Bihar’s Time Has Come: Leveraging the Budget for a Brighter Future

This year’s Union Budget was truly a delight for Bihar, addressing its infrastructural and human development needs. Not long ago, political pundits were debating whether the PM Narendra Modi-led NDA government would grant Bihar special status, given the state’s slower growth compared to other Indian states. However, Finance Minister Nirmala Sitharaman had different plans. Instead of merely granting special status, she outlined a comprehensive plan for Bihar’s economic growth, infrastructure development, social welfare, and healthcare.

Bihar, a state of unique significance in the 2024 budget, is not only one of India’s most populous states but also boasts a rich cultural heritage and historical importance. Despite facing developmental challenges, Bihar’s potential for growth makes it a key focus in national economic planning.

The Rs 26,000 crore allocation to Bihar in the Union Budget 2024 is set to benefit several key industries, including infrastructure and construction, healthcare, and manufacturing. Significant investments in road connectivity, the development of an industrial node at Gaya, and the establishment of new medical colleges will enhance the state’s infrastructure, stimulate industrial growth, and improve healthcare services. Additionally, the agricultural sector will benefit from improved irrigation and farm-to-market connectivity, while the education sector will see advancements through the creation of new institutions and skill development centers. These initiatives aim to drive economic growth and enhance the quality of life in Bihar.

The Economic Miracle That Didn’t Happen

Bihar’s political and social landscape has undergone various social revolutions, including the renowned JP Movement, Karpoori Thakur’s rise as a backward-class leader, and Lalu Yadav’s identity politics. Although most political leaders in Bihar aligned themselves with socialism, their policies rarely reached the aam janmanas and led to the state being labeled as a “bimaru” (diseased) state. During Lalu Prasad Yadav’s tenure, the public witness rampant corruption, lawlessness, siphoning off funds meant for public welfare, poor healthcare services, inadequate sanitation, and so on.

Bihar has consistently remained a poor-performing state in terms of its economy, Human Development Index, and other key parameters. It has the lowest literacy rate in the country at 61.8 per cent. Over 75 per cent of Bihar’s population is engaged in agriculture and allied activities, which often results in a lack of formal education and skill development. In contrast, its neighboring state Uttar Pradesh, under the leadership of CM Yogi Adityanath, has demonstrated significant growth due to the Central government’s focus on developing expressways, highways, and other major roadsways.

The Center’s emphasis on enhancing Bihar’s infrastructure, industrial sector, and cultural development could mark a pivotal moment for the state’s struggling economy. While some may argue that this year’s budget reflects the needs of NDA government allies, it is important to note that a special financial package for Bihar has been long overdue.

Why Bihar Needs Investment in Highways & Industries?

By now, it is well-known that the double-engine BJP government at both the state and Central levels has significantly improved the status of Uttar Pradesh, particularly in its western region. Expressways such as Gorakhpur-Shamli, Delhi-Saharanpur-Dehradun, Ghaziabad-Kanpur, Lucknow-Kanpur, Noida-Greater Noida, Bundelkhand, and Delhi-Meerut have played a crucial role in attracting critical investments and industries to the region. In contrast, Bihar lacks dedicated expressways that connect its major industrial clusters.

In her budget, the finance minister announced the construction of the 300 km Patna-Purnia Expressway and the 386 km Gaya-Buxar-Bhagalpur Expressway. These expressways are foundational for industrial development, as improved roads facilitate better transportation and services. Additionally, the renovation of cultural and religious sites such as the Vishnupad Temple and the Mahabodhi Temple, modeled after the Kashi Vishwanath Corridor, is expected to significantly boost tourism in a state that has previously been less known for its attractions.

Bihar has long faced several industrial challenges, including inadequate infrastructure, a shortage of skilled labor, bureaucratic hurdles, limited access to finance, and poor basic services. To address these issues, a comprehensive roadmap was needed, which has been addressed by this year’s budget. Enhancing infrastructure through improved road networks, expanded railway connectivity, and a reliable power supply is crucial.

To tackle the shortage of skilled labor, promoting vocational training aligned with industry needs is essential. Simplifying regulations and improving transparency will foster a more business-friendly environment. Facilitating access to finance for SMEs and startups, while boosting key sectors like agriculture, manufacturing, IT, and tourism through targeted policies and incentives, is also important. Additionally, improving basic services such as healthcare, education, and water management will support overall industrial growth.

This coordinated approach can unlock Bihar’s industrial potential and drive economic development.

Leveraging the Union Budget

Bihar’s youth have been flocking to the financial capital, Mumbai, and the IT hub, Bengaluru, in search of career opportunities. However, the Union Budget may be leveraged to Bihar’s advantage, as the state possesses numerous factors that will aid in the better utilization of these funds.

Bihar’s Demography, A Helping Hand: Bihar’s demographic advantage, characterized by a large, youthful population and a significant proportion of working-age individuals, is a key driver of the state’s economic growth. This advantage provides a substantial labor force capable of powering various sectors of the economy, including agriculture, manufacturing, services, and technology.
Youthful Workforce: Bihar boasts one of the highest proportions of young people in India. The budget’s focus on education and skill development aims to capitalize on this demographic opportunity by enhancing the quality of education and providing vocational training. This initiative is crucial for equipping young people with the skills required in modern industries, thereby increasing their employability and productivity.
Rural and Agricultural Potential: With a substantial rural population, Bihar’s economy is deeply rooted in agriculture. The budget’s allocation for agricultural development, irrigation, and rural infrastructure will modernize farming practices and improve productivity. This will not only enhance food security but also create numerous job opportunities in the agribusiness sector.
Demographic Dividend and Economic Growth: The large base of young people provides a significant labor pool, which is essential for industrial and economic growth. The budget’s investments in infrastructure, healthcare, and education are designed to ensure that this workforce is healthy, educated, and skilled, ready to take on roles in various emerging sectors. This will spur industrial growth, attract investments, and promote entrepreneurship among young people.
Urbanization and New Opportunities: As urban areas expand, the budget’s focus on urban development and infrastructure will create new economic opportunities and foster a sense of hope. Improved connectivity and the development of industrial corridors are expected to attract businesses, boost manufacturing, and generate employment, further enhancing Bihar’s economic landscape.

Way forward

To drive Bihar’s development effectively with the current budget, it is crucial to focus on several strategic areas.

First, significant investments in infrastructure are needed, including upgrading roads, bridges, and public transport systems, as well as improving the energy supply to support industrial growth. It is also vital to enhance education and vocational training, with increased funding for schools and colleges and expanded skill development programs to prepare the youth for the job market.

In healthcare, upgrading facilities and developing services, particularly in rural areas, can improve access to medical care and address public health issues. Supporting agriculture through subsidies, better irrigation, and market access will boost productivity and ensure fair prices for farmers. Economic growth can be stimulated by creating a favorable environment for businesses, promoting local industries, and offering incentives.

Social welfare programs should be enhanced to alleviate poverty and support vulnerable populations, with a focus on women and child development. Improved governance and transparency are essential, achieved through efficient administration, reduced corruption, and increased citizen engagement in budget planning. By prioritizing these areas, Bihar can effectively utilize its budget to drive sustainable development and improve the quality of life for its residents.

In conclusion, the current political landscape in India is increasingly favorable for Bihar, presenting a unique opportunity for significant progress. It is high time for both the leaders and the people of Bihar to seize this moment. By strategically investing in infrastructure, education, healthcare, agriculture, and economic growth, and by enhancing social welfare and governance, Bihar can leverage its budget to drive meaningful development. This collaborative effort will not only address current challenges but also pave the way for a more prosperous and equitable future for the state.

For too long, Bihar has been known for crime, corruption, and other wrong reasons. However, the 2024 budget offers a renewed sense of hope for the state, its leaders, and its people. This is a chance to shed those outdated perceptions and focus on Bihar’s infrastructural and cultural growth.

The author is a Political Consultant at Varahe Analytics Private Limited. His area of interest includes domestic politics, public policy, and national security. Views expressed in the above piece are personal and solely that of the author. They do not necessarily reflect News18’s views.