Cg economics –
Chhattisgarh: Developing Dimensions of Economy
Cooperation, participation, and collectivity — based on the fundamental principles of tribal
life — the socio-cultural identity and political resistance of pluralism are being used to
reconstruct the economic future of Chhattisgarh.
Forests, biodiversity, rich mineral wealth, and the abundance of natural resources make
Chhattisgarh a state rich from the point of view of natural resources, with a population of
2.55 crore, which is a relatively large state of the country. The state’s economy is being
shaped by making the economy self-reliant and human resources qualitative. And for the
development of Chhattisgarh, there is sufficient scope available.
The economy of Chhattisgarh is a developing economy. With available resources and the
pressure of population, development efforts are being made in all directions. There are
immense possibilities of development in agriculture, industry, energy, and service sectors.
The state, with an area of 135,192 square km, is the 10th largest state of India, while in
terms of population density, it is only 189 persons per square km.
The decadal population growth rate of Chhattisgarh (2001–2011) was 22.61%. Compared to
the growth rate of 1991–2001, the increasing growth rate does not leave room for
development in Chhattisgarh, because the working population is relatively dependent, and
the situation of demographic dividend is yet to come. Therefore, to achieve high income per
capita, access to quality social and economic services, and to create a scenario of
qualitative human development, by adopting long-term population policies, the population
growth rate must be controlled.
The total fertility rate (per woman) was 2.7 as per the 11th five-year plan (NFHS-2005–06),
which came down to 2.2 as per NFHS-2015–16 in the 12th five-year plan, and efforts are
being made to keep it at the replacement level.
Along with this, maternal mortality rate and infant mortality rate have also decreased
relatively faster, which is very essential for health development. The maternal mortality rate
was 230 per lakh live births, which the 12th five-year plan aimed to reduce.
The target has been set to reduce it further to 122. Infant mortality rate has also been
reduced from 46 (11th Five-Year Plan estimate) per thousand live births to 28 per thousand
live births in the 12th Five-Year Plan.
Development of health facilities and nutrition programs have reduced infant mortality rate
from 77 per thousand live births in 2000–01; however, more serious efforts are still needed in
this direction.
The higher sex ratio of women in the state (991) reflects the active participation of women in
the working population and their better social and economic status in the state. But there is a
significant gap between urban and rural female literacy. According to the 2011 census,
female literacy in urban areas was 77.24%, whereas in rural areas it was only 46.95%.
There is also a wider gap between male and female literacy rates. Increase in female literacy
is essential not only for their personal but also for the overall social and economic well-being
of the state. Low female literacy reflects negative indicators.
After the implementation of the 11th Five-Year Plan, 57.6% women aged 15 to 49 were
suffering from anemia; in the 12th Plan, the target was set to reduce it to 28%. Several
schemes have been initiated by the state government for women's health. Their
implementation is being done with serious administrative efficiency.
Institutional delivery has been promoted. In 2005–06, institutional delivery was 14.3%, which
increased to 70.2% (NFHS-4) in 2015–16. Institutional delivery assistance was provided to
66% of women.
To reduce infant mortality rate and improve newborn health, the state government has taken
prompt steps. According to NFHS-4 survey, during 2005–06, only 48.7% of children aged 12
to 23 months were fully immunized, which increased to 76.4% in 2015–16.
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> Significant efforts have been made in the direction of universal immunization.
After the 11th Five-Year Plan, 40.87% children aged 0–5 were malnourished, which reduced
to 32.51% in 2015. In the 12th Five-Year Plan, the goal was set to reduce child malnutrition
to 26%.
Positive results have been achieved from schemes formulated to eliminate child malnutrition.
In 2005–06, 53% children (0–5 years) were stunted, which reduced to 37% in 2015–16.
The number of underweight children also reduced from 47% (2005–06) to 38% (2015–16).
Chhattisgarh is a predominantly tribal region. Due to lack of basic resources, the benefits of
government schemes do not reach remote forest areas effectively, which results in
backwardness. In Bastar too, maternal and child health indicators are still lagging. There is a
need for serious, continuous and rapid efforts in this direction.
Of the total population of Chhattisgarh, 12.82% are Scheduled Castes and 30.62% are
Scheduled Tribes. Scheduled Castes and Scheduled Tribes together form 43.44% of the
state’s population, who are economically, socially and educationally backward.
The state has tried to include these weaker sections in the mainstream by giving priority to
cooperation and participation.
Of the Scheduled Tribe population, 59.09% are literate, and among Scheduled Castes,
70.76% are literate. Both social groups have low literacy levels, which adversely affects their
overall development.
Female literacy among Scheduled Tribes is 59.86%, whereas among Scheduled Castes it is
only 48.76%.
Literacy and health development are important indicators. Due to low literacy, both social
groups have limited chances of upward mobility, hence increasing literacy and improving
quality is essential.
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> Among both social groups, agriculture and traditional occupations remain the main sources
of employment and livelihood. In the present competitive economic environment, these have
not been successful in ensuring sustainable livelihoods.
Of the total Scheduled Tribe population, 52.82% are part of the long-term workforce,
whereas only 45.24% of Scheduled Castes are in the workforce.
In rural areas, agriculture and traditional occupations provide livelihood opportunities. Thus,
in villages, the work participation rate (WPR) of Scheduled Castes and Scheduled Tribes is
high compared to their population, but in urban areas WPR is low.
To protect the social, educational and economic interests of both groups, the state
government has set goals in various schemes for their cooperation and inclusion.
In addition to educational development, training and skill development are being
strengthened for employment generation. For promoting entrepreneurship, financial support,
training and priority are being provided.
For women, children, Scheduled Castes, Scheduled Tribes and economically weaker
sections, the state government is working in the social field to ensure their protection and
comprehensive development.
The employment scenario is changing positively. The primary sector still contributes around
80% of employment, but the share of agriculture in state domestic product is decreasing,
while the share of secondary and service sectors in GSDP is increasing.
In 2016–17 (AE) (at constant prices, base year 2011–12), in GSDP (including mining), the
industrial sector had the highest share at 48.90%, followed by the service sector (35.88%)
and the agriculture sector (15.22%).
The above facts indicate the primacy of the secondary sector as a symbol of a developed
and prosperous economy of Chhattisgarh.
But in the secondary sector, the development of the mining and production sector has been
more.
Now, it is absolutely necessary to develop the manufacturing sector in the state through the
application of available minerals because through the development of the production sector
only, a high growth rate, employment generation, and reduction of disguised unemployment
in the agriculture sector can be ensured.
Development of the service sector is extremely essential to improve the quality of human
resources in the state, to make available various social, economic services conveniently and
easily.
In reality, the development of the service sector and the quality of available human resources
have a complementary effect.
Therefore, the government is giving special attention towards development of education,
training, skill development, health facilities and services.
Contribution of agriculture sector in GSDP percentage has decreased, but its quantity and
value have increased.
In recent years, due to production, road construction, and various infrastructure construction
schemes, there have been favourable changes in the conditions of agriculture.
While framing development policies, emphasis should be given on self-reliance to ensure
food security and availability of nutrients.
At the same time, the income of farmers should be increased by reducing the cost of
production and by adopting advanced agricultural methods.
Emphasis should also be given on increasing income of farmers through food processing
units.
To attract capital investment for development of service sector and production sector in the
state and for establishment of new enterprises, the state government has framed a new
industrial policy.
Establishment of new enterprises has now become easier, and for this, administrative
hurdles have been removed.
That is why Chhattisgarh holds the fourth position in the country in the Ease of Doing
Business index.
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> Along with this, through schemes like “Make in India”, “Start-up India”, “Mudra Yojana” etc.,
emphasis is being given on the establishment of new enterprises.
Chhattisgarh is a developing state; therefore, despite challenges in the quality of human
resources and proper implementation of schemes and policies, to ensure effective utilization
of available resources, the state frames development policies by establishing balance
between current economic conditions and future sustainable development goals.
In the state, better financial management and administrative efficiency are also essential for
development.
In recent years, despite different economic challenges, the growth rate of the state’s
economic prosperity has generally been satisfactory.
Even in 2016–17 (AE) (at constant prices 2011–12), the growth rate of GSDP was estimated
at 7.14%.
Distribution of economic prosperity is also an indicator of economic well-being.
In the state, a large population lives below the poverty line.
According to figures released by Planning Commission regarding poverty line situation
(2011–12), in Chhattisgarh, 44.61% of rural population and 24.6% of urban population live
below the poverty line.
The state is making efforts for their protection, but it is necessary to make more effective
schemes for them.
Distribution of economic prosperity should also clearly improve the standard of living of the
people.
As a result of high economic growth, per capita income of the state has continuously
increased, and in 2016–17 (AE) it was estimated at ₹91,772.
To eradicate the situation of inequality in the state, to reduce unemployment, to ensure easy
availability of basic services, to maintain the state of food security, to attract capital
investment for rapid economic growth — these are the goals of the government.
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> After the formation of the state, there have been widespread positive changes in the
social-economic environment of Chhattisgarh.
Through inclusive development and good governance policies and their honest and quick
implementation, the state will surely achieve glorious future social-economic and political
accomplishments.
The economy and economic geography of Chhattisgarh in this section have been described
based on the following points:
Social background of various social classes
Social, economic and political empowerment of women
Employment structure in Chhattisgarh
Review of budget 2017–18 in context of fiscal policies and financial management of the state
and budget policy:
Revenue priorities
Expenditure priorities
Balance between revenue and capital expenditure in the budget
Overview of development expenditure for the year 2017–18
Resources for expenditure for the year 2017–18
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> Plan expenditure and non-plan expenditure
Concepts related to deficit in the budget:
Revenue deficit
Budget deficit
Fiscal deficit
Primary deficit
Income of Chhattisgarh state:
Gross State Domestic Product
Net State Domestic Product
Per capita income
Cooperation and agricultural finance in Chhattisgarh
Development of banking in Chhattisgarh
Agricultural development in Chhattisgarh
Characteristics and problems of agriculture in Chhattisgarh
Land use pattern:
1. Total geographical area
2. Area under forests
3. Land available for cultivation
4. Other uncultivable land
5. Fallow land
6. Net sown area
7. Double-cropped area
8. Gross sown area
Crop pattern of the state
Rice production pattern
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> Wheat production pattern
Gram production pattern
Other production pattern
Efforts being made for development of agriculture sector in Chhattisgarh:
Horticulture
Animal husbandry
Fisheries
Water resources and irrigation
Price determination and minimum support price of agricultural produce
Public distribution system
Development of mineral wealth and mineral-based industries in Chhattisgarh:
Coal
Iron ore
Bauxite
Dolomite
Tin
Limestone
Corundum
Gold
Garnet
Details of minerals stored in very small quantity in Chhattisgarh
Important facts related to minerals
CMDC (Chhattisgarh Mineral Development Corporation)
