ASSOCHAM roadmap to tap growth potential of Bihar
According to a study undertaken by apex industry body ASSOCHAM, growing at a compound annual growth rate of over 26%, the trade, hotel and restaurant with about 32% share are the highest contributors to the gross state domestic product of Bihar between 2004-05 and 2010-11.
With a stagnant annual growth rate of a meagre one per cent, the primary sector comprising of agriculture, animal husbandry, forestry, fishing, mining and related activities is the second highest contributor to the GSDP accounting for about 18.5% during the course of past five years, according to the study titled “Tapping Growth Potential in Bihar Emerging Issues & Possible Solutions” released by The Associated Chambers of Commerce and Industry of India.
Clocking a CAGR of about 17%, the secondary sector comprising of manufacturing and construction sectors is the third major contributor to the GSDP with 18% share.
While public administration grew at a CAGR of about 14% it accounted for a share of about 16% in the GSDP whereas banking, insurance and real estate sectors growing at a CAGR of about 17% contribute nearly 10% to the state gross domestic product.
With a total installed power generation capacity of about 1,855 mega watt, Bihar is lagging behind other states in power generation which is pivotal for the industrial development in the state.
Mr DS Rawat secretary general of ASSOCHAM said that “The state has considerable potential for new and renewable energy sources, hydropower projects and biomass-based power projects have the potential to generate about 300 MW of energy.”
According to ASSOCHAM study, major investments have been made in thermal power projects in the state, which account for 70% of the total investment in Bihar’s power sector.