Jharkhand Economic Growth 2024: Notes For JPSC Exam (PDF Download)

Explore the Jharkhand Economic Growth story with insights into GSDP, sectoral shifts, per capita income, and growth projections for 2023-24. Discover the key challenges and opportunities driving sustainable economic development in Jharkhand.

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Introduction: Jharkhand Economic Growth – An Emerging Success Story

Jharkhand’s economy has shown significant recovery and progress in recent years, with a strong focus on industrial development and service sector growth. The Jharkhand Economic Growth trajectory, detailed in the Jharkhand Economic Survey 2023-24, highlights improvements in GSDP, rising per capita income, and sectoral transformations. This article dives into Jharkhand’s growth trends, challenges, and future prospects.

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Jharkhand Economic Growth Post-COVID-19 Recovery

Jharkhand experienced impressive recovery post-pandemic, driven by key economic reforms and industrial expansion:

• GSDP Growth: Between 2020-21 and 2022-23, Jharkhand’s GSDP grew at an average rate of 8.8%.
• Projected Growth: The GSDP is expected to grow by 7.1% in 2023-24 and 7.7% in 2024-25.

This rapid growth demonstrates Jharkhand’s resilience and highlights its economic potential.

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Sectoral Analysis of Jharkhand Economic Growth

Primary Sector Decline

The primary sector, including agriculture, forestry, and mining, plays a critical role but has seen a declining share in the economy:

• In 2022-23, the primary sector contributed 21.3% to the GSVA.
• Mining growth remained sluggish at just 1.5%, necessitating diversification into other sectors.

Stability in the Secondary Sector

The secondary sector, covering manufacturing and construction, has remained stable:

• It contributed 34.5% to GSVA in 2022-23.
• Strong growth in manufacturing is driving employment and industrial development.

Tertiary Sector Driving Jharkhand Economic Growth

The service sector has emerged as the key driver of economic transformation:

• Contributed 38.8% of GSVA in 2022-23.
• Growth in trade, transportation, and public services reflects a shift towards a service-oriented economy.

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Rising Per Capita Income in Jharkhand

Jharkhand’s per capita income shows consistent growth, signaling improving living standards:

• Increased from ₹51,464 in 2020-21 to ₹60,033 in 2022-23.
• Despite the growth, Jharkhand lags behind the national average, requiring focused policy interventions to bridge the gap.

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Challenges Impacting Jharkhand Economic Growth

While Jharkhand’s economic progress is commendable, it faces critical challenges:

1. Skill Gaps: A mismatch between workforce skills and industry demands limits growth.
2. Sectoral Imbalances: Over-dependence on mining hampers diversification.
3. Infrastructure Gaps: Improved infrastructure in transportation and energy is needed for sustainable growth.
4. Inflation Management: Stable inflation rates are essential for economic stability and purchasing power.

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Strategies to Boost Jharkhand Economic Growth

To address these challenges and sustain growth, Jharkhand must focus on:

• Investing in Infrastructure: Enhancing roads, railways, and energy supply.
• Promoting Manufacturing: Attracting industries through incentives and ease of doing business.
• Skill Development: Expanding programs like PMKVY and Mukhya Mantri Sarthi Yojna.
• Diversifying Economy: Reducing mining dependence by boosting agriculture and services.

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Jharkhand in Comparison to Other States

Jharkhand ranks lower in per capita income compared to several Indian states, but progress is visible:

• Investments in industrial policies and service sector reforms are driving upward mobility.
• Steady improvement in per capita income and GSDP showcases Jharkhand’s economic potential.

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Conclusion – The Future of Jharkhand Economic Growth

The Jharkhand Economic Growth story reflects resilience, progress, and potential. With a GSDP growth rate of 8.8% post-pandemic and strong forecasts for 2024, Jharkhand is on a path to sustainable development. Addressing challenges like skill gaps, sectoral imbalances, and infrastructure gaps will further accelerate its growth.

Jharkhand’s focus on industrial expansion, service sector growth, and human capital development can position it as a leading state in India’s economic landscape.

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