Patna, March 12: The people of the state have a reason to rejoice amid fear of an economic downturn in India. Bihar has emerged as the best performing state in the country in terms of compound annual growth rate (CAGR) of gross state domestic product (GSDP) during the 11th Plan period (2007-08 to 2011-12).

“According to figures released by the Central Statistical Organisation, Bihar’s GSDP has recorded an average annual growth rate of 12.07 per cent. This is highest among all Indian states,” planning and development department principal secretary Vijoy Prakash told The Telegraph.

The growth rate has taken into consideration the actual figures of the first four years and the advance estimates for the final fiscal (2011-12) of the 11th Plan period.

The growth story of Bihar appears more impressive when one compares it with the national average of GDP growth rate in the corresponding period. The national CAGR-GDP growth rate is 7.94 per cent. Other states that have performed better than the national average during the period are Uttarakhand (11.51 per cent), Delhi (11.46 per cent), Gujarat (9.57 per cent), Maharashtra (9.41 per cent) and Haryana (9.07 per cent).

Economist and member secretary of Asian Development Research Institute Shaibal Gupta described Bihar’s ability to maintain a double-digit average growth rate as “a commendable achievement”. He added: “Though our economic base is low and institutional memory of governance was missing till recent past, the sagacity and dexterity in economic management of the state is responsible for creating a new script. This is like a silver lining in the dark cloud of economic despondency in the country.”

Gupta maintained that much more was to be done if the state had to maintain the momentum of development.

“While the construction sector has stolen the march over other sectors in the growth story, the authenticity of development will be founded when the same success would be replicated in fields such as agriculture and manufacturing,” he said.

“Maintaining a healthy growth rate during the 11th Plan period is a laudable achievement. But before jumping to any conclusion, one should keep in mind that the economy of the state has a very low base,” economist N.K. Choudhary said.

Industrialist and Confederation of Indian Industry vice-chairman (eastern region) Satyajit Kumar said: “A balanced growth of all sectors is a must. Growth driven by the construction sector has its limitations.”