Decline in Bihar’s growth rate, but still better than national average
Patna,(BiharTimes): Bihar has shown a slide with the gross state domestic product (GSDP) estimated at 7.6% for a five year period from 2011-12 to 2015-16 at constant prices with 2011-12 as the base year.
This data finds place in in the Economic Survey 2016-17 tabled in the Bihar Assembly on Thursday.
It notes that Bihar’s secondary and tertiary sector were growing at 8.4% and 10.4%, respectively, faster than the overall economic growth.
It says the industry contributed 18.15%, construction 21.91%, communication 38.4%, trade, hotels and restaurants 15.10% and banking and insurance 23.5% to help GSDP record a sustained double digit growth during the 11th Five Year Plan period.
There was decline in production of major crops and vegetables in the state during 2015-16.
This was so despite Bihar embarking on an ambitious Rs 1.52 lakh crore agriculture roadmap, three years back.
Barring 2011 the state has been receiving below average rainfall since 2009.
The Bihar Economic Survey 2016-17 says attempts were made to mechanise farming on a large scale and distribute high-yielding variant of seeds, the results are yet to show up. Initiatives to enhance irrigation network by renovating major reservoir projects, however, will increase yields in a year or two.
Experts of the department, however, claim that production of major cereals and vegetables this year would be ‘very high’ as compared to past years.
State finance minister Abdul Bari Siddiqui and principal secretary finance, Ravi Mittal, did not agree that the state’s growth rate was on a slide.
They said there was a slight variation in figures due to growth estimates in all key sectors being calculated at constant prices, with base year changing from 2004-05 to 2011-12.
Siddiqui said that Bihar is still on a high growth trajectory as 7.6%, which is higher than 6.8% medium term growth rate for national economy. At current prices, it would record double digits.