Source-This post on Eastern India: A Strategic Pivot for National Development has been created based on the article “Purvodaya for eastern revival” published in “Business Standard” on 9 August 2024.
UPSC Syllabus-GS Paper-3- Infrastructure: Energy, Ports, Roads, Airports, Railways etc.
Context- The 2024 Budget focuses on Eastern India for national development through the Purvodaya initiative. This plan aims to use the region’s resources to boost economic growth by addressing disparities and promoting development in states like Odisha, Andhra Pradesh, Bihar, Jharkhand, and West Bengal.
What is Purvodaya initiative, outlined in the 2024 Budget?
A) Human Resource Development: Enhancing education and skill-building to better equip the workforce.
B) Infrastructure Enhancement: Upgrading infrastructure to support economic activities and improve connectivity.
C) Economic Opportunities: Creating jobs and fostering industrial and agricultural development to leverage the region’s natural resources and strategic location.
D) Significance of Initiative– This regional revival aims to balance inclusive growth with competitive advantage. If done effectively, it could transform the region and boost India’s global prominence.
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What is the significance of Eastern India?
1) Mineral Wealth- Eastern India contains most of the country’s natural resources, including 80% of India’s iron ore, all of its coking coal, and large reserves of chromite, bauxite, and dolomite.
2) Port Infrastructure- Major ports such as Paradip, Haldia, Vizag, and Kolkata account for over 30% of India’s major port capacity.
3) Connectivity-The region has three major national waterways and strong road and rail networks, boosting its strategic trade advantages.
What are the challenges faced by Eastern Indian States?
1) Economic Contribution -In 2022-23, Eastern states contributed only 17.26% to India’s GDP and showed slower progress than other regions. With about 350 million people (27% of the country’s population), these states face major economic challenges and are not fully utilizing their resources.
2) Stagnant Growth– In the past 11 years, GDP per capita in these states has barely increased, with growth rates below the national average, except for Odisha and Andhra Pradesh, which grew by 5.5% and 6%, respectively.
3) Income Comparisons- Bihar has one of the lowest per capita incomes in India, comparable to Somalia and Sudan, while Japan, with a similar population size, has a per capita income of about $33,000. West Bengal’s GDP per capita is around $967, much lower than Vietnam’s $4,623.
What should be the way forward?
1) Need for Targeted Development -The stagnation in Eastern India over the past decade shows a clear need for focused development efforts. Strategies should be customized to address the specific economic gaps and unique challenges facing the region.
2) Focus on the Northeast- The Northeast, contributing about 2.9% to India’s GDP, faces challenges like isolation and socio-political issues that hinder development. However, its natural resources, cultural heritage, and strategic location near Southeast Asia offer significant growth opportunities that can help India reach its goal of becoming a developed economy by 2047.
3) Social Progress- Slow economic growth is tied to lower social progress, so improving education and healthcare is essential for balanced development.
Question for practice
What is the Purvodaya initiative mentioned in the 2024 Budget, and what challenges do Eastern Indian States face?
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