Jharkhand: The Coming Of Age
Jharkhand has rapidly developed not just its inherent natural resources, but also industries.
This article is a sponsored feature.
Less than two decades since its birth, Jharkhand has shown rapid advancement not only in developing its inherent natural resources, but also in promoting manmade industries.
Having earned a reputation as India’s industrial linchpin, Jharkhand has registered an impressive gross state domestic product growth rate of 10.5 percent, spanning regions, sectors and socio-economic groups. The state’s income, as measured by gross and net state domestic product, has more than doubled since 2005.
It has also shown impressive development indicators, thanks to employment opportunities that transcend the raw materials, manufacturing and services industries. The per capita income has shown a CAGR of 5.47 percent since 2005 and is expected to reach Rs 33,260 in 2015-16 - higher growth than the rest of India.
The scale of progress is due largely to the government’s push to designate Jharkhand a global investment hotspot. Nationally, Jharkhand ranks seventh on the ease of doing business scale. With a competitive workforce, smooth labour-industry relations, limited bureaucracy and streamlined clearances, Jharkhand’s growth story looks set to include each every resident.
In addition to promoting Jharkhand as a viable, stable and lucrative business destination within India, the administration has ramped up its external focus. In the past 12 months, high-level business and government delegations have made the case for investing in Jharkhand by wooing potential partners in Singapore, China and the U.S.
The investment promotion campaign is set to culminate with the Momentum Jharkhand Global Investors’ Summit 2017, to be held on 16-17 February in Ranchi.
Jharkhand has all the components of a burgeoning economy in place:
Infrastructure
Jharkhand is ideally placed to serve as a gateway and strategic hub connecting northeastern and eastern India to the mainland, with a modern expressway comprising 15 national highways.
More than 2,100 kilometres of railway support the robust mining industry and a dedicated Eastern Freight Corridor that will ply the state is expected to be completed in 2018. A nonstop power supply, port connectivity and plans to internationalise Ranchi airport will further make Jharkhand an attractive place to do business.
The Jharkhand Infrastructure Area Development Authority controls the acquisition of more than 6,300 acres of area to meet industrial demand, and also serves as a liaison for financing and assistance to entrepreneurs.
Some designated industrial areas include Singhbhum for iron, steel, auto parts, cement and food processing; Ranchi for medium- and large-scale industries and IT; and Deoghar for glass, medicinal plants, coal-based power plants and silk textiles.
Seal Of Corporate Approval
With a cost-effective workforce and proximity to raw materials, some of India’s most prominent auto and ancillary majors, such as Tata Motors Ltd., JMT Auto Ltd. and Apex Auto Ltd., have had a long-standing presence in the state.
Tata Steel Ltd., which produces multiple types of auto-grade steel in Jharkhand, has also earmarked more than Rs 20,000 crore in the last five years across discovery and production stages. French cement major Lafarge India Pvt Ltd., Bihar Sponge Iron Ltd. and JSW Steel Ltd. have leveraged Jharkhand’s mineral riches to create jobs.
Additionally, companies such as Hewlett-Packard have signed MoUs to digitize tertiary economic sectors. HP will work on bringing healthcare and education to underserved areas using a cloud-based electronic system and virtual classrooms.
Other companies that have set up units in Jharkhand include Mother Dairy, Parle and Safal.
Business-Friendly Policies To Lure Investment
The administration has unveiled several sector-specific policies to foster innovation and encourage capital investment.
Landmark incentives include up to 50 percent government financing for private industrial parks, financial grants in food processing, relief on VAT, interest and capital power generating subsidies and several tax exemptions. Concessions also apply to export units and film producers who shoot in Jharkhand.
The Single Window Clearance System will also expedite and simplify the approval process by minimising red tape and allowing online registration for licenses and other documentation.
Mega infrastructure projects, such as the flagship Jharkhand Mega Food Park Private Ltd. (JMFPP) outside Ranchi, are eligible for big-ticket financial grants given their scale. The JMFPP spans 56 acres and houses six primary processing centres.
A Diversified Economy
Endowed with enviable natural resources - forestry, geological deposits, livestock and vast swathes of arable land, the government has wisely diversified its long-term roadmap for growth and development or economic success.
Pushing ahead with its goal of making Jharkhand a knowledge hub, the administration offers fiscal incentives for opening medical schools and private universities. It has also planned vocational training programs for youth and non-agricultural skill development for those living in rural areas. The Honourable Chief Minister, Shri Raghubar Das, has outlined a vision of training two million youth with skills, for a fully developed state by 2020.
Religious, eco-tourism, and rural tourism projects are also on the anvil to surpass the record 33.4 million domestic tourists who visited in 2014. Jharkhand ranks ninth in India for domestic tourist arrivals, which accounted for $94 billion aggregate revenue in 2015, and is expected to hit $157 billion in 2024. International tourist revenue stood at $20 billion in 2015, with growth projected to reach $28 billion in 2024.
With these ambitions, Jharkhand can be a vanguard in the Make in India, Skill India and Digital India initiatives, and ensure prosperity and development reach all residents equitably.