Essay on lack of Industries in Jharkhand

Lack of Industries in Jharkhand

Mining and metal extraction, engineering, iron and steel, and chemicals are among the industries that are supported by Jharkhand's natural resources, policy incentives, and location-specific advantages. A GSDP of Rs 3.63 trillion (the US $ 48.63 billion) was reported for Jharkhand in 2021-22 at current prices. Due to its extensive mineral resources, Jharkhand is especially lucrative for mining, metals, and related sectors since it has around 40% of the country's minerals. It produces the biggest amount of tussar silk (non-mulberry silk) in the country and is the only state in India to produce coking coal, uranium, and pyrite.

Resource Curse of India

There are over 40% of India's minerals found in Jharkhand, but its population is 39.10% below the poverty line, and 19% of children under 5 years of age are malnourished. Jharkhand is sometimes called the resource curse of India because it contains more than 40% of India's mineral resources. 

Why Lack of Industries in Jharkhand?

It is mainly due to very low manufacturing growth and a lack of electricity, gas and water supply in Jharkhand that the industrial sector has performed poorly. There is an abundance of unskilled labour in Jharkhand, but there is a scarcity of skilled personnel since the government doesn't seem to be interested in training the people near manufacturing units.

Government Negligence

It is not easy to establish a private business in Jharkhand, particularly one closely associated with its resources. Local goons, electricity supply problems, and inadequate security are all problems that arise. From 1952-1993, the central government introduced a shortsighted freight equalization policy to promote equal industrial development all over the country. This meant companies could set up anywhere in the country, while the government also subsidised minerals' transportation. Due to this policy, mineral-rich states like Jharkhand were adversely affected because private capital was less likely to invest.

Political Instability

As a state, Jharkhand has seen political instability ever since it came into existence. In 16 years, it's has six chief ministers and 13 different regimes whereas Chhattisgarh had only two and Uttarakhand had seven. Political instability is the main reason for the economic deterioration in Jharkhand and it also became the reason for the lack of industries in Jharkhand.

Corruption

A crucible for venality, Jharkhand has also been plagued by corruption in the past. A mining scam, in which former chief minister Madhu Koda was arrested, was one of the worst scandals to rock the political firmament. It is perhaps no coincidence that the Bollywood movie Gangs of Wasseypur is a reflection of the state mining mafiadom in the past, where corruption led to crony capitalism and mafia culture in Jharkhand which also became the reason for the lack of industries in Jharkhand.

Water Shortage

A severe drought in Ranchi in 2016 led the Jharkhand High Court to order 55 ward commissioners to provide detailed reports on the crisis. There are no industries in which companies and products don't use water as a fundamental commodity and due to water shortage, industries face problems and it also became the reason for the lack of industries in Jharkhand.

Conclusion

There are many reasons why there is a lack of industries in Jharkhand. It is the responsibility of the government to solve all these problems in order to make Jharkhand and its people wealthy. The main reason which causes a lack of industries is lack of electricity, shortage of water, political instability, corruption, and unskilled labour. If the government focus on these problems then there is a chance to make Jharkhand a hub for industries which helps in the economic growth of the state and country.