Jharkhand's Economy Poised for 7.5% Growth in 2025-26, Economic Survey Reveals

Ranchi, February 28 – Jharkhand’s economy is projected to grow by 7.5% in the fiscal year 2025-26, according to the state economic survey tabled in the assembly by Finance Minister Radha Krishna Kishore on Friday. The report also estimates a 6.7% growth rate for the current financial year (2024-25).

The economic survey highlights the steady progress of Jharkhand’s economy over the past three years, with its growth rate surpassing the national average in the post-pandemic years. Between 2020-21 and 2023-24, Jharkhand registered an average annual growth rate of 9.1%, exceeding the country’s 8.3% average during the same period.

Roadmap to a Rs 10 Trillion Economy​

The report reinforces the state government’s ambition to transform Jharkhand into a Rs 10 lakh crore (Rs 10 trillion) economy by 2029-30. It estimates that the state’s economy at current prices stood at Rs 4,61,010 crore in 2023-24, and with an annual nominal GSDP growth rate of 14.2%, the state is likely to achieve its target within the next five years.

"The past performance of the state's economy gives confidence that a 14.2% growth in its nominal GSDP is achievable," the survey stated, reaffirming the government's commitment to economic expansion.

Challenges Remain: Low Per Capita Income Ranking​

Despite the optimistic projections, the survey acknowledges Jharkhand’s low per capita income, ranking 26th among the 28 Indian states in 2022-23, only ahead of Bihar and Uttar Pradesh. This highlights the need for stronger income growth and development initiatives to improve the state's overall economic standing.

Inflation Under Control​

On the inflation front, Jharkhand has largely kept its rate within the Reserve Bank of India’s (RBI) upper limit of 6%. The survey reports that inflation averaged 5.7% in 2023-24, while up to October 2024, it stands at 4%, indicating stable price levels in the state.

Conclusion​

With a strong economic outlook and ambitious growth targets, Jharkhand appears poised for a significant transformation in the coming years. However, challenges like low per capita income remain key areas where the state must focus to ensure inclusive and sustainable development.