Economy, Demography and Planning of Jharkhand
2. Economic history since 1947: rich land, poor people
The belt that is now Jharkhand was already India’s industrial heartland in 1947, because the Tatas had built steel at Jamshedpur. Planned development after independence added public-sector giants on coal, power, fertiliser, machinery and steel. The table gives the dates that the commission’s questions rest on.
| Year | Event | Why it matters |
|---|---|---|
| 1907 to 1919 | Tata Iron and Steel Company registered (1907); first steel at Sakchi (1912); Sakchi renamed Jamshedpur on 2 January 1919 | Private-sector base of the belt |
| 1948 | Damodar Valley Corporation constituted (7 July 1948) | Flood control, irrigation and power; Centre, Bihar and West Bengal partners |
| 1951 | Sindri fertiliser factory begins production (31 October 1951) | Ammonium sulphate; later closed, then revived by a joint venture (dedicated 1 March 2024) |
| 1952 to 1993 | Freight equalisation policy in force | Removed the cost advantage of sitting on the minerals |
| 1958 | Heavy Engineering Corporation incorporated at Ranchi (31 December 1958) | Machinery for steel and mining |
| 1972 | First blast furnace of Bokaro Steel Plant blown in (2 October 1972) | Soviet-assisted public-sector steel; later part of SAIL |
| 1972 and 1973 | Coking coal mines nationalised (1 May 1972); other coal mines (1 May 1973) | Coal under public ownership; Coal India formed in 1975 |
| 2000 | Jharkhand formed (15 November 2000) | Mineral royalty and displacement become state questions |
Why did mineral wealth not become local prosperity? Three reasons recur in Mains answers. First, freight equalisation: the Union paid to equalise the delivered price of coal and steel everywhere, so a factory gained nothing by locating beside the mines, and processing industry moved to ports and markets while the mineral states kept extraction. Second, ownership and royalty: the Union fixes mineral royalty rates under the Mines and Minerals (Development and Regulation) Act, 1957, and the state receives royalty rather than the value added downstream. Third, enclave industry: capital-intensive steel and colliery towns drew skilled migrants, while tribal and peasant households lost land to mines, dams and plants without proportionate jobs (Chapter 6 treats displacement).
3. Census 2011: the state’s demographic profile
| Indicator | Census 2001 | Census 2011 |
|---|---|---|
| Population | 26,945,829 | 32,988,134 |
| Decadal growth, 2001 to 2011 | - | 22.4 per cent (computed) |
| Density (persons per sq km) | 338 | 414 |
| Sex ratio (females per 1,000 males) | 941 | 948 |
| Literacy rate (per cent) | 53.56 | 66.41 |
| Male literacy (per cent) | 67.30 | 76.84 |
| Female literacy (per cent) | 38.87 | 55.42 |
| Urban population (per cent) | - | 24.05 |
| Scheduled Tribe share (per cent) | 26.3 | 26.2 |
| Scheduled Caste share (per cent) | - | 12.08 |
Read the table as a story. Population grew about 22.4 per cent in the decade, faster than India’s 17.7 per cent, and density (414) stayed above the national 382. The sex ratio of 948 is above India’s 943 and rose from 941. Literacy rose by nearly 13 points to 66.41 per cent but remains below India’s 74.04 per cent; the gain was larger for women (about 16.5 points) than for men (about 9.5 points), so the gender gap narrowed from about 28 to about 21 points. About three-quarters of people (75.95 per cent) were rural. Scheduled Tribes were 26.2 per cent, almost unchanged from 26.3 per cent in 2001.
The workforce shows the economy’s structure in people (Census 2011 district tables, summed for the state). Workers were about 39.7 per cent of the population: 49.8 per cent of men but 29.1 per cent of women. Nearly half of all workers (47.9 per cent) were marginal workers, that is, they worked for less than 183 days in the year, which signals seasonal, insecure work. Among main workers, 29.4 per cent were cultivators, 18.2 per cent agricultural labourers, 3.7 per cent household-industry workers and 48.8 per cent other workers.
4. District-wise Census 2011: the required table
Census 2011 counted 24 districts (18 at formation in 2000). The table lists them in descending order of population, with Census sex ratio, literacy (persons aged 7 and above) and Scheduled Tribe share worked out from the Census primary census abstract. Density is rounded and approximate: published district densities differ by a few per cent because district area figures differ between publications, so use density only for the extremes.
| District | Population | Density (approx.) | Sex ratio | Literacy (%) | ST share (%) |
|---|---|---|---|---|---|
| Ranchi | 2,914,253 | 572 | 949 | 76.06 | 35.76 |
| Dhanbad | 2,684,487 | about 1,300 | 909 | 74.52 | 8.68 |
| Giridih | 2,445,474 | 493 | 944 | 63.14 | 9.74 |
| Purbi Singhbhum | 2,293,919 | 644 | 949 | 75.49 | 28.51 |
| Bokaro | 2,062,330 | 715 | 922 | 72.01 | 12.40 |
| Palamu | 1,939,869 | 442 | 928 | 63.63 | 9.34 |
| Hazaribagh | 1,734,495 | 488 | 947 | 69.75 | 7.02 |
| Pashchimi Singhbhum | 1,502,338 | 208 | 1,005 | 58.63 | 67.31 |
| Deoghar | 1,492,073 | 602 | 925 | 64.85 | 12.13 |
| Garhwa | 1,322,784 | 323 | 935 | 60.33 | 15.56 |
| Dumka | 1,321,442 | 351 | 977 | 61.02 | 43.22 |
| Godda | 1,313,551 | 580 | 938 | 56.40 | 21.26 |
| Sahibganj | 1,150,567 | 558 | 952 | 52.04 | 26.80 |
| Saraikela-Kharsawan | 1,065,056 | 401 | 956 | 67.70 | 35.18 |
| Chatra | 1,042,886 | 280 | 953 | 60.18 | 4.37 |
| Gumla | 1,025,213 | 191 | 993 | 65.73 | 68.94 |
| Ramgarh | 949,443 | 708 | 921 | 73.17 | 21.19 |
| Pakur | 900,422 | 497 | 989 | 48.82 | 42.10 |
| Jamtara | 791,042 | 437 | 954 | 64.59 | 30.40 |
| Latehar | 726,978 | 169 | 967 | 59.51 | 45.54 |
| Koderma | 716,259 | 282 | 950 | 66.84 | 0.96 |
| Simdega | 599,578 | 159 | 997 | 67.99 | 70.78 |
| Khunti | 531,885 | 210 | 997 | 63.86 | 73.25 |
| Lohardaga | 461,790 | 307 | 985 | 67.61 | 56.89 |
Four patterns carry most questions. Size: Ranchi is the most populous and Lohardaga the least; Dhanbad is by far the densest (above 1,000 per sq km), while Simdega and Latehar are the sparsest. Gender: Pashchimi Singhbhum (1,005) is the only district where women outnumber men, and the tribal districts of Simdega, Khunti, Gumla, Pakur and Lohardaga follow closely; the coal-industrial districts are lowest, with Dhanbad (909) at the bottom. Literacy: Ranchi (76.06), Purbi Singhbhum (75.49) and Dhanbad (74.52) lead, while Pakur (48.82) and Sahibganj (52.04) in the Santhal Pargana trail. Tribes: Khunti (73.25), Simdega, Gumla and Pashchimi Singhbhum have a tribal majority, Lohardaga (56.89) a smaller one; Koderma (0.96) and Chatra (4.37) have almost none.
5. Poverty, hunger, health and education
Poverty has been measured in two ways. The Tendulkar method (expert group report of December 2009) uses a consumption-expenditure line. The Planning Commission’s last estimate, for 2011-12 (released July 2013), put Jharkhand’s poverty ratio at 36.96 per cent (rural 40.84, urban 24.83), against 21.9 per cent for India, with state poverty lines of Rs 748 (rural) and Rs 974 (urban) per person per month. Since then the official tracker is NITI Aayog’s National Multidimensional Poverty Index, which scores households on 12 indicators in health, education and standard of living. Its baseline (NFHS-4, 2015-16) put Jharkhand at about 42 per cent, second only to Bihar; the 2023 review (NFHS-5, 2019-21) put it near 29 per cent, a large fall but still among the highest in the country.
Nutrition and health follow the same story of improvement from a low base. According to the National Family Health Surveys, child stunting fell from about 45 per cent (NFHS-4, 2015-16) to about 40 per cent (NFHS-5, 2019-21) and wasting from about 29 to about 22 per cent, yet roughly two-thirds of children aged 6 to 59 months were still anaemic in NFHS-5. The burden is heaviest in tribal and landless households, which is why the policy levers are the Public Distribution System and the National Food Security Act, 2013, Anganwadi (ICDS) nutrition, school meals and health-mission services. Unemployment is best read from the Periodic Labour Force Survey, quoted with its round and year, because the high share of marginal and seasonal work means the headline rate understates underemployment.
6. Planning, sub-plans and public finance
The Planning Commission steered the Five-Year Plans. The 10th Plan (2002 to 2007) was the first full Plan period of Jharkhand as a state, followed by the 11th (2007 to 2012) and the 12th (2012 to 2017); state outlays combined state resources, central assistance and borrowing, with emphasis on roads, power, irrigation, schools and tribal areas. The Planning Commission was replaced by NITI Aayog on 1 January 2015, and Five-Year Plans ended with the 12th Plan in March 2017.
Because Scheduled Tribes were over a quarter and Scheduled Castes about 12 per cent of the 2011 population, plan funds are earmarked for them. The Tribal Sub-Plan strategy was adopted in 1974-75, in the Fifth Plan, and the Scheduled Caste Sub-Plan (Special Component Plan) works on the same principle: a share of outlay at least in proportion to population. NITI Aayog’s guidelines of 2017 carry the idea forward as the Development Action Plans for Scheduled Tribes (DAPST) and Scheduled Castes (DAPSC).
Public finance has three sources: the state’s own revenue (SGST, state excise, stamps and registration, mineral royalty and non-tax receipts), a share of central taxes fixed by the Finance Commission under Articles 270 and 280, and grants and centrally sponsored schemes. A mineral state’s own revenue rises with royalty and the District Mineral Foundation, but it leans heavily on central transfers. To read a Budget or Economic Survey without memorising numbers, follow the steps below.
- Fix the year, the Survey or Budget document and whether figures are actual, revised or budget estimates.
- Note current versus constant prices and the base year before quoting any growth rate.
- Read the sector shares of GSVA and compare with the workforce shares to find the productivity gap.
- In the Budget, check the fiscal deficit and revenue deficit as a share of GSDP, the share of capital outlay, and committed spending on salaries, pensions and interest.
- Before the exam, refresh: latest GSDP and growth, per-capita income, sector shares and the fiscal ratios, each with its date.
Key takeaways
- Jharkhand was formed on 15 November 2000 under the Bihar Reorganisation Act, 2000, from 18 districts of Bihar; its economy is mineral-based, with industry large because of mining, services reported as the largest sector in the 2025-26 Survey (close to industry), and agriculture small in output but large in workforce.
- Mineral wealth did not become local prosperity because of freight equalisation (1952 to 1993), Union-fixed royalty and capital-intensive enclave industry; key dates are DVC 1948, Sindri 1951, HEC 1958, Bokaro 1972 and coal nationalisation 1972 and 1973.
- Census 2011: population 32,988,134, sex ratio 948, density 414, literacy 66.41 per cent (women 55.42), urban 24.05 per cent, Scheduled Tribes 26.2 per cent; the literacy gender gap narrowed from about 28 to about 21 points since 2001.
- District extremes at Census 2011: Ranchi largest, Dhanbad densest, Pashchimi Singhbhum the only district with a sex ratio above 1,000, Ranchi most literate, Pakur least literate, Khunti highest tribal share, Koderma lowest.
- Poverty: 36.96 per cent in 2011-12 on the Tendulkar line; about 42 per cent (2015-16) falling to about 29 per cent (2019-21) on NITI Aayog’s multidimensional index; the two series must never be spliced.
- Planning: the 10th Plan (2002 to 2007) was the first full Plan of the state; NITI Aayog replaced the Planning Commission on 1 January 2015; the Tribal Sub-Plan (1974-75) lives on as DAPST and DAPSC. Date-stamp every economic figure and check current against constant prices.
Practice questions (17)
Attempt each one before opening the answer. Every explanation names the tempting wrong option as well as the right one, because that is where marks are lost.
According to Census 2011, which Jharkhand district had the largest population?
Show answer
Answer: A — Ranchi
Ranchi had 2,914,253 persons at Census 2011, ahead of Dhanbad (2,684,487) and Giridih (2,445,474). Dhanbad is the tempting answer because it is the most densely populated district, but density and total population are different measures.At Census 2011, in which one of the following districts did females outnumber males, that is, the sex ratio was above 1,000?
Show answer
Answer: B — Pashchimi Singhbhum
Pashchimi Singhbhum recorded 1,005 females per 1,000 males, the only district above 1,000. Simdega (997) is close but falls short, which makes it the tempting distractor, while Purbi Singhbhum (949) and Saraikela-Kharsawan (956) are well below.As a share of the district’s own population at Census 2011, which district had the highest proportion of Scheduled Tribes?
Show answer
Answer: C — Khunti
Khunti had about 73.3 per cent Scheduled Tribes, ahead of Simdega (70.8), Gumla (68.9) and Pashchimi Singhbhum (67.3). All four are tribal-majority districts, so the answer rests on the exact ranking, not on which district is “most tribal” in popular image.Consider the following statements about Jharkhand at the Censuses of 2001 and 2011.
P: The sex ratio rose from 941 in 2001 to 948 in 2011.
Q: The density of population in 2011 was lower than the density of India (382).
R: The Scheduled Tribe share in 2011 was slightly lower than in 2001.
S: Female literacy in 2011 was above 60 per cent.
Which statements are correct?Show answer
Answer: D — P and R only
P is correct (941 to 948) and R is correct (26.3 to 26.2 per cent). Q is wrong: Jharkhand’s density of 414 is above India’s 382. S is wrong: female literacy was 55.42 per cent, below 60.Match each Census 2011 feature with its Jharkhand district.
P: Lowest literacy rate
Q: Highest literacy rate
R: Highest Scheduled Tribe share
S: Lowest Scheduled Tribe share
(i) Koderma
(ii) Khunti
(iii) Pakur
(iv) RanchiShow answer
Answer: A — P-iii, Q-iv, R-ii, S-i
Pakur had the lowest literacy (48.82 per cent), Ranchi the highest (76.06), Khunti the highest Scheduled Tribe share (73.25) and Koderma the lowest (0.96). Swapping the two literacy districts or the two tribal-share districts gives the wrong pairings.At Census 2011 a Jharkhand district recorded a sex ratio of 1,005, a literacy rate of about 58.6 per cent and a Scheduled Tribe share of about 67 per cent. Which district is it?
Show answer
Answer: B — Pashchimi Singhbhum
Only Pashchimi Singhbhum (1,005; 58.63 per cent; 67.31 per cent) fits all three figures. Simdega has a higher literacy (67.99) and tribal share (70.78) and a sex ratio of 997, and Gumla’s sex ratio is 993, so the sex ratio alone rules them out.In the Census, a “marginal worker” is a person who worked:
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Answer: C — for less than 183 days (six months) in the preceding year
A marginal worker worked for less than 183 days (six months) in the preceding year; a main worker worked for 183 days or more. In Jharkhand about 48 per cent of all workers were marginal in 2011, which shows seasonal, insecure work. The wage and landownership options are not part of the definition.Which of the following was NOT set up in the Chotanagpur-Santhal Pargana belt between 1947 and 1975?
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Answer: D — Tata Iron and Steel Company at Sakchi (registered 1907)
The Tata company was registered in 1907, long before independence, so it is the one that was not set up in the 1947 to 1975 period. The Damodar Valley Corporation, Sindri and Heavy Engineering Corporation all belong to the post-independence planned phase.Arrange in chronological order.
P: Freight equalisation policy introduced
Q: Heavy Engineering Corporation incorporated at Ranchi
R: Damodar Valley Corporation constituted
S: First blast furnace of Bokaro Steel Plant blown inShow answer
Answer: A — R, P, Q, S
The order is R (DVC, 1948), P (freight equalisation, 1952), Q (Heavy Engineering Corporation, 1958) and S (Bokaro blast furnace, 1972). Placing the Corporation before the freight policy, or Bokaro before the Corporation, are the common slips.Which best explains why the freight equalisation policy (1952 to 1993) disadvantaged mineral-rich states such as the part of Bihar that became Jharkhand?
Show answer
Answer: B — It equalised the delivered price of coal and steel, so locating a factory near the mines lost its cost advantage
By equalising the delivered price of coal and steel across the country, the policy let factories locate near markets and ports, so the mineral states lost the advantage of sitting on the resource. It was a transport-price policy, not an export duty, an investment ban or a royalty rule.As per the Planning Commission’s July 2013 estimate for 2011-12 using the Tendulkar methodology, Jharkhand’s combined (rural and urban) poverty ratio was closest to:
Show answer
Answer: C — 37 per cent
The estimate was 36.96 per cent (rural 40.84, urban 24.83), so 37 per cent is closest. The figure of about 22 per cent is the national ratio (21.9 per cent) for the same year and is the tempting distractor.In NITI Aayog’s national multidimensional poverty baseline report (based on NFHS-4, 2015-16), which two states had the highest and second-highest proportion of multidimensionally poor people?
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Answer: D — Bihar highest, Jharkhand second
The baseline gave Bihar about 52 per cent (51.91) and Jharkhand about 42 per cent (42.16), so Bihar was highest and Jharkhand second. Reversing the first two misreads the ranking; the other options name states or orders that the baseline does not support.Consider the following statements about planning.
P: The Tribal Sub-Plan strategy was adopted in 1974-75, during the Fifth Five-Year Plan.
Q: NITI Aayog replaced the Planning Commission with effect from 1 January 2015.
R: The 11th Plan (2007 to 2012) was the first full Plan period of Jharkhand as a separate state.
S: NITI Aayog’s guidelines of 2017 carry the sub-plan idea forward as DAPST and DAPSC.
Which statements are correct?Show answer
Answer: A — P, Q and S only
P, Q and S are correct. R is wrong: the first full Plan period after the November 2000 formation was the 10th Plan (2002 to 2007), not the 11th. Choosing options that include R, or that leave out Q, fails on those points.Using the figures below, by how many percentage points did the gap between male and female literacy in Jharkhand narrow between Census 2001 and Census 2011?
Census 2001: male 67.30 per cent, female 38.87 per cent.
Census 2011: male 76.84 per cent, female 55.42 per cent.Show answer
Answer: B — About 7.0 points
The gap was 67.30 − 38.87 = 28.43 points in 2001 and 76.84 − 55.42 = 21.42 points in 2011, so it narrowed by about 7.0 points. The 16.5 points is only the rise in female literacy and 9.5 only the rise in male literacy; 21.4 is the 2011 gap itself.A mineral-rich state reports fast real GSDP growth, yet its per-capita income stays well below the national average. Which explanation fits Jharkhand’s structure best?
Show answer
Answer: C — Much output comes from capital-intensive mines and plants employing few local people, while many workers remain in low-productivity farming and marginal work
Per-capita NSDP divides total state output by population. When high-value output comes from capital-intensive mines and plants while about half of main workers depend on cultivation or farm labour and many are marginal workers, the average stays low. The population grew about 22 per cent in 2001 to 2011, and the other options are false statements about the measure.Which relation among state income measures is correct?
Show answer
Answer: D — NSDP is GSDP minus depreciation
NSDP is GSDP less consumption of fixed capital (depreciation). GSDP is GSVA plus product taxes minus product subsidies, so the option that subtracts product taxes from GSVA reverses the signs. Constant prices remove inflation, and per-capita NSDP divides, not multiplies, by population.Which pair of districts both had a sex ratio above 990 females per 1,000 males at Census 2011?
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Answer: A — Pashchimi Singhbhum and Simdega
Pashchimi Singhbhum (1,005) and Simdega (997) are both above 990. Pakur (989) misses by one point and Lohardaga (985) by five, Dumka (977) and Saraikela-Kharsawan (956) are lower, and Ranchi (949) and Purbi Singhbhum (949) lower still.