Possibilities and prospects of industrial revival in Bihar seems to brightening as its Gross Domestic Produce (GDP) is expected to grow at
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a modest CAGR of 8 per cent during the next decade.
This is the finding of the Associated Chambers of Commerce and Industry of India (ASSOCHAM). It said, "Bihar GDP will reach Rs 2,64,781 crore from the current level of Rs 1,05,148 crore, mainly due to good governance factor."
The ASSOCHAM, which brought "Bihar Vision: 2020", stated that by 2015, the state GDP would be around Rs 1,80,205 crore. Releasing the finding, ASSOCHAM secretary general D S Rawat said since Bihar had acquired a reputation for good governance, its SGDP is projected to consistently grow at 8 per cent CAGR.
The organsiation expressed concern that manufacturing would remain a challenge for Bihar as it contributes only 0.38% to the state GDP which was lowest in the country. Manufacturing remained a neglected area in Bihar as it failed to provide security to industry which halted flow of investments, Rawat said.
The poverty level in the state is measured at 42.6% and if manufacturing is encouraged by ensuring law and order situation with suitable infrastructure, it would remove poverty from Bihar by creating bundle of employment opportunities, the report said.
Rawat said in the 2008-09 fiscal, Bihar received investment proposals worth Rs 40,000 crore but still has to raise resources through PPP to execute such investments. Agriculture contributes 35% to the SGDP against 9% of industry and 55% of services.