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Tag: Jharkhand industrial development

  • “Jharkhand Economy Explained: Minerals, Industries, Growth & Development”

    Explore the detailed economic profile of Jharkhand, highlighting its rich mineral resources, industrial hubs like Jamshedpur and Bokaro, growth trends, poverty statistics, and key budgetary insights—essential for competitive exams and policy analysis.

    Mineral Resources and Industrial Significance

    • Jharkhand holds about 40% of India’s total mineral resources.
      ➤ Hence, it is referred to as “Ratnagarbha” or mineral-rich motherland.
    • Due to its mineral richness, Jharkhand is often compared with the Ruhr Region of Germany.
      ➤ The Rarika River (Koel) region earned it the title “Ruhr of India.”
    • According to the Indian Bureau of Mines, 58 types of minerals are found in Jharkhand.
    • The state’s economy is primarily based on mining and mineral-dependent industries.
    • Major industrial cities: Jamshedpur, Ranchi, Bokaro, Dhanbad.

    Firsts in Indian Industrial History (Exam Relevant Facts)

    • First Fertilizer Plant: Sindri (Dhanbad)
    • First Iron & Steel Plant: Jamshedpur
    • Asia’s Largest Coal Washery: Piparwar (Chatra)
    • First Coal Washery in India: Ghatotand (Ramgarh)
    • First Methane Gas Project: Parbatpur (Bokaro)
    • In 1779, the first modern effort to produce iron-steel was made in Jharia, Dhanbad.

    Economic Contribution by Sector (2022-23)

    • As per Economic Survey 2022-23, the Secondary Sector contributes 33.6% to GSVA.
    • Major mineral-based industries:
      • Tata Steel (formerly TISCO)
      • Tata Motors (formerly TELCO)
      • Sindri Fertilizers
      • Heavy Engineering Corporation (HEC)
    • Abundant minerals:
      • Iron ore, Manganese, Coal, Dolomite – supporting the steel industry.
      • Copper, Sulfur, Asbestos, Bauxite, Mica, Uranium – enabling the development of copper, power, and aluminum industries.

    Transport and Connectivity

    • Jharkhand has developed road, rail, and air transport networks.
    • Inland water transport has not developed well due to the hilly terrain of rivers.
    • Mayurakshi River is the only river suitable for transport during monsoons.

    Forest-Based Industries

    • Rich forests support industries like:
      • Timber industry
      • Paper and pulp industry
      • Lac industry

    Energy Resources

    • Major energy sources:
      • Coal and Hydro
      • Other renewable sources are negligible.
    • Installed electricity capacity: 2,735 MW
      ➤ Ownership Distribution:
      • 55% – Central Government
      • 20% – State Government
      • 25% – Private sector

    Animal Husbandry & Dairy

    • As per 20th Livestock Census 2019, total livestock: 23.6 million
    • Per capita milk availability (2019–20): 182 grams/day

    Design & Industrial Parks (Upcoming Projects)

    • Design Institute in Ranchi with support from NID Ahmedabad (Proposed)
    • Silk Parks to be set up in Ranchi and Kharsawan (Proposed)
    • Plastic Park established in Deoghar
    • Police Training Center in Hazaribagh to be upgraded to a Police Academy
    • Investigation Training School to be established in Ranchi

    Growth and Per Capita Income (2020–23)

    • Economic Growth Rate:
      • 2020-21: 5.6%
      • 2021-22: 7.6%
      • 2022-23: 8.5% (Estimated)
    • Per Capita Income (2022–23): ₹86,060
      ➤ Jharkhand ranks 26th in India post-J&K reorganization.

    Special Initiatives and Banking

    • First Child Budget introduced in Budget 2019–20
    • First Fish Credit Card launched by Jharkhand State Cooperative Bank
    • Lead Bank Scheme in Jharkhand:
      • SBI: 7 districts
      • Indian Bank: 2 districts
      • Bank of India: 15 districts

    Labor Participation and Unemployment (2022–23)

    CategoryLabor Force Participation (%)Unemployment Rate (%)
    Total65.13.4
    Rural69.42.0
    Urban50.19.8
    Male82.94.8
    Female47.00.8

    Poverty: Global Multidimensional Poverty Index (2021)

    • 42.16% of the population is poor (second-highest after Bihar – 51.91%)
    • In 2005-06, the poverty level was 74.9%, showing a major decline.
    • Between 2005-06 and 2015-16, Jharkhand recorded the highest poverty reduction (72 lakh people) in India.
    • MPI Score (2021):
      • Overall: 0.202
      • Rural: 0.246
      • Urban: 0.067
    • Poorest Districts:
      • Chatra (60.74%)
      • Pakur (60.66%)
      • West Singhbhum (57.60%)
      • Sahibganj (55.93%)
      • Garhwa (53.26%)
    • Least Poor Districts:
      • East Singhbhum (23.99%)
      • Ranchi (27.7%)

    Urban Development (Census 2011)

    • Urban Population: 24.05% (below national average of 32%)
    • Total Cities/Towns: 228
      ➤ Classification:
      • Million-plus cities: 3
      • Class I (1–10 lakh): 7
      • Class II (50k–1 lakh): 12
      • Class III (20k–50k): 39
      • Class IV (10k–20k): 48
      • Class V (5k–10k): 90
      • Class VI (Below 5k): 29
    • Total Slum Population: 3,72,999
      ➤ Highest in Class I cities, lowest in Class V cities
    • Slum Literacy Rate: 65%
    • Working Population in Slums: 68%

    Budget 2023–24 (Key Highlights)

    ParameterAmount (₹ Crore)
    Revenue Receipts98,337.15
    Capital Receipts18,080.85
    Total Receipts1,16,418.00
    Revenue Expenditure84,676.00
    Capital Expenditure31,742.00
    Fiscal Deficit₹11,674.57 (2.76%)
    Primary Deficit₹4,887.48 (1.15%)
    Revenue Deficit₹13,661.15 (-3.40%)
    Effective Revenue Deficit₹20,764.19 (-4.91%)

    Growth Targets in 11th & 12th Five-Year Plans

    Sector11th Plan Target11th Achieved12th Plan Target
    Primary Sector6.3%7.8%6.5%
    Secondary Sector12.0%12.6%12.5%
    Tertiary Sector8.0%10.2%17.5%
    Overall GSDP Growth9.8%7.2%10.0%

    Sector-wise GSVA Contribution & Growth Rate

    SectorGrowth RateGSVA Contribution
    Primary Sector8.8%21.8%
    Secondary Sector7.0%33.6%
    Tertiary Sector7.5%44.6%

  • “Jharkhand Industrial and Investment Promotion Policy: Key Highlights, Incentives, Priority Sectors & Growth Strategy”

    Jharkhand, established in 2000, is rich in natural resources and has vast potential for industrial growth. Recognizing this, the state has launched three key industrial policies—in 2001, 2012, and 2016—each building upon the last to transform Jharkhand into an attractive destination for investors and entrepreneurs.

    Jharkhand Industrial Policy, 2001

    Notified: 1 March 2001
    Significance: First industrial policy after state formation

    Main Objectives:

    • Rapid development of basic infrastructure
    • Reduction in unemployment
    • Promotion of domestic and foreign investment
    • Balanced regional development
    • Encouragement of private sector participation
    • Boost to small and cottage industries
    • Promotion of research & development for productivity

    Key Achievements:

    • Establishment of mega, large, medium, and small industries
    • Increase in industrial output, state revenue, and GSDP
    • Creation of industrial employment opportunities

    Institutions Behind Implementation:

    • Ranchi Industrial Area Development Authority (RIADA)
    • Adityapur Industrial Area Development Authority (AIADA)
    • Bokaro Industrial Area Development Authority
    • Infrastructure Development Corporation
    • State Khadi Board
    • Jharcraft

    Due to the policy’s success, a new policy was introduced in 2012 to address evolving challenges and opportunities.

    Jharkhand Industrial Policy, 2012

    Scope: Five-year implementation
    Total Objectives Identified: 16

    Major Objectives:

    1. Encourage investment and continuous industrial development
    2. Support manufacturing & processing industries
    3. Promote sericulture, handloom, khadi, and village industries
    4. Conserve and support rural handicrafts
    5. Establish coordination between large, small, and micro industries
    6. Rational use of mineral and natural resources
    7. Promote horticulture and food processing
    8. Encourage eco-friendly technology and skills
    9. Ensure inclusive industrial participation (SC/ST/Backward Classes)*
    10. Foster modernization and technological upgrades
    11. Bridge regional disparities within the state
    12. Establish PPP-based industrial parks
    13. Promote private education investment (technical, medical, management)
    14. Boost human resource and skill development
    15. Create a fear-free, investor-friendly environment
    16. Promote transparent law & governance systems

    Implementation Strategy:

    • Special incentives for private industries, clusters & parks
    • Single Window Clearance System for speedy approvals
    • Focus on infrastructure development
    • Promotion of Public-Private Partnerships (PPPs)
    • Market support for small-scale & handicraft products
    • Special Economic Zones (SEZs) for steel, ICT, automobiles, processing
    • Identification & revival of sick industries
    • Update to the 2008 Rehabilitation & Resettlement Policy
    • Special incentives for SC/ST/Women/Persons with Disabilities
    • Development of district-level land banks
    • Creation of industrial corridors with integrated infrastructure
    • Parks for textile, IT, herbs, food, pharma via PPP
    • SEZ for automobile industry in Adityapur
    • Establishment of Industrial Area Development Authorities
    • Expansion of technical institutions (25% seat reservation for state residents)
    • Setup of Mini Tool Rooms in Ranchi & Dumka
    • Proposal for NRI Cells in Ranchi and Delhi*
    • Proposal for Investor Meets (e.g., Momentum Jharkhand)

    Jharkhand Industrial & Investment Promotion Policy, 2016

    Duration: Five years
    Focus: Infrastructure, Innovation, Inclusion, Employment & Transparency

    Primary Goals:

    • Position Jharkhand as a trusted investment destination
    • Promote sustainable industrial growth
    • Develop web-based transparent project approvals

    Execution Strategy:

    1. Encourage innovation and connect regional value chains
    2. Promote private & PPP investment in infrastructure (roads, energy, parks)
    3. Train rural women SHGs in sericulture, handicraft, handloom
    4. Provide timely credit to MSMEs
    5. Develop international trade facilitators
    6. Strengthen Single Window System for export industries
    7. Ensure land availability & management for investors
    8. Special support to Women, SC, and ST entrepreneurs
    9. Build robust monitoring, evaluation & grievance systems
    10. Launch skill development programs across the state
    11. Accelerate infrastructure development
    12. Promote labour-intensive industries
    13. Focus on industrially backward districts
    14. Enhance area-specific vocational training
    15. Encourage universities for Start-ups & Innovation
    16. Support tech upgrades & R&D
    17. Promote e-Governance & ease of doing business
    18. Reform labour laws with a focus on women
    19. Adopt a focused approach for “Make in India”

    Policy Duration & Applicability

    • Effective from April 1, 2021
    • Valid for five years

    Vision & Core Objectives

    The policy envisions building a conducive and modern industrial climate to:

    • Attract investments through proactive and transparent governance
    • Promote innovation and boost global competitiveness
    • Facilitate adoption of Industry 4.0 and emerging technologies
    • Enable grassroot capacity building for sustainable industrial growth
    • Ensure rapid and sustained growth in the industrial sector to increase its share in the Gross State Domestic Product (GSDP)

    Key Measures to Achieve These Goals:

    1. Establish an effective and supportive institutional framework
    2. Build and implement robust promotion strategies
    3. Develop warehouses, common facilities, and logistics hubs
    4. Strengthen marketing support, R&D, and quality testing labs

    Major Policy Highlights

    High Priority Sectors Identified:

    • Textile & Apparel
    • Automobile & Auto Components
    • Food & Meat Processing
    • Pharmaceuticals
    • Electronic System Design & Manufacturing (ESDM)

    Capital Investment Incentives:

    • Capital investment incentives up to 25% or a maximum of ₹6.25 crore
    • For Micro Industries: Incentive on investment up to ₹1 crore
    • For Small Industries: Incentive on investment up to ₹10 crore
    • For Large Industries: Incentive on investment up to ₹25 crore
    • All women entrepreneurs receive an additional 5% incentive

    Strategic Vision & Goals

    • Create an enabling ecosystem with strong infrastructure to attract investors
    • Promote innovation and global competitiveness
    • Equip industries for adoption of new-generation technologies
    • Strengthen grassroots capacity to ensure sustainable development
    • Achieve fast-paced and sustainable industrial growth over the next decade

    Key Policy Objectives

    • Attract ₹1 lakh crore in investments
    • Generate 5 lakh employment opportunities
    • Make Jharkhand a preferred investment destination
    • Promote sustainable industrial development

    Support System Development:

    • Web-based time-bound transparent approval system for:
      • Project approvals
      • Production declarations
      • Financial and non-financial assistance
    • Strengthening core infrastructure, including:
      • Warehouses
      • Inland Container Depots (ICDs)
      • Cold Storages
      • Road-Rail connectivity for industrial clusters
      • Tool Rooms and Testing Labs

    Focus on Export & MSME Integration

    • Emphasis on export-oriented industries
    • Special focus on 100% indigenously manufactured export goods in the MSME sector
    • Develop linkages between OEMs and MSME/ancillary units

    Implementation & Development Strategy

    Infrastructure Development:

    • Promote private investment and PPP models for infrastructure:
      • Roads
      • Electricity
      • Telecommunications
      • Industrial estates, clusters, and parks
    • Support rural industrialization through:
      • Sericulture
      • Khadi & Handicrafts
      • Food Processing
      • Handloom
      • Bamboo, Leather, and Lac-based industries

    Credit & Financial Support:

    • Ensure timely and adequate credit availability for industries, especially MSMEs

    Institutional & Governance Reforms

    • Establish strong networks with Export Promotion Councils, ITPO, regional & MSME associations
    • Develop International Trade Service Providers to enhance global business
    • Strengthen Single Window Clearance System to assist export-oriented industries
    • Improve land management systems to ensure availability of plots/land for new investors

    Inclusive Industrial Development

    • Provide special incentives for:
      • Women entrepreneurs
      • Scheduled Castes (SC)
      • Scheduled Tribes (ST)
    • Institutionalize grievance redressal, monitoring, and evaluation systems
    • Create consultative mechanisms with stakeholders and industrial associations

    Entrepreneurship & Skill Development

    • Emphasize entrepreneurship training and skill enhancement
    • Strengthen vocational and technical training in industrial backward areas
    • Promote labour-intensive industries to generate employment

    Technology, Innovation & R&D

    • Encourage startups, innovation hubs, and technology transfer
    • Incentivize universities for R&D, product development, and tech upgrades
    • Provide support for traditional sectors like:
      • Mineral-based products
      • Handicrafts
      • Handloom
      • Agro-based and processed food products

    Agro & Food Processing Development

    • Enhance processing levels to reduce wastage and promote value addition
    • Improve income of farmers and boost exports in the sector

    Digital Governance & Ease of Doing Business

    • Promote business facilitation, e-governance, and digitized services
    • Introduce labour reforms to support business-friendly laws and women participation
    • Adopt a focused “Make in India” approach