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General Knowledge
Why is Jharkhand still a poor state?

Introduction
Jharkhand is one of the resource- rich states in India, and its tag is “Land of Forests.” It is the Eastern part of the country with precious mineral resources, like coal, uranium, or iron ore, copper, mica, bauxite, and even more. Jharkhand has a unique blend of natural beauty in the form of dense forests, waterfalls, and wildlife. These things make it an emerging destination for eco-tourism.
All these along with natural advantages, Jharkhand is still one of the poorest states in India. The paradox of a state so rich in resources but poor in development is such a complex issue. Its roots are running deep into the social, economic, and political factors of its being.
This article will discuss some of the key reasons for this unfortunate situation of Jharkhand being amongst the many others facing unending affliction by poverty.
Resource Mismanagement and Corruption
Forty percent of the mineral reserves in India are kept in the states of Jharkhand, most of them are unexplored or misused. Value addition from the mining sector of the state contributes to comparatively major portions of total mineral production in the country but so far, the local population has not benefited proportionately from this resource wealth. Malpractices in the allocation of mining rights, illegal mining, and environmental degradation have made it challenging to ensure that this sector achieves sustainable growth.
Instead of the same wealth from these resources reaped in development projects such as infrastructure, health, and education, corrupt practices siphon away the wealth. Large parts of the population are deprived of basic amenities in Jharkhand.
Lack of Industrial Development
Although Jharkhand is heavy with rich raw materials, it has not witnessed strong industrial growth that could transform its economy. However, there are some large-scale units available in the state, for example- Tata Steel in Jamshedpur along with the Bokaro Steel Plant. But according to its potential it should develop more.
Since large-scale industries are not scarce, employment opportunities for locals are relatively few. Most residents move to other states for job purposes, causing high rates of out-migration and brain drain. As a result, poverty continues to be a problem in the state despite having enormous natural wealth.
Tribal Displacement and Social Inequality
The tribal population that lives in Jharkhand is large and Adivasis- indigenous communities constitute a quarter of its population. These communities are under the marginal group and are far from mining and industrial projects. Large-scale displacement with no proper rehabilitation will create social unrest and the loss of livelihood for many tribal families.
The erstwhile Adivasis who had remained in harmony with nature now find themselves between the forces of industrialization and poverty. While the government schemes designed for uplifting them have not seen alleviation of problems such as lack of education, healthcare, or employment, social inequality is very deep in their lives, thereby widening the gulf between the rich and the poor.
Poor Infrastructure and Connectivity
The state of Jharkhand is under-developed in infrastructure, mainly in rural areas. Roads, electricity, and clean drinking water are not accessible to a large population. The poor connectivity in the internal regions of the state prevents easy transportation of goods and services, thereby impeding economic development.
Due to inadequate or even absent healthcare and education facilities in remote areas, people lack primary access to essential services. Without adequate infrastructure, the state was almost unable to attract investments and industries that would have brought jobs and elevated the economy.
Educational Deficiencies and Skill Gaps
Education is an important stimulus for economic development; however, this state lags in providing quality education to the youth. Literacy rates in the state are way below national averages, and dropout rates-a problem from the rural and tribal regions-are quite high. This further adds to unskilled labor and makes the attraction of high-tech industry or increase in productivity in existing sectors a rather cumbersome process.
One vicious cycle, it seems, is that of skilled labor. Unskilled, uneducated, and untrained, the young people of Jharkhand can hardly climb the ladder to higher-paid jobs. Thus, only a long-term possibility of low-wage employment or migration into neighboring states looms ahead, thereby locking them into poverty.
Naxalism and Political Instability
The fact is that Jharkhand is one of the worst states of India, which has been severely affected by the Naxalite-Maoist insurgency that for a long period of time has been posing a challenge and influencing the entire rural and tribal areas of the state. It has posed a security threat, deterred investments, and disrupted governance in certain regions. The root cause has been socio-economic inequalities in which a sense of alienation can be felt among the tribals regarding the government’s neglect of them.
Moreover, political instability is also a chronic issue in Jharkhand. Constant changes of government since 2000 when it became a separate state have even hampered long-term planning for development and governance. Incompatible policies and delayed developmental projects are the direct fallout of unstable leadership.
Environmental Degradation
While such mineral wealth offers the promise of economic prosperity, severe environmental degradation through the mining process has marred the political economy of such development. Mining and deforestation have degraded land, polluted water sources related to agriculture, and affected the livelihoods of rural people. The state environment, an asset for tourism and agriculture, thus has turned into a source of conflict and further impoverishment.
Conclusion: The Way Forward for Jharkhand
There is no denying Jharkhand’s potential. Mineral reserves abound in the state, rich cultural heritage, and natural beauty-such resources can be tapped to drive development forward. But that is only possible if we address the structural impediments to the state’s advancement.
Improving governance, reducing corruption, and ascertaining that natural resources may actually benefit the local population. Investment in education, healthcare, and infrastructure will be essential for granting the state’s population all the opportunities to break this cycle of poverty, while achieving growth in industries and ensuring environmental sustainability is the need of the hour. Rehabilitation and inclusion processes must be contained within it, empowering the tribal population.
In Jharkhand, poverty can turn into prosperity. That would be possible if efforts by the government, private sector, and civil society will be made to ensure the benefit of all citizens’ wealth in the state.