BIMAROU

BIMAROUBihar Madhya Pradesh Rajasthan Orissa Uttar PradeshIntroductionWhat is BIMARU?It was coined by Ashish Bose in the mid-1980s. BIMAROU has a resemblance to a Hindi word "Bimar" which means sick. This was used to describe the bad state of economy in backward states Bihar, Madhya Pradesh, Rajasthan and Uttar Pradesh. Later Odisha was included in the list resulting in BIMAROU. Several studies, including those by the UN, showed that the performance of the BIMARU states affected the GDP growth rate of India.

Health CareThe life expectancy in BIMARU states is lower than other Indian states. In fact, it is lower than the average life expectancy of India as a whole, implying that these states bring down the overall average as a whole.

Economic GrowthCorruption remains one of the key factors reflecting poverty levels throughout the world and these states generally fare worse in the corruption indexes usually published. Political squabbles and the lack of a fixed direction in growth due to political tug of war does not help either, Uttar Pradesh, being an example.

Literacy RateNational Rate74.04%Bihar63.8%Madhya Pradesh70.6%Rajasthan67.1%Orissa69.6%Uttar Pradesh71.7%BiharThe Bihar economy has grown at a significant pace over the past five years, backed by increase in construction, communication and trade, hotel and restaurant sectors. In fact, the share of construction sector in Bihars GSDP surged significantly from 6.7% in FY05 to 9.7% in FY10. The robust growth in construction can be attributed to higher spending on infrastructure by the government.

Infrastructure

AgricultureBihars economy is primarily agrarian in nature. The agriculture sector accounts for almost 21.8% (FY10) of the states GSDP and is the primary source of income for majority of the population. Bihar is the eight-largest food grain producer in the country.It is the third-largest producer of vegetables and seventh-largest producer of fruits.Apart from the huge resource endowment, Bihar is also emerging as a fast growing market for food products. As per the economic survey of Bihar, expenditure on food accounts for as much as 65% of the total consumer expenditure of the state. Moreover, at present the processed food market accounts for almost 45% of the total food market of Bihar. The food consumption market of Bihar is likely to double to around 830 billion by 2015 from the current 400 billion.

Madhya PradeshMadhya Pradesh Focus on building industrial infrastructure to aid industrial growth

The states mineral resources, land and human resources are significantly under-utilized. Its GSDP grew by 7.1% during FY06-FY10, quite below the national average of 8.6%. However, MPs strategic location coupled with huge endowment of natural resources underscores the growth potential for the state.With an expected increase in investment and several initiatives taken by the government of MP the state is likely to witness significant improvement during the current decade. IndustriesThe number of industries set up in the state improved substantially during the past few years. This is expected to continue given the governments thrust on development of industrial infrastructure, including industrial areas, growth centers, and various industrial parks. However, efficient implementation and management would determine the pace of industrialization.

TourismMP has huge potential to emerge as a major tourist center in India. The state government is encouraging non-consumptive use of its huge forest area by promoting eco-tourism. Focus of the state government on promoting tourism will help the tourism industry to witness substantial progress during the next few years. This would also drive employment within the state. In its Annual Plan FY11, the state government had proposed an investment of 0.9 million to impart training to guides at important tourist centers. The state government has shortlisted 18 major centers that attract a large number of domestic and foreign tourists for comprehensive development. It is also making concrete efforts to improve air connectivity between MP and other Indian states. The state has taken initiatives to promote eco and adventure tourism .Efforts are being made to prop up infrastructure related to the tourism industry.Infrastructure

Rajasthanwidely known for its cultural heritage - has embarked on the path of economic progress during the past few years. The state achieved a high faster growth rate of close to 6.9% during the second half (FY06-FY10) backed by robust performance of services and industrial sectors. While the share of agriculture to GSDP witnessed a sustained decline over the years, it still remains the backbone of the state given that it provides sustenance to a large portion of its population.

Increased focus on the transport sector

Tourism to support growth

During 2010, the state received about 1.3 million foreigners and 25.5 million domestic tourists. Despite some moderation in growth of tourist arrivals, the future of the tourism industry seems quite promising backed by major policy initiatives by the state government. Trade, Hotels & Restaurant account for almost 14.1% Rajasthans GSPD. The focus on tourism development and improving infrastructure facilities would only fuel the growth in these industries going forward.

OrissaMoving towards more sustained growth

Robust growth in both the industry and services sectors has been instrumental in the recent improvement in the states economic growth. The emphasis of the state government on leveraging its abundant mineral and other resources and promoting maximum value addition to create employment opportunities within the state have been and will continue to be an important growth driver. Moreover, anticipated speedy clearances for major projects is likely to help the state to leverage its full growth potential in the current decade.

Vast mineral endowment in the state to drive growth

Orissa is endowed with vast mineral deposits such as coal, iron-ore, manganese ore, bauxite, and chromate. The policies and initiatives of the state government have been aimed at leveraging these abundant minerals and other resources and bringing about strong value addition thus creating employment opportunities in the state.Significant investments in the metals industry in the past few years augur well for the states manufacturing sector. According to a report by Team Orissa, the state has attracted investment of over US$ 200 billion during the last few years out of which majority of investments has been in the manufacturing sector.

IT sector to emerge stronger

To develop a strong base in the IT sector, premier IT companies announced a number of projects with an aggregate cost of more than 2.50 billion, pertaining to development of software parks in Orissa. The table below provides details of the announced projects:

Uttar PradeshUttar Pradeshs GSDP improved somewhat in recent years. However, growth remained below the national average. Thus, its share in Indias GDP declined gradually from 8.7% in FY05 to 8.1% in FY10, although it continues to be the second-largest contributor to Indias GDP after Maharashtra.grow at an annual average rate of 9.2% during the FY11-FY20 - the slowest pace among the BIMAROU statesMajor contribution is expected from the Western region of the state, especially Greater Noida. The state government to devise initiatives for overall development, seeking lessons from competitive states that are marching ahead on development.

Infrastructure-power and roadsSignificant investments in the power sector and roads will drive growth over the next ten years. Focus on infrastructure development would support industrial development in the state. Major projects that would bring about upgrade in transport infrastructure include Development of Feeder Road/Rail Linkages, passenger and goods terminal, Inter State Bus Terminal (ISBT) and a Greenfield airport in Greater NOIDA. Moreover, mega road projects such as the 1,047 kms long, 8-lane Ganga Expressway and Yamuna Expressway will improve transportation.Significant potential for development of the financial services industry

Although there has been gradual improvement in the penetration of the banking services in the state there is a huge potential for further development given the significantly low levels of credit off take and under penetration of these services in the rural areas.Educating the youth - an imperative to sustain long term growth and development

UP is the most populous state in India, accounting for 16.8% of Indias total population. Despite this, the literacy rate is amongst the lowest (~56.3% in terms of number of persons in 2001) in the country. Thus, the government should focus on improving the quality of its huge manpower base by encouraging education (especially for females). High literacy levels would result in skilled manpower in the state and increase demand for basic infrastructure facilities, which in turn would put significant pressure on the government for pro-growth policies. The state ranks among the first few to have successfully implemented an education for all policy. Expenditure on education within the state has more than doubledCONCLUSIONThe differences in economic and population growth rates between the BIMARU states and other Indian states sharpened over the 1990s. The economy of the four BIMARU states grew at an average of 4.6% per year in the 1990s, compared to 6.5% per year for India as a whole. Since population growth in the BIMARU states was much higher that the Indian average in this period, the income disparity between the BIMARU states and India as a whole also increased.Prime Minister Manmohan Singh in his speech on 15th August 2013 said rural per capita consumption has increased four times faster than earlier due to enhanced economic prosperity in rural areas and BIMARU states have witnessed progress.

ReferencesIndia 2020 Economy LookWikipediaPrepared By:Sunita TiwariNandini KhatodNirali GadhiaPankaj ChoudharyPriya Kothari