Some media reports have been quoted to prove that Bihar is growing at the fast rate.I have to say the following in this regard-
1. Higher growth rate in one or two years does not mean that it has has surpassed other states.It is the same way in which we compare Indian economy with the US economy.If India is growing at the rate of 8-9% and US is growing at the rate of 3-4%,it doesnot mean that India has surpassed US.
2. If the said collective action has resulted into the so-called change,then which sections of the society have been benefitted more?It is in the same way that after the liberalistaion,India grown with high rate,but the disparity between rich and poor has widended much.
3. Media and budget management is an art in which the representatives and supporters of creamy-layer are expert.In 2004, Late Pramod Mahajan and his company propogated the "Feel-good" for NDA govt.But,that "Feel-good" bite dust in the loksabha election.Also,the next UPA government found exteme difficulty to manage the budget and economy,which was earlier manipulated to show "Feel-good."
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The results of any collective action specially one that concerns turning around a state that has not done well for many years is far from easy. I personally feel that the media highlight of what Bihar has achieved in the last few years is more to show what a sustained , spirited and honest effort can result in. Attracting further investment is one of the best ways to improve the state's infrastructure and ability to spend on the social sector schemes. A good example is Gujarat which leaves no stone unturned to promote itself among the industries & investors and the result is for everyone to see.
I am quoting BBC analysis-
But many doubt these claims.
"These growth figures are too good to be true," says economist Nawal Kishore Chaudhury, who teaches at Patna University.
He wonders how the state could have recorded double digit growth when last year's economic survey - a federal government publication - showed that the growth rate was just 5%.
Nitish Kumar's government has increased public spending
Also, last year's economic survey said that Bihar had recorded negative growth in the farm sector.
At $32, per capita social spending remains one of the lowest in the country.
Most economists do however agree that the Keynesian nature of growth in Bihar - most of it spurred by government - has led to increased spending in construction.
Also, the savings rate remains pretty high - Patna alone has $5.2bn in bank deposits, which is higher than many prosperous small cities in India.
"Since Bihar's development base is abysmally low, even a small investment here results in impressive growth in percentage terms," says social scientist Shaibal Gupta.
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