Bihar has best growth in Bimaru states

Bihar’s economic growth rate and decline in poverty between 2004-05 and 2012-13 have been the most impressive among “Bimaru” states and special category status would help sustain and promote the backward state’s growth, said industry body Assocham in a study report on Monday.

The Analysis of Bimaru States report said Bihar clocked a compounded annual growth rate (CAGR) of about 14 per cent and registered the highest growth rate in the industrial and services sectors in the past eight years among Bimaru category states — Bihar, Madhya Pradesh (MP), Rajasthan and Uttar Pradesh (UP). Bihar even saw a higher industrial growth that the national the average, as per the study.
With the JD(U)-BJP alliance government led by the JD(U)’s Nitish Kumar having ruled the state for most of these eight years, the report came as a pat on the back of Mr Kumar and strengthened his constant demand for special category state status.
“Bihar has also ranked on top amid Bimaru states in terms of GSDP, which grew at a CAGR of about 9.3 per cent, thereby leaving behind its peers — MP (8.8 per cent), Rajasthan (8.2 per cent) and UP (6.9 per cent) — besides the state has also stayed ahead of national GDP rate of about eight per cent in this regard,” said D.S. Rawat, national secretary general of ASSOCHAM while releasing the study.
Claiming that Bihar recorded the “highest decline in poverty ratio” – from over 54 per cent of people living below poverty line in 2004-05 to over 33 per cent in 2011-12 – the study prepared by the ASSOCHAM Economic Research Bureau (AERB) pointed out that the population of the poor in Bihar was still higher than the national average of 21.9 per cent during 2011-12 while in UP it was 29 per cent, Rajasthan 14.7 per cent and MP 31.7 per cent.

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