The Economic Survey of Bihar, 2007-08, has reported that the quick estimates of GSDP for 2006-07 shows an annual growth rate of 16.7 percent. This growth rate was found to be unacceptably high by some commentators and a tall claim by the state government.
In this context , it might be noted that by virtue of being an agricultural economy, the yearly GSDP figures always show large variations in Bihar. Since 2000-01, these rates have varied between -4.8 percent in 2001-02 to 16.1 percent 2000-01. These yearly growth rates actually indicate the vulnerability of the Bihar economy, not its economic performance. For judging the growth performance, one should analyse the medium or long term grown rates. For the period 1999-00 to 2006-07, this rate is found to be 4.94 percent, as reported in the survey.
As regards the fall in agricultural production, as reported in the Survey, it may be noted that it refers to the year 2007-08 and not 2006-07 for which estimate of GSDP is presented. Thus, a correspondence between the two is not expected.
Finally, one should appreciate that the Economic Survey is the best effort of the state government to report about the health of the economy. Thus besides mentioning the achievement, the Survey also underlines many gaps that the state govt. is concerned about.
Sushil Kumar Modi
Dy. C M , Govt. of Bihar
Story posted on Bihar Times....
- Economists doubt tall claims of Bihar Economic Survey
- The economic survey of Bihar claims 16 per cent rise in GSDP despite 26.04% fall in farm output
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