Eastern States of India – Growth Engines and Enablers

Eastern region of India is a land of huge potential which is endowed with rich minerals, forests, productive and fertile soil along with rich cultural heritage. The available resources along with the man power help the eastern region become the key growth engines.

The states have immense potential for growth and large-scale production. Export of spices, jute, and other agro products are some of the major activities in the area. The spurt of investment coming to the eastern states clearly indicates about bright future for trade and industry. Continuous improvement in the hard and soft infrastructure has been witnessed in the sector along with the growth of sectors like IT & ITeS, Healthcare and Tourism.

Eastern States at a Glance

BIHAR: Bihar is a largely service oriented state but has significant agricultural base too. State has small industrial sector and attract foreign tourists. Proper connectivity with other parts helps in larger inflow of foreign tourists.

CHHATTISGARH: Chhattisgarh is one of the youngest States of India. It was constituted in November, 2000. It is known for its rich mineral wealth with deposits of over 28 major minerals including diamonds, gold, iron-ore, coal, corundum, etc. Chhattisgarh is the only state in India to have tin ore reserves. The state has shown significant growth in construction and services sector. Also Chhattisgarh is acclaimed as the iron and steel hub of the country. State has significant coal reserves at 84 per cent of India‘s coal which gave its ‘power hub’ status. State also offers significant opportunities for infrastructure development through PPP. Availability of land and knowledge workers at comparatively low cost help the state become a center for investment.

JHARKHAND: Jharkhand is the 28^th Indian state which came into existence in November, 2000. State is rich in natural resources, forests, minerals and abundant land. Only about 3% percent of the population resides in the state and it is house to one third of its mineral potential reserves particularly coal and iron. Nearly half of the state GDP comes from industry with mining, quarrying and manufacturing. Being one of the most mineral intensive states in India state enjoys over 14% share of SDP from mining and quarrying.

ODISHA: Odisha has substantial industrial base and comprises of large, medium and small-scale enterprises in Steel, Aluminium, Power, Textile, etc. Quality Infrastructure in the State offers tremendous opportunities for investment in the export-oriented industries. Availability of skilled and semi-skilled labor at competitive rate offers favorable opportunities for industrial development.

WEST BENGAL: WB is the fourth most populous state and ranks first in terms of population density. West Bengal is an agriculture driven state with rich tradition of industrial setups since the start of the industrial age. State is making effort to regain its position as a critical hub for industries like iron and steel, agro based industries, and services sector. WB is home to one of the largest consumer market in India.

The eastern India lagged behind the rest of India for decades. However the states have been reinventing themselves in recent years. States of Bihar, Jharkhand, West Bengal, Odisha and Chhattisgarh are making transition.

However fact is there will be no good if we only identify and build upon the major growth engines of the states. It is required that we identify the key growth enablers of the states as it too plays an equally important role. Previously labor and stock of physical capital were considered to be the major determinants of economic growth. In today’s data role of human capital is given more important. Two of the important factors determining the human role are the extent to which the force is educated, and level of health they enjoy.

Thus it is important that the states work towards development of health infrastructure and provide necessary training, education to the labor. This will only help the eastern states grow in a much rapid pace.