Madhya Pradesh topples Bihar in growth rate

BJP-led Madhya Pradesh has dislodged champion Bihar from its numero uno position in terms of highest growth of gross state domestic product. The provisional data released by the Central Statistical Organisation (CSO) for 2012-13 for states shows Bihar’s growth has slowed, slipping from an impressive 13.26% last year to a single digit 9.48% this year as against 10% clocked by MP.

Other backward states have maintained their upward trajectory, with Jharkhand and Odisha growing at 9.12% and 9.14%, respectively, this year.

However, a comprehensive comparison have to wait until growth data from Kerala, Maharashtra, Gujarat, Rajasthan and Delhi, all of which have maintained robust growth in the past years, come in. Provisional GDP figures for these states for 2012-13 are still awaited.

In Bihar’s case, the phenomenal economic expansion it had clocked in recent years shows signs of deceleration. It added Rs.13,679 crore to its GDP, taking its economy from Rs.144,278 crore in 2011-12 to Rs.157,957 crore in the current fiscal. In comparison, MP has fared better, adding more than Rs.20,000 crore to its economy during the last one year, and expanding its GDP from Rs.2,01,290 crore last year to Rs.2,21,463 crore this year.

Growth in per capita income has been more disappointing for Bihar. It has added merely Rs.1,090 in 2012-13 to its per capita income, lowest among other states. In comparison, Jharkhand and MP have seen its per capita income rise by more than Rs.2,000. Odisha has also managed to add Rs.1,450 in its per capita income in the last one year — up from Rs.24,134 last year to Rs.25,584 this year.

In contrast, Bihar’s per capita stands at Rs.14,268 in the current year, just marginally up from last year’s Rs. 13,178. In the past five years, Bihar has been on a high growth path, consistently recording double-digit rate: 12% in 2008-09; 11% (2010-11) and 13% (2011-12). The only exception was 2009-10 when the state’s GDP grew by a modest 7.09%.

MP has been another consistent performer. It grew by 12.47% in 2008-09 .The following year it defied downturn to post a respectable 9.88%. Though it came down to 7.13% the next year, it bounced back to double digit by managing a rate of 11.81% in 2011-12.