Industrial Development & Economic Growth in Jharkhand

Latest update: February, 2016

Economic Snapshot: GSDP of Jharkhand

Jharkhand's gross state domestic product (GSDP) was US$ 36.21 billion over 2014-15.

Economic Snapshot: GSDP of Jharkhand

Economic Snapshot: NSDP of Jharkhand

Jharkhand's net state domestic product (NSDP) was US$ 31.30 billion over 2014-15.

Break up of outstanding investments in Jharkhand

February, 2016

Jharkhand is located in the eastern part of India. The natural resources, policy incentives and location-specific advantages of Jharkhand support investments in sectors such as mining and metal extraction, engineering, iron and steel, and chemicals.

Jharkhand is rich in mineral resources such as coal (29 per cent of India’s reserves), iron ore (26 per cent of India’s reserves), copper ore (18 per cent of India’s reserves), uranium, mica, bauxite, granite, limestone, silver, graphite, magnetite and dolomite. Since Jharkhand has around 40 per cent of the country's mineral wealth, its extensive mineral resources make mining, metals and related sectors especially lucrative for investments. Jharkhand is the only state in India to produce coking coal, uranium and pyrite. The state is also a leading producer of coal, mica, kyanite and copper. Jharkhand is the largest producer of tussar (a non-mulberry silk) in India, with 76.4 per cent share in the total output.

During 2014-15, Jharkhand accounted for 16.8 per cent of the total iron ore production in the country. Jharkhand accounts for 14.3 per cent of the total steel produced in the country. During 2014-15, the state produced 11.7 million tonnes of steel. The government targets to increase steel production to 25 million tonnes by 2017-18.

Between 2004-05 and 2014-15, Gross State Domestic Product (GSDP) expanded at a Compound Annual Growth Rate (CAGR) of 10.5 per cent to US$ 36.21 billion whereas the Net State Domestic Product (NSDP) expanded at a CAGR of 10.2 per cent to US$ 31.3 billion.

The following are some of the major initiatives taken by the government to promote Jharkhand as an investment destination:

  • Jharkhand offers a wide range of fiscal and policy incentives to industries under the Industrial Policy 2012.
  • The state also has policies for IT and SEZs offering sector-specific incentives.
  • As of 2015, 38 mega industries, 123 large and medium industries, and 43,517 micro and small industries have been set up in Jharkhand. Mega industries are providing job opportunities to 5,390 people, whereas large, medium and micro industries are generating job opportunities for 10,094 and 168,740 people respectively.
  • The Government of Jharkhand has implemented a Single-Window Clearance System (SWS) for faster and one-point clearance of industrial projects, single-point dissemination of industrial project-related information and streamlining of inspection of industries by different agencies/authorities.
  • The Road Ministry of India has announced plans to expand highways in Jharkhand under the PPP model with an estimated investment of US$ 890 million.
  • The state has established chemical clusters in the Sahibgunj, Bokaro, Dhanbad, Hazaribagh and Deoghar districts to promote investments from micro, small and medium enterprises (MSMEs).
Jharkhand State Presentation

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Jharkhand Map

Jharkhand

x IBEF : India Brand Equity Foundation