FOCAL THEME
CHANGING BIHAR: THE WAY FORWARD

THEME I

RESOURCE MANAGEMENT AND DEVELOPMENT

Resource management is a process by which any institutions or organizations manage its resources effectively to achieve the goal of efficiency. Likewise, at the state or country level, resources are managed with the prime objective of developing a sustainable and efficient economy. In a true sense, the economy is understood as a careful management of resources meaning thereby that ‘good management – good economy’. It could be said that an economy represents the system of institutions and organizations that facilitates the production of goods and services with the help of inputs, i.e., economic resources such as land, labour and capital. An improper use of resources or misallocation of resources may cause businesses, and even entire economies, to fail. So, there is a big question of resource management which can pave the way to look forward to development.

For the convenience of deliberations, resources are broadly classified into three categories namely, natural resources, human resources and financial resources. All these resources have strong relationship with economic growth and so, it is imperative to understand this relationship for accelerating the growth process of the economy of Bihar.

THEME II

INTEGRATION FOR INDUSTRIALISATION

Bihar’s industrial sector is the smallest in India. The number of industrial units is 1.48 per cent of India’s total. Bihar’s industrial sector contribution is below 20 per cent, compared to the national average of above 30 per cent. The most revealing aspect is that the contribution of manufacturing sector is least having merely 5.7 per cent along with its decreasing trend. The industrial sector employs only 10 per cent of total workforce. This reveals the fact that the level of industrialisation in Bihar is very low. Since the growth of an economy is largely dependent on the growth of its enterprises sector, it is necessary to examine in-depth the industrial development scenario in Bihar and ponder over the issues which can accelerate the growth process in the industrial sector of the state.

Basic Issues and Problems In a state with structurally least efficient industry and less commercialised agriculture the importance of well integration of industry and agriculture can hardly been undermined particularly in understanding the syndrome of development of the state. In an analytical framework, the theoretical propositions and other issues can be discussed. Also, on the basis of the growth pattern of agriculture and industry the problems of their integration in the context of Bihar could be taken up by the paper-writes. It needs to be understood very clearly that the structural transformation from agriculture to industry and from industry to services is possible only when the integration between industry and agriculture is strengthened. It should be noted that whatever theories have been propounded for structural transformation, Bihar has still been insisting on agricultural and industrial development in isolation.

THEME III

TRANSFORMING AGRICULTURE

Bihar’s industrial sector is the smallest in India. The number of industrial units is 1.48 per cent of India’s total. Bihar’s industrial sector contribution is below 20 per cent, compared to the national average of above 30 per cent. The most revealing aspect is that the contribution of manufacturing sector is least having merely 5.7 per cent along with its decreasing trend. The industrial sector employs only 10 per cent of total workforce. This reveals the fact that the level of industrialisation in Bihar is very low. Since the growth of an economy is largely dependent on the growth of its enterprises sector, it is necessary to examine in-depth the industrial development There is plethora of studies which have highlighted the significance of agricultural development in Bihar for its overall development. Today, the economy of Bihar comprises four basic features. First, the dominance of agriculture has become more apparent. Agriculture thus holds the key to Bihar’s development. It is a challenge as well as an opportunity. Second, land and water are the dominate natural resource endowments, notwithstanding the fact that these are basic resources for agriculture. Third, the rate of transformation of Bihar economy in terms of growing importance of non-farm and non-agricultural sector is much slow. Fourth, population pressure on natural resources is exceedingly high. Human as well as livestock population numbers place high burden on agricultural resources. All these basic features reveal the dominance of low income agricultural sector and consequently, low per capita income and high incidence of poverty. Thus, the basic strength of the Bihar economy in its present status revolves around the primary sector – agriculture, livestock and fisheries. Against this background, it can be well perceived that the faster growth rate of agricultural sector along with its enterprising sectors such as livestock, fisheries is the most important requisite for overall development of Bihar. scenario in Bihar and ponder over the issues which can accelerate the growth process in the industrial sector of the state.

At the country level, the transformation in agricultural sector came out when planned attempts were made to improve the lot of the farming community. These measures included land reforms, large scale investment in irrigation, power and technology and creation of a favourable climate for the growers. In the past, these measures were also taken up in Bihar. As a policy strategy, the Government of Bihar came out with a strategic plan to develop agricultural sector through ‘Road Map to Agricultural Development’ but the success rate is not well. However, many studies have come out with the findings that there has been rapid growth in agrarian economy of Bihar. Yet, agriculture in Bihar grew at a slower pace, over a smaller base. Consequently, Bihar cannot be ranked as an agriculturally developed state. This means that concerted efforts are still needed to promote high growth rate in agricultural sector. This requires pondering over the issues related to transforming agriculture.

Thank you to our Sponsors
Thank you to our Partners


Apex Hair Transplant & Skin Clinic