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Industrial Development & Economic Growth in Jharkhand

March, 2018

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 70.27 per cent share in the total output.

During 2016-17, Jharkhand produced 19.36 million tonnes of iron ore. Jharkhand accounts for 20-25 per cent of the total steel produced in the country. During 2016-17, the state produced 15.723 million tonnes of steel. The government targets to increase steel production to 25 million tonnes by 2017-18.

Between 2011-12 and 2016-17, Gross State Domestic Product (GSDP) expanded at a Compound Annual Growth Rate (CAGR) of 10.94 per cent to US$ 39.35 billion whereas the Net State Domestic Product (NSDP) expanded at a CAGR of 11.26 per cent to US$ 36.34 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 state has established chemical clusters in the Sahibgunj, Bokaro, Dhanbad, Hazaribagh and Deoghar districts to promote investments from micro, small and medium enterprises (MSMEs).
  • As of December 2017, the state government asked AAI to assess the feasibility of development of Giridh airport for Regional Connectivity Scheme (RCS) operations.

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