A study by Assocham tittled ‘An Appraisal of Finances of States’, revealed that most of the Indan states have consistently performed better than all India GDP growth in the 11th Five-Year Plan (2007-12).
States like Maharashtra, Gujarat and Haryana have consistently performed above 10 per cent growth in nominal GDP.
The study highlighted consistent rise of normally considered laggard states like Bihar, Madhya Pradesh, Rajasthan and Uttar Pradesh of ‘Bimaru’ category. The term ‘Bimaru’ was coined in the early 1980s, whereby Bihar, Madhya Pradesh, Rajasthan and Uttar Pradesh were classified as laggards struggling to keep up in comparison with growth rates set by other states.
Assocham Secretary General D S Rawat said,”One strong indication is that across-the-board there is a support for a liberal approach towards investments, despite political parties’ differences in the rising states.”
India achieved an average 7.9 per cent growth in the 11th Five-Year Plan period despite the fact that there were two global crises during this period.
The states that used to grow slowly in earlier periods have done much better, maintained trhe Indian Prime Minister, Dr. Mammohan Singh.
“The average growth rate of the five poorest states exceeds the national average for the first time in any Plan period. I think we may be reaching the stage when the term ‘Bimaru states’ can be relegated to history,” he said.
The decentralisation of economic investment decisions has given rise to competitive spirit among states to unlock their growth potential. The net result of this was evolution of healthy competition among states for attracting private investments.
Source – PTI