Jharkhand is located in the eastern part of India. The state shares its borders with West Bengal in the east, Uttar Pradesh and Chhattisgarh in the west, Bihar in the north and Odisha in the south. In India, Jharkhand is one of the leading states in terms of economic growth. The GSDP increased at a compound annual growth rate (CAGR) of 12.30% between 2015-16 and 2019-20.
Jharkhand is one of the richest mineral zones in the world and boasts of 40% and 29% of India's mineral and coal reserves, respectively. Due to its large mineral reserves, mining and mineral extraction are the major industries in the state. Value of mineral production (excluding fuel minerals) during 2018-19 stood at Rs. 2,510.99 crore (US$ 356.22 million).
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. Jharkhand is the only state in India to produce coking coal, uranium, and pyrite. With 25.7% of the total iron ore (hematite) reserves, Jharkhand ranks second among the states.
The state’s industries enjoy a unique location-specific advantage as it is close to the vast market of eastern India. It is closer to the ports of Kolkata, Haldia and Paradip which helps in transportation of minerals.
Between October 2019 and December 2020, FDI inflow in Jharkhand stood at US$ 2,644.08 million. The state ranked 6th in India in terms of FDI inflow. In 2019, the number of IEM filed were 8 and the amount of investments proposed were Rs. 382 crore (US$ 75.46 million). Exports from the state stood at US$ 1,168.01 million in 2019-20. In 2020-21, exports from the state stood at US$ 1,351.81 million.
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 special economic zones (SEZs) offering sector-specific incentives, as well as the Jharkhand Energy Policy 2012 which aims to supply reliable and quality power in an efficient manner at a reasonable price.
About 80% of the rural population of the state depends on agriculture. Rice is the major food crop of the state, covering 80% of the cropped area.
- In March 2021, the state government announced the launch of SAAMAR (Strategic Action for Alleviation of Malnutrition and Anemia Reduction) campaign to tackle malnutrition in the state. The campaign aims to identify anemic women and malnourished children and refer them to malnutrition treatment centres.
- In February 2021, Jharkhand Education Project Council (JPEC) announced the launch of the STEM Education scheme aimed at developing critical thinking, problem solving and innovation skills. The first phase of the scheme was launched with 27 government schools, which have been selected to set up STEM labs and transform the education curriculum.
- In November 2020, Adani Enterprises made a final offer of 20.75% revenue sharing for the Gondulpara coal mine, which has geological reserves of 176.33 million tonnes.
- 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 5,500th station to provide free WiFi under the project RailTel.
- Under the State Budget 2019-20, Government launched two new scholarships programmes Mukhyamantri Medha Chatravitti Yojana (MMCY) and Mukhyamantri Vidyalakshmi Uncha Shiksha Protsahan (MVUSP) in which student who will be selected at state level, district level and on block level through competitive examination, would be given a scholarship of Rs. 12000, Rs. 6000 and Rs. 300 (US$ 171, US$ 85, US$ 4.29).
- In February 2019, three medical colleges in the Jharkhand were inaugurated and foundation stone for the Women's Engineering College in Ramgarh district was laid.
- As of December 2019, the number of IEMs filed were 25 and the amount of investments proposed were Rs. 1,159 crore (US$ 165.83 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 2019-20P, raw silk production in state was 2,697 metric tonnes.
- 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.
- As Jharkhand has around 40% of the country’s mineral wealth, its extensive mineral resources make mining, metals, and related sectors especially lucrative for investments.
- The major growth drivers of the engineering industry in Jharkhand are availability of raw material (iron and steel, aluminium, copper and other metals and non-metals), power, water, and industrial labour.
- As per Economic Survey of Jharkhand 2019-20, the 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 at about 9.71 from 2017-18 to 2018-19.
Note: ^ - As per 3rd Advance Estimates, P - Provisional