Planning and development department principal secretary Vijoy Prakash (right) and other officials at the news meet on Monday. Picture by Nagendra Kumar Singh

Bihar has reflected encouraging growth statistics amid the economic slowdown in the country.

The state clocked 14.48 per cent growth in 2012-13, as against the national gross domestic product (GDP) growth rate of around 5 per cent. It is almost three times more than what the country has recorded. According to quick estimates for the gross state domestic product (GSDP) for 2012-13, the figures of which the planning and development department released on Monday, the state’s economy is worth Rs 1,65,018 crore, which is 14.48 per cent more than the state’s GSDP size of Rs 1,44,149 crore in 2011-12.

The construction sector has once again turned out to be one of the most vibrant sectors with a growth rate of 21.05 per cent as against the manufacturing sector, the growth of which is a must for sustaining the growth story, clocking just 9.64 per cent.

Admitting the fact that the growth story of Bihar was a bit lopsided, as the figures indicated at construction-driven growth, Bihar Industries Association (BIA) president KPS Keshari said: “Given the fact that Bihar had been left behind in development, construction activities are bound to take place at a faster pace to provide the infrastructure which would work as the launching pad for development for other sectors.”

He added that the environment for growth of manufacturing sector has improved a lot compared to the past but more impetus was required in the sector. “There is no way out as without growth in the manufacturing sector. Neither would the government get adequate revenue nor would long-lasting employment opportunities be created,” added Keshari.

The agriculture and allied sector, which contribute to about one-fifth of the GSDP (18.91 per cent), has registered growth less than that last year. In 2011-12, it registered a growth rate over 16 per cent, whereas in 2012-13, it plummeted to 6.44 per cent.

Explaining the point, planning and development principal secretary Vijoy Prakash said: “Fluctuation in growth rate in the agriculture sector occurs owing to variation in rainfall in different years. The growth in 2011-12 was higher than that of 2010-11, which had a bad monsoon.” He said the growth rate of 6.44 per cent in 2012-13 was healthy in the sense that it could be achieved even though the rainfall was not on the expected line. “Moreover, according to our agriculture roadmap, we intend to achieve annual a growth of 7 per cent in the agriculture sector and data of quick estimates suggest that we are nearing the target,” added Prakash.

Economist N.K. Choudhary, however, didn’t appear impressed with the logic.

“More than two-thirds of the state’s population still depends on agriculture. How can the government justify things if the growth rate in agriculture has declined in comparison to the previous year?” he said.

Choudhary also demanded a detailed report from the government explaining who were being benefited by the high growth rate of GSDP. “The government talks of inclusive growth and hence it becomes its duty to make people aware of the fact that how the high growth rate is benefiting the state’s people.”

Though Choudhary appreciated the state’s achievement for clocking double-digit growth rate amid economic slowdown in the country, he said there was scope for complacency as the low base of the state’s economy was one of the factors leading to such growth rates.