BIMARU specifies an ellipsis tossed by choosing the first letters from BIHAR, MADHYA PRADESH, RAJASTHAN and UTTAR PRADESH, the four northern Indian states in India. In 1980's Mr. Ashish Bose was the person to use these terms to draw attention to the less advancing states that were turning into "Bimar" from developed states.
The term bear a resemblance to a Hindi word that mean "sick". And it was used to affirm the bad conditions of the economy in the listed states. Few studies have shown that country's GDP was affected due to the static performance of BIMARU states.
Some of the listed states have been part of Red Corridor too which states the worrisome regarding the issues that, states being in lower base gives the highest growth rate in comparison with all other states. The macro-economic data of the major Indian states showcases the degree of interstate disparity in the pace of economic growth.
HUMAN DEVELOPMENT INDEX (HDI)
At the micro-economic level the Human Development Process begins with the loops, which signifies the paths and points to improve. The HDI is an amalgamation of statistic of Life Expectancy, Education and Income to grade countries as per the human development.
And UNDP states that HDI is about developing potential and lead productive and creative lives to improve on the part of knowledge, Health Status, Healthy living conditions and Nutritional status of people.
The following table illustrates the detailed reports of BIMARU states, which shows an improved figure in all aspects as when compared with years back during 2000.
SR.NO
STATES
GSDP(IN CRORES)
HDI
LITERACY RATE
PER CAPITA (IN INR)
1
Bihar
262230
0.487
63.82
20,069
2
Madhya Pradesh
259903
0.505
70.6
27,250
3
Rajasthan
323682
0.564
67.1
39,967
4
Uttar Pradesh
676083
0.52
71.7
26,051
SOURCE: Census 2011
During 2007-08 the Bihar was state with HDI as 0.367 and which now has increased to 0.487 as per 2011 census reports, certainly the reason for the same area change is the improvements in the constraint of the states in Life expectancy, Per capita and Educational fields.
The BIMARU states were observed with highest Fertility and Literacy rates in India during 2011. As per the reports Bihar was accounted with 63.8% of literacy rate followed with Madhya Pradesh 70.6%, Rajasthan 67.1% and Uttar Pradesh 71.7% next to national average literacy rate of 74.04%.
In the listed states Bihar showcases of around 26.2% rise in per-capita income while Madhya Pradesh, Rajasthan and Uttar Pradesh backed with 13.4%, 13.8% and 14.3 respectively. The growth in per-capita income at national level was 13.1%.
On the whole the BIMARU states were almost above the national growth in the per-capita income. And these growth rates against the national average are listing very healthy growth in literacy rates, employment rate and health basis.
Eventually the people of these states are getting educated, leading to better employment and an improved standard of living. This has also lead to higher life expectancy. This steady growth and improvement is outpacing other states of the country, and bringing change in living conditions and human development.
These elements contribute to increase in Average Human Development Index (HDI), to 0.601. And this leads to shift in HDI and change in economic factors of the country and states.
STATES DOMESTIC PRODUCTs (sdp)
Gross State Domestic Product (GSDP) is said to be the total monetary value generated from the final goods and services produced by an economy within the given time span i.e. a year. The major components of the GSDP are broad sectors of the economy, following are the sectors;
All sates vary from regions and the various regional investments and production carried out. Like the Bihar the major producer of Coal and Sugar, Madhya Pradesh in Clay deposits and Diamonds, Rajasthan leading in manufacturing of Cements and Ceramics and Uttar Pradesh in Coal deposits and Granites.
And also these states are known for their best contribution in services sectors like Rajasthan in Educational Institutions and Madhya Pradesh in Banking Sector.
BIMARU States have lacked behind and listed in the list of Bimar misallocation of resources and mismanagement of capital and corruption in state. These factors constrained the improvement in GSDP and development of state and economy in past years.
There has been a steady change in the all states GSDP. Bihar had shown 7.64% rise in growth rate in 2007-08 from 17.75 in the previous.
And have increased in further till 14.77% in 2010-11 from 10.50% in the previous year i.e. 2009-10. And the state has shown a 2.92% GDP in the year 2011.
In Madhya Pradesh the growth rate has grown from 5.31 in 2007-08 to 8.17% in 2010-11. And the % of total GDP for the year 2011 is 4.15%. This rise in growth rate indicates the measure taken by the states for working hard and progressing year by year. Madhya Pradesh has worked on heavy engineering and machinery departments to increase opportunities for Big Scale Industries.
The state Rajasthan and Uttar Pradesh too had shown good signs of rise in growth over the previous years. Rajasthan has moved to 10.97% in 2010-11 from 5.14% in 2007-08, whereas during the same years Uttar Pradesh had showed a small change from 7.32% to 7.86% in 2010-11.
Under the governance of good leaders Uttar Pradesh has developed at a high growth rate. By increasing the IT and other service sectors in state, government raised tremendous job opportunities, improved life expectancy and nation productivity.
On the other hand Rajasthan improved its Literacy rate and improved major facilities like Electricity and Water Supply. The state has become the most desired investment destinations in the country, due to availability of low cost labor, rich natural resources i.e. raw material. And the few steps have been taken to encourage state tourism industry to improve GSDP in past years.
Uttar Pradesh have been listed in top, with 8.05% as the percentage of total GDP and Rajasthan has backed 4.15% in 2011. This show the states effectiveness and efficiency in using of resource and capital in past few years. And also strengthening its positive attributes and contributing best of it to the country's economy every year.
TAXATION POLICY OF BIMARU STATES
The tax authorities persistently evaluate the taxation system in relation to maintain relevance in common. In India federal system of Government is followed, both central and state government is allocated with well differentiated powers.
Bihar started with 100% exemption from all kind of Registration Fees / Stamp Duty in relation with Industrial Land for IADA for MSME and Large Industries. The Bihar government to exempt about 50% commissions, for the current manufacturers in case of extension or expansion in business. Capital Subsidy, 20% subsidy on all new small scale and large scale industry as per the spending on plant and machineries i.e. around INR 70 lacs for MSME units and about INR 500 lacs for large Industrial unit.
Madhya Pradesh government is permitting 10 lacs tax concession limitation to increase 90% of the fixed capital an raised till 100% for new scheme and projects and for postponement facilities upto 150%.
Rajasthan granted special packages related with land for IT companies. The stamp duty for the new set-ups has been reduced to INR 1000 from INR 25000 previously. The government provided with SEZ located in states backward areas and the time span has been raised to 10years from 7years previously.
On the other hand Uttar Pradesh has provided 24 districts of Poorvanchal and 7 of Bundelkand, 10 % capital subsidy subjected to INR 5 lacs. Encouraged involvements of Women and ST/SC as entrepreneurs and provided them with 15% capital subsidy up to INR7.5 lacs. New Industries setups were exempted from payments of Electricity Bills for 10 years and large investor's up to 15 years.
There was rationalization of stamp duties in the state up to Rs.2 per thousands. And reductions in declared trade tax from 14% to 12% were carried out.
SEZ POLICIES FOR ALL STATES
RAJASTHAN
All industries small and large would be exempted from payment of registration fees and stamp duty.
Central Government to provide with funds to SEZ project under ASIDE project scheme.
Exemption from payment of electricity duty till 10 years for all SEZ developers.
Single window clearance will be provided for approvals of all units and services under SEZ.
MADHYA PRADESH
All units under SEZ and there developers are exempted from paying commercial tax, VAT, Mandi tax, Electricity Payments and all other levy of the State Government.
Appropriate powers would be facilitated under single window to ensure single agency clearance for all SEZ units.
Madhya Pradesh state government will ease in creation of linkages and infrastructure and other socio-economic facilities.
The government would notify industries under non-polluting industries and NOC would be exempted ignoring the fact about size of industry.
Simplifications to be bought in filling procedures in concern with annual reports, wages etc as per SEZ polices.
State Government would fund new units at SEZ's land as funding.
In Bihar the SEZ is yet not favor of accepting, but the development process, has been carried out by making using all available resources within the state and correct measures are taken to make use of fertile lands for the purpose of irrigations and not industrialization.
Above all mentioned same are followed and accepted by Uttar Pradesh state government.
POLITICAL GOVERNANCE
Governance can be related as the decision taken in concern of yielding power, expectations and processing performance by a governing factor.
Some of the schemes accepted and followed by Bihar Government are;
Drought Prone Area Programme (DPAP)
Indira Aawas Yojana (IAY)
Swarnajayanti Gram Swarojgar Yojana (SGSY)
SGSY has been involved in relation with the aspects of self employment, credit, infrastructure helps and emphasis on women involvements.
IAY has been a beneficiary programme for offering helping hands to SC/ST households and people below poverty line. They usually work along with village panchayat and Block development officers.
Madhya Pradesh had worked hard on these aspects and has organized various governance facilities to peoples of state. Few of them are;
Janani Express Yojana (JEY)
Micro Management of Agriculture (MMA)
Laghu Sinchai Yojnantargat Nalkoop Khanan Yojna
Diary Venture Capital (DVC)
MMA was carried out for promotion of agriculture equipments and proper use of same. The farmers in state were catered with subsidies up to 25% or INR 3, 00,000 for purchase of equipment for irrigation in Madhya Pradesh.
JEY was started with a aim for MP government to assist benefits of transportation to hospitals, provide emergency helps during pre and post deliveries, beneficiaries of DAUY-Deendayal Antyodaya Upchar Yojna.
Rajasthan started with certain schemes contributed by Central and state government of state, they are;
Jan Shree Bima Yojna
Revised Ingegrated Housing Scheme
Akshat Yojna for Unemployed Graduate
Jan Shree Bima Yojna was started with prospective of provinding life insurance schemes to Rural and Urban people in general and to below poverty line.
Akshat Yojna was held to help and allowance unemployed graduate students in Rajasthan, and this sponsored by State Government.
CONCULSION
BIMARU states are no more under same condition as in past, now they the one to Boom. The state like Bihar is hungry for growth and other in the list have shown the changes more than expected.
Rajasthan- desert blooms!!
As per me Rajasthan is the best state to invest in, this deserted state has grown to a level of best investing destination in the past few years. State has worked for the betterment of itself and to shed its name from the list of BIMARU. It has destined to INR 50,000 crore to INR 1 lakh crore in the field of investment, where there were days when state was known for its unfavorable climate and working conditions.
