Assocham backs special category status demand by Bihar

Says Bihar needs special measures comprising special status and package to sustain an impressive growth at over 9% recorded in the past decade

Bihar needs special category status to sustain an impressive growth rate and also push inclusive growth of the country, industry body Assocham has said.

 

The chamber has submitted a memorandum to the Centre, pushing Bihar's case for the grant of special status to enable it to catch up with other developed states so that it could get an investment of Rs 2.5 lakh crore over the next five years to develop infrastructure and social sectors.

 

"Bihar needs special measures comprising special status and package to sustain an impressive growth at over 9% recorded in the past decade," Assocham General Secretary D S Rawat told reporters after releasing an analytical report titled 'Bihar Needs Special State Status'.

 

 

"Such a massive investment is possible only if an attractive and highly conducive environment is created by according special category status to Bihar as had been done in the cases of Uttarakhand, Himachal Pradesh and other states," Rawat said.

 

The state had been largely dependent on the public sector investment for infrastructure development, but the gap could not be bridged merely with state funding.

 

The only possible way out is to encourage private investment in infrastructure development, the chamber's General Secretary said, adding that the grant of special status would come handy to boost investors' confidence in Bihar.

 

Rawat said the private investment would fast track infrastructure and industrial development which will automatically impact education and health sectors, besides generating higher per capita income and improving the purchasing power of the people.

 

And this in two years time would help increase Bihar's contribution to the national economy to 3.35% as against 2.87% at present, he added.

 

He also said the Centre would take into account the Raghuram Rajan panel report to ensure as to how it could push development in backward states.

 

Rawat said Assocham would also interact with the Parliamentarians during the Winter Session of Parliament and impress upon them to back the special status demand for Bihar.