Why Were These States Classified As Bimaru States Economics Essay

BIMARU known as sickness in Hindi Language is the term given to a group of four states of INDIA which were known to have least development or worst economy compared to other stated of the country.

BIMARU stands for the initials of the four poorest states of India that is Uttar Pradesh, Madhya Pradesh, Bihar and Rajasthan.

In the term ‘BIMARU’ – ‘BI’ stands for Bihar, ‘MA’ stands for Madhya Pradesh, ‘R’ stands for Rajasthan and ‘U’ stands for Uttar Pradesh.

This term was given to these states in the mid 80’s when Rajiv Gandhi was the Prime Minister of India. In today’s time no state of the country comes under BIMARU states since these states have shown a significant development in comparison to the development of other states of India.

WHY were these states classified as BIMARU states?

Corruption is the major factor in these states which gives a healthy development to the poverty of these states. Corruption-Index of these states is found to be the worse.

Political Rivalries is yet another reason which restricts these states to develop further. The political leaders are very much busy fighting their own tugs with their rivalries than planning and executing something for their state which would be in the interest of the common people.

Health Care is another factor which is unnoticed in these states. The average life-span of people in these states is even lower than the average of entire country.

Being the Producers of many important materials and products like coal, steel etc., but still no public-sector unit has its head-quarters in these states.

Lack of involvement of local people in the planning process of these states is another reason for its limited development. No planning commission of the country has people from these states on the main panel.

Lack of investments in Irrigation and Flood control is another vital factor. These states experience the highest amount of flood problems bt even then year after year there has not been done any significant development in this department.

Higher population growth in these states is another factor which restricts the development of these states. When already ill-developed states would face higher increase in population its pretty obvious for the development rate to go down further.

Lack of Literacy can termed as the main factor for increase in population of these states which inturn degrades the development rate of them.

Lack of faith of the local people of these states on their states. These are the states which gives out maximum number of toppers every year in every field but these toppers go out of these states and seek jobs somewhere else. The reason may be lack of resources in these states but because of this the scope of development in these states shifts to others.

People in these states do not respect Law and Orders and Rules. Every second a law is noticeably broken in these states and that too by the people sitting in the highest authorities.

Under-Utilisation of Funds is yet another reason for less development in these states. Even after allotting a fair amount of funds from the centre these states do not experience any specific advancement and the main reason is that the funds never reach the common people. It rather gets distributed among the political leaders and bureaucrats before it can be used for any development purpose…

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Bad Water-Management in these areas leads to a wastage of huge amount of water that these states get every year from the excessive rains. If this water can be managed well then these states can act as source of water to other states which face Drought conditions.

Higher Crime Rate is another factor which contributes to the ill-development of these states. In states like Uttar Pradesh and Bihar students take guns and pistols to schools and colleges along with them. People waste most of their time in violence , which includes both common people as well as the political leaders.

Present Scenario:

The concept of BIMARU is outdates and now these states are no more known as the BIMARU States.

The main reason being that some of these states have experienced a great economical growth in recent times.

Some of these states have experienced high growth rates, even higher than some of other developing states of India.

The literacy rate in these have increased fairly enough in comparison to other states.

The literacy rate in these states according to 2011 census are as follows

BIHAR- 63.8%

MADHYA PRADESH- 70.6%

RAJASTHAN- 67.1%

UTTAR PRADESH- 71.7%

The National Average of Literacy rate is 74.04%. Some of these states are fairly close to these figures of national average. Some of these states even defeat a lot of other states in the literacy rate according to the census of 2011.

The quality of teachers in these states is said to be better than those in other states of India according to a recent survey.

According to the survey only 21% of all primary teachers in Bihar and 12.8% in UP have studied less than 10th standard. The rest are more educated.

Bihar with an annual growth of 11.03 is now known as the fastest growing state of india after Gujarat having annual growth of 11.05.

These states experienced a great economic growth at an average of 4.6% per year in the year 1990 in comparison to 6.5% of Indian average as a whole.

Earlier the planning commission didn’t had any of its members from these states but now the scenario has changed the biggest example being Mrs.Pratibha Patil of Rajasthan state assembly being elected as the President of India.

These states are now being given importance on the basis of development as other states.

Many new plans have been executed in these states for the upliftment of rural areas.

New management strategies have been applied to assess the entire scenario efficiently.

The increase in literacy rate has made people aware about the adverse effect of population increase and hence in some parts population has been controlled.

More educated people gives rise to more brains that work for the benefit of the states, this gives a significant advancement in the development of the state.

A :- HDI( Human Development Index)

It is a overall measures of life expectancy , Income and Education for ranking country for Human Development

-If one living a healthy and long life ,it comes under life expectancy .

-higher or lower education rate ,falls in category of adult literacy.

-having moderate or high life style ,comes and measured by high income group and PPP purchasing power Parity.

In accordance to assignment the HDI in BIMARU states are as follows –

HDI in Rajasthan – The human Development Index for Rajasthan shows clearly a high growth of HDI . From figures of year 1991 to 2001. In 1991 rate is 0.3984 and all India rank of Rajasthan was 11th but in 2001 the growth rate is increased to 0.58 and stood rank of 9th in all India Ranking.

HDI in Bihar – From report of National HDI 2001 it clearly shows the rate of HDI comes below the HDI rate of Madhya Pradesh, which is .368.

HDI in Madhya Pradesh – Madhya Pradesh having lowest HDI rates from all four states , its all India Ranking is 14th and rate of HDI is 0.5582.

It is calculated on the basis of educational qualification and literacy rate, Health of the people, poverty in rural areas , income of the people.

HDI in Uttar Pradesh – U.P’s All India HDI ranking from figures of 2001 is 14 and the rate is 0.5582.

B :- State Domestic Product :- It is the total or composite value of Goods and services manufactured during any year in the legislation of particular state. It is also known as State Income. State Domestic Product is always calculated in terms of money and an important tool for measuring per capita income.

Rajasthan is ahead from all other three states in high SDT rate.

C :- Taxation Policy in BIMARU states :- Government is little bit liberal in Taxation policy for BIMARU states as the prime aim of government is to reduce poverty level of states and make them compete with other states. However the more development opportunities are there in these states and at present they are very well balanced states and competing with the rest states of India.

D ;- SEZ Policy : SEZ stands for Special Economic Zone , The Govt. of India passed this policy for increasing FDI from investors from abroad, lots of rebates are given in this policy to states.

Free trade zone falls in SEZ policy etc.

1. Rajasthan SEZ Policy – It is structured for trading, industrial and service operations absolutely trade free. Rajasthan SEZ policy follows very liberal tax policy issues for investment and trade.

2.Bihar – Bihar opposed SEZ policy to come in its state, but finally it is created and it helped state like Bihar miraculously, due to SEZ policy Industrial development growth rate gone high , living standard of people gone high etc.

3. Madya Pradesh and Uttar Pradesh –

As we earlier discussed above MP stands lowest in Human Development Index rate but after SEZ policy development rate gone high in MP and UP.

Lots of investors now attracted towards these states and many tax levis are given to these states.

E. Political Governance –

Political governance states “what government can plan on doing for us “, the government played vital role for making wealth of the country even state govt. helped these four states to the great extent for development and cope up with the issues incurred in these states. The main logic behind this is to reach to the public expectations.

Acording to me out of the four states which used to come under BIMARU states, the States which are most suitable for further investments are BIHAR and RAJASTHAN.

Bihar having the highest economy growth rate in INDIA is at present the best place for investment from that perspective. But along with the high growth rate there are certain hinderances in BIHAR like political influence, crime and violence etc.

If these factors can be avoide then BIHAR is the best place to invest to experience a huge profit in future.

Apart from BIHAR the second state is RAJASTHAN.

Rajasthan being rich in its resources would render all sort of needs for any kind of investments. Some parts of Rajasthan are good in agriculture and some of the other parts are adequate in water bodies. Rajasthan has a strong historical backgrounng and a no. of places to visit which attracts a huge amount of Tourists to this state.

The literacy rate in Rajasthan has increased to an adequate level. Some parts of Rajasthan are very well-versed with huge industries supplying some of the core materials as Zinc etc. In addition to these factors the crime level in Rajasthan is very low so it becomes a safer place for any investment. Not only crime but the political factor in this state is also favourable as politics in Rajasthan does not has a very bad reputation in comparison to other states of the country.

Considering all the favourable factors and conditions, Rajasthan seems to be the most adequate place for any investment out of the four states.