The eastern region of India has witnessed substantial economic growth in recent times and is now moving ahead with confidence. This region is endowed with numerous rich mineral deposits, forests and productive & fertile soil, as well as rich cultural heritage.
Given the available natural resources and quality manpower, the key growth engines have been iron & steel, power generation, mining, tourism, agricultural goods, food processing, infrastructure building, IT/ITeS, petrochemicals, leather processing, real estate, retailing and cement production. The eastern states have immense potential for large-scale production and export of spices, jute and other agricultural products.
The spurt in investment in these states is an indication of the eastern region’s bright future for trade and industry. The growth of the IT/ITeS, healthcare and tourism sectors, coupled with a rapidly developing educational sector, gives the real estate sector a unique opportunity for growth.
GDP of the Eastern States
The seven eastern states continue to have a good share of gross state domestic product (GSDP), which has been hovering at around 20% of India’s GDP. The healthy contribution of these states to the country’s GDP in the past two decades has given them a strong foundation for future growth. By focusing on the core competences of their states, the respective state governments will be able to sustain growth in the years to come.
All of the states have had y-o-y GDP growth that was higher than that of the country as a whole. Bihar, Chhattisgarh and Assam were the three states that showed growth of more than 10% y-o-y in 2012–2013.
Pan-India Infrastructure Initiatives Benefitting the Eastern States
Utility infrastructure and transportation access to regional economic centres as well as local growth nodes are key economic development catalysts. The augmentation of rail capacity, with the railways being the backbone of the transport infrastructure, development of urban and rural roads, progress toward the development of the port sector and modernisation of airports are going to be the key for future growth not only for the cities, but also for the interior areas, as they are getting into mainstream development with these initiatives.
State and local governments commonly offer economic development incentives in an effort to entice large employers in exchange for increased employment with the prospective economic growth. The combination of economic development incentives and the quality of the infrastructure often determine a prospective employer’s choice between two cities or states.
Other Aspects Covered in This Report:
- Infrastructure and Real Estate In East India
- Real Estate as Growth Indicators in Eastern Cities – Office, Retail, Infrastructure and Hotels
- Other Eastern Cities with Potential for Growth – Raipur, Ranchi, Patna, Guwahati, Bhubaneshwar, Bhopal and Indore
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