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Industrial Development & Economic Growth in Jharkhand

Last updated on Jul, 29 2021

Economic Snapshot
Per capita Income

 


Jharkhand is 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. At current prices, Jharkhand’s total GSDP stood at Rs. 3,61,381 crore (US$ 49.48 billion) in 2021-22, a 5% increase over FY20.

Jharkhand is rich in mineral resources such as coal (27.3% of India’s reserves), iron ore (26% of India’s reserves), copper ore (18.5% of India’s reserves), uranium, mica, bauxite, granite, limestone, silver, graphite, magnetite and dolomite. Since Jharkhand has around 40% 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 silk (a non-mulberry silk) in India. Value of mineral production (excluding fuel minerals) during 2018-19 stood at Rs. 2,510.99 crore (US$ 356.22 million).

The state’s coal reserves are estimated at around 83,151 million tonnes. Jharkhand accounts for 20-25% of the total steel produced in the country. In 2018-19, 1,248 thousand tonnes of limestone were produced in Jharkhand with a total value stood at Rs. 42.91 crore (US$ 6.09 million).

The state is the largest producer of tussar silk (a non-mulberry silk) in the country with 76.4% share in the total output.  In 2018-19, raw silk production in the state was 2,375 metric tonnes.

According to the Department for Promotion of Industry and Internal Trade (DPIIT), cumulative foreign direct investment (FDI) inflows in Jharkhand stood at US$ 792 million in FY21 and were US$ 2.64 billion between October 2019 and March 2021. In 2019, the number of IEM filed were 8 and the amount of investments proposed were Rs. 382 crore (US$ 75.46 million).

Total exports from the state stood at US$ 1,168.01 million in 2019-20. Exports from the state stood at US$ 1,622.31 million in 2020-21.

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

  • Under the Union Budget 2021-22, Rs. 4,018 crore (US$ 551.09 million) has been allocated towards roads and bridges projects in the state.
  • In April 2021, the government has approved 14 highway projects worth Rs. 670 crore (US$ 91.89 million) in the state.
  • In April 2021, the Minister of Railways, Commerce & Industry and Consumer Affairs, Food and Public Distribution, Mr. Piyush Goyal dedicated Hansdiha-Godda new rail line in Jharkhand. The project has attracted an investment of Rs. 550 crore (US$ 75.44 million) so far.
  • In 2019-20, the total production of horticulture crops in the state was expected to be 4,740.13 thousand metric tonnes and area under production was 418.87 thousand hectares. In 2019-20, the total production of vegetables and fruits was estimated at 3,575.93 thousand metric tonnes and 1,148.11 thousand metric tonnes, respectively.
  • As per Economic Survey of Jharkhand 2020-21, the total cultivated area under kharif crops stands at 1,938 thousand hectares, of which paddy occupies ~84.7% of the total area.
  • In February 2021, the CSR policy was launched to create a conducive environment for attracting CSR investments and best management practices to address the developmental challenges in the state.
  • In September 2019, second Multi Modal Terminal built at Sahibganj in Jharkhand was inaugurated, which was constructed on the river Ganga under Jal Marg Vikas Project (JMVP).
  • Two SEZ has been notified first at Adityapur (adjoining Jamshedpur) for the automotive industry and second at Adani Power (Jharkhand) Ltd. for power industry.
  • As of April 2019, 13,713 habitations were eligible under Pradhan Mantri Gram Sadak Yojana (PMGSY), out of which 11,065 were cleared and further 10,661 habitations were connected.
  • As of April 2021, Jharkhand had a total installed power generation capacity of 2,547.87 MW, comprising 636.36 MW under private utilities, 554.05 MW (state utilities) and 1,357.46 MW (central utilities).
Jharkhand State Presentation

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Jharkhand Map

Jharkhand