Industrial Development & Economic Growth in Jharkhand

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. The GSDP increased at a compound annual growth rate (CAGR) of 12.30% between 2015-16 and 2018-19.

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 tasar 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.

Between October 2019 and September 2020, FDI inflow in Jharkhand stood at US$ 2,643.76 million. The state ranked 5th in India in terms of FDI inflow. In 2019, the number of IEM filed were 25 and the amount of investments proposed were Rs. 1,159 crore (US$ 165.83 million).

Total exports from the state stood at US$ 1,252.79 million during 2018-19. During 2019-20, exports from the state stood at US$ 1,168.01 million.

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

• Under Budget 2020-21, Rs. 264.59 crore (US$ 37.54 million) has been allocated for six rail projects.
• As per the Economic Survey of Jharkhand 2019-20, production of paddy in 2019-20 increased 3.7% and yield in kgs per hectare increased 18.3% over 2018-19. The production of fish in the state grew around 9.71% from 2017-18 to 2018-19.
• 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).
• In August 2019, two new trains, Ranchi-Tatanagar Intercity express and Hatia-Sanki passenger, along with 31 kms long Tatisilway-Sanki track under Barkakana-Ranchi railway project were inaugurated.
• As of December 2019, the state’s Mahuamilan station became the 5,500^th station to provide free WiFi under the project RailTel.
• 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 November 2020, Jharkhand had a total installed power generation capacity of 2,514.87 MW, comprising 623.36 MW under private utilities, 554.05 MW (state utilities) and 1,337.46 MW (central utilities).

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