Wednesday's election results proved Bihar is hungry for development. Meanwhile, its cousins in the cow belt — Madhya Pradesh, Rajasthan and UP – collectively lumped together as BIMARU — are trying to change for the better. Might relatively developed Punjab, Maharashtra, Karnataka, West Bengal and Tamil Nadu be sickening and headed in the opposite direction?
BIHAR: Total U-Turn
The feel-good factor in Bihar is not the result of a sleight of hand by any magician, but of elaborate planning and concerted action by the Nitish Kumar government in the last five years," says Patna housewife Rita Sahay. Sushasan, or good governance, is there for everyone to see, law and order being the most visible. Kidnapping for ransom, the only thriving industry in the Lalu-Rabri raj, has declined as Bihar's sunshine sector.
It became clear the Nitish Kumar government meant business when it ensured that 53,600-odd criminals were convicted between January 2006 and September 2010; 9,280 were awarded life and 132 death. Bihar's new sense of safety has given a fillip to trade. Glitzy showrooms and international food chains can now be found in Patna. Between 1999 and 2004, Bihar's economy grew at an annual rate of 3.5%. This grew fast and furiously to 11.35% from 2004 to 2009. In the old days, the government-run primary health centres received roughly 40 patients a month; now, it could be as many as 5,000 and certainly never less than 4,000. More babies are being born in hospital too.
Women have been empowered with the government reserving 50% seats for them in panchayats and other local bodies.
Girls who enter high school are given bicycles. The social revolution was evident in the recent elections, with women outnumbering male voters. Bihar Chamber of Commerce president PK Agrawal says things can only get better: "As the caravan of 'vikas' rolls on, industry is set to get a boost."
— Navendu Sharma
MADHYA PRADESH: Four Steps Forward
Shivraj Singh Chouhan is Madhya Pradesh's first non-Congress chief minister to complete five years in office. In December 2005, the BJP received an impressive majority. At election meetings, Chouhan had insisted that his "only motto" was development and serving the poor. He promised that "Shivraj Singh Chouhan will not sit idle till Madhya Pradesh transforms into a developed and forward state in the country".
A global recession was underway but this former BIMARU state's GDP continued to grow at 8.6% with Madhya Pradesh being ranked fourth among India's 17 major states. Chouhan's government claims that the 2009-10 growth story leaves India's economic giants — Punjab, Tamil Nadu and West Bengal—flailing to catch up. The state's per capita income has increased from Rs 11,870 to Rs 15,929.
The state has undergone radical infrastructural change. Just over 60,000 km of roads have been built. By 2013, an additional 5,000 MW will have been installed, making Madhya Pradesh energy self-sufficient. The state has introduced the Janani Suraksha Yojana to lower mother and child mortality and has managed to increase hospital births from 26% in 2004 to 87% today. The infant mortality rate has fallen from 80 per thousand to 70.
In April 2006, Chouhan started the Ladli Laxmi Yojana, which uniquely transforms every infant girl into a lakhpati the day she turns 21. Just weeks ago, Chouhan did a Narendra Modi. He sold brand Madhya Pradesh aggressively to investors and signed MOUs worth Rs 1,06,417 crore in a single day.
— Suchananda Gupta
RAJASTHAN: The Desert Blooms
For two years, the desert state has been identified as one of India's top investment destinations. Rajasthan has worked hard to shed the BIMARU tag. It has been a long journey to get to the point where it could hope for Rs 50,000 crore to Rs 1 lakh crore in investment. In the early 2000s, Rajasthan was routinely described as beset by an unfavourable investment climate.
The state started to register growth in the late 90s. It peaked between 2005 and 2008. In terms of investment, 2008-2009 was one of the best years for Rajasthan. A report by the Assocham Investment Meter says that just four states had positive growth in investment planned by corporate India during the third quarter of 2008-09 over the same period of the previous fiscal. These were: Rajasthan with 245%; Bihar with 100%, Punjab with 41.6% and UP with 26.8%. Rajasthan is fast developing as an energy hub with a special focus on wind and solar sources.
Even so, Rajasthan's economy is still concentrated on agriculture and animal husbandry, as well as sectors such as tourism and hospitality. More than 80% of its people live in rural areas; most are dependent on agriculture. This financial year's Gross State Domestic Product is expected to be in excess of 30%. Per capita income has risen to Rs 25,000 in the last financial year, up from Rs 16,874 in 2004-05.
There has been a marked increase in literacy levels, particularly among women. In 1991, Rajasthan's literacy rate was 38.55% (54.99% male, and 20.44% female). In 2001, this rose to 60.41% (75.70% male and 43.85% female). But before Rajasthan can enter the history books as a success story, it has to free itself of the ball and chain holding it back—domestic politics that is submerged in caste considerations, massive corruption and a high crime rate. This is the big challenge for chief minister Ashok Gehlot.
— Palak Nandi
UTTAR PRADESH: Still Sick
Experts say Uttar Pradesh still makes the cut for a BIMARU state. The state has seen 7% economic growth under chief minister Mayawati's leadership in the past year, but that's still not high enough to pull it out of the BIMARU league. Even though UP has averaged 5% to 6% industrial development, it has been unable to attract much new investment. The bulk of UP's growth is restricted to the power and infrastructure sectors. A K Singh, director of the Giri Institute of Developmental Studies, says this is a "key area of concern".
But there is reason to rejoice on the agricultural production front, with UP registering 4% growth. Singh says this is "healthy" even though there are some "areas of concern — productivity, farmer poverty as well as the gap between potential yield versus actual yield."
If UP is to leave the BIMARU league table behind, it has to do a great deal more on the original yardsticks — health and demographics. It is the worst performer on the following key indices—child mortality, infant mortality, pregnant women mortality, malnutrition and life expectancy. State and Central government-run health programmes have failed to have the desired impact. The 2001 census put UP at 14th on India's Human Development Index. In 2006-07, it slipped to 17th.
— Swati Mathur
MAHARASHTRA: Fall And Fall Of A Giant
For decades, Maharashtra was seen to be India's most progressive and well-administered state. But in the recent past, particularly after the Shiv Sena-BJP combine dislodged the Congress government in 1995, it is thought to have been sliding downwards. As a result, the debt burden, which stood at Rs 32,000 crore in 1999, now exceeds Rs 1.81 lakh crore. The new chief minister, Prithviraj Chavan, has to face a lot of challenges.
Till 1995, Maharashtra had a budget surplus. But it now pays well over Rs 20,000 crore every year as interest on loans. Even so, the state has seen steady increase in its per capita income, which rose from Rs 32,170 in 2005 to Rs 50,000 in 2010. It has also witnessed massive investments in industrial sector and developmental projects. But the positive is patchy because it is almost entirely concentrated in Sharad Pawar-controlled western Maharashtra. This is why backward Vidarbha and Marathwada regions remain shockingly undeveloped.
Vidarbha is now known as India's suicide capital. Maharashtra's industrial sector betrays patchy growth too. Investment is concentrated in the Pune-western Maharashtra belt. The state has underperformed on health and education as well with Vidarbha and northern Maharashtra known to have the most malnourished children in India.
— Prafulla Marpakwar
TAMIL NADU: From Stability To Unrest
Tamil Nadu has long been thought to be progressive on account of its inclusive social and economic policies. Now, it is trying to project itself as the ideal destination for industrial investment. Its assets include abundant skilled manpower, good communication facilities and a suitable political climate. The Centre for Monitoring Indian Economy says planned investment has risen steeply — 3.48 times — in 14 years. In June 2006, the cumulative investment meant for Tamil Nadu was Rs 1.91 lakh crore. In April 2010, it was Rs 6.66 lakh crore.
However, the state has new problems, with labour unions mobilizing workers in units run by multinationals in the vicinity of Chennai. Unions affiliated to the Left parties and DMK have stepped up attempts to gain a foothold in the industrial belt around Chennai and many companies believe the state government must step in if an investor-friendly environment is to be restored.
Industry is also concerned about the state's power-deficit status. Its average demand is 11,200 MW but average availability is just 8,100 MW. Lack of capacity addition in the last decade has meant a bad situation is being temporarily negotiated using a combination of demand management, power cuts and open market purchase.
— K Venkatramnan
WEST BENGAL: Crisis After Crisis
A state that has to borrow to protect its development plan. A state where nothing moves without massive confrontation as happened in Singur and Nandigram. A state that witnesses large-scale migration of skilled and unskilled workers. And more recently, a state where it is not safe to travel by train to Orissa or Jamshedpur across the Maoist-dominated Jangalmahal. Finally, a state where tourists cannot go to its hill stations
A thin sample of the reaction evoked by West Bengal these days. When he came to power in 2006, chief minister Buddhadeb Bhattacharjee attempted a facelift. He invited a host of big names — the Tatas, Wipro, Infosys, the Salim group — into the state. But the move backfired on account of problems with land acquisition.Today, West Bengal survives on a vast agricultural sector, albeit one that betrays such land fragmentation that it can't generate the surplus that other states do. It has an expanding informal sector, which can ensure no more than subsistence earnings for workers.
Observers say the rot runs deep in the administration and the ruling party's delivery mechanism. So much so that Trinamool Congress chief Mamata Banerjee is confident she will evict the Left in next year's assembly elections. It may be harder to create a resurgent Bengal.
PUNJAB: Debt Horror Story
Last month, the finance minister of Punjab was sacked. His offense — he had openly used that forbidden phrase, "debt trap" and angered chief minister Parkash Singh Badal. But he spoke the truth. Punjab is in debt. Manpreet lost his job as he asked Union finance minister Pranab Mukherjee for a partial waiver on the Rs 70,000 crore owed by the state.
The controversy has brought the tattered state of Punjab's economy into the limelight. Once regarded as one of India's most prosperous states, there has been structural change in Punjab's economy over the years. From 1980-2000, it recorded slow but consistent annual growth of 5.2%. Then, it slowed to about 4.1%. In 2000, Punjab had India's highest per capita income. Now it is at number four and poised to slide to seventh position by 2012.
What's wrong with Punjab? Institutionalized corruption, say experts. More than 40 lakh young people are unemployed, many of them being unemployable too because of a lack of education. A new survey says that as many as 65% of rural youth in Punjab take drugs. At 850 women for every 1000 men, Punjab's gender ratio is one of the lowest in the country. Punjab, as they say, is not a bad state, but it's in a bad state! — Divya A
KARNATAKA: From Model State To Corruption Pit
For two decades, Karnataka was known as one of the better governed, more developed states of the south. Today, it is seen as a state trapped in a vortex of corruption, administrative apathy and misplaced priorities.The alleged corruption and nepotism in relation to land scams involving chief minister B S Yeddyurappa, his sons and cabinet colleagues are seen as just the tip of the iceberg. International non-governmental organization Transparency International ranks Karnataka fourth among India's most corrupt states. In India's IT capital Bangalore, infrastructure is woeful.
But few know that nearly 37% cent of its population, according to the state's most recent economic survey, is below the poverty line. Karnataka's food grain productivity is 1,024 kg per hectare compared to the national average of 1,756 kg. Though its literacy rate —66%— is above the national average of 65, it topped the league table of communal violence last year, with 1,464 cases registered since 2000.
Many say its politics is holding it back, with little sign it will progress beyond caste calculations. — Manu Aiyappa
.
There has been a marked increase in literacy levels, particularly among women. In 1991, Rajasthan's literacy rate was 38.55% (54.99% male, and 20.44% female). In 2001, this rose to 60.41% (75.70% male and 43.85% female). But before Rajasthan can enter the history books as a success story, it has to free itself of the ball and chain holding it back—domestic politics that is submerged in caste considerations, massive corruption and a high crime rate. This is the big challenge for chief minister Ashok Gehlot.
— Palak Nandi
UTTAR PRADESH: Still Sick
Experts say Uttar Pradesh still makes the cut for a BIMARU state. The state has seen 7% economic growth under chief minister Mayawati's leadership in the past year, but that's still not high enough to pull it out of the BIMARU league. Even though UP has averaged 5% to 6% industrial development, it has been unable to attract much new investment. The bulk of UP's growth is restricted to the power and infrastructure sectors. A K Singh, director of the Giri Institute of Developmental Studies, says this is a "key area of concern".
But there is reason to rejoice on the agricultural production front, with UP registering 4% growth. Singh says this is "healthy" even though there are some "areas of concern — productivity, farmer poverty as well as the gap between potential yield versus actual yield."
If UP is to leave the BIMARU league table behind, it has to do a great deal more on the original yardsticks — health and demographics. It is the worst performer on the following key indices—child mortality, infant mortality, pregnant women mortality, malnutrition and life expectancy. State and Central government-run health programmes have failed to have the desired impact. The 2001 census put UP at 14th on India's Human Development Index. In 2006-07, it slipped to 17th.
— Swati Mathur
MAHARASHTRA: Fall And Fall Of A Giant
For decades, Maharashtra was seen to be India's most progressive and well-administered state. But in the recent past, particularly after the Shiv Sena-BJP combine dislodged the Congress government in 1995, it is thought to have been sliding downwards. As a result, the debt burden, which stood at Rs 32,000 crore in 1999, now exceeds Rs 1.81 lakh crore. The new chief minister, Prithviraj Chavan, has to face a lot of challenges.
Till 1995, Maharashtra had a budget surplus. But it now pays well over Rs 20,000 crore every year as interest on loans. Even so, the state has seen steady increase in its per capita income, which rose from Rs 32,170 in 2005 to Rs 50,000 in 2010. It has also witnessed massive investments in industrial sector and developmental projects. But the positive is patchy because it is almost entirely concentrated in Sharad Pawar-controlled western Maharashtra. This is why backward Vidarbha and Marathwada regions remain shockingly undeveloped.
Vidarbha is now known as India's suicide capital. Maharashtra's industrial sector betrays patchy growth too. Investment is concentrated in the Pune-western Maharashtra belt. The state has underperformed on health and education as well with Vidarbha and northern Maharashtra known to have the most malnourished children in India.
— Prafulla Marpakwar
TAMIL NADU: From Stability To Unrest
Tamil Nadu has long been thought to be progressive on account of its inclusive social and economic policies. Now, it is trying to project itself as the ideal destination for industrial investment. Its assets include abundant skilled manpower, good communication facilities and a suitable political climate. The Centre for Monitoring Indian Economy says planned investment has risen steeply — 3.48 times — in 14 years. In June 2006, the cumulative investment meant for Tamil Nadu was Rs 1.91 lakh crore. In April 2010, it was Rs 6.66 lakh crore.
However, the state has new problems, with labour unions mobilizing workers in units run by multinationals in the vicinity of Chennai. Unions affiliated to the Left parties and DMK have stepped up attempts to gain a foothold in the industrial belt around Chennai and many companies believe the state government must step in if an investor-friendly environment is to be restored.
Industry is also concerned about the state's power-deficit status. Its average demand is 11,200 MW but average availability is just 8,100 MW. Lack of capacity addition in the last decade has meant a bad situation is being temporarily negotiated using a combination of demand management, power cuts and open market purchase.
— K Venkatramnan
WEST BENGAL: Crisis After Crisis
A state that has to borrow to protect its development plan. A state where nothing moves without massive confrontation as happened in Singur and Nandigram. A state that witnesses large-scale migration of skilled and unskilled workers. And more recently, a state where it is not safe to travel by train to Orissa or Jamshedpur across the Maoist-dominated Jangalmahal. Finally, a state where tourists cannot go to its hill stations
A thin sample of the reaction evoked by West Bengal these days. When he came to power in 2006, chief minister Buddhadeb Bhattacharjee attempted a facelift. He invited a host of big names — the Tatas, Wipro, Infosys, the Salim group — into the state. But the move backfired on account of problems with land acquisition.Today, West Bengal survives on a vast agricultural sector, albeit one that betrays such land fragmentation that it can't generate the surplus that other states do. It has an expanding informal sector, which can ensure no more than subsistence earnings for workers.
Observers say the rot runs deep in the administration and the ruling party's delivery mechanism. So much so that Trinamool Congress chief Mamata Banerjee is confident she will evict the Left in next year's assembly elections. It may be harder to create a resurgent Bengal.
PUNJAB: Debt Horror Story
Last month, the finance minister of Punjab was sacked. His offense — he had openly used that forbidden phrase, "debt trap" and angered chief minister Parkash Singh Badal. But he spoke the truth. Punjab is in debt. Manpreet lost his job as he asked Union finance minister Pranab Mukherjee for a partial waiver on the Rs 70,000 crore owed by the state.
The controversy has brought the tattered state of Punjab's economy into the limelight. Once regarded as one of India's most prosperous states, there has been structural change in Punjab's economy over the years. From 1980-2000, it recorded slow but consistent annual growth of 5.2%. Then, it slowed to about 4.1%. In 2000, Punjab had India's highest per capita income. Now it is at number four and poised to slide to seventh position by 2012.
What's wrong with Punjab? Institutionalized corruption, say experts. More than 40 lakh young people are unemployed, many of them being unemployable too because of a lack of education. A new survey says that as many as 65% of rural youth in Punjab take drugs. At 850 women for every 1000 men, Punjab's gender ratio is one of the lowest in the country. Punjab, as they say, is not a bad state, but it's in a bad state! — Divya A
KARNATAKA: From Model State To Corruption Pit
For two decades, Karnataka was known as one of the better governed, more developed states of the south. Today, it is seen as a state trapped in a vortex of corruption, administrative apathy and misplaced priorities.The alleged corruption and nepotism in relation to land scams involving chief minister B S Yeddyurappa, his sons and cabinet colleagues are seen as just the tip of the iceberg. International non-governmental organization Transparency International ranks Karnataka fourth among India's most corrupt states. In India's IT capital Bangalore, infrastructure is woeful.
But few know that nearly 37% cent of its population, according to the state's most recent economic survey, is below the poverty line. Karnataka's food grain productivity is 1,024 kg per hectare compared to the national average of 1,756 kg. Though its literacy rate —66%— is above the national average of 65, it topped the league table of communal violence last year, with 1,464 cases registered since 2000.
Many say its politics is holding it back, with little sign it will progress beyond caste calculations. — Manu Aiyappa
.
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