Policy paralysis puncturing Bihar’s growth story

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Policy logjam and poor implementation of the existing measures has tumbled state's GDP growth down - from a high of 15.05% in 2012-13 to an estimated 8.82% in 2013-14.
The deteriorating law and order and policy paralysis in Bihar is reportedly forcing businessmen to shy away from investing in the state. The JD(U) government in the state has failed to ensure a sense of confidence among investors who are now opting for other states not Bihar.

Bihar's nose-diving economy:

Policy logjam and poor implementation of the existing measures has tumbled state's GDP growth down - from a high of 15.05% in 2012-13 to an estimated 8.82% in 2013-14. All this happened after the JDU split alliance with the BJP in June last year.

Bihar's growth rate has reduced to half at 8.82 per cent in 2013-14

Commenting upon Bihar's nose-diving growth rate, senior Bihar BJP leader and former deputy-CM Sushil Modi said, "The sharp decline in growth rate has exposed Nitish Kumar's contention that there has been no adverse impact on governance in Bihar since he dumped the BJP from his government on June 16, 2013."

Modi said the Central Statistics Office figures, released on March 1, 2014 tell a different story and prove beyond doubt that development has been a big casualty since the Nitish threw out the BJP ministers from his government.

Is JD(U)'s split with BJP a reason for slow growth rate:

Blaming Kumar for destablising his own government by parting ways with the BJP, he further said "it was a matter of grave concern that Bihar's growth rate has halved in just one year at a time when other states like Madhya Pradesh, West Bengal, Tamil Nadu, Andhra Pradesh, Jharkhand, Himachal Pradesh, Haryana and Jammu and Kashmir have recorded impressive growth."

Modi, who held finance portfolio for nine years during the erstwhile NDA government in Bihar and was widely credited for economic turnaround of the backward state, slammed the Chief Minister for spending more time on ensuring survival of his government by inveigling lawmakers from other parties rather than addressing development-related issues.

And the recent bonhomie between Nitish Kumar's JD(U) and Lalu Prasad Yadav's RJD - infamous for its misgovernance in Bihar when in power - also has sent wrong signals in the mind of investors, who lived under fear during RJD's rule.

Another BJP leader Giriraj Singh claimed that businessmen who wanted to invest in Bihar during the NDA rule were in 'shock after seeing the new found love' between JD(U) leader Nitish Kumar and RJD chief Lalu Prasad Yadav.

"Few business proposal were approved by NDA government in Bihar but businessman are shying away from Nitish because of policy paralysis and law and order."

Rise in crime graph:

BJP leaders have alleged that crime graph has spiralled in the state, particularly after instances of JD(U) and RJD coming close.
During January to June last year, 86,798 cognisable offences were recorded which rose to 98,163 during July to December last year when JD(U) alone ran the government, BJP leader Nand Kishore Yadav told Bihar Assembly recently.

Even the Supreme Court had in it April 26, 2014 ruling expressed its concerns over the "sorry state of affairs" relating to law enforcement in Bihar after finding that a rape accused wasn't arrested despite Patna High Court order.

Promoting industries and trade, need of the hour:

There is no denying the fact that business cannot flourish in any state if the law and order fails to instill sense of security to people and businessmen. Incidents in the past suggest that hooliganism, abduction, extortion and murders are prevalent in the states where there is ample scope of economic growth. Bihar with its fast growing economy promises a wide scope for setting up industries and real estate firms, but the JD(U) government has failed to restore investors' confidence.

Surprisingly, the state has come up with hardly any industry because the government has failed to attract corporates. Despite, being a home to country's biggest pool of labour force the state has not taken a serious step to set up industries which has resulted into mass migration of work force to industrially developed states like Maharashtra, Karnataka, Gujarat and Delhi.

It is high time the JD(U) government under Jitanram Manjhi starts brainstorming towards setting up industries and factories to keep its promise of growth and development in Bihar.

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