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Bihar's Economic Surge: Why 20% Income Growth Could Reshape Elections

NK Singh believes the Bihar election should center on economic progress rather than backwardness narratives. He highlights the state's impressive 22% GDP growth and 20% surge in per capita income as transformative developments. The former Finance Commission chairman credits improved fiscal management for this economic turnaround. Singh emphasizes that continued growth requires strong center-state coordination and investor confidence in Bihar's business environment.

Key Points: NK Singh Says Bihar Election Should Focus on Economic Growth

  • Bihar's nominal GDP grew by 22% this financial year amid controlled population growth
  • Per capita income surged from 1-2% to remarkable 20% annual increase
  • Singh credits improved fiscal management for state's economic transformation
  • Both NDA and Grand Alliance manifestos contain financially responsible promises
  • Strong center-state coordination needed for infrastructure development projects
  • Maintaining current growth pace crucial for attracting investor confidence
2 min read

Bihar election should be contested on economic growth: NK Singh

Former Finance Commission Chairman NK Singh reveals Bihar's 20% per capita income growth and urges election focus on economic development rather than backwardness narrative.

"Earlier, the increase in per capita income used to be only 1-2 per cent annually. Now, it has spiked to around 20 per cent - which is remarkable. - NK Singh"

Patna, Oct 31

After the National Democratic Alliance (NDA) released its 24-point manifesto for the Bihar Assembly elections, former MP and Chairman of the 15th Finance Commission N. K.

Singh said that the focus of this election should be on Bihar's economic future and sustained development. Speaking about Bihar's growth trajectory, Singh told IANS that while the state is often described as one of India's most backward, people tend to overlook the substantial progress it has made in recent years.

"When it comes to Bihar, it is counted among the most backward states in the country. On parameters like education, health, infrastructure, and manufacturing, it remains low, but people forget two key things -- there has been huge progress in the last few years," Singh said.

He highlighted that Bihar's nominal Gross Domestic Product (GDP) grew by 22 per cent in the current financial year, while the population growth rate is under control at 1.4 per cent, leading to an approximate 20 per cent rise in per capita income.

"Earlier, the increase in per capita income used to be only 1-2 per cent annually. Now, it has spiked to around 20 per cent - which is remarkable," Singh noted.

Explaining the factors behind this growth, Singh credited improved fiscal management by the state government.

He added that both the NDA's manifesto and that of the Grand Alliance have made promises that are financially responsible and achievable.

"Whichever government comes to power will be capable of implementing the commitments made in the manifestos," he said.

Emphasising the importance of continuity and investment, Singh said that maintaining the current pace of growth over the next five years and attracting investors with confidence in the state's business environment would be crucial.

He also stressed the need for strong coordination between the state and central governments, especially for Bihar, which still requires significant central assistance for infrastructure projects.

"Bihar needs support from the Centre for road, rail, and air connectivity. The state alone cannot bear the financial burden of such projects. A responsible government at both the state and Centre can accelerate Bihar's growth from here," Singh concluded.

- IANS

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Reader Comments

R
Rohit P
As a Bihari working in Delhi, I can see the change whenever I visit home. Better roads, more opportunities. But we need more industries and jobs for our youth. Hope this election focuses on employment generation.
A
Ananya R
While the GDP numbers look good, I'm concerned about whether this growth is reaching the poorest. In my village, people still struggle for basic healthcare and education. Statistics don't always reflect ground reality.
V
Vikram M
Excellent points by NK Singh! Bihar has immense potential but needs consistent policies and central support. The coordination between state and centre is crucial for infrastructure projects. Jai Bihar! 🇮🇳
M
Michael C
As someone who has invested in Bihar recently, I appreciate the improved business environment. The state is definitely moving in the right direction. Hope the next government continues these reforms.
S
Shreya B
Good to see both alliances making financially responsible promises. Often during elections, parties make unrealistic commitments that burden the state treasury. Hope they stick to these promises after winning.

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