Why Bihar is so Backward?

We all know that when it comes to the least developed states in India, Bihar automatically comes into people’s mind without much thought. All the statistics also point to this direction. I have no qualms in accepting the fact that Bihar is far behind the rest of India in terms of development. Being Bihari, one could see and feel them. I think this tough question should be answered and even the attempt of finding these answers is the way forward for the future of Bihar. I would not try to find out any excuse or try to justify its present situation but we would try to understand all the inescapable reasons that led to this situation.

Bearing a Bihari identity, wherever I went people recognised me with some language and accent. They say that you are a “Bihari” followed by some Hindi pronunciation test put before me. Then they laughed and had various discussion on Bihar. Some of the popular names were of course Lalu and had a various discussion on the “state of our state” which I defended valiantly with a great sub nationalistic approach. Later on, I found out being a “Bihari” has a several attributes attached to it. This is not a term we have given to ourselves but this term was given to us by all the non-Biharis in our country. Being a “Bihari” doesn’t only mean that you belong to Bihar but you have several other characteristics which makes you a “Bihari”. For outsiders, when they hear about Bihar, they think about skyrocketing crimes, lawlessness, extreme poverty, corrupt politicians, poor healthcare, uncleanliness all around, bad roads, widespread illiteracy and “impossible to be improved state”. These attributes they also stick with the people of that region, I would come to that later on.

Being schooled in other state (Rajasthan), we had several arguments on “my state vs your state”. Several times I started losing the ground and that didn’t go down well with me. I have to be ready with the facts and new arguments to give a stiff resistance to Haryanvi and Rajasthani guys by the next day. So, in this pursuit my attention went to the fundamental question: why and what went wrong with the development of Bihar? Despite having a vast mineral resource and a vast pool of human resources, great agricultural land and water resources why the state still shows up in the lows of many growth indicators. Why? there must be a reason backing this. It’s not a one-night misadventure but the present state of Bihar reflects on the past failures.

In my opinion, Bihar has been exploited since the beginning and this exploitation didn’t stop even after the independence. Let’s know it.

British era

In the British period, Bihar was the part of Bengal presidency. It was the most paramount presidency which helped the English to consolidate their claim over all of India later on. Being colonised the earliest, it was at receiving end of impact of all the exploitative colonial policies. Yes, British came to trade and so they only saw profit not the welfare of the state. The British policy which led to deindustrialisation of India also destroyed the well-established textile and ago-based industries in Bihar. These destroyed industries were not compensated by the establishment of new one. Many artisans, workers and agricultural workers were unemployed. To meet its industrial demands, British forced agricultural workers to grow cash crops like Indigo, poppies, cotton and jute which added to the plight of farmer and resulted into the severe famines of Bengal in the region. Also, excessive growing of these cash crops rendered the soil infertile. Thus, Bihar was systematically crippled to the core.

In 1793, Lord Cornwallis introduced the zamindari system, which gave rise to a class called zamindars and they were made the owners of a land (hitherto farmer’s property) and the farmers were taxed rigorously. The farmers were reduced to tenant labourers. They had to pay in cash which they had to sometimes pay by mortgaging their land to moneylenders. They could be evicted from land if they were not able to give revenue. Zamindars took no interest in the welfare of people or the development of land. Many zamindars started exploiting the farmers for their own advantage. Many revolts during British rule were not against British but were against the Zamindars proves the sordid exploitation by them. This system resulted in very few people having the possession of land and most of them were landless. The poor farmers had to face this ill-conceived law even after independence until several land reform measures were taken by states including the zamindari abolition act, 1950. Many zamindars resisted tooth and nail and used all the legal method to evade this. Under Land Ceiling act, the land they relinquished were either barren & infertile or they shared those land among their kins. The picture still remains more or less same. There is a big disparity in the distribution of lands. There is still zamindar class with having brazenly large amount of good lands and some are landless or with little land. An enormous class divide could be seen from the society today in Bihar.

Agricultural Scenario

Agriculture is the primary occupation of Bihar since the beginning. About 74% of population in Bihar is involved in agricultural activities which is much higher than whole of India (58%). It is 13th largest state in India and 7th in terms of food grain production. Agriculture is the core competence of Bihar; 60% of its land area is under cultivation with a cropping intensity of 142% which speaks for itself why there is maximum pressure on land, disguised unemployment and one of the least agricultural incomes.
To compare the agricultural scenario, we make a yardstick and compare them with similar agriculturally affluent states of Punjab, Haryana, West Bengal (similar in area and region too) and Uttar Pradesh.

We can see from the above data the pathetic figure of even agriculture sector and its contribution. Bihar has the least per capita GDP among all the states in India. About 80% of population in Bihar is involved in agriculture and most of them does subsistence farming. There is maximum pressure on small plot of land as population is increasing at an alarming rate (highest population density at 1106/km² followed by Bengal). The farmers in Bihar which means 80% of population are the worst off as compare to their counterparts in Punjab, Haryana, U.P, W.B etc. They have small plot of land, no scientific method, costly irrigation and seeds. It’s agonisingly surprising that only 63% of farmlands are irrigated through various means though Bihar is drained by 21 major rivers and is very rich in water resources while about 98% of Punjab and 91% of farmlands receive proper irrigation. Due to costly irrigation by conventional petrol pumps, many farmers are dependent on monsoon rain which justifies why the cropping intensity is also very low. There are efforts to subsidise the electricity and promote electric water pumps. After, all this when farmer goes to market to sell the crop, they get a meagre sum while most farmers of Punjab sell at MSP. The reason the farmers of Punjab and Haryana are so well off because India invested heavily there. Nehru’s dream project of modern India big dams like Bhakra Nangal was built on Sutlej River, Punjab and Haryana is the main beneficiaries of these projects and still ensures the maximum irrigation through the canals. Then next big step came through green revolution that India took to ensure its food security was first launched in the Punjab, Haryana and western U.P. The introduction of scientific farming techniques, HYV seeds, modern equipment like tractors, fertilisers, pesticides and suitable irrigation gave these farmers an upper hand in the production over the rest of India. By the end of 1970, Punjab was producing 70% of country’s food grains which meant increase in the income of these people. Still, they enjoy this advantage having well established irrigation system and procurement at MSP. Bihar was left behind despite having well drained gangetic plains and ideal condition for agriculture.

Even agricultural production is not enough to increase the farmer’s income. Bihar’s per capita is the lowest in the country. One of the main causes is share of cash crops in agricultural picture of Bihar remains very low. The cash crops earn a good return but very few farmers are involved in them as they do not have technical know-how & availability of materials to grow them. The conventional coarse grains cannot earn them for what labour they do on small piece of land and give financial security. With development in lifestyle people are more interested in processed food. The setting up of food processing industries offers an enormous opportunity for a great development in Bihar. The centre’s response for this programme has been very late but some projects are being implemented but still it is miniscule in comparison to the potential it has in such agriculturally strong state, ready domestic and foreign market and a great human resource. USA is one of the leaders in processed food, their food industries are spread over the nook and hook of the global market. There is need to launch the second green revolution and Bihar should be made its centre with food processing sector as the main focus.

Bad governance

The 15-year RJD regime under Lalu-Rabri (1990-2005) saw the open defiance of law by supporters of ruling party and the brazen political patronage of crimes. The present government term it as “Jungle-Raj” period and people still fear that era of rule of lawlessness. Some political commentary calls it as a great phase for the backward classes (OBC’s) and their rise against upper castes’ rule while insidiously misdirecting the historical understanding of that period. It is no denying fact that Bihar had to suffer a lot in that era. People still recounts it as dark era of Bihar where the state saw a widespread anarchy and literally a “Goonda-Raj”. The open looting, kidnapping, ransoming and other street crimes were only flourishing industries in Bihar. People found it difficult to cope up with such a state of lawlessness as many of these crimes found blatant political patronage. It is called there was a local don at every 20 km in Bihar and right from a small panwala to a big businessman have to give a “rangdari-tax” for their private properties. Apart from their white-collar crimes like political scams, the politicians also shared the loot with criminals and gave them support. Murders, rape, physical assault and threats were widespread. They mainly targeted business owners. Two years after the Lalu government in 1992, India introduced LPG reforms in the economy, the big businesses started coming to the Indian market and Bihar being so rich in minerals and all the other resources saw the reverse, the already existing businesses even started moving out and shifting their base. The state could not provide them with reliable protection to their private properties which is at least expected out of them. One incident which gives a glimpse of the Raj, it was in 2002, the year of wedding of Lalu’s daughter, Lalu’s loyalists raided and looted multiple car showrooms across Patna and as many as 50 unregistered cars were lifted from showrooms at gun point to be used for ferrying guests and returning after 3 days. For several automobile companies, it meant downing of shutters and some shifted their operation out of the states. The police, courts and law enforcement agencies were so demoralised that they even hesitated filing the reports of crimes which were linked with some political strongman as they had to face several political roadblocks in pursuing a case. The official registration of the crime itself became such a risky act for the victims. Lalu Yadav himself was associated in approx. 950 cr. Fodder scam and was convicted for the same. In short, the 15 years of Lalu raj, only crimes and chaos ruled. This regime was not able to provide a business conducive environment for businesses to invest here and thrive though having all the natural advantage of businesses setting here. Meanwhile, businesses were setting up and gaining market all over India which I would discuss in detail later on.

Freight Equalisation Policy

One of the main reasons for the underdevelopment of businesses here is the Freight Equalisation Policy (1952-1993) of govt. of India. To promote equal growth of industries all over India, the transportation of minerals was subsidised by govt. of India. This meant a factory could now be set up anywhere in India as the transportation cost of raw minerals will be borne by Indian govt. Bihar was the worst affected state in this scenario. It stripped mineral rich states like Bihar, Bengal Odisha & M.P. of their competitive advantages. As a result, businesses preferred setting up industrial location closer to the coastal trade hubs & markets in other parts of the country. Many cement making industries came up in south and benefitted greatly. This led to the very less development of industries in the mineral rich eastern parts of India which could have been most likely places for these business investments. Rather, an incentive for setting up industrial hubs in these parts should be given but govt. totally denied them this opportunity. This policy ruined the employment scenario of the state and affected the work culture of the state. Most of the areas of Bihar are still severely impoverished and people’s income is almost three times less than per capita income of India making it the lowest per capita income state in India. The farmlands are already overburdened and Bihar don’t have enough factories to absorb at least a small portion of such a large workforce; ergo, young job aspirants from Bihar have to become a migrant worker and look for the job outside. Today, even a small farm helper in Haryana or daily wage labourer in Delhi to a factory worker in Bangalore, majority of them are Bihari. Bihar contributes a major chunk of migrant workers in India. They literally run all the major factories of the country which is tantamount to running country’s economy. They are real driving force of economy. During, covid times, they were not given safe transportation to their states despite their job losses. Such was a plight of these labourers that some had to walk on foot to return their homes, even a thought of which sends shivers down the spine. Seriously, what treatment central govt. does with Bihar is completely different from others. The India is rising on the back of economic strangulation of Bihar and sacrifices of its people. No country would really develop by ignoring 10% of its population.

Under allocation of central funds and poor investment

Recently in a run up to last election in Bihar, Modi govt. announced a grant of 50,000 crore but it was 1,00,000 crores for J&K. The question is why J&K is getting double amount against the most backward state in India. Bihar has a population of over 128 million while J&K’s population is just 14 million which makes Bihar a way bigger state too. Why so less? This is just an example out of innumerable double standard by centre. It is undeniable that today Bihar is the most backward major state in India. The socio-economic condition is so terrible that. The incidence of poverty is the highest in Bihar. The recent Multidimension Poverty Index (MPI) made by NITI aayog, puts Bihar as the poorest state in India with 51.91 % of population being multidimensionally poor. Bihar is called one of the sick states (BIMARU – Bihar, M.P, Rajasthan, U.P) in India because there is very little economic advancement here. The Bihar has long been systematically exploited by getting denied its rightful and deserved share of central funds. As opposed to all India per capita development expenditure during the last 3 years of Rs. 7935, Bihar’s is less than half at Rs. 3633. While development expenditure depends on a bunch of factors including a state’s contribution to the national exchequer, no logic can explain away the per capita of the 10th plan, which at Rs. 2533.80 is less than a third of that of Gujarat (Rs. 9289.10) and Punjab (Rs. 7681.20). Simple but sound economic logic tells us that when a region is falling behind, not just behind but well behind, it calls for a greater degree of investment in its progress and development It’s like giving the weak and infirm child of the family better nutrition and attention. But instead of this we are seeing that Bihar is systematically denied, let alone the additional assistance it deserves, but also what is its rightful due. Quite obviously, Bihar has also paid the price for being politically out of sync with the central government for long periods. The Lalu- Rabri era (1992-2004) was largely out of sync. From the last few years Bihar had a govt, in New Delhi. Quite clearly, states that are in political sync do much better in terms of central assistance. As a result, it can be seen in the abysmally low investment possible in state’s major developmental thrusts. Bihar’s per capita spending on roads is just Rs.44.60, which is less than half of national average of Rs. 117.80. Similarly for irrigation and flood control Bihar spends just Rs. 104.40 on a per capita basis as opposed to the national average of Rs. 199.20.

Similarly, there is very less investment by banks like NABARD. It received a pittance from the financial institutions, a mere 551.60 per capita as compared to the national average of 4828 per capita. At the national average it could have received more than 40,020.51 crores instead of just Rs. 4571.59 crores. This could also be the reason why there is little to no industrial activity in Bihar and youth has to migrate to industrial areas in search of work.

Recurring Floods

Bihar floods every monsoon season each year. This is age old problem of Bihar. Bihar is drained by many rivers which comes from all the four sides. The rivers originating from Nepal carry high sediments load that are deposited in the river plains of Bihar causing river to widen and flood the surrounding areas. In the monsoon seasons the flow of these rivers increase by 50 times. Koshi river system (sorrow of Bihar) along with Narayani, Bagmati receive high amount of water from the Nepal and causes floods. As such, 73.63% of the geographical area of north Bihar is considered to be prone to floods. Out of 38 districts, 28 districts get flooded (of which 15 are worst hit) causing huge loss of property, lives, farmlands and infrastructure. During the 2008 Koshi floods, over 350,000 acres of paddy, 18,000 acres of maize and 240,000 acres of crops were adversely affected impacting close to 5 lakhs farmers. Since 1979, Bihar has been flooded every consecutive year. No big embankments prove to be successful for a long time. In 1954, Bihar had approx. 160 km of embankments and flood prone area was about 2.5 Mn. hectares and now there is a total of 3790 km of embankments on 13 rivers but flood prone areas increased to 6.8 Mn. hectares. The embankments also worsen the floods in Bihar. Sometimes, rivers change their course and wreaks havoc. So, Bihar is perennially affected by floods and there is a lot to do by central and state governments to mitigate this calamity.

Bifurcation of state

A new state, Jharkhand was carved out of Bihar in November 2000. The demand for the state reorganisation was not on linguistic or cultural basis, but it was first instance of being done on the geographical basis. The north of erstwhile Bihar (which actually is Bihar) was more suited to agriculture as they had vast flat fertile land and down south the region was exceptionally rich in mineral deposits. So, their leaders demanded partition as these mineral rich areas are not adequately developed despite contributing so much in minerals output in the country whereas northern part was relatively more developed in comparison. Demand for Jharkhand state was not so much prominent unlike other states. In 2000 general election Lalu Yadav had to side with congress to form government in Bihar on the precondition that he would give support to the partition of state. And, again petty politics won. As a result of partition, all the mineral belts of Bihar and also industries surrounding it all went to the newly formed state. Bihar was left with little or no industries at all. Many Biharis chose to stay in Jharkhand only for the work purpose and other business interests. The Freight equalisation policy was abolished in the year 1992, which could mean possible advantage for Bihar, but 8 years later the partition led to further economic plight of the state.

Political instability

The state also had to suffer a lot because of lack of a stable government. In the 71 years of its existence, a total of 43 govts. were made including 8 presidential rules imposed on the state. On an average, it was 1.5 yrs. for each government. The government also lasted for 5 days and 7 days. The political turmoil was never ebbing away from the state. The unstable rule did not give any growth impetus to the state. All this situation also led to rise in crimes in the states. The stability was seen after Lalu – Rabri govt but it was just not enough to put it on growth track. After his debacle in Bihar in 2005, Lalu never got any chance again, but a great leadership emerged in the form of Nitish Kumar. He hit the root of problems and reformed the law and order and made the law enforcing organisations more powerful. His tenure is hailed as the period of good governance. Many problems like naxalism were rooted out. He also reopened the case against the tainted political leaders including from their own parties. Public’s trust in police and law was restored and suddenly a positive change was all-encompassing. His was the true follower of lohiaite principles and so he brought revolutionary changes in the state. Bihar improved on many growth indicators. For example, in a recent State of the States survey by India today have pointed out that Bihar is the most improved major state in the country.

Ailing Tourism sector

Tourism sector in Bihar is the most underdeveloped sector. Bihar is the birthplace of two great religion in the world; Jainism and Buddhism and its cultural heritage is one of the earliest. It gave the world the first republic in the world. Nalanda and Vikramshila were the greatest centre for learning in the earlier times, having been visited by many foreign travellers since time immemorial. The tourism can generate a good revenue and employment for the state having great cultural and natural heritage. Its tremendous tourism potential has been largely untapped. The govt. has recently started developing tourism hot spots in Bihar and it would could be harbinger of great success ahead for the state.

Lastly, this region has been one of the most prosperous and major economic and cultural centres of India from the ancient times. Bihar need to recreate its image and identity and regain its lost glory of being the leader of all round development. Things are rapidly changing for good and state is showing a great stride in development and with right leadership and right direction this development will be all inclusive and sustainable. The Bihar which was earlier attributed to such a slow and pitiful picture is now known by their sharp minds, young and brilliant students, improved roads, clean surroundings, lawfulness, healthcare infrastructure and incredibly hardworking people in the country. But it’s just a small step of miles of journey. The development is still not grass rooted, the leaders have to ensure the effect of development should reach every nook and corners of the society. We have chosen our fortune, what we have is the relentless and unyielding motivation to make an impact. We cannot look back to curse our past but we can always take a lesson and work tenaciously to cross every hurdle and walk on the path of development.

~KAUSHAL KUMAR