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103<br />

Chhattisgarh<br />

State Overview<br />

Chhattisgarh, carved out of Madhya Pra<strong>des</strong>h in 2000,<br />

ranks tenth amongst India’s states in terms of area and has<br />

a population of 20,833,803 156 (which is 2 per cent of India’s<br />

population). The GDP of Chhattisgarh for 2006-07 is<br />

estimated at Rs. 59,321 crore and, at constant price, it has<br />

recorded a growth of 9.41 per cent over 2005-06, which is<br />

comparable with the all India growth of 9.6 per cent. 157<br />

Agriculture is the dominant industry in the state, employing<br />

around 76 per cent of the total labour for the state. 158 The<br />

norm is single cropped and rain-fed agriculture, and with<br />

paddy as the main kharif crop, in about 80 per cent of the net<br />

sown area, 159 the central plains of Chhattisgarh are known as<br />

the ‘rice bowl’ of central India.<br />

Chhattisgarh is predominantly rural, with only 20.1 per cent<br />

of the population residing in urban areas (the national level is<br />

around 28 per cent). 160 The rate of urbanisation in the state is<br />

17.4 per cent as against the national average of 29 per cent. 161<br />

For Chhattisgarh, natural resources are its greatest strength.<br />

Some of the key thrust sectors where Chhattisgarh holds<br />

advantage over other states are mining, power, cement, iron ore<br />

and steel. 162 According to the state government, Chhattisgarh<br />

is one of the richest states in India in terms of mineral wealth,<br />

with 28 major minerals discovered so far, including diamonds.<br />

Chhattisgarh is also currently one of the few states in India<br />

that has surplus power. The state has huge reserves of coal and<br />

hence an enormous potential for coal-based thermal power<br />

generation. As per the state government’s official website,<br />

Korba is really the ‘Power capital of India’. The state is also<br />

the iron and steel hub of the country. The Bhilai Steel Plant<br />

of Steel Authority of India Limited (SAIL) produces more<br />

than 4 million tonnes of iron and steel per annum. Substantial<br />

capacities have been set up in the private sector as well. 163<br />

A condusive labour environment, cheap power, sufficient<br />

water resources and availability of land at a lower cost make<br />

Chhattisgarh a favourable location for industrial investments.<br />

The state provi<strong>des</strong> targeted incentives for industrial<br />

investment in the form of various subsidies. Other industries<br />

with potential growth in Chhattisgarh are the food processing<br />

industry, herbal and medicine industry, gems and jewellery<br />

industry 164 .<br />

Chhattisgarh is a Scheduled Area state and has a very large<br />

adivasi population. According to the Census 2001, 11.6 per<br />

cent of Chhattisgarh’s constitute SCs and 31.8 per cent are<br />

STs (the national averages being 16.2 per cent SCs and 8.2 per<br />

cent STs). The vast majority of the SC and ST population live<br />

in the rural areas of Chhattisgarh and are largely dependent<br />

on agriculture as their main source of income.<br />

Despite the abundant resources that Chhattisgarh has been<br />

blessed with, the poverty estimates provided by the Planning<br />

156 Census of India, 2001.<br />

157 The Hindu. “Chhattisgarh posts 9.41 p.c. GDP growth”. February 23, 2008. http://www.thehindu.com/2008/02/23/stories/2008022354350500.htm.<br />

158 Chhattisgarh Human Development Report 2005, Prepared for the Government of Chhattisgarh. Pp. 45-46.<br />

159 Chhattisgarh Human Development Report 2005, Prepared for the Government of Chhattisgarh. Pp. 53.<br />

160 Chhattisgarh Human Development Report 2005, Prepared for the Government of Chhattisgarh. Pp. 45-46.<br />

161 Chhattisgarh-September 2009, Prepared by India Brand Equity Foundation, http://www.ibef.org/states/chhattisgarh.aspx, Accessed on December 14,<br />

2009.<br />

162 Ibid.<br />

163 Ibid.<br />

164 Ibid.

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