Patna, Feb. 8: The Bihar government today projected 9.48 per cent growth of Gross State Domestic Product (GSDP) this financial year in advanced estimate, a slide of 3.79 per cent from the last fiscal.
The national economic slowdown has a bearing on the projected state growth for sure. But the sunny side is the state is moving from construction-driven growth to production-driven growth.
"The national slowdown has had its impact on us. Also, our base has increased over the years. Despite these factors we have maintained our tradition of almost double the national growth rate," said principal secretary of planning Vijoy Prakash, referring to the projected national growth of 5 per cent for this fiscal.
The growth rate in the construction sector declined from 10.65 per cent (Rs 16,379 crore) to 7.53 per cent (Rs 17,602 crore). On the other hand, the manufacturing sector has surged from 13.94 per cent (Rs 9,191 crore) to 14.58 per cent (Rs 10,531 crore), giving a clear sign that the private investment was increasing in the state.
"It is an auspicious sign. The government's investment in roads, buildings and bridges propels the construction sector's growth. There is a limit to it. Manufacturing, on the other hand, surges mainly because of private investment and creates jobs," Prakash told The Telegraph.
The contribution of the manufacturing sector in the state economy is just about 6.67 per cent.
The per capita GSDP of Bihar is estimated to attain the level of Rs 15,830 as compared to quick estimates of the previous financial year of Rs 14,647, indicating a growth of 8.08 per cent. However, it is still just 35.01 per cent of the national per capita GDP of Rs 45,211.
Though agriculture roadmap is one of the most flaunted programmes of the state government, the agro sector appears to be a cause of concern for the state government, which constitutes 20.08 per cent of the GSDP. Its estimated growth rate for the current financial year is just 2.28 per cent ' a sharp decline from the previous year's 16.51 per cent.
Trade, hotel, restaurants, transport and communication are estimated to grow at a robust rate of 12.23 per cent, slightly less than 12.91 per cent achieved last year. Banking and insurance, real estate and business services are estimated to grow at 16.66 per cent, compared to 14.46 in the previous year. Similarly community, social and personal services are estimated to grow at 10.45 per cent.
Bihar government is the first in the country to release advanced statistics after Central Statistical Organisation released figures in New Delhi on Thursday.