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. 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 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. Mineral production (excluding fuel minerals, atomic minerals and minor minerals) in the state stood at Rs. 927.48 crore (US$ 127.21 million) in FY21 (until August 2020).
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.
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.
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.
- 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 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 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).
- 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's raw silk production stood at 2,402 MT in FY20 and was 800 MT in FY21 (until December 2020). For FY21, the government's target for raw silk production was 2,904 MT.
- 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.
- 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.
Note: ^ - As per 3rd Advance Estimates, P - Provisional