why bihar needs special category status
TRANSCRIPT
WHY BIHAR NEEDS SPECIAL
CATEGORY STATUS
Special Status = Finances + tax waivers
State to contribute only 10%
instead of 70% in Central
Schemes
90% grants instead of 70% for
Central Schemes
Finances Direct Tax Code for waiver for
income tax and corporate tax
Refund of Excise collected to
new units set up in Bihar or
accelerated depreciation
Tax Waivers
Bihar meets all criteria for Special Status
Geographical isolation
Inaccessible terrain
Poor resource base
Remoteness to larger
market
Poor infrastructure
Bihar is young and ready to grow
12% of Indians aged less than 6 are in Bihar
Bihar has demonstrated growth leverage
If Bihar keeps beating national growth average by 2% it would take 40 more years to develop
• Bihar faces a delayed demographic dividend. An ageing India will depend on Bihar
for its workforce. Therefore, industrial development of Bihar is instrumental to the
success of India.
• An industrializing Bihar will generate a new middle class population thereby
transforming the state into next major consumer market of the country.
• India depends on the development of its poorest states such as Bihar to improve the
Human Development Index and join the league of developed nations.
Romila Thapar wrote history of Ancient India is the history of Bihar
Today, Future of Bihar is the Future of Modern India
British policies sent the state towards the road of poverty and under-development
Permanent Settlement Policy poisoned the social fabric of Bihar and crumbled the agricultural base and economy of the state
British neglected Bihar on public investments and did not develop infrastructure and institutions in the state
Onset of railways killed the trade environment of Patna
TIME HAS COME TO CORRECT
THE WRONGS DONE IN THE PAST
At the time of independence, not only did
Bihar lag in infrastructure but the per capita
income of India was also 25% higher
Post-independence, Bihar’s poverty increased due to unfair and inconsiderate policies of Central Government
Freight Equalization Policy killed theindustrialization of Bihar, benefitted rich states.Estimated loss more than Rs 1.20 Lakh Crores.
A flourishing cement industry became dead.
Bihar did not receive equal consideration inbuilding of Central institutions. For example, thestate produced more than 25,000 IITians but didnot get an IIT until recently. No ordinance factorywas put up in the state despite positive proposals.
Infrastructure development in Bihar was never made a priority despite significantly poor level of public infrastructure in the state. Installed capacity in power generation in Bihar is less than 0.4% of the entire country. Nearly 50% of the villages remained un-electrified in 2005.
TIME HAS COME TO CORRECT
THE WRONGS DONE IN THE PAST
Per capita income of India was 25% more than that in
Bihar at the time of Independence.
By 1960-61, per capita income of India was 42% more
than that of Bihar. By 1993-94, this disparity reached to
125%. By 2003-04, it peaked at 230%.
Today, India’s per capita income is 140% more than that of
Bihar.
INDIA CONTINUED TO RISE, BIHAR BECAME
POORER