Economist like Prof Nawal Kishore Choudhary have always been sceptics of such figures. But this time even the director of Asian Development Research Institute (ADRI) P P Ghosh did not appear much enthusiastic about the growth figures. According to him low base of economy was one of the factors for such a high growth rate. He also claimed that the growth was not as visible as one would perceive while going through the figures.

Interestingly, till last year ADRI used to praise the growth rate of the state. Experts would come over there and shower praise on the state government for such unprecedented development. One of them was noted journalist, Swaminathan Aiyar, who gave a lecture in ADRI on this topic.

Prof Choudhary, as usual, said that the growth story reveals less and conceals more. Agriculture and allied sectors, on which about 80 per cent of the state’s population depends, has registered negative growth rate thrice in the past six years. It is a matter of concern.

He said most of the growth is taking place in the tertiary sector and such a growth would not be sustainable unless the government is able to ensure concomitant growth rate in primary and secondary sectors. He claimed that the growth was not pro-poor as was evident from the rise in number of poor people in the state. The current growth trend was creating islands of development in the ocean of poverty.

Economists are of the view that the growth rate success has much to do with the investments made in the construction sector in the state. The construction of National Highways, rural roads under Pradhan Mantri Gramin Sadak Yojana, and rail and road bridges have much to do with it. The contribution of Centre in such construction work is much more than the state. Besides, the figures are compiled on the basis of data provided by the state government, they opine.

Tamil Nadu (11.74 per cent), Chhattisgarh (11.57), Maharashtra (10.47 per cent), Haryana (9.69 per cent), Rajasthan (9.69 per cent), Andhra Pradesh 9.22 per cent, Uttar Pradesh (8.08 per cent), Punjab (7.21 per cent), Jharkhand (6.01 per cent) and Orissa (5.87 per cent) follow Bihar.

Observers are of the view that GDP figures have become a tool to score political brownie point. The NDA governments in different states, with the help of media, have used them more brazenly in the last few years. The truth is that in the past different states have registered much bigger growth rate than now yet their achievements never became big news.
For example, Gujarat registered growth rate of 34 per cent, 32 per cent, 30 per cent, 25 percent in 1992-93, 1995-96, 1989-90 and 1981-82 respectively. These are just a few examples of the last three decades. These figures were achieved in the state at the time when the growth rate of India was not so high. Yet GDP rate of Gujarat seldom became the first page news in those years.

Similarly, it would be unfair to highlight the slight decline in GDP of Bihar in 2001-02, in comaparison to the previous year, because the state was bifurcated on November 15, 2000 and all its industries and mines went over to Jharkhand. The decline was very marginal––from Rs 52,519 crore to Rs 52,323 crore.

Comment

comments...