Views shared by Dr Amit Kapoor at the Real India Conclave, organized by Dainik Jagran and exchange4media at Taj Mansingh, Delhi on June 29, 2012

1. Bihar the Face of Emerging Markets in India
Dr. Amit Kapoor

2. What is Competitiveness
What is Competitiveness?
• Competitiveness is the productivity with which a state utilizes its human,
capital, and natural resources
• Productivity determines wages and the standard of living – Productivity
growth determines sustainable economic growth
• Productivity depends on how a state competes, not what industries it
competes in
• Innovation in products and processes is necessary to drive productivity
growth
• Only productive businesses can create wealth and jobs States compete to
offer the most productive environment for business
• The public and private sectors play different but interrelated roles in creating
a productive economy

3. Geographic Influences on Competitiveness
• Influence and access federal
Nation policies and programs
• Integrate policies and
Neighboring states infrastructure with
neighbors
States
• Assist each metro area in
Metropolitan Areas developing its own strategy
• Connect rural regions with
Rural Regions urban areas

4. Country Equivalents
BAHA CUBA
MAS
Source: EIU 2011, Institute for Competitiveness Analysis

5. Stages of the Economy
Factor-driven economies: Factor-driven economies focus on low-cost
basic factor conditions, such as low-skilled labour, natural resources
Stage 1 and geographic location. Factor-driven economies need to focus on
input costs, macro, political and legal stability, efficient basic
infrastructure and lowering the regulatory cost of doing business.
Investment-driven economies: Investment-driven economies would
have the ability to produce standard products and services of high
quality using efficient methods but at lower wages than advanced
Stage 2 economies. Investment-driven economies need to focus on building
efficiencies, enhancing local competition, market openness,
incentives and rules for encouraging productivity.
Innovation-driven economies: Innovation driven economies would
focus on innovative products and services at the global technology
Stage 3 frontier. Innovation driven economies would need to focus on
advanced skills, advanced infrastructure, incentives and rules
encouraging innovation.

6. Quality of the Business Environment
Context for Firm
Strategy and
Rivalry
• Local rules and incentives that encourage
investment and productivity e.g.
- salaries,
Factor - incentives for capital investments, Demand
Conditions - intellectual property protection Conditions
• Vigorous local competition i.e.,
- Openness to foreign and local
Access to high quality business competition; Sophisticated and demanding
- Sophistication of company operations
inputs i.e., - Natural endowments, local customers and needs e.g.,
- Human resources, - Strict quality, safety, and
- Capital availability, environmental standards
- Physical infrastructure, Related and – Consumer protection laws
- Administrative infrastructure, Supporting – Government procurement of
- Information infrastructure, Industries advanced technology
- Scientific and technological – Early demand for products and
Local availability of suppliers and supporting
infrastructure Services.
industries
Presence of clusters instead of isolated firms
• Many things matter for competitiveness
• Successful economic development is a process of improving the business
environment to enable increasingly sophisticated ways of competing

7. Hierarchy of Measurement of State Competitiveness Index 2012
4 Major
Pillars
12 Sub Indices
350* Indicators

8. Categorization of States
Innovation Driven Economies (Per capita GDP 900 to
City States (Per capita GDP>1300 USD) 1300 USD)
Transition Economies (Per capita GDP 800 to 900 USD)
Investment Driven Economies (Per capita GDP 500 to
800 USD)
Evolving / Changeover Economies (Per capita GDP 400
to 500 USD)
Factor Driven Economies(Per capita GDP < 400 USD)

9. States in various Categories
Microeconomic Competitiveness
Categorization
Ranks
City States (Per capita Incomes >1300 USD)
Delhi 1
Goa 2
Innovation Driven Economies (Per capita Incomes 900 to1300 USD)
Haryana 1
Maharashtra 2
Gujarat 3
Kerala 4
Transition Economies (Per capita Incomes 800 to 900 USD)
Punjab 1
Tamil Nadu 2
Himachal Pradesh 3
Investment Driven Economies (Per capita Incomes 500 to 800 USD)
Andhra Pradesh 1
Karnataka 2
Uttarakhand 3
West Bengal 4
Chhattisgarh 5
Sikkim 6
Mizoram 7
Meghalaya 8
Arunachal Pradesh 9
Tripura 10
Transition Economies (Per capita Incomes 400 to 500 USD)
Rajasthan 1
Jharkhand 2
Orissa 3
Jammu and Kashmir 4
Factor Driven Economies(Per capita Incomes < 500 USD)
Bihar 1
Madhya Pradesh 2
Assam 3
Uttar Pradesh 4
Manipur 5
Nagaland 6
Source: Institute for Competitiveness Analysis

13. Near Term State Prosperity Performance
160000
Goa
High but declining versus India Highly Productive and Prosperity
140000 Rising versus India
Points
Avera
57.28
All India GSDP /Capita
Index
India
120000 rate (CAGR) of 9.53 %
Gross Domestic Product per Capita, 2011
All
Delhi
ge
100000
Haryana
Maharashtra
80000
Gujarat Punjab
All India Average Kerala
Himachal Pradesh
of 52,852 Tamil Nadu
60000 Karnataka
Rupees/capita Sikkim
Andhra Pradesh
Uttarakhand Chhattisgarh
West Bengal
Meghalaya
Arunachal Pradesh
Mizoram Orissa
Tripura
Rajasthan
40000 Jammu & Kashmir
Assam
Jharkhand Madhya Pradesh
Nagaland Manipur Uttar Pradesh
Bihar
20000
Low and declining versus India Low but rising prosperity versus
India
0
2 4 6 8 10 12 14
Gross Domestic Product per Capita CAGR rate, 2009-2011

14. Prosperity and Competitiveness
90000 Goa
Delhi
80000
Per capita State Domestic product at constant price 2011
70000
60000
Haryana
50000 Kerala Maharashtra
Gujarat
Himachal Pradesh
Tamil Nadu Punjab
40000
Karnataka
Andhra Pradesh
Sikkim
Uttarakhand
West Bengal
Meghalaya
30000 Tripura Arunachal PradeshMizoram
Chattisgarh
Orissa Rajasthan
Jammu and Kashmir Jharkhand
Manipur Assam Madhya Pradesh
20000 Nagaland
Uttar Pradesh
Bihar
10000
0
45 50 55 60 65 70
Microeconomic Competitiveness Scores
Source: Institute for Competitiveness Analysis

15. Composition of Bihar’s Economy
Agriculture Forestry and
Fishing
16%
Industry
Services 24%
60%

16. Composition of Bihar’s Economy in Greater Depth
7.00
Trade, hotel and restaurant
Strong and Growing Position
Railways Fishing
6.00
Forestry and logging
Other services
Bihar /National GSDP share (Percent) ,2010
5.00 Agricuture
Average of (Bihar/ Public sdministration and defence
National sectoral )GSDP
share is 2.97%
4.00 Construction
3.00
Real states, ownership of dwellings
and business services
Banking and insurance
2.00 Transport by other means
Communication
Electricity,Storage water supply
gas and
Manufacturing
1.00 Average of Change in
contribution of
Mining and quarrying (Bihar/National
0.00 sectoral), CAGR is 9.92%
-5.00 0.00 5.00 10.00 15.00 20.00 25.00 30.00
-1.00

17. Manufacturing and Competitiveness
50000
Goa
45000
40000
Manufacturing GSDP per capita in Rupees /Annum
35000
30000
25000
Gujarat
20000
Maharashtra Haryana
15000
Tamil Nadu
Chattisgarh Karnataka Delhi
10000 Jharkhand Punjab
Himachal Pradesh Andhra Pradesh
Orissa Uttarakhand
Kerala
West Bengal Rajasthan
5000 Jammu and Kashmir Assam
Uttar Pradesh
Meghalaya
Manipur Madhya Pradesh
Nagaland Tripura Sikkim Bihar
Arunachal Pradesh Mizoram
0
45 50 55 60 65
Microeconomic Competitiveness Score
Source: Institute for Competitiveness Analysis

18. Services and Competitiveness
90000
Delhi
80000
Services GSDP per capita in Rupees /Annum
70000
60000 Goa
50000
Maharashtra
Haryana
40000 Kerala
Punjab
Tamil Nadu
30000 Karnataka
Mizoram Gujarat
Andhra Pradesh
Sikkim West Bengal Himachal Pradesh
Nagaland Uttarakhand
Tripura
20000 Arunachal Pradesh Meghalaya
Orissa
Assam
Jammu and Kashmir Chattisgarh Rajasthan
Manipur Uttar PradeshMadhya Pradesh
10000 Jharkhand
Bihar
0
45 50 55 60 65 70
Microeconomic Competitiveness Score
Source: Institute for Competitiveness Analysis

19. Healthcare
9
Percentage of Total government Expenditure on Medical, Health
8 Delhi
7
Mizoram
6
All India Average
Goa
3.95%
and Sanitation
5
Jammu & Kashmir
Meghalaya
Jharkhand Uttar Pradesh
Himachal Pradesh Kerala
Arunachal Pradesh Assam Tamil Nadu
4 Tripura Rajasthan
Chhattisgarh West Bengal
Uttarakhand
Orissa
Manipur Karnataka Andhra Pradesh
Punjab Bihar Maharashtra
3 Nagaland Haryana
Gujarat
Madhya Pradesh
Sikkim
India
All
All India Average
2
1407.59 Crores
1
0
0 1000 2000 3000 4000 5000 6000
Total Government Expenditure on Medical, Health and Sanitation in Crores

20. Government Hospitals versus Competitiveness
1800 Orissa
Bihar
1600
1400
Number of government Hoispitals
1200
1000 Uttar Pradesh Karnataka
Maharashtra
800
Uttarakhand
Tamil Nadu
600
Jharkhand
Rajasthan
Kerala
Madhya Pradesh Gujarat Andhra Pradesh
400
West Bengal
Punjab
Chattisgarh
Arunachal Pradesh Haryana
200 Assam Himachal Pradesh Delhi
Jammu and Kashmir
Nagaland Meghalaya
Manipur
Tripura Sikkim Goa
Mizoram
0
45 50 55 60 65
Microeconomic Competitiveness Score
Source: Institute for Competitiveness Analysis

21. 83.78 %
All India
Percentage of Villages electrified
Average of
10
20
30
40
50
60
70
80
90
100
0
Jammu & Kashmir
Himachal Pradesh
98.24 98.14
Punjab
Haryana
100 100
Uttar Pradesh
85.31
Rajasthan
67.1
Delhi
100
Uttarakhand
95.52
Bihar
52.85
Orissa
55.83
West Bengal
91.07
Assam
78.57
Meghalaya
59.29
Tripura
57.23
Percentage of Villages Electrified
Mizoram
80.62
Manipur
83.89
Nagaland
64.4
Arunachal Pradesh
56.82
Sikkim
94.44
Jharkhand
31.07
Gujarat
99.56
Maharashtra
87.69
Goa
100
Madhya Pradesh
96.35
Chhattisgarh
95.37
Andhra Pradesh
Karnataka
Kerala
Tamil Nadu
100 98.7 100 100

22. Teledensity
Teledensity vs GSDP per Capita
250
Delhi
Teledensity ( No of connections Per 100 People)
200
s
Point
Index
57.28
ge
Avera
India
All
All India Average of
52852 Rs/ Capita
150
Himachal Pradesh
Punjab
100 All India Average of
Gujarat Haryana 66.17 %
Andhra Pradesh
Rajasthan Maharashtra
Madhya Pradesh
Bihar Uttar Pradesh Goa
Mizoram
50 Nagaland Tripura Meghalaya
Manipur Arunachal Pradesh Kerala
Assam
Karnataka
Orissa West Bengal
Sikkim
Uttarakhand Tamil Nadu
Jharkhand& Kashmir Chhattisgarh
Jammu
0
0 20000 40000 60000 80000 100000 120000 140000 160000
Per Capita GDP at current prices 2011

23. Debt to GDP ratio
Debt to GDP Ratio of States
West Bengal 42.8
Uttaranchal 41.1
Uttar Pradesh 43.5
Tripura 42.2
Tamil Nadu 25.5 Prescribed limit according to the
Sikkim growth and stability Pact of EU
80.6
Rajasthan 41.1
Punjab 35.2
Orissa 30.6
Nagaland 59.4
Mizoram 109.1
Meghalya 37.3
Manipur 77.4
Maharashtra 25.1
Madhya Pradesh 34.4
Kerala 34.3
Karnataka 24.3
Jharkhand 33.6
Jammu & Kashmir 70.1
Himachal 55.7
Haryana 19
Gujarat 32.1
Goa 35.5
Delhi 13.8 Prescribed limit according
Chattisgarh 15.2 to WTO for developing
Bihar 39.7 economies
Assam 28
Arunachal 115.9
Andhra 30.1
0 20 40 60 80 100 120

24. Demographic Profile of Bihar
12
Millions
Population in Numbers as per Expert group on Population, 2011
10
8
6
4
2
0
0-4 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 80+
years years years years years years years years years years years year years years years years years

25. Demographics of India 2011
Age Pyramid for India in 2011
80+ 4469 5163
75-79 6075 7017
70-74 8910 10034
65-69 11991 12406
60-64 16693 15712
55-59 22391 20447
50-54 28157 26038
45-49 33218 31993
40-44 36773 36691
Males
35-39 40596 40164
Female
30-34 46050 42855
25-29 54078 47877
20-24 62281 55757
15-19 63479 58248
10-14 61318 57259
5-9 60092 53394
0-4 60746 54133
80000 60000 40000 20000 0 20000 40000 60000 80000
Population of males / females in Thousands in 2011
Source: Census of India, Institute for Competitiveness Analysis

26. Demographics of India 2026
Age Pyramid for India in 2026
80+ 8412 11465
75-79 9937 10644
70-74 15820 15819
65-69 22185 21982
60-64 28268 28651
55-59 32968 34124
50-54 37704 38267
45-49 43702 41361
40-44 51965 46466
Male
35-39 60313 54219
Female
30-34 61859 56739
25-29 60113 55998
20-24 59176 52410
15-19 59529 52739
10-14 59500 52734
5-9 58396 51790
0-4 55328 49256
80000 60000 40000 20000 0 20000 40000 60000 80000
Projected Population of males / females in Thousands
Source: Census of India, Institute for Competitiveness Analysis

27. Overall Dependence Ratio of States
Dependence Ratios 2011 Dependence ratio 2026
West Bengal 44.58 42.35
Uttarakhand 56.39 47.88
Uttar Pradesh 66.11 55.02
Tamil Nadu 43.07 43.78
Rajasthan 60.51 46.67
Punjab 46.62 41.77
Orissa 48.47 43.43
NE States Excluding Assam 44.57 42.23
Maharashtra 48.85 42.72
Madhya Pradesh 60.18 48.37
Kerala 45.23 45.96
Karnataka 45.97 43.46
Jharkhand 55.35 47.13
Jammu & Kashmir 50.27 43.11
Himachal Pradesh 46.91 42.87
Haryana 51.12 41.24
Gujarat 48.40 43.16
Delhi 39.96 34.81
Chattisgarh 57.45 48.40
Bihar 49.71 47.67
Assam 51.97 45.14
Andhra Pradesh 45.05 42.49
80.0 60.0 40.0 20.0 0.0 20.0 40.0 60.0 80.0
Dependence ratio 2011 Dependence ratio 2026
Source: Census of India, Institute for Competitiveness Analysis

28. Literacy Rates versus GDP
16
India
All
14 Bihar All India Average
77.12%
Chattisgarh
GDP growth rate (CAGR 2006-2010)
12
Orissa
Haryana
10 All India Average
7.14% Gujarat
Delhi
Andhra Pradesh Kerala
Uttarakhand
8 Jharkhand
Punjab
Rajasthan Karnataka
Arunachal Pradesh Sikkim
Maharashtra
Tamil Nadu
Meghalaya West Bengal
Goa
Assam
6 Nagaland Himachal Pradesh
Manipur
Uttar Pradesh Tripura Mizoram
Jammu & Kashmir Madhya Pradesh
4
2
0
0 10 20 30 40 50 60 70 80 90 100
Literacy rates in percentage terms

29. Literacy rates versus Competitiveness
100
95 Kerala
Mizoram
90
Tripura Goa
Delhi
85 Himachal Pradesh
Sikkim Maharashtra
Literacy Rates
Nagaland Manipur Tamil Nadu
Uttarakhand
80
West Bengal Punjab
Haryana
Meghalaya Karnataka
75 Orissa Gujarat
Assam
Chhattisgarh Madhya Pradesh
Uttar Pradesh
70 Jammu and Kashmir
Jharkhand Andhra Pradesh
Arunachal Pradesh Rajasthan
65 Bihar
60
45 50 55 60 65
Microeconomic Competitiveness Score
Source: Institute for Competitiveness Analysis

30. Percentage of factories in operation
versus total number of factories
16
Bihar
Nagaland
Tripura Jharkhand
14 Manipur
India
All
All India Average of
Percentage of factories not in operation
6198 Factories/state
12
10
Kerala
Andhra Pradesh
8 Orissa
Delhi All India Average of
Tamil Nadu
Assam
4.1% factories not in
Chhattisgarh
6
operation/state
Karnataka
average
Himachal Pradesh
Maharashtra
Uttarakhand Uttar Pradesh
4 Madhya Pradesh Rajasthan
Jammu & Kashmir West Bengal
Gujarat
Punjab
Haryana
2
Meghalaya
Goa
0
0 5000 10000 15000 20000 25000
Total number of factories

31. Industries in Bihar
Sugarcane
Textiles/ Sericulture
Agro based Industries
Manufacturing
Petrochemical
Tourist center

32. Major Cities in Bihar

33. State of Cluster Development :
Bihar by Total Number of Enterprises
Agricultural Glass and
Furniture related
services
industries
Wood and
Agricultural Domestic
Forest
Products and electric Television
Products
Industries and allied
electronic
Other industries Other
Processed Service Lighting transportat
food Industries Electric ion
Publishing equipment
and
Printing Medical Machinery
equipment and
Equipment
Automotiv
e
Pulp and
Apparels Textiles Paper
and related
industries Chemicals Production
Tobacco
Minerals
Footwear Rubber and
Leather Oil and Gas Plastic Metals
industries Industries Mining
Top 7 types of Industries in Bihar 15-21 types of Industries in Bihar
7-14 types of Industries in Bihar 21-28 types of Industries in Bihar

34. State of Cluster Development :
Bihar by Total Number of People Employed
Agricultural Glass and
Furniture related
services
industries
Wood and
Agricultural Domestic
Forest
Products and electric Television
Products
Industries and allied
electronic
Other industries Other
Processed Service Lighting transportat
food Industries Electric ion
Publishing equipment
and
Printing Medical Machinery
equipment and
Equipment
Automotiv
e
Pulp and
Apparels Textiles Paper
and related
industries
Chemicals Production
Tobacco
Minerals
Footwear Rubber and
Leather Oil and Gas Plastic Metals
industries Industries Mining
Top 7 ranked types of Industries in Bihar 15-21 ranked types of Industries in Bihar
7-14 ranked types of Industries in Bihar 21-28 ranked types of Industries in Bihar

35. Energy Usage Statistics
1800
Goa
1600
1400
Per Capita Energy Usage ( Units)
Punjab
1200 Gujarat
Delhi
1000
Tamil Nadu
Average Energy Average Per capita
Haryana
Himachal
Deficit is 9.8% energy usage is 564
800
Karnataka
Maharashtra units.
Andhra
Chattisgarh
600 Orissa
Uttaranchal
Jharkhand
Rajasthan Sikkim
Meghalya Madhya Pradesh
Kerala
400 West Bengal Jammu & Kashmir
Uttar Pradesh
Mizoram
200 Assam Tripura
Arunachal
Nagaland Manipur
Bihar
0
0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00%
Energy Deficit

36. Poverty and Rural Development
1400.00
Goa Mizoram
Per Capita Revenue Expenditute on Rural
Arunachal
1200.00 India’s poverty
Meghalya
Sikkim
ratio rural is
28.3%
1000.00
Average per
Development
capita rural
800.00
expenditure is Uttaranchal
Rs 564 Haryana Chattisgarh
Rajasthan Nagaland Madhya Pradesh
600.00
Himachal
Maharashtra
Gujarat Orissa
Manipur Jharkhand
West Bengal
Tripura
Assam
Andhra
400.00 Bihar
Karnataka
Jammu & Kashmir Uttar Pradesh
Tamil Nadu
Kerala
200.00
Delhi
Punjab
0.00
0 5 10 15 20 25 30 35 40 45 50
Poverty Ratio - Rural

37. National Highway Infrastructure versus Competitiveness
7000
Uttar Pradesh
6000
Rajasthan
Andhra Pradesh
Length of Total National Highways, In Km
5000 Madhya Pradesh Tamil Nadu
Karnataka
Maharashtra
4000 Orissa Bihar
Gujarat
Assam
3000
West Bengal
Chattisgarh Uttarakhand
Jharkhand
2000 Punjab
Kerala Haryana
Jammu and Kashmir Himachal Pradesh
Manipur Mizoram
Meghalaya
1000 Nagaland
Arunachal Pradesh
Tripura
Goa
Delhi
Sikkim
0
45 50 55 60 65 70
Microeconomic Competitiveness Score
Source: Institute for Competitiveness Analysis

38. Airport Infrastructure versus Competitiveness
9
West Bengal
8
Gujarat
7
6
Numbers of Domestic Airports
5
Karnataka
Madhya Pradesh Maharashtra
Andhra Pradesh
4
Assam Kerala Himachal Pradesh Nadu
Tamil Punjab
3
Uttar Pradesh
Jammu and Kashmir Mizoram Rajasthan
Uttarakhand
2
Meghalaya
Nagaland Tripura Orissa Chattisgarh Bihar Goa Haryana Delhi
Manipur Jharkhand
1
Arunachal Pradesh Sikkim
0
45 50 55 60 65
Microeconomic Competitiveness Scores
Source: Institute for Competitiveness Analysis

39. Teledensity versus Competitiveness
Delhi
200
Teledensity , Phones per 100 people in the population
150
Himachal Pradesh
100 Punjab
Haryana
Gujarat
Andhra Pradesh
Rajasthan Maharashtra
Madhya Pradesh
Goa
Nagaland Uttar Pradesh Bihar
50 Manipur
Tripura
Arunachal Pradesh Mizoram
Meghalaya
Assam Kerala
Orissa Karnataka
West Bengal
Sikkim Tamil Nadu
Uttarakhand
Jammu and Kashmir
Jharkhand Chattisgarh
0
45 50 55 60 65 70
Microeconomic Competitiveness Scores
Source: Institute for Competitiveness Analysis

40. Households in India
Households in India (in Millions) 2001 and 2011
32.92
23.83
21.02 20.07
18.94 18.49
25.76
13.18 14.97
12.18 19.06 12.58
16.85 9.66 15.72
7.72 14.17
6.37 13.98 5.62 6.18 10.92 0.51 0.54 0.22 0.40 5.41
0.26 0.32 9.64 4.72 1.48 2.02 10.23 9.34 0.13 0.84 2.00
4.15 0.28 6.60 7.87
0.21 4.94 3.53 1.24 1.55 4.86 0.40 0.42 0.16 0.33 4.27 0.10 0.66 1.59
Percentage of Households in India 2001 and 2011 having electricity
96.9 96.8 96.6
90.4 90.5 85.1 90.6 94.4 83.9 92.5 93.4
92.2 84.2 81.6
67.1 87
65.7 75.3 68.4 67
93.6 94.8 60.9 91.9 68.4
80.4 82.9 80.7 78.6 77.8 78.2 54.5
67.2 45.8 70.2 70.0 77.5 69.6 63.6 43 36.8 60.3
54.7 37.1 53.1 60.0 54.7
16.4 42.7 41.8 37.5
24.9 10.3 26.9 31.9
24.3
Percentage of Households having electricity in India 2001 Percentage of Households having electricity in India 2011
Source: Census of India,2011 Institute for Competitiveness Analysis