If Bihar keeps beating national growth average by 2% it would take 40 more years to develop, It tells about why Bihar needs special category status.

1. WHY BIHAR NEEDS SPECIAL
CATEGORY STATUS

2. Special Status = Finances + tax waivers
Finances Tax Waivers
 State to contribute only 10%  Direct Tax Code for waiver for
instead of 70% in Central income tax and corporate tax
Schemes  Refund of Excise collected to
 90% grants instead of 70% for new units set up in Bihar or
Central Schemes accelerated depreciation

3. Bihar meets all criteria for Special Status
 Geographical isolation
 Inaccessible terrain
 Poor resource base
 Remoteness to larger
market
 Poor infrastructure

4. Bihar is young and ready to grow
12% of Indians aged less than 6 are in Bihar

5. Bihar has demonstrated growth leverage
If Bihar keeps beating
national growth
average by 2% it
would take 40 more
years to develop

6. • Bihar faces a delayed demographic dividend. An ageing India will depend on Bihar
for its workforce. Therefore, industrial development of Bihar is instrumental to the
success of India.
• An industrializing Bihar will generate a new middle class population thereby
transforming the state into next major consumer market of the country.
• India depends on the development of its poorest states such as Bihar to improve the
Human Development Index and join the league of developed nations.
Romila Thapar wrote history of Ancient India is the history of Bihar
Today, Future of Bihar is the Future of Modern India

7. British policies sent the state towards the road of
poverty and under-development
Permanent Settlement Policy poisoned
the social fabric of Bihar and crumbled
the agricultural base and economy of
the state
British neglected Bihar on
public investments and did not Onset of railways killed
develop infrastructure and the trade environment of
institutions in the state Patna
At the time of independence, not only did
Bihar lag in infrastructure but the per capita
income of India was also 25% higher
TIME HAS COME TO CORRECT
THE WRONGS DONE IN THE PAST

8. Post-independence, Bihar’s poverty increased due to
unfair and inconsiderate policies of Central Government
Freight Equalization Policy killed the industrialization of
Bihar, benefitted rich states. Estimated loss more than Rs 1.20
Lakh Crores.
A flourishing cement industry became dead.
Bihar did not receive equal consideration in building of Infrastructure development in Bihar was never
Central institutions. For example, the state produced made a priority despite significantly poor level
more than 25,000 IITians but did not get an IIT until of public infrastructure in the state. Installed
recently. No ordinance factory was put up in the state capacity in power generation in Bihar is less
despite positive proposals. than 0.4% of the entire country. Nearly 50% of
the villages remained un-electrified in 2005.
Per capita income of India was 25% more than that in
Bihar at the time of Independence.
By 1960-61, per capita income of India was 42% more
than that of Bihar. By 1993-94, this disparity reached to
125%. By 2003-04, it peaked at 230%.
Today, India’s per capita income is 140% more than that of
Bihar.
INDIA CONTINUED TO RISE, BIHAR BECAME TIME HAS COME TO CORRECT
POORER THE WRONGS DONE IN THE PAST