What is the main basis of the economy of Jharkhand? (A) Agriculture (B) Industry (C) Mining (D) Transfer

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Points to Remember:

  • Jharkhand’s economic foundation rests on multiple sectors, but one dominates.
  • Understanding the contribution of each sector is crucial.
  • The question requires a factual approach, identifying the most significant contributor to Jharkhand’s GDP.

Introduction:

Jharkhand, a state in eastern India, is rich in natural resources but faces challenges in diversifying its economy. While agriculture, industry, and service sectors contribute, mining significantly shapes its economic landscape. The state’s GDP composition reveals the relative importance of each sector. Determining the main basis requires analyzing the contribution of each option (Agriculture, Industry, Mining, Transfer payments) to the state’s overall economic output.

Body:

1. Mining: Jharkhand possesses vast reserves of minerals, including coal, iron ore, bauxite, and mica. These resources form the backbone of the state’s economy. The mining sector directly employs a significant portion of the workforce and indirectly supports related industries like steel production and transportation. The contribution of mining to Jharkhand’s GDP is substantially higher than that of agriculture or even the manufacturing sector. However, it’s also associated with environmental concerns and uneven distribution of benefits.

2. Agriculture: While agriculture employs a large section of the population, its contribution to the state’s GDP is relatively lower compared to mining. The agricultural sector faces challenges like fragmented landholdings, lack of irrigation facilities, and dependence on monsoons. The productivity of the agricultural sector remains low, hindering its potential to become a major driver of economic growth.

3. Industry: Jharkhand has a developing industrial sector, primarily focused on industries linked to its mineral resources, such as steel, cement, and power generation. However, the industrial sector’s growth has been hampered by infrastructure bottlenecks, lack of skilled labor, and regulatory hurdles. While growing, it doesn’t yet outweigh the dominance of mining.

4. Transfer Payments: Transfer payments from the central government play a role in the state’s finances, but they are not a productive basis for the economy. These funds are crucial for social welfare programs and infrastructure development but do not generate wealth in the same way as mining, agriculture, or industry.

Conclusion:

In conclusion, while agriculture, industry, and transfer payments contribute to Jharkhand’s economy, mining (C) forms its main basis. Its significant contribution to the state’s GDP and employment makes it the dominant sector. However, over-reliance on mining poses risks. For sustainable and holistic development, Jharkhand needs to diversify its economy by investing in agriculture, promoting value addition in the industrial sector, improving infrastructure, and focusing on skill development. A balanced approach that leverages its mineral wealth while simultaneously fostering growth in other sectors is crucial for achieving inclusive and sustainable economic progress, aligning with the principles of equitable development enshrined in the Indian Constitution.

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