Current Affairs

General Studies Prelims

General Studies (Mains)

Chhattisgarh’s Economic Growth and Service Sector Expansion

Chhattisgarh’s Economic Growth and Service Sector Expansion

Chhattisgarh aims for a transformative economic leap by 2047. A recent NITI Aayog report targets a 14-15 fold increase in the state’s GDP from Rs 5 lakh crore to Rs 75 lakh crore. The focus is on boosting the service sector from 35% to 50% of the state GDP. This ambitious plan involves enhancing infrastructure, tourism, and technology-driven industries.

Current Economic Structure

Chhattisgarh’s economy is divided into three main sectors. Industry contributes 45%, services 35%, and agriculture 20%. The industrial sector remains strong but the service sector is the fastest growing. Agriculture, though vital, holds the smallest share. The government aims to rebalance this mix by expanding services.

Service Sector Growth Strategy

The report marks information technology, logistics, and tourism as key drivers for service sector growth. Special emphasis is placed on developing IT-enabled services such as Hindi BPOs and artificial intelligence startups. Low-cost land availability is to be leveraged to attract these companies. Skill development and human capital enhancement are core to this plan.

Tourism Development Plans

Tourism currently ranks 19th in domestic and 28th in international footfall among state of Indias. The report proposes incentives like reduced property taxes and subsidised utilities to boost tourism. Various types of tourism will be promoted, including eco, cultural, wellness, religious, heritage, adventure, and MICE (Meetings, Incentives, Conferences, Exhibitions). Selected tourist spots have been identified for focused development.

Infrastructure and Connectivity Enhancements

Raipur, the capital, is slated to become an international airport hub with direct flights to the US, Bangladesh, and the UK. Road networks will be expanded and upgraded. Ten districts currently lacking direct railway links will gain connectivity. Plans include multi-modal logistics parks, specialised terminals, cold chain facilities, and 24/7 logistics operations. These improvements aim to support industrial and service growth.

Social Equity and Human Capital Focus

The report stresses social equity and human capital development. Education, healthcare, and skill training initiatives will empower citizens and prepare the workforce for emerging sectors. This approach ensures inclusive growth alongside economic expansion.

Industrial Sector Role

Though the service sector is the focus, the industrial sector remains critical, contributing nearly half of the GDP. Its growth will continue alongside services. The report envisions a complementary relationship between industry and services for balanced development.

Long-Term Vision and Targets

The goal is a Rs 75 lakh crore GDP by 2047, a 14-15 fold increase. This requires sustained efforts across sectors. The service sector’s share rising to 50% reflects global economic trends and the state’s competitive advantages in IT and tourism.

Questions for UPSC:

  1. Critically discuss the role of the service sector in India’s economic growth and its impact on employment patterns.
  2. Examine the challenges and opportunities in developing tourism as a major economic driver in state of Indias like Chhattisgarh.
  3. Analyse the importance of infrastructure development in regional economic growth. How do logistics and connectivity influence industrial and service sectors?
  4. Estimate the effects of human capital development on social equity and economic progress in emerging state of Indias.

Answer Hints:

Leave a Reply

Your email address will not be published. Required fields are marked *

Archives