Bhupesh’s Feat: Chhattisgarh makes rural miracle

Bhupesh Baghel

R Krishna Das

Raipur, December 17

In making rural India economically more attractive, it is instructive to look at the model of Chhattisgarh Chief Minister Bhupesh Baghel who completes two years in office.

Chhattisgarh’s socio-economic transformation over the past two years has been dazzling. Once a primarily agricultural economy, the state metamorphosing into a global industrial hub at the forefront of cutting edge hi-tech, is now back on the conventional model.

Indeed, the state holds up as a role model for mass job creation at a time the nationwide COVID-19 lockdown-triggered migrant exodus that exposed the stark duality of India – an urban class in its bubble of opulence created by three decades of economic liberalisation, insulated from the harsh reality of life in rural India.

Two years are not a big tenure to assess the accomplishment of any government. While Bhupesh Baghel was putting things in order after taking over as the state’s Chief Minister on December 17, 2018, the global economy devastated following COVID-19 pandemic that hit early 2020. Surprisingly, Chhattisgarh bucked the trend as the state’s economy swiftly got back on track.

According to economists, the slew of measures taken by the Bhupesh Baghel government to empower the rural economy, infusing over Rs 25,000 crore, in the first year made the miracle.

It included waiving off farm loans worth Rs 9000 crore and paying over Rs 15,000 crore to 1.8 million farmers for procuring about 8.5 million tonnes of paddy at Rs 2500 a quintal during the kharif marketing season 2019-20.

The number of farmers who sold paddy also increased by 15.87 per cent in the state. It included an increase of 5.80 per cent small farmers and 10.31 per cent marginal.

Besides, a number of schemes were also floated that not only strengthened the economy but also generated employment. Rajiv Gandhi Kisan Nyay Yojna and Godhan Nyay Yojana were path breaking schemes targeting small and marginal farmers.

“Ahead of lockdown, the rural pockets in Chhattisgarh were flooded with huge cash that facilitated the national trend of economy crisis,” the economists added. The surge in automobile sales besides purchase of jewellery and land registration was a major indicator of Chhattisgarh’s economic growth amidst the pandemic.

The total merchandise exports from Chhattisgarh were US$ 1,278.9 million in FY20 and US$ 754 million in FY21.

At current prices, Gross State Domestic Product (GSDP) of Chhattisgarh is estimated at Rs. 3.62 trillion (US$ 51.83 billion) in 2020–21. GSDP (in Rs.) of the state at current prices will grow at a CAGR of 9.97% between 2015–16 and 2020–21.

Chhattisgarh’s rural economy would continue to grow. For, the state has allocated 16.6 per cent of its total budget towards agriculture and allied activities.  This is significantly higher than the average allocations by states (7.1 per cent).

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