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Why Bihar needs special category status


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If Bihar keeps beating national growth average by 2% it would take 40 more years to develop, It tells about why Bihar needs special category status.

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Why Bihar needs special category status

  2. 2. Special Status = Finances + tax waivers Finances Tax Waivers State to contribute only 10%  Direct Tax Code for waiver for instead of 70% in Central income tax and corporate tax Schemes  Refund of Excise collected to 90% grants instead of 70% for new units set up in Bihar or Central Schemes accelerated depreciation
  3. 3. Bihar meets all criteria for Special Status  Geographical isolation  Inaccessible terrain  Poor resource base  Remoteness to larger market  Poor infrastructure
  4. 4. Bihar is young and ready to grow12% of Indians aged less than 6 are in Bihar
  5. 5. Bihar has demonstrated growth leverageIf Bihar keeps beatingnational growthaverage by 2% itwould take 40 moreyears to develop
  6. 6. • Bihar faces a delayed demographic dividend. An ageing India will depend on Bihar for its workforce. Therefore, industrial development of Bihar is instrumental to the success of India.• An industrializing Bihar will generate a new middle class population thereby transforming the state into next major consumer market of the country.• India depends on the development of its poorest states such as Bihar to improve the Human Development Index and join the league of developed nations.Romila Thapar wrote history of Ancient India is the history of Bihar Today, Future of Bihar is the Future of Modern India
  7. 7. British policies sent the state towards the road of poverty and under-development Permanent Settlement Policy poisoned the social fabric of Bihar and crumbled the agricultural base and economy of the state British neglected Bihar on public investments and did not Onset of railways killed develop infrastructure and the trade environment of institutions in the state Patna At the time of independence, not only did Bihar lag in infrastructure but the per capita income of India was also 25% higher TIME HAS COME TO CORRECT THE WRONGS DONE IN THE PAST
  8. 8. Post-independence, Bihar’s poverty increased due tounfair and inconsiderate policies of Central Government Freight Equalization Policy killed the industrialization of Bihar, benefitted rich states. Estimated loss more than Rs 1.20 Lakh Crores. A flourishing cement industry became dead.Bihar did not receive equal consideration in building of Infrastructure development in Bihar was neverCentral institutions. For example, the state produced made a priority despite significantly poor levelmore than 25,000 IITians but did not get an IIT until of public infrastructure in the state. Installedrecently. No ordinance factory was put up in the state capacity in power generation in Bihar is lessdespite positive proposals. than 0.4% of the entire country. Nearly 50% of the villages remained un-electrified in 2005. Per capita income of India was 25% more than that in Bihar at the time of Independence. By 1960-61, per capita income of India was 42% more than that of Bihar. By 1993-94, this disparity reached to 125%. By 2003-04, it peaked at 230%. Today, India’s per capita income is 140% more than that of Bihar. INDIA CONTINUED TO RISE, BIHAR BECAME TIME HAS COME TO CORRECT POORER THE WRONGS DONE IN THE PAST