An Introduction to Chhattisgarh Economy | Chhattisgarh State PSC (CGPSC) Preparation: All subjects - CGPSC (Chhattisgarh) PDF Download

Introduction

Economy of Chhattisgarh showcases a robust infrastructural framework that is significantly supported by a variety of industries. While agriculture and power serve as the primary catalysts for development in the region, sectors like real estate, banking & finance, and tourism contribute to a diverse industrial landscape, forming a solid economic foundation for Chhattisgarh.

Overview of Chhattisgarh's Economic Development

• Power Sector Efficiency: Chhattisgarh stands out as one of the states with surplus electricity, demonstrating remarkable efficiency in utility-based power consumption. The Korba district, known as the power capital of India, contributes significantly to this surplus. By the end of 2016-17, the state aimed to achieve an installed power generation capacity of 30,000 MW.
• Economic Growth: Chhattisgarh has shown substantial economic growth, with the Gross State Domestic Product (GSDP) expected to reach US$ 47.75 billion in FY 2018 from US$ 36.6 billion in FY 2015. The state has witnessed notable growth rates in various sectors.
  • Agriculture: The agriculture sector grew at an annual rate of 3.7% between 2011-12 and 2016-17.
  • Manufacturing and Services: Both sectors experienced annual growth rates of 8.1% each during the same period. In 2016-17, manufacturing made the largest contribution to GSDP (49%), followed by services (36%) and agriculture (15%).
• Income Growth: The per capita income of Chhattisgarh has increased significantly, with an average growth rate of 14% from Rs 55,177 in 2011-12 to Rs 91,772 in 2016-17, although still below the national average.
• Mining Sector: Chhattisgarh's mineral-rich landscape has bolstered its economy, with the state being a leading producer of minerals such as coal, iron ore, and dolomite. Significant reserves of bauxite, limestone, and quartzite further contribute to the state's revenue. Notably, Chhattisgarh is the sole producer of tin concentrates in India.

Investment and Fiscal Management

• Investment Hub: Chhattisgarh has emerged as a favored investment destination in India, garnering acclaim for being one of the best fiscally managed states by the Reserve Bank of India. The state attracted substantial Foreign Direct Investment (FDI) totaling US$ 1.29 billion from April 2000 to March 2016.
• Industrial Policies: The state has strategically designed fiscal and policy incentives for businesses under its Industrial Policy, 2014-19. Noteworthy policies are in place for sectors like IT/ITeS, solar energy, agro and food processing, minerals, and biotechnology, aiming to boost growth and attract investments.
• Ease of Doing Business: Chhattisgarh has taken significant steps to improve its business environment, ranking fourth among Indian states in terms of ease of doing business and reforms implementation, according to a study by the World Bank and KPMG.

Key Sectors

Agriculture in Chhattisgarh

• Chhattisgarh's agricultural landscape comprises the Bastar plateau, Chhattisgarh plains, and Northern hills, which are pivotal regions for agricultural productivity. With approximately 10,72,000 hectares of net irrigated land out of a total land area of 13787000 hectares in 2002, agriculture significantly contributes to the state's economy.
• The fertile lands, except for approximately 10,13,000 hectares unsuitable for cultivation, yield a variety of crops throughout the year. Major crops like maize, rice, paddy, jowar, groundnut, gram, oilseeds, and wheat thrive in Chhattisgarh, ensuring high yields each cropping season.
• The use of engineering equipment plays a crucial role in boosting agricultural production. Chhattisgarh boasts a well-equipped agricultural engineering department that specializes in advanced tools and machinery, aiding farmers in enhancing overall grain production.

Horticulture in Chhattisgarh

• Horticulture serves as a vital extension of the agriculture sector in Chhattisgarh. The cultivation of medicinal herbs, flowers, and aromatic plants forms a significant part of horticulture in the state. The horticulture industry plays a pivotal role in absorbing farmers migrating from neighboring states and villages, thereby improving economic opportunities in the sector.
• The government of Chhattisgarh extends cooperatives to local farmers, facilitating the purchase of high-quality seeds and agricultural tools. Additionally, state and district-level cooperatives provide loan facilities to underprivileged peasants at regular intervals.
• Chhattisgarh's agriculture continues to gain momentum, propelling it towards a more economically sustainable future.

Banking and Finance in Chhattisgarh

• Chhattisgarh's banking and finance sector play a crucial role in the state's economic development, encompassing a wide range of financial activities such as cash transactions, loan services, cheque operations, and more. 
• The state government oversees financial matters through its finance department, which manages budgeting, pension concerns, and disseminates updates on financial regulations.
• Chhattisgarh's banking institutions provide diverse financial services including home loans, ATMs, car loans, and more, contributing to the state's economic growth.
• Major nationalized banks like State Bank of India, Union Bank, Vijaya Bank, Allahabad Bank, United Bank of India, Syndicate Bank, and Oriental Bank of Commerce operate across all districts of Chhattisgarh, offering advanced financial facilities to customers.
• The banking and finance industry in Chhattisgarh serves as a strong foundation for economic progress, ensuring that the state remains abreast of developments in the banking sector through the issuance of circulars and notifications.
• Financial institutions in Chhattisgarh prioritize customer satisfaction by providing cutting-edge financial solutions, striving to outperform other financial organizations in the country.

Chhattisgarh Tourism

• Chhattisgarh's tourism sector plays a vital role in boosting the state's economy, offering a rich tapestry of natural wonders that captivate visitors. From ancient rock engravings to lush wildlife parks and vibrant tribal communities, Chhattisgarh promises a timeless aesthetic experience.
• Key Tourist Destinations:
  • Tiratgarh Waterfalls: A mesmerizing natural wonder that attracts numerous visitors annually.
  • Palace of Kawardha: A historical gem reflecting the grandeur of the region.
  • Atanpur Temples: Ancient temples steeped in cultural significance.
  • Ailash Gufa: Caves with historical and religious importance.
  • Kanker Palace: A majestic structure showcasing architectural brilliance.
  • Danteswari Temple: A sacred site revered by locals and tourists alike.
  • Indravati and Kanger Valley National Park: Biodiversity hotspots offering unique wildlife experiences.
  • Mahamaya Temple: A spiritual sanctuary with a serene ambiance.
  • Dandak Caves: Mystical underground formations with intriguing tales.
  • Chitrakot Waterfalls: A breathtaking cascade amidst picturesque surroundings.
  • Jonk and Apara Lakes: Serene water bodies perfect for relaxation and birdwatching.
• The diverse tribal communities of Chhattisgarh, including Gond, Muriya, Kol, and more, showcase a rich cultural heritage through vibrant folk arts and traditional rituals. Tourists are drawn to these unique cultural experiences, often unseen in modern society.
• Chhattisgarh boasts well-equipped hotels, resorts, and lodges that cater to the needs of tourists, offering comfortable accommodations and attractive travel packages. From Raipur to Dantewada, each district in Chhattisgarh has its own distinct tourism appeal, contributing significantly to the state's revenue.
• The tourism department of Chhattisgarh focuses on various initiatives such as promotional campaigns, expanding accommodation options, and discovering hidden natural gems to further enhance the sector's potential.

Thermal Power Generation in Chhattisgarh

• Overview of Thermal Power Generation: Chhattisgarh's thermal power plants play a crucial role in meeting the state's electricity demands. Notably, the Korba Thermal Power Station, National Thermal Power Corporation Limited, and Hasdeo Bango project are significant contributors.
• Capacity and Expansion: Chhattisgarh boasts a substantial thermal power generation capacity of 61,000 MW due to its abundant coal mines. The installation of captive power plants strategically has further enhanced electricity generation capabilities.
• NTPC's Contribution: The National Thermal Power Corporation Limited operates several power centers in Korba, totaling three 500 MW and three 200 MW units. This operation consumes a significant amount of coal daily and not only caters to Chhattisgarh but also supplies electricity to states like Gujarat, Maharashtra, Madhya Pradesh, and union territories such as Dadra, Nagar Haveli, Daman, and Goa.
• Key Plants and Projects
  • Hasdeo Thermal Power Station: Established in 1983, this plant on the CSEB West Bank has an impressive capacity of 840 MW.
  • CSEB East Bank: Located in Korba, this plant has the potential to generate 540 MW of electricity.
  • IBP Explosive Plant: Positioned near Korba, this plant boasts an annual capacity of 25,000 MT.
  • Bango Hydel Plant: A significant project in the state, capable of producing 120 MW of electricity.
• Raw Material Sources: The South Eastern Coal Fields (SECL) in and around Korba district are primary sources of raw materials for Chhattisgarh's thermal power plants, supported by around 12 coal mines in the state.

Mining Sector in Chhattisgarh

• Chhattisgarh's mining sector has flourished in recent years due to abundant resources like iron ore, coal, bauxite, cassiterite, and dolomite. The Chhattisgarh Mineral Development Corporation actively conducts exploration and mining activities, benefiting commercially from these rich deposits.
• Chhattisgarh's Raipur district, home to the Directorate of Geology and Mining, boasts knowledgeable personnel who provide valuable information on mineral traits and locations.
• The South Eastern Coal Fields (SECL) in Korba have significantly boosted the state's mining sector, particularly in tin, iron, dolomite, and other mineral reserves.
• Chhattisgarh's mining engineers are renowned for their exceptional skills. The collaboration between geophysicists, geologists, and geochemists is crucial for maintaining consistent performance in mining operations.
• Singhbhum and Bastar regions are emerging as jewelry and gemstone hubs, with potential diamond and gold deposits attracting private mining companies.
• Foreign investors have shown increasing interest in Chhattisgarh's mining industry, drawn by the state's favorable rules and regulations for export opportunities.
• Several mining units are establishing bases in Chhattisgarh due to the region's low production costs and promising economic returns.

Overview of Industrial Organizations in Chhattisgarh

• Chhattisgarh's industrial landscape is witnessing significant development as the state attracts major industrial players to invest in various sectors.
• The presence of key industrial organizations in Chhattisgarh highlights the state's progress and potential for further growth.

Key Industrial Organizations in Chhattisgarh:

• Bhilai Steel Plant: Sole producer of heavy steel plates and rails in India, contributing significantly to the country's infrastructure development.
• National Thermal Power Corporation Limited (NTPC): Largest thermal power generating company in India with a major coal-based power station in Korba, catering to the energy needs of the region.
• South Eastern Coalfields Limited: Leading coal producer in Chhattisgarh, playing a crucial role in the energy sector and supporting various industries.
• BALCO Aluminum Plant: Ranks as the third-largest aluminum producer in India, supplying essential materials for diverse industrial applications.
• S.E.C. Railway Zone: Facilitates efficient transportation of goods and materials, enhancing industrial connectivity within the state.

Impact of Industrial Organizations:

• These organizations serve as catalysts for fostering an industrially conducive environment in Chhattisgarh.
• They not only have established offices but also set up factories and plants, significantly contributing to the state's economic output.
• The presence of a well-developed railway zone further aids in seamless industrial communication and logistics.

Overview of Major Industries in Chhattisgarh

• Bhilai Steel Plant
• S.E.C. Railway Zone
• BALCO Aluminum Plant
• National Thermal Power Corporation Limited
• South Eastern Coalfields Limited

Chhattisgarh Real Estate Industry

• Chhattisgarh's real estate sector reflects the state's vast infrastructure potential. The industry spans a wide array of projects, from residential complexes and government buildings to tourist resorts, bungalows, and shopping centers. It presents numerous lucrative construction ventures that have the capacity to uplift the economy significantly.
• The state government of Chhattisgarh places a strong emphasis on comprehensive infrastructure development, encompassing roads, hospitals, hotels, office spaces, residential units, and public amenities like parks. Given the natural beauty abundant in Chhattisgarh's districts, private real estate developers are keen on constructing lodges, cottages, and resorts in these picturesque locations.
• Initially, Chhattisgarh's real estate sector lacked organization. However, with time, the state's tourist attractions began drawing a diverse influx of visitors, including significant interest and investments from non-resident Indians. This evolution led to the establishment of a more structured and advanced real estate landscape in the region.
• One noteworthy player in this sector is Chhattisgarh Real Estate, situated in Raipur district. This company, supported by a dedicated team of architects and designers, consistently offers competitive property deals to its clients. Several other real estate firms also promise distinctive housing and infrastructure solutions at reasonable rates. Through collaborative efforts between the state government and real estate agencies like Chhattisgarh Real Estate, the state is progressively undergoing a transformation, acquiring a fresh aesthetic and functionality.

Overview of Chhattisgarh Aluminium Sector

• Bharat Aluminum Company Limited and Other Core Units:
  • Chhattisgarh's aluminum sector comprises several core units and extrusion plants known for high-quality products.
  • For instance, Bharat Aluminum Company Limited is a prominent player producing millions of tonnes of sheets and foils.
• Contribution to State Economy:
  • These units significantly contribute to the state's economy and job market.
  • They engage a substantial portion of the local workforce, boosting income generation in the state.
• Availability of Bauxite Resources:
  • Chhattisgarh is rich in bauxite deposits, essential for aluminum production.
  • The abundance of bauxite reserves allows for surplus supply to other Indian states.
• Support from Chhattisgarh Mineral Development Corporation:
  • The corporation aids aluminum industries in the state, ensuring they overcome financial and infrastructural barriers.
  • It facilitates exploration activities and ensures all companies in the sector progress efficiently.
• Economic Impact:
  • Chhattisgarh's aluminum industry plays a pivotal role in the economic advancement of both the state and the nation.

Overview of Chhattisgarh Steel Industry

• The steel industry in Chhattisgarh plays a pivotal role in the landscape of Indian industries. Notably, the Bhilai Steel Plant is a key player, consistently producing significant amounts of steel products throughout the year. 
• The utilization of advanced machinery, tools, and equipment within the iron and steel sector of Chhattisgarh contributes to the enhancement of annual production. 
• Specializing in heavy rail plates, merchant products, and structural components, the Bhilai Steel Plant supplies various industries across India. Recognized by the Indian government as one of the premier steel plants, BSP boasts a capacity of 3.6 million tonnes, firmly establishing itself within the industrial framework of Chhattisgarh. 
• The Chhattisgarh State Industrial Development Corporation Limited diligently oversees and enhances the infrastructure of commercial units in various districts of the state. Chhattisgarh's abundant iron ore reserves, along with support from governmental and private entities, have transformed even remote areas with iron deposits into thriving industrial hubs. 
• Additionally, the state houses steel rolling mills proficient in sheet and foil manufacturing, as well as extrusions. 
• By welcoming private investors to establish new steel plants, the Chhattisgarh government has made significant strides towards positioning the state as India's premier steel hub, thereby driving economic progress within the region.