Thaindian News

Patna, Nov 12 (IANS) Bihar, one of the poorest states in the country, will soon be on a high economic growth trajectory, says premier industry lobby Assocham (Associated Chambers of Commerce and Industry of India).
An Assocham report titled “The Bihar Vision 2020, a Growth Strategy” released here Thursday afternoon said Bihar’s economy was expected to grow at a compounded annual growth rate (CAGR) of 8 percent over the next decade.

“Bihar GDP (gross domestic product) will reach Rs.264,781 crore from the current level of Rs.105,148 crore mainly due to good governance factor,” the report said.

The state gross domestic product (SGDP) is projected to grow at a faster clip by 2015 to reach around Rs.180,200 crore, the report added.

The state GDP had been growing at 6.6 percent CAGR between 2000-2006.

According to the report, agriculture contributes 35 percent to Bihar’s SGDP against 9 percent of industry and 55 percent of services.

However, manufacturing remained a challenging area for the state as its contribution to the SGDP is only 0.38 percent, Assocham said.

“Manufacturing remained a neglected area in the state as it failed to provide security to the industry. It halted investment flows,” the report said.

If the government ensures law and order and provides infrastructure facilities by building roads, ports and power plants, the manufacturing sector would flourish in the state, providing employment opportunities for many.

This will also reduce poverty in Bihar, the report said.

Though investment proposals worth over Rs.40,000 crore were received in 2008-09, resources for the execution of these projects are still to be raised, said the industry lobby.

The sate has a strong agricultural base for setting up agro-based industries like food processing, sugar, jute and tea, it added.