Industries in Jharkhand

The new state of Jharkhand, widely acclaimed as the region of future, has enormous potentialities for industrialization. With its large deposits of minerals, it provides a solid launching pad for all kinds of industries.

As many as 26 mega industries, 106 large and medium industries and 18,109 micro and small industries have been set up in the State during the period with an approximate investment of Rs 28,424.06 crore and about 63,000 people thus far got employment in these industries

Jharkhand is leading and is wooing investors in mineral exploration, Plastics, Chemicals, Electrical, Cement, Metallurgy and Automobile components, Equipment's for Heavy Engineering companies etc. Jharkhand has important steel plants and mines.
The main occupation of the people is cultivation. The indigenous people of the district are either working as agricultural labourers or cultivators.

The various kinds of minerals found in Jharkhand are iron ore, granite, coal, copper, mica, bauxite, and chromite. Jharkhand also exports its mineral products to various countries such as Saudi Arabia, Bangladesh, South Africa, and Nepal. This sector has given a major boost to the economy of the State.

The industrial sector has grown at an average annual rate (CAGR) of 4.2 per cent between the years 2011-12 and 2019-20. Its growth-rate, however, has fluctuated between - 12.5 per cent and +10.4 per cent. As a result the co-efficient of variation of the value of its output has been 11.3 per cent in this period.

 
Industrial Policies

The government of Jharkhand lays utmost emphasis on making the state one of most preferred destinations for investors by providing hassle free business environment, excellent infrastructure, perfect law and order and also creating employment opportunities across the industrial sectors. Below are the brief descriptions of the primary objectives of some of the polices :- 

1)  Jharkhand Industrial Policy 2001:The Industrial Policy aims to create employment
opportunities in this sector with improved productivity, also ensuring homogeneous and
balanced development of all the geographical regions of the state with special emphasis on the development of small, tiny and cottage industries.

2)  Jharkhand Food Processing Policy 2015:The Policy aims at creating a conducive environment for setting-up of food processing units,link groups of producers to the processors and markets through a well-equipped supply chain and increase the level of processing, reduction of wastage, value addition, thus enhancing the overall income increase exports resulting in the overall development of the food processing sector.

3) Jharkhand Export Policy 2015: It provides a simple, proactive, responsive and supportive
institutional mechanism for the rapid growth of exports. The policy also aims to strengthen the
export infrastructure in the state.

4)  Jharkhand Industrial and Investment Promotion Policy 2016: - The policy intends to promote employment generation in the industrial and service sector by providing facilitation under the Industrial and Investment promotion Policy. The objective is to establish linkages between large industries and MSME and ancillary industries. Some data shows that over the years the amount disbursed for the Jharkhand Industrial Policy 2001 has declined slowly from 7752.09 crores in 2015- 16 to 1500.447 crores in 2019-20. A sharp dip can beseen in the Jharkhand Industrial Policy 2012 in terms of the amount disbursed last year. In 2018-19 the amount disbursed has been reported at 5442.54 which sharply declined to merely 433.37 crores in 2019-20. These insights suggest that the focus of the government is shifting to the latest vibrant and dynamic sectors such as textiles and apparels and the food processing sector. The reduced disbursal among other sectors is being shifted towards these sectors, showing the paradigm shift in terms of policy initiatives of the government.