D.5 (d) Number of Mobile Connections per 1000 persons, 2005

Connections per 1000


Districts
persons
Bokaro 8

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

Source: Lok Sabha Unstarred question no. 5931 dated 04/05/2005

• Purbi Singhbhum has the maximum penetration of mobile


connections. This may be because of presence of Jamshedpur in
the district. Because of the presence of an industrial area the
purchasing power of the population in the district is better.

• 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

District wise comparison is a useful exercise as it highlights the priority


issues that need to be taken up in each district. The performance of the
districts of Jharkhand have been measured on different parameters of
economy and aggregated to denote the overall role of the district in the
economic upliftment of the state. Though Jharkhand has 24 districts, two of
them, namely Khunti and Ramgarh have been carved out of Ranchi and
Hazaribagh districts respectively in October 2007. As data is not yet
available for these new districts separately, the following section ranks the
districts of Jharkhand according to the 22 district divisions.

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

2. Health and Civic Attainment


• Safe Drinking Water
• Women having trained assistance during delivery
• Percentage of households with Water Closet/Latrine
• 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

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

Development is a sum of progress made not just in economy, but also


provision of basic services such as health, education, water and sanitation
among various others. For the assessment performance of the districts in
education, three parameters have been used, namely, literacy rate, female
to male literacy rate and teacher pupil ratio. Literacy rate which reflects the
overall education levels achieved in the region. Female to male literacy rate
depicts the gap in educational attainments between males and females. The
gender gap in education reflects that even today education for girls isn’t
considered as important as that for boys. The third variable taken is teacher
pupil ratio which denotes the level of personalized attention every student is
getting.

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.

Underdevelopment in India has been characterized by mass poverty, as


many households still cannot afford two square meals for all its members.
Further a significant proportion of the population lives below the poverty line.
Two widely used variables have been taken to asses performance in
146
controlling poverty. The variables are head count ratio and percentage of
households not getting square meals.

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

Each of the variables have been appropriately normalized so that districts


that differ in absolute size are rendered comparable. Upon adequate
normalizing we obtain ratios, which are then used for calculating the indices.
Further, all the ratios that are used for generating the indices are such that
the higher the value of the ratio the better the level of economic freedom
that they signify. In case of certain ratios this has been achieved by taking
the inverse or in case of percentages by subtracting from 100.

The economic index has been constructed in two steps.

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:

Iij= Sij – Min(S1j, S2j,…,S10j)

Max(S1j, S2j,…,S10j)-Min(S1j, S2j,…,S10j)

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.

An additive composite index has been constructed for every parameter.


This has been constructed by using the formula of arithmetic mean.

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.

The overall standings of the various districts of Jharkhand on the basis of


these parameters are :

Overall performance

Table D.6 (a) Overall Ranks of the Districts in Jharkhand

District Rankin Ranking


g 2009 2008

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

A comparison of the overall performance of the districts in the last 2 years


leads us to the conclusion that while Purbi Singhbhum and Dhanbad maintain
first two positions, Bokaro has replaced Ranchi from third position to fourth
position.

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.

Table D.6 (b) Standings on the basis of performance in different aspects


149
Health and
Civic Demograph
Education Attainment Poverty y Economy

Ratin Ratin Ratin Ratin


Over g Rating g g g
all Rating (Inde (Index (Index (Inde (Inde
Rank (Index) District x) Rank ) Rank ) Rank x) Rank x) Rank

Purbi
1 0.82 Singhbhum 0.73 3 0.84 1 0.79 10 1.00 1 0.84 1

2 0.67 Dhanbad 0.62 4 0.63 3 0.88 7 0.77 2 0.62 3

3 0.65 Bokaro 0.56 6 0.69 2 0.88 6 0.65 3 0.54 4

4 0.64 Ranchi 0.57 5 0.52 5 0.98 2 0.61 4 0.65 2

5 0.50 Hazaribagh 0.50 9 0.56 4 0.36 20 0.36 9 0.54 5

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

8 0.45 Koderma 0.35 15 0.42 6 0.95 4 0.20 14 0.38 7

9 0.40 Deoghar 0.36 14 0.18 12 0.96 3 0.19 15 0.41 6

10 0.35 Chatra 0.30 17 0.15 19 1.00 1 0.15 16 0.31 9

11 0.34 Lohardaga 0.45 12 0.26 9 0.50 19 0.21 13 0.30 12

12 0.34 Jamtara 0.45 11 0.19 11 0.83 8 0.45 7 0.15 20

13 0.33 Garhwa 0.28 18 0.18 14 0.92 5 0.00 22 0.31 10

14 0.32 Dumka 0.34 16 0.20 10 0.83 8 0.45 7 0.13 22

15 0.28 Gumla 0.45 10 0.17 15 0.50 17 0.32 10 0.15 19

16 0.28 Palamu 0.37 13 0.15 17 0.35 21 0.12 17 0.34 8

17 0.28 Simdega 0.54 7 0.17 16 0.50 17 0.32 10 0.14 21

18 0.28 Latehar 0.53 8 0.18 13 0.35 21 0.12 17 0.25 13

19 0.25 Godda 0.18 20 0.10 20 0.74 11 0.28 12 0.18 17

20 0.24 Giridih 0.21 19 0.15 18 0.51 16 0.08 21 0.25 14

21 0.23 Sahibganj 0.11 21 0.06 21 0.65 15 0.09 20 0.31 11

22 0.17 Pakaur 0.05 22 0.01 22 0.73 12 0.11 19 0.16 18

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.

• Sahibganj and Pakaur are the worst districts as their performance is


poor in almost all the indicators.

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 –

a) Share of Industries – Jharkhand industrial profile is dominated by the


presence of iron and steel industries as the state has largest iron ore
reserves in India. Iron and steel industry accounts for more than half of
the industrial product of Jharkhand. As steel is the key input to auto
manufacturing, the second largest industry in the state is that of motor
vehicles which contributes 12 per cent to the total industrial value.

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.

Top industries in Jharkhand and their respective shares

%
Industry share

Basic iron & steel 56.02

Motor vehicles 12.10

Coke oven products 7.70

Basic precious and non-ferrous


metals 3.72

Non-metallic mineral products 3.57

Auto components 3.15

Other fabricated metal products 1.88

Special purpose machinery 1.71

152
Source: Industrial Skyline of India, Indicus Analytics, 2008-09

b) Fastest Growing Industries in Jharkhand – The industrial activity


in Jharkhand has grown several times since the inception of the state in
2000. The small size industries tend to display higher rate of growth
due to their small base nature as compared to the large size industries.
Hence, for our purpose of analysis, top ten industries of Jharkhand
were considered to find out the fastest growing industries. The growth
rate is based on three data points pertaining to the years 2000-01,
2005-06 and 2008-09.

Top Five Fastest Growing Industries (2000-1 to 2008-09)

Growth
rate
Industry (%)

Basic Iron & Steel 24

Motor vehicles 16

Coke oven products 15

Non-metallic mineral products 12

Basic precious and non-ferrous


metals 11

Source: Industrial Skyline of India, Indicus Analytics, 2008-09

• 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.

Source: Industrial Skyline of India, Indicus Analytics, 2008-09

Share in industrial product


Industry value of the district (%)
ii)
Basic Iron & Steel 94.65
Chatra –
The Coke oven products 3.2
Chatra Other Fabricated Metal
district Products 0.78
has high
presence of fabricated metal product industries and structural metal
products, tanks, reservoirs and steam generators. These two industries
together account for 50 per cent of the district’s industrial output.

Share in industrial
product value of
Industry the district (%)

Other fabricated metal products 27

Structural metal products, tanks,


reservoirs and steam generators 23

Grain, starch products and animal feeds 19

Source: Industrial Skyline of India, Indicus Analytics, 2008-09

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 (%)

Basic Iron & Steel 27

Non-metallic mineral products 20

Grain, starch products and animal feeds 17.10

Source: Industrial Skyline of India, Indicus Analytics, 2008-09

iv) Dhanbad – The industrial production in Dhanbad is majorly dominated by


coke oven products which account for 67 per cent of the district’s industrial
value production. Known for its coal reserves, the place if better known as
“Coal City of India”. Metals and mineral product manufacturing are the other
prominent industries in the city.

Share in
industrial
product value
of the district
Industry (%)

Coke oven products 67.56

Basic precious and non-ferrous


metals 7.43

Non-metallic mineral products 7.21

Source: Industrial Skyline of India, Indicus Analytics, 2008-09

v) Dumka – Food processing is the major industrial activity in Dumka with


36 per cent contribution to the industrial product value of the district.
Manufacturing of grain, starch products and animal feeds is the second
largest industry in the state with 21 per cent share. The ‘wood products,
cork, straw and plating materials’ industry accounts for 15 per cent of the
industrial activity.

156
Share in
industrial
product value
of the district
Industry ( %)

Food Processing 36.86

Grain, starch products and animal feeds 21.28

Products of wood, cork, straw and plating


materials 15.88

Source: Industrial Skyline of India, Indicus Analytics, 2008-09

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 (%)

Basic chemicals 52.37

Other fabricated metal products 9.37

Man-made fibers 6.47

Source: Industrial Skyline of India, Indicus Analytics, 2008-09

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 (%)

Non-metallic mineral products 56.89

Coke oven products 12.90

Basic Iron & Steel 11.52

Source: Industrial Skyline of India, Indicus Analytics, 2008-09

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 ( %)

Grain, starch products and animal feeds 33.07

Non-metallic mineral products 20.72

Manufacturing 15.86

Source: Industrial Skyline of India, Indicus Analytics, 2008-09

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 (%)

Non-metallic mineral products 27.73

Grain, starch products and animal feeds 20.26

Tobacco products 14.55

Source: Industrial Skyline of India, Indicus Analytics, 2008-09

x) Hazaribagh – In Hazaribagh district, 65 per cent of the industrial activity


takes place in mineral and metal related products. The non-metallic mineral
products have highest share 41 per cent and the fabricated metal products
contribute 15 per cent to the secondary activities in the district.

Share in
industrial
product value
of the district
Industry (%)

159
Non-metallic mineral products 41.54

Other fabricated metal products 15.31

Structural metal products, tanks, reservoirs


and steam generators 8.99

Source: Industrial Skyline of India, Indicus Analytics, 2008-09

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 (%)

Basic Iron & Steel 84.82

Structural metal products, tanks, reservoirs


and steam generators 3.36

Non-metallic mineral products 3.21

Source: Industrial Skyline of India, Indicus Analytics, 2008-09

xii) Lohardaga – Unlike other districts in Jharkhand, Lohardaga’s industrial


profile is not dominated by any one particular industry. There are wide range
of secondary activities taking place in the district such as grain, starch
products, publishing, plastic products, metals, manufacturing.

Share in
industrial
product value
of the district
Industry (%)

Grain, starch products and animal feeds 13.10

Publishing 12.11

Plastic products 12.11

Basic Iron & Steel 12.11

Casting of metals 12.11


160
Manufacturing n.e.c. 12.11

Source: Industrial Skyline of India, Indicus Analytics, 2008-09

xiii) Pakaur – Pakaur district has high presence of non-metallic mineral


products and tobacco product industries. Another significant industry is
‘Grain, starch products and animal feeds’.

Share in industrial
product value of
Industry the district (%)

Non-metallic mineral products 27.64

Tobacco products 25.46

Grain, starch products and animal feeds 17.94

Source: Industrial Skyline of India, Indicus Analytics, 2008-09

xiv) Palamu – The industrial activity in Palamu is largely characterized by


‘Grain, starch products and animal feeds’ which accounts for 41 per cent of
its output. Structural metal products and mineral industry have 10 per cent
share each in the district’s industrial value.

Share in
industrial
product value of
the district (in
Industry %)

Grain, starch products and


animal feeds 41.19

Structural metal products, tanks,


reservoirs and steam generators 13.81

Non-metallic mineral products 12.24

Source: Industrial Skyline of India, Indicus Analytics, 2008-09

xv) Pashchimi Singhbhum – In Pashchimi Singhbhum, auto components


industry is the major sector comprising of the industrial profile of the district.
161
The auto ancillary sector accounts for one third of the industrial product
value.

Share in
industrial
product
value of
the district
Industry (%)

Auto components 33.31

Other fabricated metal


products 10.88

Non-metallic mineral products 9.50

Source: Industrial Skyline of India, Indicus Analytics, 2008-09

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 (%)

Motor vehicles 66.03

Basic precious and non-


ferrous metals 9.20

Special purpose
machinery 7.91

Source: Industrial Skyline of India, Indicus Analytics, 2008-09

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 (%)

Basic Iron & Steel 55.37

Basic precious and non-ferrous


metals 16.93

Casting of metals 9.57

Source: Industrial Skyline of India, Indicus Analytics, 2008-09

xviii) Sahibganj – The secondary sector in Sahibganj constitutes of small


scale and cottage industries prominently dealing in the tobacco products.
Tobacco sector accounts for 55 per cent of the district’s industrial product.
163
Share in
industrial
product value of
Industry the district (%)

Tobacco products 55.12

Manufacturing 13.85

Grain, starch products and animal feeds 7.55

Source: Industrial Skyline of India, Indicus Analytics, 2008-09

B. Employment-

a) Share of Industries in employment generation in Jharkhand -


Maximum employment in Jharkhand is generated by the tobacco
sector which employs around 38.6 per cent of the industrial workers.
The metal products industry is the second largest employer with
almost 10 per cent share in employment generation. Jharkhand, with a
large forest cover, has wood product manufacturing as one of the
significant source of work generation. Almost 9.6 per cent of the
industrial workers are engaged in manufacturing of wood products.

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.

Top Employment generating Industries in Jharkhand

Share in
industri
al
product
value of
the
district
Industry (%)

164
Tobacco products 38.64

Other fabricated metal


products; metal working
service activities 9.66

Products of wood, cork, straw


and plating materials 9.61

Non-metallic mineral products


n.e.c. 6.91

Beverages 6.48

Wearing apparel, except fur


apparel 6.03

Grain, starch products and


animal feeds 5.61

Basic Iron & Steel 3.54

Structural metal products,


tanks, reservoirs and steam
generators 1.78

Production, processing and


preservation of meat, fish,
fruit vegetables, oils and fats 1.53

Source: Industrial Skyline of India, Indicus Analytics, 2008-09

165
b) Top employment-generating industries in districts of
Jharkhand –

i) Bokaro – Bokaro, marked by the presence of the largest steel plant in


India, has almost 46 per cent of its industrial workers engaged in
the iron and steel sector. The tobacco sector, the second largest
employment generating sector after iron and steel industry,
accounts for 16 per cent of the industrial employment in the
district.

Share in
employme
nt
generatio
Industry n (%)

Basic Iron & Steel 46

Tobacco products 16.64

Non-metallic mineral
products 11.41

Source: Industrial Skyline of India, Indicus Analytics, 2008-09

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 (%)

Tobacco products 44.24

Structural metal products, tanks, reservoirs and


steam generators 14.51

Apparel 12.64

Source: Industrial Skyline of India, Indicus Analytics, 2008-09


166
iii) Deoghar – Maximum employment in the Deoghar district is
generated by the tobacco industry where more than 60 per cent of
the industrial workers are employed. Metal Products manufacturing
employs almost 25 per cent of the industrial workers in the District.

Share in
employme
nt
generatio
Industry n (%)

Tobacco products 64.63

Other fabricated metal products 25

Non-metallic mineral products 2.15

Source: Industrial Skyline of India, Indicus Analytics, 2008-09

iv) Dhanbad - While coal accounts for maximum industrial


production in value terms in Dhanbad district, yet maximum
number of workers are employed in the tobacco industry. The
garment sector creates second largest employment in the
industrial sector of the District. Coke oven products sector employs
15 per cent of the total industrial workers.

Share in
employment
Industry generation (%)

Tobacco products 23.94

Apparel 17.73

Coke oven products 15

Source: Industrial Skyline of India, Indicus Analytics, 2008-09

v) Dumka – More than half of the industrial employment in Dumka is


generated in tobacco sector. The other prominent industries in
terms of workforce are metal products and wood products.

Industry Share in
employme
167
nt
generatio
n (%)

Tobacco products 52.10

Other fabricated metal products 17.97

Products of wood, cork, straw and plating


materials 11.89

Source: Industrial Skyline of India, Indicus Analytics, 2008-09

vi) Garhwa – Among the industrial units, the garment sector


generates maximum employment in Garhwa district accounting for
30.7 per cent of the total industrial workforce. The non-metallic
mineral products and man-made fibre industry each has around 14
per cent contribution to the employment creation.

Share in
employme
nt
generatio
Industry n (%)

Apparel 30.74

Non-metallic mineral products 14.72

Man-made fibers 14.55

Source: Industrial Skyline of India, Indicus Analytics, 2008-09

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

Source: Industrial Skyline of India, Indicus Analytics, 2008-09

viii) Godda – The prime employment generating industries in Godda


district are apparel and tobacco sector. Each of them have more
than 20 per cent share to the total workforce engaged in industrial
activities.

Share in
employme
nt
generation
Industry (%)

Apparel 22.07

Tobacco products 20.14

Grain, starch products and animal


feeds 14.38

Source: Industrial Skyline of India, Indicus Analytics, 2008-09

ix) Gumla – Gumla district has high dependence on the metal


product industry as 45 per cent of the workforce is engaged by this
sector. Other significant industries from the perspective of creating
employment includes wood products, grain & starch products.

169
Share in
employme
nt
generatio
Industry n (%)

Other fabricated metal products 45.18

Products of wood, cork, straw and plating


materials 19.67

Grain, starch products and animal feeds 15.01

Source: Industrial Skyline of India, Indicus Analytics, 2008-09

x) Hazaribag – The Textiles sector is the largest employer in Hazaribag


district of Jharkhand engaging 21 per cent of the industrial workers.
The wood products and non-metallic mineral product industries
provide employment to 18 per cent and 16 per cent workers.

Share in
employme
nt
generatio
Industry n (%)

Other textiles 21.32

Products of wood, cork, straw and plating


materials 18.26

Non-metallic mineral products 16.30

Source: Industrial Skyline of India, Indicus Analytics, 2008-09

xi) Koderma – In Koderma district, a large share of the industrial


employment is generated by the production of tobacco products.
Other prime industries generating employment are wood products
and grain & starch products.

Share in
employme
nt
generatio
Industry n (%)

Tobacco products 55.50


170
Products of wood, cork, straw and plating
materials 14.60

Grain, starch products and animal feeds 6.71

Source: Industrial Skyline of India, Indicus Analytics, 2008-09

xii) Lohardaga – Lohardaga district has almost half of its industrial


workforce engaged in non-metallic mineral products industry. The
second largest employment generating industry in the district is
‘Grain, starch production and animal feeds’. This industry employs
around 33 per cent of the workforce. Footwear manufacturing is
the third biggest industry, however its share is only 4 per cent.

Share in
employme
nt
generatio
Industry n (%)

Non-metallic mineral products 45.81

Grain, starch products and


animal feeds 33.25

Footwear 4.03

Source: Industrial Skyline of India, Indicus Analytics, 2008-09

xiii) Pakaur – In Pakaur district, tobacco production and processing is


the key occupation of those engaged in secondary activity. Even as
tobacco production contributes 25 per cent to the total industrial
output if the district, it employs more than 95 per cent of the
workers.

Share in
employme
nt
generatio
Industry n (%)

Tobacco products 95.75

Non-metallic mineral 1.86


171
products n.e.c.

Beverages 0.59

Source: Industrial Skyline of India, Indicus Analytics, 2008-09

xiv) Palamu – In Palamu district, tobacco products and wood product


industries are the key employment generators with the respective
shares of 36 per cent and 30 per cent. Readymade garments or
apparel industry is the third largest employer in industrial segment.

Share in
employme
nt
generatio
Industry n (%)

Tobacco products 36.02

Products of wood, cork, straw and plating


materials 30.14

Apparel 12.27

Source: Industrial Skyline of India, Indicus Analytics, 2008-09

xv) Pashchimi Singhbhum – Paschimi Singhbhum has tobacco


products and beverage manufacturing sectors as the top
employment generating sectors with their combined share
exceeding 50 per cent. While auto components sector accounts for
maximum industrial output in value terms, it does not fall in top
three employers category.

Share in
employme
nt
generatio
Industry n (%)

Tobacco products 30.46

Beverages 27.55

Products of wood, cork, straw and plating


materials 12.08

Source: Industrial Skyline of India, Indicus Analytics, 2008-09


172
xvi) Purbi Singhbhum – In Purbi Singhbhum district, the ‘Grain, starch
and animal feeds’ industry accounts for 25 per cent of the
industrial workforce while 17 per cent is engaged by tobacco
industry. The metal related products are the third largest
employment generator and have 14 per cent contribution to
employment generation.

Share in
employment
generation
Industry (%)

Grain, starch products and animal


feeds 25.17

Tobacco products 17.27

Structural metal products, tanks,


reservoirs and steam generators 14

Source: Industrial Skyline of India, Indicus Analytics, 2008-09

xvii) Ranchi – While iron and steel contributes maximum to the


industrial output value in the capital city of Jharkhand, the sector
does not fall among the highest employment sectors. It is the non-
metallic mineral products which employs maximum workforce,
followed by wood product and fabricated metal products industry.

Share in
employme
nt
generatio
Industry n (%)

Non-metallic mineral products 18.35

Products of wood, cork, straw and plating


materials 17.38

Other fabricated metal products; metal working


service activities 14.81

Source: Industrial Skyline of India, Indicus Analytics, 2008-09

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 (%)

Tobacco products 49.06

Beverages 18.52

Grain, starch products and


animal feeds 11.86

Source: Industrial Skyline of India, Indicus Analytics, 2008-09

C. Consumption of Raw Materials

The input consumption by the top industries in Jharkhand is discussed below.

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’.

Top Raw Material Consuming Industries of Jharkhand


174
Share in
total raw
material
consumpti
Industry on (%)

Basic Iron & Steel 39

Motor vehicles 17.31

Coke oven products 10

Basic precious and non-ferrous metals 5.08

Auto Components 4.60

Other fabricated metal products; metal working


service activities 3.78

Non-metallic mineral products 3.73

Grain, starch products and animal feeds 2.59

Special purpose machinery 2.06

Source: Industrial Skyline of India, Indicus Analytics, 2008-09

175
Section VI: Jharkhand’s best and worst
constituencies

Parliamentary constituencies are territorial divisions identified for the purpose of


electing representatives from different states of India. The number of seats allotted
to a state is based on the population of the respective states. This section will
examine the performance of parliamentary constituencies of Jharkhand on two
parameters: socio economic performance and infrastructure provision at the state
and all India level. This exercise aims to serve as a quantifiable reminder to the MPs
about the shortcomings in their 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

b. Physical infrastructure category

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

Index in the state Rank in the state

Parliamentary* Socio Socio Infrastructur


Constituency economy Infrastructure economy e

Dhanbad 0.528 0.629 1 1

Bokaro 0.46 0.457 2 2

Jamsedpur 0.449 0.443 3 3

Khunti (ST) 0.445 0.332 4 6

Ranchi 0.44 0.367 5 5

Hazaribagh 0.381 0.378 6 4

Singhbhum (ST) 0.321 0.26 7 7

Lohardaga (ST) 0.279 0.183 8 14

Chatra(SC) 0.266 0.222 9 11

Deoghar 0.262 0.258 10 8

Giridih 0.26 0.237 11 10

Palamu (SC) 0.238 0.204 12 13

Dumka (ST) 0.208 0.222 13 12

Godda 0.205 0.243 14 9

Note: * The constituencies are the new constituencies as declared by the


Delimitation Commission

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

Parliamentar All India Rank Member of


y Socio Infrastructu Parliament Political Party
Constituency* Economy re
Chandra Sekher Indian National
Dhanbad 279 209 Dubey Congress

Bokaro 345 338 NA NA

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

Bhubneshwar Prasad Communist Party of


Hazaribagh 443 393 Mehta India

Singhbhum Indian National


(ST) 501 461 Bagun Sumbarai Congress

Indian National
Lohardaga (ST) 527 509 Rameshwar Oraon Congress

Chatra(SC) 530 480 Dhirendra Agarwall Rashtriya Janta Dal

Deoghar 532 463 NA NA

Jharkhand Murti
Giridih 533 472 Tek Lal Mahato Morcha

Palamu (SC) 537 497 Ghuran Ram Rashtriya Janta Dal

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

Table 2 gives the list of parliamentary constituencies with their respective


members of parliament. The table also provides the position of the
constituencies at the all India level. The all India ranks give the position of
the constituencies of Jharkhand in the country as a whole. The all India rank
shows that even the top performing constituencies of the state have
179
occupied 279th rank among all the 543 constituencies in the country. The
ranking exercise reinforces the popular perception of poor governance in the
state, thereby depicting the challenges ahead for public representatives.
Unless the public representatives are themselves aware of the necessary
actions to be taken to develop their particular areas and learn from their
successful counterparts, growing at an accelerated pace and providing basic
services to the people would remain a dream. This exercise should go a long
way in arming the voters with necessary information to push for appropriate
manifestos and change in the upcoming elections next year.

180
Section VII: Potential Cities – An evaluation

‘Jharkhand’ meaning ‘forest land’, is known for its immense potential in


terms of various natural resources. The abundance of minerals and forests in
the state however has not helped the state in getting an edge over others,
rather it is considered to be a laggard on various fronts. Poor infrastructure
facilities, lack of quality education and health facilities etc characterize most
of the cities in the state attracting very low investment. However, some
cities in the state have immense potential where much of the industrial
activities are taking place. This section focuses on those cities and attempts
to examine their potential.

The quartet of Ranchi, Dhanbad, Jamshedpur and Bokaro cities hold


tremendous potential in achieving high economic growth in the state. These
are the cities where much of the state’s industrial activity is carried out. Brief
industrial profiles of these cities have been given below:

Bokaro City is an industrial city housing several medium and small


industries. It is also home to one of the largest steel plants in India. The
Damodar Valley Corporation (DVC) has two big power plants in the city; Coal
India Ltd. has two subsidiaries; Jharkhand State Electricity Board has a power
captive plant. The steel township of the state is named as the Bokaro Steel
City after the Bokaro Steel Plant was established in 1964. It is the district
headquarters of the Bokaro district as well as Bokaro divisional range
(Bokaro, Dhanbad and Giridih).

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.

Jamshedpur, also known as ‘Tata Nagar’ is another important industrial hub


of the state. Initially established for the manufacture of steel, it gradually
transformed itself to an important industrial hub since small industries
opened to change the raw steel into finished products. Some of the major

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.

Dhanbad is a mining town as it treasures vast mineral wealth of India and is


internationally famous for its rich coal fields. Some of the industries in and
around Dhanbad are Tata Iron & Steel Company, Foundry fuel products Pvt.
Ltd., Akash Coke industries (P) Ltd, etc. Coal washing and coke making are
the main coal related industry found in the city.

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

Ranchi City 730,655 5,607 74,692

Dhanbad City 958,280 4,074 37,579

Jamshedpur City 1,091,204 3,471 75,924

Bokaro City 648,966 4,387 .

Source: Census of India, 2001

Table 2: Economic Profile 2008

Annual Total Annual Total


Household Household
Income of Savings of
Urban Urban
Households (in Households (in Market Size (in
Cities Rs Crore) Rs Crore) Rs Crore)

Ranchi City 6,821 1,152 5,669

Dhanbad City 5,309 1,303 4,007

Jamshedpur City 7,962 3,596 4,366

Bokaro City 5,793 1,978 3,815

182
Source: City Skyline of India, Indicus Analytics, 2008

Table 3: Social Profile

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.

 Household savings in Jamshedpur city are as high as 45 percent of the


household income as compared to Ranchi and Dhanbad where it is below
25 percent.

 Ranchi city has the largest market size among all four major cities in the
state and thus has higher chances of attracting investments.

 Dhanbad and Jamshedpur have higher employment rates as compared to


the other two cities, Bokaro and Ranchi.

 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

Eastern zone comprises of the states of West Bengal, Assam, Bihar,


Jharkhand, Chhattisgarh and Orissa. The region lies on the east coast of India
and on the Indo-Gangetic plain. Agriculture has been the mainstay for most
of the states in the region thereby employing majority of the working
population. Development of the industrial sector is concentrated mostly in
West Bengal and Jamshedpur region of Jharkhand. Recently, the IT sector is
also developing in these states. This section will look at how the states in the
eastern zone are performing in sectors like agriculture, infrastructure etc.
The rankings of these states in the eastern zone as well as in the whole
country will be given.

The performance of the states was examined across eight heads -


agriculture, consumer markets, education, law and order, health,
infrastructure, investment-scenario and macro-economy. Six to eight
variables were selected in each category and individual index was
constructed in each of the sectors. A composite index was constructed by
taking the simple average of the individual indices. The overall ranks of
these states as well as the ranks in three categories, viz, agriculture, law &
order and infrastructure have been given in the present analysis. The
position of the states in three categories in the country is given in Table 1.
The composite rank of these states is also mentioned.

Table 1: All-India Ranks

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.

Table 2: Eastern Zone Ranks

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.

Law and order situation in Chhattisgarh is comparatively better than the


other states under consideration. The success of ‘Salwa Judum’ in reducing
the influence and menace of naxalism has been one of the major factors for
this performance. On the other hand, widespread naxalism, inadequacy of
policemen, high number of pending cases in the courts and high incidence of
cognizable crimes in Jharkhand has pushed it to the last place in law and
order situation in the region.

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.

The status of education is worst in Jharkhand in the eastern region while


Assam has done the best. The literacy rate in the state is one among the
lowest as the primary schooling has not been emphasized upon. More
schools at primary level need to be opened and appointment of teachers also
required to be raised. The state government should allocate higher
expenditure towards education to build its human resource.

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.

An interesting academic exercise is to see where the various states in India


are projected to be in 2020-21.

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

Chandigarh 48593 Singapore 6 11.4%

Delhi 29869 Italy 27 9.9%

Goa 28386 Greece 28 9.2%

Haryana 19433 Estonia 55 9.7%

Gujarat 17220 Poland 63 10.2%

Maharashtra 15585 Russia 65 8.3%

Kerala 14795 Mexico 67 8.8%

Himachal Pradesh 11950 Bulgaria 81 7.8%

Tamil Nadu 10464 Iran 83 6.6%

Andhra Pradesh 9752 South Africa 89 7.7%

West Bengal 7758 Azerbaijan 101 6.9%

Orissa 7430 Jamaica 104 8.5%

Chhattisgarh 6820 Tunisia 108 8.6%

Jharkhand 5999 Thailand 115 7.9%

Assam 4540 Sri Lanka 126 5.6%

Madhya Pradesh 3525 Mongolia 139 5.1%

Bihar 2763 Pakistan 145 6.4%

India ranks 144th in per capita income in the world today

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

Table 1.Total Population in the districts of Jharkhand (2001 & 2008)

Districts 2001 2008

Bokaro 1,775,961 1,977,187

Chatra 790,680 914,979

Deoghar 1,161,370 1,315,932

Dhanbad 2,394,434 2,677,336

Dumka 1,754,571 1,905,451

Garhwa 1,034,151 1,197,402

Giridih 1,901,564 2,179,195

Godda 1,047,264 1,161,959

Gumla 1,345,520 1,450,259

Hazaribagh 2,277,108 2,559,382

Kodarma 498,683 569,007

Lohardaga 364,405 414,578

Pakaur 701,616 789,904

Palamu 2,092,004 2,399,785

Pashchim Singhbhum 2,080,265 2,239,936

Purbi Singhbhum 1,978,671 2,214,469

Ranchi 2,783,577 3,160,640

Sahibganj 927,584 1,053,599

Total 26,909,428 30,181,000

Source: Census 2001, Indian Development Landscape 2008

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

Source: Census 2001

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

Work Work Work


participat participat participati
ion rate - ion rate - on rate -
Districts Rural Urban Total

Bokaro 32.7 23.7 28.7

Chatra 38.6 23.9 37.8

Deoghar 39 25.4 37.1

Dhanbad 30.7 24.9 27.7

Dumka 45.4 27.1 44.2

Garhwa 39.5 26.2 38.9

Giridih 34.5 24.3 33.8

Godda 40.8 25.4 40.3

Gumla 50.3 25.5 48.9

Hazaribag 37.5 25.5 34.7

Kodarma 36.7 27.4 35

Lohardaga 44.6 24.7 42.1

Pakaur 45 27.7 44.1

Palamu 38.7 24.7 37.8

Pashchimi
Singhbhum 47.3 28 44.1

Purbi Singhbhum 44.9 26.7 34.9

Ranchi 45.2 26.5 38.7


196
Sahibganj 43.9 24.6 41.8

Source: Census 2001

197
Table 5.Total amount of deposits and total credit as per place of sanction,
2008

Districts Deposi Credit


ts (in as per
Rs Place
'000') of
sanctio
n (in Rs
'000')

Bokaro 42980 14312


200 100

Chatra 61785 95940


00 0

Deoghar 12371 43015


900 00

Dhanbad 65315 17794


600 100

Dumka 89812 30425


00 00

Garhwa 52246 13770


00 00

Giridih 15468 61584


400 00

Godda 66211 23184


00 00

Gumla 54076 12441


00 00

Hazaribag 17974 51970


500 00

Kodarma 63199 16093


00 00

Lohardaga 26157 91330


00 0

Pakaur 34842 12050

198
00 00

Palamu 14327 28646


300 00

Pashchimi 17852 57521


Singhbhum 900 00

Purbi 65406 38842


Singhbhum 700 000

Ranchi 96621 30313


600 800

Sahibganj 52747 18819


00 00

Source : Reserve Bank of India, Basic Statistical Returns, March 2008

199
Table 6.District-wise penetration of LPG & television, 2007-08

Districts % of % of
househol househo
ds owning lds
TV having a
motor
vehicle

Bokaro 51.1 34.4

Chatra 8.0 7.6

Deoghar 22.3 12.6

Dhanbad 56.7 23.0

Dumka 11.0 6.0

Garhwa 9.5 6.1

Giridih 11.3 10.2

Godda 11.4 5.3

Gumla 10.1 7.2

Hazaribagh 35.3 21.9

Kodarma 19.2 12.0

Lohardaga 14.7 12.9

Pakaur 8.5 3.8

Palamu 13.0 8.6

Paschim 18.4 15.7


Singhbhum

Purbi 52.8 36.7


Singhbhum

Ranchi 39.0 24.6

Sahibganj 9.7 2.8

Jamtara 18.9 9.4

Latehar 7.9 5.2

Ranchi 39.0 24.6

200
Saraikela 30.0 16.3

Simdega 6.4 7.3

Source: District Level Household Survey III, Ministry of Health and Family Welfare

201
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