Bihar economic survey pins hope on industrial policy for double digit growth

Bihar expects Industrial Investment Promotion Policy (IIPP)-2016 will help accelerate industrial growth rate from 15% to gradually augment its contribution to 25% of GSDP.

PATNA: Bihar has pinned hope on its Industrial Investment Promotion Policy (IIPP)-2016 to achieve an annual growth of 15% in the industrial sector to push its overall economy, currently clocking 7.6%.

Bihar’s Economic Survey 2016-17 says industry contributed 18.15% to help GSDP record a sustained double digit growth during the 11th Five-year Plan period. (File photo)

Amid slowdown concern, Bihar’s Economic Survey 2016-17 has noted that its secondary and tertiary sector was growing at 8.4% and 10.4%, respectively, faster than the overall economic growth

It says the industry contributed 18.15%, construction 21.91%, communication 38.4%, trade, hotels and restaurants 15.10% and banking and insurance 23.5% to help GSDP record a sustained double digit growth during the 11th Five-year Plan period.

Bihar expects IIPP-2016 will help accelerate industrial growth rate from 15% to gradually augment its contribution to 25% of GSDP. “To achieve double digit economic growth, we must prepare to absorb temporary blips in other sectors,” said an expert associated with the preparation of document, not wishing to be quoted.

The ambitious roadmap can be achieved only by developing support infrastructure, emphasis on infusion of advanced technology in core sector, skill development, structured delivery of assistance package and balanced regional development, the survey says.

It draws comfort that the number of economic enterprises has been recording an annual growth of 5% to reach 17.07 lakh units. Higher growth in rural areas (43.7%) than urban (30.3%), is an encouraging trend, indicating that rural populace is waking up to production activity and value addition, it says.