Eastern India: A Catalyst for India’s Holistic Development

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PM Narendra Modi recently stated that Eastern India, once considered backward, is now seen as the country’s growth engine. He reaffirmed the government’s strong commitment to the region’s development, emphasising the strategic focus on unlocking its economic potential.
Eastern India, encompassing states like West Bengal, Odisha, Bihar, and Jharkhand, serves as a key driver of national growth through its rich mineral wealth, agricultural productivity, industrial hubs, and cultural heritage.

Eastern India: A Key Driver of National Growth

The eastern states of India—Andhra Pradesh, West Bengal, Odisha, Bihar, and Jharkhand—are rich in natural resources and agricultural potential, playing a crucial role in the country’s development by 2047.
Despite their resource wealth, these states have faced slow economic growth, challenging the theory that poorer regions should experience faster growth to catch up.
Addressing unemployment, low literacy, and infrastructure through targeted policies is essential for ensuring balanced growth and helping India become a global economic powerhouse.

Significance of Eastern India

Mineral Wealth: Eastern India holds 80% of India’s iron ore, all coking coal, and large reserves of chromite, bauxite, and dolomite, making it the backbone of India’s mining and industrial sectors.
Port Infrastructure: Major ports like Paradip, Haldia, Vizag, and Kolkata handle over 30% of India’s major port capacity, enhancing the region’s role in international trade and maritime connectivity.
Connectivity: The region benefits from the major national waterways and a strong road and rail network, facilitating efficient movement of goods and boosting trade and commerce across the country.
Agricultural Potential: Eastern India, with its fertile soil and water resources, plays a crucial role in food production, particularly in states like Bihar, West Bengal, and Odisha, contributing significantly to India’s food security.
Strategic Location: Located near the Bay of Bengal, Eastern India serves as a gateway for international trade with Southeast Asia, offering significant geostrategic advantages for trade, security, and diplomacy.
Industrial Growth: The region has emerging industrial hubs in Odisha, Jharkhand, and West Bengal, focusing on steel production, mining, and manufacturing, contributing to India’s economic diversification.
Hydroelectric Power Potential: The Himalayan foothills and Chotanagpur Plateau provide vast opportunities for hydroelectric power generation, making the region key for meeting India’s growing energy demands.
Cultural and Intellectual Heritage: Eastern India is home to historic educational institutions like Nalanda University in Bihar and is a center for culture, art, and intellectual development, enriching the nation’s historical legacy.
Natural Resources for Green Energy: The region is rich in biomass and solar energy potential, supporting India’s renewable energy goals and contributing to the country’s transition to sustainable energy sources.

Challenges Hindering Development in the Eastern States of India

Economic Stagnation

Underdeveloped Industries: Bihar (~15% industrial GDP) lags behind the national average (25%), with weak infrastructure and limited investments.
Freight Equalisation Policy (1952): Discouraged industrial hubs near resource centers, undermining Odisha and Jharkhand’s mineral wealth.
Agricultural Dependency: >70% workforce relies on low-productivity agriculture, contributing to low per capita income.
Social Progress Deficit: Poor rankings in SDG India Index 2023 highlight gaps in education, healthcare, and infrastructure.

Low Literacy Rates: States like Bihar (61.80%) and Jharkhand (66.41%) have some of the lowest literacy rates in India (National average: 74.04%%), directly affecting workforce skills and employability.
High Poverty Levels: Bihar (33.7%) and Jharkhand (29.1%) have some of the highest poverty rates in India, as per the NITI Aayog Multidimensional Poverty Index 2022, limiting economic and social mobility.
Healthcare Deficit: These states rank poorly in healthcare indicators like infant mortality rates (Bihar: 29/1000 live births) and maternal mortality ratios (Odisha: 119 per 100,000 live births), impeding overall human capital development.

Legacy and Geographic Constraints

Colonial Resource Exploitation: Economic benefits during British rule bypassed local development, fostering disparities.
Geographic Isolation: Dense forests, rivers, and hilly terrains impede market access and infrastructure in regions like the Kaimur Plateau and tribal Odisha.
Natural Disasters: Frequent cyclones (E.g. Cyclone Dana, 2024) in Odisha and recurrent floods (E.g. Kosi floods) in Bihar disrupt economic and social systems.

Governance Gaps

Political Instability: Frequent government changes (Jharkhand: 10 CMs in 22 years) hinder consistent policy-making.
Corruption: High levels of corruption deter investments and misuse of resources.
Internal Security: disrupt development in several districts in Jharkhand and Odisha.

Way Forward for the Development of Eastern India

To address the disparities and unlock the full potential of this region, a multi-pronged approach is being adopted:

Logistics and Infrastructure Development

Bharatmala Pariyojana: Aimed at developing 2,500 km of greenfield, access-controlled expressways in the next 3-4 years, ensuring seamless road connectivity.
Maritime India Vision (MIV) 2030: An investment of ₹ 3-3.5 lakh crore will enhance ports, shipping, and inland waterways, facilitating economic growth and improving trade opportunities for states like West Bengal, Bihar, and Jharkhand.
Infrastructure Investment: The ₹ 100 lakh crore national infrastructure investment plan will further boost development through initiatives like the Pradhan Mantri Awas Yojana and Jal Jeevan Mission, ensuring enhanced housing and piped drinking water facilities.

Digital Connectivity and Technological Advancements

Bharat Net and Telecom Expansion: Enhancing digital infrastructure to provide full telecom service saturation in the region, especially in remote areas, is a key focus to support inclusive growth.
Revised Bharat Net Strategy: This will ensure better internet connectivity, particularly in the Northeastern states and rural areas, improving access to education, healthcare, and e-governance services.

Mission Purvodaya – Accelerated Development

Initiated in 2020, Mission Purvodaya focuses on transforming Eastern India into an industrial hub, particularly through the establishment of an integrated steel center in Kolkata and improved connectivity through the freight corridor, Bharatmala (roads), and Sagarmala (waterways).
Focused on enhancing logistics, infrastructure, and multi-modal connectivity, this mission aims to revitalize key industries and create significant employment opportunities.

Purvodaya Scheme in Budget 2024

Bihar has been allocated ₹ 26,000 crore for four major road projects, while Andhra Pradesh received ₹ 15,000 crore for the development of Amaravati, highlighting significant investments for infrastructure development in these states.
Over 4,700 km of railway track and 7,277 km of electrified rail lines have been commissioned in the last eight years, alongside the development of world-class railway stations, transforming the transport infrastructure.

Increased Focus on Employment and Economic Growth

Investments in key sectors such as steel, agriculture, and digital services will create sustainable employment opportunities and stimulate local economies, improving the Human Development Index (HDI) and per capita income in the region.

From being part of the “Fragile Five” to aiming for the “Top Five” economies of the world, Eastern India is set to play a pivotal role in India’s economic transformation. With focused investments and strategic reforms, the region can become a major driver of national growth by 2047.

Reference: Business Standard | Indian Express

PMF IAS Pathfinder for Mains – Question 12

Q. Discuss the major challenges hindering the economic growth of Eastern India despite its abundant natural resources, and examine the key infrastructural initiatives being undertaken to address these challenges. (15 Marks) (250 Words)

Approach

Introduction: Write a short introduction mentioning the PM Speech.
Body: Discuss the key challenges and Infrastructural Initiatives.
Conclusion: Conclude by emphasising the development of eastern India for India’s growth by 2047.