Chhattisgarh - Economy
While other states in the country are facing severe power crisis and power cuts of hours, Chhattisgarh is the only state in the country that has officially declared a zero-power cut state. Its large power surplus is attracting power-intensive industries, and the state is poised to become the power-hub of the nation. Its central location The state is supplying power to Delhi, Gujarat and Karnataka, among others. Chhattisgarh ranks high in terms of good relations and labor productivity. There is no labor unrest in either Bhilai or Korba, the Power capital, for several decades.
Chhattisgarh is among the richest Indian states in terms of mineral wealth, with 28 varieties of major minerals, including diamonds and ranks second in the country in mineral production. The state holds a major share of coal deposits in India, which has led to the State also being a major power producer and being power surplus.
It is the only state in India to have tin ore reserves. Chhattisgarh has 38.11 percent of the country's tin ore, 28.38 percent diamond, 18.55 percent iron ore and 16.13 percent coal, 12.42 percent dolomite and 4.62 percent bauxite is available. About one-fifth of the iron-ore in the country is mined in the state and one of the best-quality, iron-ore deposits in the world is found at the Bailadila mines in the South of Chhattisgarh from where it is exported to Japan and other countries. Rich deposits of bauxite, limestone, dolomite, and corundum are also found in the state, making it the ideal location for low-cost of production of end products such as cement and aluminium. During 2009-10, the state had contributed 14.09 per cent in the national revenue from minerals.
In Chhattisgarh, 38 percent of the country's steel production is going on. By 2020, it will start producing 50 percent of the country's steel. In Chhattisgarh, the country is producing 11 percent cement, which will increase to 30 percent in the coming years. Almost 20 percent of the country's aluminum production is in the state, it will increase to 30 percent in the near future.
Among the three new States that were carved on the map of India in November 2000, Chhattisgarh raced ahead and made good all-round progress in the first decade. The trends and progress of the last two plan periods indicate that by the end of the 12th Five Year Plan (FYP) Chhattisgarh had performance indicators comparable with the better performing states of the country, and the State put in significant efforts to reduce disparities through greater people’s participation and bring about development using low carbon strategies that marry ecological conservation with economic growth. This hard work has borne fruit- the 11th Plan period (2007-12) was marked by an impressive compounded annual growth rate (CAGR) of 8.4 percent against a target of 8.6 percent for the plan period, fiscal deficit of under 2.8 percent, doubling of the plan size, sharp increase in per capita income and reduction in debt from 19.11 to 16 percent of Gross State Domestic Product (GSDP) between 2007 to 2011.
The eleven National Highways of Chhattisgarh together constitute 2,225 km of roads in the state. The State Highways and major district roads account for another 8,031 km. While all district headquarters, tehsils, and development blocks are connected with good all weather roads, the network in Chhattisgarh is relatively one of the poorest in the country. Chhattisgarh’s railways sector falls under the jurisdiction of the South East Central Railways. The state is well connected to the rest of the country via the railways. Raipur and Bilaspur are the two major railway stations.The significant mining and industrial activity in the state was a major reason behind the setting up of the South East Central Railways in 1998, headquartered in Bilaspur. The state has the highest freight loading capacity in the country and one-sixth of Indian Railway's revenue comes from Chhattisgarh. The length of rail network in the state is 1,108 Kms.Direct trains to many cities like Ahmedabad, Allahabad, Varanasi, Bengaluru, Cochin, Pune, and Hyderabad are also available.
Every educated person wants a Government job. In Chhattisgarh, no person, rich or poor, farmer or manufacturer can survive without working. All the people work, either on something that brings in benefits for the family to consume (tilling their own land, collecting forest produce, moulding clay, weaving cloth, repairing a roof, making tiles, painting a wall, etc) or they work on something that is of immediate and direct use to them. Thus a person may be engaged in a productive activity, which does not directly bring in something from outside, in cash or even in kind. Many such activities are non-waged and while people are engaged in work, they are not adequately employed.
Unemployment is a major problem. The laborer wants full work through the year, the farmers want to grow more crops and get more returns per acre, and want work in the agricultural off-season. The educated want remunerative and acceptable jobs while the manufacturers want increased demand for their goods or services.
Village resources, mainly the common resources such as fruit trees, jackfruit and bamboo clumps, are used by villagers within pre-defined usage rules and customary practices. Poor households, when confronted with a crisis, tend to take recourse to contract labour (sometimes these arrangements border on a semi-bonded status) to tide over tough times. The prospect of putting the future at stake is deemed a small sacrifice. Many households resort to inducting their children into home-based tasks or even into wage labor.
With most of the State’s agriculture under single crop system, the agricultural season lasts only for four or five months. People near forested areas are able to take up collection of forest produce and find employment for a longer period. People with adequate agricultural land or irrigation facilities or those with employment options through the year are able to sustain themselves well. Others take recourse to casual labour, migration and daily work. People with non-agriculture related professions tend to have a more stable livelihood.
The primary sector, more specifically agriculture and allied activities, forms the base of the State’s economy and provides livelihood to 80 percent of the rural population. The rural economy has a diversified base with agriculture and allied activities as the mainstay, accompanied by a thriving rural non-farm economy. The analysis of primary data collected from the villages shows that 78 percent of the total rural households are farmers. Only 1.5 percent of all farmers are familiar with modern agricultural practices like the use of modern equipment, chemical fertilisers and HYV seeds; and most of these farmers belong to the central plains region.
According to the available secondary data on income and livelihoods, the per capita Net State Domestic Product (NSDP) in the State was Rs 12,476 in 2001-2002. The per capita NSDP has increased at an average rate of about two percent per annum, (at constant 1993-94 prices) since 1993-94. Although there has been a gradual decline in the share of the primary sector in the NSDP, it still continues to be very significant. The primary sector accounted for about 38 percent of the NSDP in 2001-02, which was roughly the same share as the secondary sector. The secondary sector expanded rapidly from 27.3 percent to 38.5 percent of NSDP, in the 1993- 94 to 2001-2002 period. The share of the tertiary or services sector in the State income has seen a decline, in 2001-2002, after a rapid increase in the late 1990s.
According to the 2001 Census, the Work Force Participation Rate (WFPR) for the State is 46.5 percent. The rural WFPR is higher, at 50 percent, compared to the urban WFPR of 31 percent. Marginal workers constitute about 27.2 percent of the total work force in the State of which 70 percent are women.
Land ownership and distribution are important issues. The land distribution pattern is skewed, by the presence of a number of large farmers, due to benami land records [the practice where the land records are maintained in fictitious or incorrect names] and old malgujars (landlords who were earlier responsible for collecting rent on behalf of the State), who continue to operate in the central belt of the State. Increasing population and subdivision of holdings has led to tiny and unviable plots of land for small and marginal farmers.
Land – an eroding resource Soil degradation and soil erosion are increasing problems, leading to a decline in agricultural productivity. Cropping intensities in the State are low, since agriculture continues to be largely dependent on the monsoon, and most cultivators still practise single-crop agriculture. In 1999-2000, 22 percent of the net sown area was irrigated, and the net irrigated area was 10.8 lakh hectares. The overall irrigation intensity in the State was 117, with the highest intensity recorded in Janjgir-Champa, Dhamtari, Durg and Korea districts. Canals accounted for three-fourths (76 percent) of all irrigation. Tube wells provided 13.4 percent of irrigation, while tanks and ponds accounted for only 5.6 percent of the irrigated area. There are regional variations in irrigation coverage. The plains are better provided for (30 percent coverage), while the coverage in the hill areas is much lower (5 percent). In the Bastar plateau, irrigation coverage is only 1.2 percent.
In rural areas non-commercial fuel wood and animal waste continue to be the main source of energy. Women are the main collectors of this resource, which is used for cooking and household activities. Women often have to traverse a large area in search of fuel wood. In the plains, where the forests may be far away, women depend on energy from animal waste. Nistaar depots refer to depots where stocks of forest produce are kept for distribution to the people. Nistaari is the system by which communities dependent on forests and other resources are granted user rights. Like cow dung, fuel wood has to be bought from the nistaar depots and this means an additional financial burden on poor households. The ownership of forests lies with the State. The Forest Department extends the privilege of extraction of forest products to the people within the stipulations of forest policies. These include the provision of nistaari rights to forest dependent communities.
Most households in the State own livestock. Animals are used to till the land and they also provide energy. They are an investment and a valuable asset, especially in times of adversity like drought, or in an emergency. Most villages have common grazing and pasture lands for animals. In the plains, paddy straw is used as fodder for cattle. In the forested belts, animals too depend on the forest for fodder.
The artisans of Chhattisgarh are famous for their craftsmanship. Primary data, collected from the villages, gives a profile of the artisan families in rural Chhattisgarh. Rural artisans range from weavers, potters and blacksmiths to carpenters, tailors and metal workers. There are around 1,84,000 families in rural Chhattisgarh. The data from 19,128 villages shows that around 1.8 percent of the total rural workforce (population aged 15 and above) earn their livelihood from artisanship. About 17 percent of the artisans in the State are women. Among rural artisans, 30.62 percent are involved in stitching and embroidery related activities. Art and painting engage 5.65 percent of the artisans, while 5.47 percent work as weavers. The koshthas or devangans are traditional weavers of Chhattisgarh.
Rural craftsmanship is perhaps the most important non-farm activity. However, the production is largely for rural consumption and very little finds a market outside the rural economy. The terracotta from Bastar and kosa silk are two products that have reached urban markets. Non-farm manufacturing and services do well when there is agricultural prosperity and a greater demand for goods and services. In Chhattisgarh, agriculture provides an insufficient surplus, and this is a constraining factor.
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