The word BIMARU has been taken from a Hindi word "Bimar", which depicts sick. The word BIMARU had been framed by an Economic analyst, Ashish Bose in the mid of 1980's who had taken the first letter of Indian states namely Bihar, Madhya Pradesh, Rajasthan and Uttar Pradesh.
These states seen a lot of changes in geographical compositions too as during 2000, Bihar was divided into Bihar and Jharkhand, Madhya Pradesh was divided into Chhattisgarh and Madhya Pradesh and Uttar Pradesh was divided into Uttarkhand and Uttar Pradesh. The division also led to shut the door of growth as these smaller states don't have the strong point to ask for the funds from the government for its development.
State Domestic Product (SDP)
It would be surprised to know that only 21% teachers in Bihar are 10th pass. According to me, this fact is enough to show the educational background of Bihar and other BIMARU states. There is a lack of education and qualified teachers in BIMARU states.
Most of the toppers and brilliant students of BIMARU states had to pursue their higher studies and profession courses from other states as education system of BIMARU state was too weak or we can say that education system was only there for the name purpose.
Instead of rise in the Bihar's domestic product, the state experiences the declination about 1% during the year 1990-91 and 2002-03. During these periods, the growth rate of India was 5.4% per annum, but unfortunately the SDP rate of BIMARU states were out of expectations.SDP of Madhya Pradesh was 0.4% only, Uttar Pradesh was 2.1% only and SDP of Rajasthan was around 3.5%.The growth rate of BIMARU states were only 1.7% per annum.
Most of the industries and Head Quarter of various companies and firms were shifted to other places from BIMARU states which closed the door for the development of these states.
e.g.; Bihar is known for Agrarian state. The PUSA institute constructed by the American Philanthropist Philips in a district named "Samstipur" in 1905 was shifted to New Delhi.
The Head Quarter of coal India ltd. Which was earlier established in West Bengal was shifted to Steel Authority of India at New Delhi.
During 1990- 91, the average economic growth of BIMARU states were rising at 4.6% when compared to other Indian states whose economy was rising at 6.5%.
During 1997-98, the per capita net state domestic products (NSDP) of BIMARU states have the lowest rate of NSDP when compared to other Indian states.
Manufacturing sector in BIMARU states are very poor as according to the data of 2002-07, the average growth rate of BIMARU states was only 0.38% when compared to the rest of Indian states as a whole i.e.; 7.8%. The average growth in agriculture sector was 35%, industrial sector was 9% and service raised around 55%.
Only 16% of state's GDP is there from agricultural sector, but still agriculture sector provides more than 70% employment to the local people. The main reason behind this is the lack of education, as the majority of the population of BIMARU states is uneducated. The 11th plan has been predicted 2.6% growths in the state agricultural GDP which is higher than the 9th plan and 10th plan that were -1.14% in 9th plan and 0.96% in 10th plan respectively.
There was an influential increase in the BIMARU state's agricultural GDP around 31% in 2006-07 and 11.32% in the year 2008-09, but this growth cant helped the BIMARU states to increase their economic growth rate. Still, the majority of poor people is in Bihar which was around 38 million in 1993-94 and has increased to about 43 million in 2010-11.
During 2002-07 the BIMARU states experiences a better position in there SDP rates. The growth rate of Rajasthan SDP's was around 12% per annum. The SDP growth rate of other BIMARU states were 11% for Orissa, 6.5% for Uttar Pradesh and 10% for Madhya Pradesh. The most bottom ranked state, Bihar also experienced a great sign of improvement in most of the sectors during 2005. Bihar seen great changes in itself in terms of SDP rate, infrastructure, plans and strategies formulated by the new government etc. The economy growth rate of Bihar changed to positive and been rewarded the fastest growing Indian state with the growth rate of 11% per annum during 2006-07 and 2007-2008.
The study conducted by Harvard University during the year 2001 depicts that there is only 10% urbanization in BIMARU states when compared to the states like Karnataka and Maharashtra where urbanization is more than 40%. This study also reveals the standard of living among the local people of BIMARU states.
Among the BIMARU states, most of the states had raised their economic growth and State Domestic Product (SDP), but according to my analysis Bihar and Uttar Pradesh have to work hard in the field of law.
Political governance
During 1980-85, the students used to carry pistols to colleges and schools. There were no rules, regulation and laws empowered by the government of these states. The police man used to polish the shoes of the chief minister and the whole family of chief minister. Everywhere there used to be violence. The people of the ruling party shoots the member of opposition party in the filmy style and no one is there to raise the voice in the court. The witness were also harassed and killed, if they raise or open their mouth in front of any high officials.
Political fights and the lack of planning and direction for the economic growth due to political war don't help these states to enhance their economic growth and these factors adversely affect the BIMARU states and led to depreciate in the growth rate.
The per capita consumption of electricity in BIMARU states is less than half of the consumption as compared to developed states according to the Planning Commission. The government of backward states doesn't take the step in the development of the local population. Government should create employment opportunities by building and expanding roads, telecom, irrigation facilities, agricultural extension services etc.
Corruption, the mother of Black Money is the biggest hurdle for the development of BIMARU states as the fund dispatched by the central government to the state government keeps on declining in each and every process as the government officials were more interested in making their pocket heavy as compared to the development of the states.
Human Development Index (HDI)
There is a low rate of HDI in BIMARU states is due to various reasons like the poor lending ability by the banks and other financial institutions as the people of these states doesn't have enough money to pursue good quality education due to lack of employment opportunities.
BIMARU states have the capita income of less than Rs. 25 per day. The factors like health care, education, water supply, lack of population control measures, unfair laws and order continue to adversely affect the economy growth of these states.
One major point to be noted that life expectancy and literacy rate in backward states are too low and birth rate, death rate and health related issue is too high in backward states. The reason behind this point is lack of education as the people don't have sufficient knowledge to tackle with the problem.
The delay in finalizing the Below Poverty Line (BPL) by the other Indian states also led to the decline in HDI.
The government of these states hadn't taken step to engage the local people in their planning process which too is the reason for low Human Development Index. The average literacy rate of BIMARU states is around 50%, having BIHAR at the bottom i.e: 47% only. In most of the tables like literacy rate, sex ratio, economic growth etc, the BIMARU states are always at the bottom and ranks last in Human Development Index (HDI).
One of the main reasons for the low Human Development Index of BIMARU states was pointed by the Standing Committee on Rural Development was the "Under Utilization" of the funds provided by the central government to the state government.
SEZ policy (Special Economic Zone Policy)
The economy of BIMARU is agrarian in nature as majority of the population is dependent upon the agricultural sector. Over the past few years, economy of Bihar is rapidly increasing as there is increase in construction, trade, restaurant and hotel sectors. The gross state domestic product in construction sector is rapidly increased from 6.7% during 2005-06 to 9.7% in 2010-11.
About 50% of the total population of Bihar lay Below Poverty Line (BPL). But, there are various steps taken by the government to attract the investors like infrastructure development of the state, government is arranging NRI meeting etc. these factor would help to improve the investment scenario in state.
Analysis
The problems or the hurdles faced by the BIMARU states can be solved by luring the toppers and brilliant persons to work in their own states only and would help the states in enhancing the SDP rate. In most of the Indian states "Son Complex" myth is there. The Deep -rooted, Son Complex myth in the society of BIMARU states adversely affect the sex-ratio of the states and various illegal activities takes place due to this factor.
According to my analysis, if any of the states of the country is growing at a very slow growth rate like Bihar, Uttar Pradesh and so on, it will adversely affect the overall development of the country in various areas like education, health, infrastructure and other public utilities. Various indexes like health index, GDP index, Educational Development Index will go down as according to the data, BIMARU states are backward states of the country especially Bihar in terms of education.
According to the United Nation Development Program me (UNDP), India ranks 132nd position in human development. But when we compare only the HDI of developed states with the other countries, then India will stand between 60th to 100th ranks. Because of the backwardness and under development of some Indian states, the rank of India has gone to 132nd.
According to my analysis, Bihar is the better state for investment due to following reasons:-
Per capita income of Bihar is expected to become thrice by the year 2020.
Drastic increase in the Bihar's GSDP as there is a great movement in SDP from 6.7% to 9.7% from 2005 to 2010.
GSDP of Bihar is expected to increase around 12% during the financial year 2011-20
Great improvement in the investment in various sectors.
High rate of return, if investment made in road, irrigation and power sector.
