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India By State - Jharkhand - State Overivew

State Overview

Economic Snapshot

Capital Ranchi
Area (sq km) 75,000
Population (Census 2001, million) 26.9
Literacy Rate (%) 54.13
NSDP Growth (2000-01 to 2008-09) 12 per cent
NSDP at current prices in 2008-09 US$ 14.2
Annual Per Capita Income at current prices in 2008-09 541
National Highways Length (km) 1,805
Rail Length (km) 1955
Domestic Airports Ranchi
Key Industries Jharkhand industries are primarily based upon the availability of natural resources across the state. Thus the workforce is engaged in agriculture, forest produce, animal husbandry, and household husbandry and mining/quarrying. Various other industries of work include: artisans, craftsmen, metallurgy, paper, printing and packaging, food and beverage companies and some developing pharmaceutical industries.

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The young state of Jharkhand born in 2000 is located in Eastern India, covering the geographical area of 79.70 lakh hectares of land. Jharkhand was considered an independent state after the announcements of India's Independence and the city fought for their separation from Bihar's previous ownership. Surrounding the state of Jharkhand are some popular states of India including Bihar to the North, Chhattisgarh to the West, Orissa to the South and West Bengal located to the East. In comparison to many of the states which are expanding and developing immensely, Jharkhand remains full of forests, supporting the population of many animals to live in their natural habitat. This can also help explain the reason why Jharkhand is popularly distinguished as Vanachal- the land of woods. Due to the richness of natural resources found across Jharkhand's forest lands and woods, there is an ample supply of natural resources. The Chota Nagpur Plateau stretches out across the states of Jharkhand and surrounding states, hence Jharkhand has a rich supply of water shed which contribute towards the states natural minerals (iron, copper ore and mica) and red soil production, rich in fertilizing plants and crops.

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The population stats identify there are 26, 909,428 citizens residing in Jharkhand, according to the census 2001. These results signify a rise in population by 23.19% since the last census recorded in 1991 for Jharkhand. The results not only indicate a rise within Jharkhand, however an astonishing rise in comparison to the population increases of India which was only a mere 21.19% increase. As a result, Jharkhand stands at the 13th highest populated state. The sex ratio is 941 females to 1000 males.

Population Demographics:

  • Population Density: 338 inhabitants per square km
  • Male Population: 13.86 million
  • Female Population: 13.04 million
  • Urban Population: 22.25%
  • Gender Ratio: 941 females to 1000 males
  • Literacy Rate: 53.6%
  • Male Literacy Rate: 67.3%
  • Female Literacy Rate: 38.9%
  • Religion: 31 different tribal groups across the state with Hinduism religious influences hence 70% speaking Hindi and 10% Bengalis.

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Jharkhand is a small state developing immensely. Although economic progress is slow, progress is nevertheless steady and Jharkhand continue to find ways of growing and expanding. As the state is rich in natural resources and core minerals, Jharkhand's revenue and ample economy derives from this particular trade, which has undoubtedly proved successful as 20048-09 stats indicated a promising 16.5 billion GDP. The successful effects of agricultural support have assisted the state in developing agricultural based industries, some of which are chief organizations, fundamentally having a greater impact on the boost of economy. The food processing industry is full of potential and extremely favorable because the state has a surplus supply of naturally grown crops and vegetables including mushrooms, tea ornamental plants and spices. As Jharkhand is surrounded by plantation forests and is rich in woodlands, the state is capable of continuously growing food production, increasing agricultural production which in turn signifies a fluctuation in state economy and provides greater job opportunities. This is supported by the agricultural revenue sector which indicates, 75% of citizens depend on this.

Including the agricultural benefits, Jharkhand have not hesitated to launch urban-type industries which can assist the state flourish further because economic growth is not possible without them. In addition assist with the total industrial output of the country. Jamshedpur, the largest state of Jharkhand supports the industrial developments vastly and was the first city to launch the iron and steel factory, with the profound resource of iron and steel this factory still remains and further factories have been introduced to Jharkhand including the famous TATA steel plant and corporate office (TISCO).

The capital of the state, Ranchi is also important for trade and commerce and the development of Industrial companies and manufacturing shellac which contribute to the boom in state economy too. An example of this taking place is the formation of the Heavy Engineering Corporation, which has been established since 1958 as one of the largest Integrated Engineering complex's in India.

In 2008-09, the tertiary sector's share in GSDP was 43.2 per cent (US$ 6.4 billion). It was followed by the secondary sector's contribution of 33.2 per cent (US$ 4.9 billion).

The secondary sector has been the fastest growing with an average growth rate of 19.3 per cent. The growth has primarily been driven by manufacturing.

The tertiary sector has had an average growth rate of 11.1 per cent, driven by services. The primary sector's contribution has fallen after the separation of Jharkhand from Bihar, which resulted in the state retaining a bulk of the combined industrial units, but losing the fertile Gangetic plains that became a part of the parent state (Bihar).However, Jharkhand retains the minerals and mining areas, which are the key contributors to the primary sector.

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Physical Infrastructure



Jharkhand's capital Ranchi consists of a major airport with connecting flights to Delhi, Patna, Kolkata and Mumbai. The primary airport is based in the capital of Ranchi is Chakulia Airport which is based in Purbi Singhum District within Jharkhand. Ranchi is also aiming to develop an air cargo specifically for the transport of heavy goods and materials. Private airlines such as Kingfisher Airlines and Air Sahara also have regular flights to all major states and recently Jharkhand.


Jharkhand serves for one of the major ports of India, known as Paradip Port, also extended to Orissa, West Bengal, Bihar and Chhattisgarh since 1966. It is the eighth major port of India, which makes it the largest of the East. The main purpose of this port is to transport heavy cargo goods from one state to another, functioned under the Ministry of Shipping Road Transport.


TAs a result of Jharkhand's popular mining industry, the state provides an ample range of modern railway systems. Due to the extensive amount of rail networks, Jharkhand offers exporting availabilities at Ranchi, Bokaro, Dhanbad and Jamshedpur.

Road Transport

Transport by road throughout Jharkhand is easily accessible, and has a number of national highways and state highways.

New projects have been set out to further improve the road structure of Jharkhand, aiming to provide access to Assam and the North East, whilst providing a wider range of travelling opportunities within East India, the state is also paying a crucial role with enhancing bypasses and road bridges over rivers to facilitate for the efficient movement of goods and equipment quicker and easier. By means of opening new roads, undoubtedly there will be more travelers utilizing the road networks, hence will increase a number of citizens to the Jharkhand.

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Jharkhand's electricity supply consisted of 4050 kW, although distributed by the state, 4000kW of Tilayia SHP was owned by DVC and 50 kW of portable micro hydel sets was owned by Bihar State Hydro Electric Power Corporation. Electricity supply in the state was divided separately, with two transmission zones: Ranchi Transmission Zone and Dumka Transmission service. Whereby the Ranchi zone transmitted from Ranchi across to Jamshedpur and the Dumka zone transmitted from Deoghar to Dumka. Despite two transmission zones the state only provided electricity for 45% of villages.

Since Jharkhand's gained independence, it has been possible for the Jharkhand State Electricity Board to be created and power supplies have significantly improved through improvements to grid stations, transmission lines and distribution. Jharkhand State Electricity board aim to supply to all villages, for those villages which are under privileged the state electricity board provide them with free electricity.


Although the state is still experiencing developmental difficulties, they have developed their very own Jharkhand Telecom Circle, established as, Bharat Sanchar Nigam Limited (BSML), aiming to provide affordable telecom services. To elaborate, the service provides communications to six different districts in Jharkhand, has 492 telephone exchanges, a fantastic 1.26 million working telephone connections. They also have 16044 pay phones, 7 internet nodes and 21607 internet connections. These results indicate the vast telecommunication improvements the state serves and with the service continuing to expand BSML continue to improve communication networks, faster internet connections and offer more job opportunities within the developing infrastructure.

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Social Infrastructure


Education is of high importance across the state, despite offering a range of learning disciplines to all citizens, the literacy rate is of a low 54.13% indicating educative concerns. The stats reveal a higher literacy rate amongst males of 67.94% in comparison to females 39.38%, hence the state look to focus on a higher and balanced literacy rate, although 5 districts are above the literacy rate.

Since the states given independence, they have always had education as an important priority, launching the Jharkhand Education Council Project which focuses on four projects aiming to spread elementary education.

Interestingly, primary education has become very accessible, providing 95% schooling beginning at the age of 5 until the age of 14 implemented under the Sarva Shiksha Abhiyan- assisting to universalize education. Majority of the education taught on a daily basis is in their first language- Hindi; however students are encouraged to learn and speak English as another major language, amongst Oriya, Urdu and Bangla.

Although the standards of teaching vary across the state, Jharkhand has many privately run schools some of which are named as the best schools in the country. These include: Denobili School, Jamshedpur and Little Flower School and Loyola School.

Once students have completed there primary education they are encouraged to complete intermediate courses for 2yrs+ in educative sectors such as Arts, Science and Commerce. The intermediate course allows students to gain foundation level knowledge about their particular course and gives students the opportunity to take on degree level education for 3 or 4 years.

Universities in Jharkhand offer a variety of courses with non technical courses located in the city and the best business school situated in Jamshedpur. Jharkhand has four main universities: Ranchi University, Birsa Agricultural University, Siddhu Kanhu University and in Dumka Vinoba Bhave University. The state also offers course specific colleges and universities (medical) for students wishing to pursue scientific and health related professions.

The Government of India will be introducing the Indian Institute of Management, to be launched in the states capital- Ranchi, which will join the various other IIM pools situated across India.


Almost 80% of Jharkhand's population are farmers and 40% of the land is full of rich minerals. Despite this, Jharkhand remains one of the poorest states suffering from health conditions.

Jharkhand has 330 primary health centres (PHCs), 3,958 sub-centres, 24 district-level hospitals, 10 sub-division hospitals and three medical college hospitals.

The broad objectives of the state's health department include enhancing maternal-and child-healthcare, stabilising population growth and improving nutritional status.

The state stresses upon the empowerment of women and inclusion of non-profit organisations in order to achieve its objectives. The State Government has drafted a policy for establishment of super-speciality hospitals, medical and nursing colleges, and paramedical institutes.

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Industrial Infrastructure


Ranchi is the capital of Jharkhand, and is known as the Manchester of the East. Although Jharkhand accounts for 40% of the rich minerals, Ranchi consists of 50% of rich minerals alone, hence the name 'Manchester'. Ranchi has one domestic airport known as Birsa Munda Airport. It is connected with some of the major cities including New Delhi, Mumbai and Chandigarh. An ever-growing Industrial city, Ranchi has developed trade and commerce institutions, Heavy Engineering Corporation and Shipping Corporation of India.


Dhanbad is another prime city in Jharkhand and is referred to as the 'Coal capital of India', which makes Dhanbad the 79th growing city in the world. As a growing city the population is increasingly fluctuating too making Dhanbad one of the 35 cities of India with a population over a million. Dhanbad is a prominent hub for coal mining with a 112 coal mines and has some of the best mining industries : Tata Steel, BCCL and IISCO.


Hazaribagh is known as the city plentiful of beautiful locales and surroundings. Hazaribagh has the 2nd largest coal mining industry of Jharkhand, and are working on large projects such as the Super Thermal Power Project. Due to the increasing economy this city has made, it is now developing its first railway network providing excellent rail connectivity to different parts of the city or other cities. Due to the cities natural beauty, it is also a popular tourist attraction offering Hazaribagh National Park, the Hazaribagh lake and Canary Hill for nature lovers.


The City of Chirkunda is one of the other most popular cities working in the coal mining industry. There are 53% males and 47% females residing, with the official language spoken being Hindi.

Other major industries within this city include coke making, food processing, retail and service industry. Due to the location of Chirkunda, this city has many large business houses heir to Kharkias, Choudharys and Gadhyans whom own large industrial companies such as Shree Ganesh Hardcoke, Fatka Refactories, Maithan Ceramics and Arun Fuels,to name a few.

Development Potential

The new state of Jharkhand has developed immensely since its initial independence. The state's cities provide a number of facilities utilizing natural resources and increasing economic development. However, it should be noted developments are nevertheless required to keep up to pace with westernized cultures of larger cities such as New Delhi and Mumbai.

Although the economic value and natural strengths of minerals and coal industries are the primary source of income for many farmers and the state, Jharkhand is still in need of developing greater retail industries including boutiques and kiosk to increase global trade and investment.

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More Information on Jharkhand

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