Fueled by the strong growth in public expenditure and construction, Bihar's economy grew by almost 14.5 per cent in 2012-13. However, the state is still lagging behind the rest of the country in terms of per capita income.
State Planning and Development department principal secretary Vijoy Prakash today released the Quick Estimates of Gross State Domestic Product (GSDP) regarding last fiscal year. "Despite global slowdown and sagging domestic demand, the state has managed to record an annual growth rate of 14.48 per cent in 2012-13. It is almost triple of the national growth rate, which is expected to be around 5 per cent. This is not only higher than previous year, but we also expect it to be one of the highest among other states," Prakash said.
The growth of the state has largely been fueled by the overwhelming growth in public expenditure, construction, communication- trade-hotels-transport and banking and insurance sectors.
Each of these sectors recorded double digit growth in the last year. The government spent 22.64 per cent more money for the development purposes in state during 2012-13 than the previous year.
The construction sector grew with a speed of 21.05 percent in last fiscal, which was more than double than the previous year. Majority of this growth came from private sector, which blossomed after regime change in Bihar in 2005.
The communication, hotels, trade and transport segment registered an impressive growth rate of 15.14 per cent in this period. Meanwhile, Banking-insurance sector clocked a growth rate of 13.22 per cent in 2012-13.
On the other hand, agriculture and allied activities witnessed a muted growth of 6.27 per cent, which is half of the achievements of 2011-12.
"Rainfall deficit is the primary reason of slump in the agriculture growth. However, our productivity improved this year." The manufacture sector in the state grew by 9.64 per cent, which is almost similar to previous year's achievements.
In spite of a double digit growth rate, the state still has one of the lowest per capita incomes in the country. "The per capita income at constant price (2004-05) of Bihar in the last fiscal was is Rs 16,537, which is 13.01 per cent more than the 2011-12. We are trying very hard to close the gap between state and national average, but it would take some time" Prakash said. their per capita incomes.
