Industrial Development & Economic Growth in Jharkhand

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 silk(a non-mulberry silk) in India, with 76.4 per cent share in the total output.

Jharkhand has coal resource of about 82,439.52 MT. Jharkhand accounts for 20-25 per cent of the total steel produced in the country. During 2015-16, the total iron ore (haematite) reserves in the state were recorded to be 4,596.621 million tonnes.

The GSDP increased at a Compound Annual Growth Rate (CAGR) of 10.81 per cent between 2011-12 and 2017-18 whereas the Net State Domestic Product of Jharkhand state grew at a CAGR of 11.12 per cent.

According to the Department of Industrial Policy & Promotion (DIPP), the cumulative FDI inflow in Jharkhand including Bihar from April 2000 to June 2018 is US$ 113 million. During 2018-19**, exports from the state stood at US$ 588.91 million.

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 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).
• In April 2018, 151 companies invested about Rs 2,700 crore (US$ 418.93 million) in the state of Jharkhand on the occasion of fourth ‘Jharkhand Momentum’.
• As of December 2018, Jharkhand had a total installed power generation capacity of 1,771.20 MW, comprising 762.41 MW under private utilities, 554.05 MW under state utilities and 454.74 MW under central utilities.
• Power generation in the state for 2018-19* reached 10,356.68 GWH.

Note: * - Upto December 2018

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