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Industrial Development & Economic Growth in Jharkhand

October, 2017

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 (27.3 per cent of India’s reserves), iron ore (26 per cent of India’s reserves), copper ore (18.5 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 40.0 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 20-25 per cent of the total steel produced in the country. During 2015-16, the state produced 14.9 million tonnes of steel. The government targets to increase steel production to 25 million tonnes by 2017-18.

Between 2004-05 and 2015-16, Gross State Domestic Product (GSDP) expanded at a Compound Annual Growth Rate (CAGR) of 9.09 per cent to US$ 34.59 billion whereas the Net State Domestic Product (NSDP) expanded at a CAGR of 8.93 per cent to US$ 30.22 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.
  • During 2015-16 (up to June 2015), the number of MSME units in the state was recorded at 408, which provided employment to around 2,256 people. Between 2014-15 and 2015-16, about 5,855 industrial units were established in the state, which provided employment opportunities for 25,370 people.
  • 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).


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