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Madhya Pradesh still remains a laggard in GDP growth

Last Updated: Sunday, January 10, 2010 - 15:59

Bhopal: Madhya Pradesh`s Gross Domestic Product (GDP) remained nearly half of the national average of 8.49 percent in the last five years, making it one of the poor performing states in the country.

BJP-ruled Madhya Pradesh also fared badly among the so-called four `BIMARU` states with an average 4.89 percent GDP growth between 2004-05 and 2008-09, according to the latest Central Statistical Organisation (CSO) report.
Bihar, Madhya Pradesh, Rajasthan and Uttar Pradesh form the BIMARU states due to their poor growth rate.

Chief Minister Shivraj Singh Chouhan`s claim to rid Madhya Pradesh of BIMARU tag falls flat in the face of a dismal performance on the GDP front although the state`s plan size has more than doubled, from Rs 6,710 crore in 2004-05 to Rs 14,182 crore in 2008-09, the report`s figures show.

Gujarat stood first with an average of 11.05 percent growth, while Bihar occupied the second slot with average 11.03 percent growth annually for five years to emerge as the fastest-growing state, the report said.

The average GDP growth of Rajasthan was 6.25 percent, while that of Uttar Pradesh remained at 6.29 percent during the period, it said.

Uttarakhand, Jharkhand and Chhattisgarh, carved out from three of these BIMARU states, have also done well on GDP front compared to Madhya Pradesh, it said.

Average GDP growth of Uttarakhand was 9.31 percent, Jharkhand clocked 8.45 percent and Chhattisgarh posted 7.35 percent, while Orissa, also among the poor states, registered a healthy rate of 8.74 percent, the CSO report said.
Of the eight historically poor states, three - Bihar, Uttarakhand and Orissa -- have grown faster than the national average of 8.49 percent, while Jharkhand and Chhattisgarh developed near the national figure, it said.

Other northern and eastern states, known for poor GDP, have done well on the growth front, the report said.

Madhya Pradesh Government organised about a dozen industrial meets to woo investors, including foreigners, during the last five years.

However, poor execution of hundreds of memorandums of understandings (MoUs) signed during the meets have failed to bring desired results for the state, analysts said.

Contrary to the CSO report, Madhya Pradesh Finance Minister Raghavji Bhai says during 2004-09, the GDP growth increased, though marginally. However, he was quick to add that he has not seen the entire CSO report.

Commenting on the CSO report, Madhya Pradesh Congress Committee General Secretary Arvind Malviya criticised the State Government for its "failure".

"The CSO report has revealed the real face of the so-called development during the Shivraj Singh Chouhan regime," he said.

The poor growth indicated that the entire focus of the State Government was on minting money rather than undertaking developmental activities, Malviya said.

The Congress leader sought to know the reasons for the slow growth despite increase in annual plan size and huge investments, as claimed by the State Government.

Meanwhile, sources in the Planning Department here said till 2005-06, growth rate of Madhya Pradesh was better than other states but it declined later.

They said till 2005-06, the growth rate was 6.99 percent, but it went down to 5.19 percent in the subsequent years.


First Published: Sunday, January 10, 2010 - 15:59

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