Role of Government in Inclusive Growth: Challenges ahead of Government of Bihar

Kaushal Kishore


The core challenges before the any developing state of India are livelihood creation, food security, poverty alleviation, availability and access of clean water, provision of education and healthcare, energy security, infrastructure creation, environment protection etc. A state like Bihar which was synonymous with poverty, has surprised not only the developed states of India but the world as a whole especially when the world*s economy is not moving in the right direction. For last two financial years Bihar is managing growth rate more than 13% which is almost the double of India‟s growth rate and far ahead of many developed state.

Economist explains that development of Bihar has been tremendous because of investment sentiments have picked up due to good governance and availability of skilled labor at cheaper price. Bihar has surpassed other states to register the highest growth rate of 17.16% in agriculture in the financial year 2011-12. The state produced 166 Lakh metric tonne (MT) of food grain, the highest in the country. This is not only due to availability of cheap labour but the policy by the state government which emphasize on agriculture roadmap besides setting up an agriculture cabinet in the state.

The dependency of the state government on agriculture does not surprise because Bihar as a state failed in the past to qualify for the industries requirements. The industry set up requires huge infrastructure supports like uninterrupted power supply, availability of land well connected to quality roads/highway, organized markets and good governance etc.

The paper shall try to cover the overall government initiative to achieve the inclusive growth. A special focus on the 'Brand Building of Bihar' is expected after analyzing the opportunities and challenges before the government of Bihar.

Key words: Government Policy, Core-challenges, Resource constraints, Crisis as an opportunity, Brand Building, Inclusive Growth

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