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Ltd. www.macrographics.com Acknowledgements This report has been prepared by the World Bank in response to a request from the Department of Economic Affairs (DEA) of the Ministry of Finance (MoF), Government of India (GoI) to provide non-lending technical assistance (NLTA) to the Ministry of Urban Development (MoUD), GoI and the Department of Industrial Policy and Promotion (DIPP) of the Ministry of Commerce and Industry (MoCI), GoI towards the formulation of development options along the Eastern Dedicated Freight Corridor (EDFC). This NLTA became possible through funding provided to the World Bank by the Australian Agency for International Development (AusAID)–World Bank Partnership for South Asia and the Korean Green Growth Trust Fund (KGGTF). The World Bank team wishes to thank Dr. Sudhir Krishna, IAS, Secretary, MoUD, GoI for initiating the effort and Mr. Anand Bhal, IES, Economic Advisor and Ms. Nandita Mishra, IES, Director (MoUD), GoI for facilitating the work in the initial stages. The team acknowledges the leadership and support from Mr. Amitabh Kant, IAS, Secretary, DIPP, MoCI, GoI; Mr. Saurabh Chandra, IAS, former Secretary, DIPP, MoCI, GoI; Ms. Aditi Ray, IES, Senior Economic Advisor, DIPP, MoCI, GoI; Ms. Vinita Aggarwal, IES, Economic Advisor, DIPP, MoCI, GoI and Dr. Mohan Chutani, IES, Economic Advisor, DIPP, MoCI, GoI. The NLTA received support and encouragement from Onno Ruhl, India Country Director of the World Bank, Jack Stein, Sector Director, and Jyoti Shukla, Senior Manager, South Asia Sustainable Development Network as well as Ming Zhang, Sector Manager of the World Bank’s South Asia Urban Unit. This report was put together by a multi-sector team of the World Bank consisting of Parul Agarwala, Sangmoo Kim, Barjor Mehta, Peter Ellis, David Dowall, Mark Roberts, Songsu Choi, Sang Hyun Cheon, Augustin Maria, Ireena Vittal, Vibhu Jain, Jon Kher Kaw and Jyoti Sriram from the Urban Unit; Yannick Saleman and Bertine Kamphuis from the Finance and Private Sector Unit; Ben Eijbergen, Atul Agarwal, and Rakhi Basu from the Transport Unit; Denis Medvedev from the Economic Policy Unit; and Vinay Vutukuru from the Agriculture Unit. The report is based on the work by M/s. CRISIL Risk & Infrastructure Solutions (CRIS) Ltd. for an Identification and Diagnostic Study of the six corridor states. Ms. Sheela Bajaj provided editorial services and M/s. Macro Graphics Pvt. Ltd. rendered graphic design and printing services. Acknowledgements iii Context The main rail corridors in India are part of the ‘Golden Quadrilateral’ connecting New Delhi, Mumbai, Chennai and Kolkata. They account for 16 percent of the railway network’s route length but carry more than 60 percent of its freight load. Recognizing that the rail sector urgently needs to add capacity to these routes, the Government of India has, therefore, approved a long-term plan to build dedicated freight-only lines, parallel to the existing Golden Quadrilateral passenger and freight mixed traffic routes. The new freight network will allow trains to carry more freight, faster, with greater reliability and at lower cost. The relief on the existing lines will allow improvements in passenger services. On completion, the total corridor railway capacity will double, thereby unleashing further economic activities and job growth. The first two dedicated freight corridors (DFCs) to be built were the Western and Eastern Corridors. The Western Corridor (Delhi-Mumbai), which is 1,499 km long and funded by the Japan International Cooperation Agency (JICA), is in the early stages of implementation. The Eastern Corridor is 1,839 km in length and extends from Ludhiana to Kolkata, traversing the states of Punjab, Haryana, Uttar Pradesh, Bihar, Jharkhand and West Bengal. The World Bank support for the Eastern Dedicated Freight Corridor (EDFC) was conceived as a series of projects in which three sections (total length 1,176 km, including the Khurja-Dadri section) would be delivered sequentially, but with considerable overlap in their construction schedules. The first loan (EDFC1) in the EDFC Program was approved by the World Bank in May 2011 and is already being implemented. The second loan (EDFC2) for the line from Kanpur to Mughal Sarai was approved by the World Bank in April 2014 and is also being implemented. The table below provides information on the three EDFC sections which are supported by the World Bank. The remaining 663 km of the EDFC is proposed to be funded by the Government of India and Public Private Partnerships. World Bank Funded Eastern Dedicated Freight Corridor (EDFC) Projects Section Length (km) Number of Tracks Cost (US$ million) EDFC1 Khurja-Kanpur 343 Double 1,453 EDFC2 Kanpur-Mughal Sarai 393 Double 1,650 EDFC3 Ludhiana-Khurja-Dadri 397+43DL Single 1,399 Total EDFC Program 1,176 4,502 The Government of India believes that the large investments being made in developing the EDFC will lead to large-scale job growth and overall economic development in the six Corridor states. Based on an initial concept note prepared by the Ministry of Urban Development (MoUD), Government of India, the Department Context v of Economic Affairs (DEA) of the Ministry of Finance, Government of India requested the World Bank to provide non-lending technical assistance (NLTA) to prepare options for developments along the EDFC. The initial work by the World Bank on the NLTA was directed and coordinated by the MoUD, Government of India. Subsequent work by the World Bank is being coordinated by the Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry, Government of India. The Uttar Pradesh state-specific work is being conducted in close collaboration with the Department of Infrastructure and Industries, Government of Uttar Pradesh. vi Demographic and Economic Overview of the Corridor States Contents Abbreviations ix Executive Summary xi 1. Introduction 1 Purpose and Objectives 1 Structure 2 2. Overview of the Six Corridor States 3 Rapid Population Growth in the Corridor States 3 High Concentration of Poverty in Uttar Pradesh and Bihar 3 Low Human Development Performance 4 Economic Performance in the Six Corridor States  7 3. State-Level Overview  11 Punjab 11 Haryana 14 Uttar Pradesh 15 Bihar 18 Jharkhand 21 West Bengal 23 4. Conclusion 27 List of Tables Table 1: Long and healthy life - health index  5 Table 2: Knowledge - education index 6 Table 3: Gender equality index 7 Table 4: Economic growth rate in 2011-12 (as percentage of GDSP growth) 8 Table 5: Summary of social and economic profile of the Corridor States 10 List of Figures Figure 1: Freight Corridors in India, Europe and USA 1 Figure 2: Decadal population growth rate, 2001-2011 3 Figure 3: Urbanization rate in the Corridor States, 2011 3 Figure 4: Poverty map showing higher incidence of poverty in UP and Bihar, 2010  4 Figure 5: Construction of Human Development Index  4 Figure 6(a): Lower Human Development Index in UP, Bihar and Jharkhand 5 Figure 6(b): Relatively high Human Development Index in Punjab, Haryana and West Bengal 5 Figure 7: Gender equality - gender equality index 6 Figure 8: Economic performance in the Six Corridor States (GDSP) 7 Figure 9: Correlation between poverty and per capita GDSP 8 Figure 10: GDSP distribution by sector, 2010-11 8 Figure 11: District share of state GDSP in primary sector (agriculture), 2010-11 8 Contents vii Figure 12: District share of state GDSP in secondary sector, 2010-11 9 Figure 13: District share of state GDSP in tertiary sector, 2010-11 9 Figure 14: Punjab: Population growth rate at the district level between 2001 and 2011 12 Figure 15: Urban spatial patterns, Punjab, 1999-2010 12 Figure 16: GDSP contribution by sector, Punjab, 2009-2010 12 Figure 17: Location quotients in three sectors, Punjab  13 Figure 18(a): Composition of total commodity movement, Punjab  13 Figure 18(b): Movement of commodity, Punjab, 2006-2007  13 Figure 19: Commodity movement through rail, Punjab 14 Figure 20: Haryana: Population growth rate at the district level between 2001 and 2011 14 Figure 21: Urban spatial patterns, Haryana, 1999-2010 14 Figure 22: GDSP contribution by sector, Haryana, 2011-2012 15 Figure 23(a): Composition of total commodity movement 15 Figure 23(b): Movement of Commodities, Haryana, 2006-2007 15 Figure 24: UP: Population growth rate at the district level between 2001 and 2011 16 Figure 25: Urban spatial patterns, UP, 1999-2010  16 Figure 26: GDSP contribution by sector, UP, 2010-2011 17 Figure 27: Location quotients in three sectors, UP, 2010-2011 17 Figure 28(a): Composition of total commodity movement, UP, 2006-2007 18 Figure 28(b): Movement of commodities, UP, 2006-2007 18 Figure 29: Commodity movement through rail, UP, 2006-2007 18 Figure 30: Bihar: Population growth rate at the district level between 2001 and 2011 19 Figure 31: Urban spatial patterns in Bihar, 1999-2010 19 Figure 32: GDSP contribution by sector, Bihar, 2010-2011 19 Figure 33: Location quotients in three sectors, Bihar, 2010-2011 20 Figure 33(a): Composition of total commodity movement, Bihar 20 Figure 33(b): Movement of commodities, Bihar, 2006-2007 20 Figure 34: Commodity movement through rail, Bihar, 2006-2007 20 Figure 35: Jharkhand: Population growth rate at the district level between 2001 and 2011 21 Figure 36: Urban spatial patterns, Jharkhand, 1999-2010 21 Figure 37: GDSP contribution by sector, Jharkhand 22 Figure 38: Location quotients in three sectors, Jharkhand, 2008-2009 22 Figure 39(a): Composition of total commodity movement, Jharkhand, 2006-2007 23 Figure 39(b): Movement of commodities, Jharkhand, 2006-2007 23 Figure 40: Commodity movement through rail, Jharkhand 23 Figure 41: West Bengal: Population growth rate at the district level between 2001 and 2011 24 Figure 42: Urban spatial patterns, West Bengal, 1999-2010 24 Figure 43: GDSP contribution by sector, West Bengal, 2009-2010 24 Figure 44: Location quotients in three sectors, West Bengal, 2009-2010 25 Figure 45(a): Composition of total commodity movement, West Bengal, 2006-2007 25 Figure 45(b): Movement of commodities, West Bengal, 2006-2007 25 Figure 46: Commodity movement through rail, West Bengal, 2006-2007 26 List of Boxes Box 1: GDSP in primary sector in 2011-12 (INR billion) 9 Box 2: GDSP in secondary sector in 2011-12 (INR billion) 9 Box 3: GDSP in tertiary sector in 2011-12 (INR billion) 9 Box 4: Industrial products and districts, Haryana  15 Box 5: Industrial products and districts, Bihar 20 Box 6: Industrial sector by districts, Jharkhand 22 Box 7: Industrial sector by districts, West Bengal 25 viii Demographic and Economic Overview of the Corridor States Abbreviations AKIC Corridor Amritsar-Kolkata Industrial Corridor CSO Central Statistics Organization DMSP-OLS Defense Meteorological Satellite Program-Optical Line Scanner GDP Gross Domestic Product GDSP Gross Domestic State Product GoI Government of India HDI Human Development Index IMR Infant Mortality Rate MMR Maternal Mortality Rate NCR National Capital Region NFHS National Family Health Survey ONGC Oil and Natural Gas Corporation Limited POL Mineral Oil UNDP United Nations Development Program UP Uttar Pradesh USA United States of America WDFC Western Dedicated Freight Corridor Abbreviations ix Executive Summary This report provides an overview of the current UP, Bihar and Jharkhand are identified as the ‘Least demographic and economic profiles of the six Corridor Developed States’, with significant concentration of states, namely Punjab, Haryana, Uttar Pradesh (UP), poverty as well as low levels of human development Bihar, Jharkhand, and West Bengal. Approximately which is one of the key challenges to prosperity and 40 percent of India’s population is concentrated in poverty alleviation. these six states, and increasing rapidly at growth rates higher than the national average. The Amritsar-Kolkata In all six states, the economy is dominated by the Industrial Corridor (the Corridor) traverses these tertiary sector which comprised over half their Gross six states and opens up opportunities for balanced Domestic State Product (GDSP) in 2011. Although social and economic development by increasing the the agriculture sector’s contribution to the state GDP connectivity between them, and providing backbone declined in all these states between 2005 and 2010, a rail linkage from Kolkata to Mumbai via the Western disaggregated analysis of the 13 economic subsectors Dedicated Freight Corridor (WDFC). Over the past reveals that agriculture and allied activities still decade, the economy of each of these six states constitute a high proportion of GDP in Punjab, UP and became structurally transformed, with Bihar, Haryana, West Bengal. On the other hand, mining in Jharkhand and West Bengal in particular witnessing high Gross and trade, hotels, and restaurants are dominant in Domestic Product (GDP) growth rates. Haryana and Bihar. Approximately 135 million tonnes of commodities such as coal, petroleum and oil, food Several underlying challenges pertaining to poor grains, cement, iron and steel, and raw materials human development indicators, inadequate were moved within the states in 2005-2006. With infrastructure, and uneven resource allocation could the exception of Jharkhand, the inbound movement impede full realization of the potential of investments of commodities was larger than the outbound in regional infrastructure along the Corridor. These movement in all these states. states have a high concentration of poverty and weak human development performance in terms of health, Despite the economic and social diversity of the six education, gender equality, and standard of living. states, the development of the Corridor promises to There are also distinct spatial disparities in terms of generate substantial economic potential across the six- urbanization, human development and economic state region. A key factor in leveraging the connectivity performance. Thus, Punjab, Haryana and West Bengal, benefits of the Corridor will be the strategic location which have the highest share of population in urban and development of industrial and logistics centers areas, also have high per capita GDP. Conversely, along the alignment to generate growth hubs. Executive Summary xi 1. Introduction Purpose and Objectives benefit 480 million persons residing in these states. In comparison, the European Rail Freight Corridor Punjab, Haryana, UP, Bihar, Jharkhand, and originates in the Netherlands, crosses six countries West Bengal, with their high concentration of and spans 1,200 km, while the Crescent Corridor in the population, agricultural productivity and growing eastern coast of USA covers a distance of 2,100 km. The manufacturing activities are economically important Corridor presents a timely development opportunity for India. The construction of the Corridor has the for the six states. potential to increase inter-state connectivity as well as regional linkages with Bangladesh, Pakistan, and the The purpose of this report is to provide an overview port of Mumbai, which could in turn spur economic of demographic trends, human development activity and regional integration. indicators, and economic structure in the six states, as a preliminary repository of data and analysis. The Corridor is one of the largest infrastructure projects This report is intended to help identify detailed in India and globally comparable with the Crescent technical assistance, better inform policy priorities Corridor in the United States of America (USA) and the and well-targeted investment decisions that leverage European Rail Freight Corridor. The Corridor stretches planned and ongoing infrastructure projects such as 1,839 km, traversing six states in India, and will the Corridor. Figure 1: Freight Corridors in India, Europe, and USA Detroit Boston Chicago Providence Dublin Cleveland New York Hamburg Ludhiana Rotterdam Pittsburgh Berlin IndianapolisColumbus New Jersey Amsterdam Cincinnati New Delhi N E P A L London GERMANY St. Louis Washington Faridabad Brussels Louisville KathmanduThimphu Jaipur Agra Lucknow Prague Richmond Kanpur Luxemburg CZECH Nashville Allahabad Patna Raleigh Varanasi Dhaka Paris REPUBLIC Memphis Charlotte Munich Vienna Rajkot INDIA Chittagong BirminghamAtlanta Vaduz AUSTRIA F R A N C E Berne Nagpur Kolkata Ljubljana Nasik Milan Zagreb Mumabi Aurangabad Pune San New Orleans Genova Marino Hyderband Visakhapatnam Eastern Dedicated Freight Corridor, India European Rail Freight Corridor, Europe Crescent Corridor, USA (Ludhiana-Kolkata) (Rotterdam-Genova) (New Jersey-New Orleans) Length: 1,839 km Length: 1,200 km Length: 2,100 km Source: World Bank, 2013. 1. Introduction 1 Structure The report is structured as follows: (1) Introduction; overview of demographic and economic (2) Overview of the six Corridor states encompassing development performance, disaggregated urbanization, poverty, human development economic structure, and commodity movements; performance, and economic profiles; (3) State-level and (4) Conclusion. 2 Demographic and Economic Overview of the Corridor States 2. Overview of the Six Corridor States Rapid Population Growth in the are in proximity with the National Capital Region (NCR), have a high and more balanced distribution of Corridor States urban population, whereas in Bihar and Jharkhand, the urban population is concentrated near the state According to the Census of India, the population of India capitals, namely Patna and Ranchi. was 1.2 billion in 2011 with approximately 31.3 percent residing in urban areas. The Corridor states are among the most populated in the country, inhabited by High Concentration of Poverty in approximately 40 percent of India’s population. With Uttar Pradesh and Bihar the exception of Bihar and West Bengal, these states have experienced rapid population growth compared There is a high incidence of poverty, measured as with the average annual growth rate of 1.76 percent in persons living on less than US$ 1.25 per day, in the India (see Fig. 2). Corridor states, except Punjab and Haryana where the average poverty rate is 18 percent. Based on statistics Among the Corridor states, Punjab, Haryana, and from the Planning Commission, the population living West Bengal, which are located at the two ends of the below the poverty line is 53 percent in Bihar, 39 percent Corridor, have the highest share of people living in urban areas, at 37 percent, 35 percent, and 32 percent, respectively. Bihar, in contrast, is the least urbanized Figure 3:  Urbanization rate in the Corridor States, 2011 state with only 11 percent of the population residing in urban centers, as defined by the Government of Legend Corridor India (GoI). The western parts of the Corridor, which State Boundary Punjab Urbanization Rate < 10% Figure 2: Decadal population growth rate, 2001-2011 10~20% Haryana 20~30% 30% 30~40% 25% > 40% INDIA 20% 17.64% Uttar Pradesh 15% Bihar 10% 5% 0% Jharkhand West Bengal UP Bihar Punjab Haryana W. Bengal Jharkhand N Source: Census of India, 2001 and 2011. Source: Census of India, 2001 and 2011. 2. Overview of the Six Corridor States 3 Figure 4:  Poverty map showing higher incidence of and Haryana are classified as ‘Relatively Developed’, poverty in UP and Bihar, 2010 West Bengal as ‘Less Developed’, and UP, Bihar and Jharkhand as ‘Least Developed’ (Ministry of Finance, Percentage of Poor ($1.25 PPP) EDFC GoI, September 2013). 0.18-0.28 Punjab 0.28-0.39 0.39-0.49 0.49-0.60 Low Human Development Haryana Performance Uttar Pradesh The slow progress in human development indicators is one of the key challenges to prosperity and poverty Bihar alleviation in the country, which are not benefiting from GDP growth accompanying urbanization (discussed Jharkhand West Bengal for each state in the next section). According to the Human Development Index (HDI) published by the N United Nations Development Program (UNDP) in 2012, India ranked 136 out of 186 countries globally, Source: World Bank staff calculations based on World Development Indicators, 2010. compared to 119 out of 169 countries in 2010. This in Jharkhand, and 37 percent in Uttar Pradesh, which decline in the HDI indicates the need for extensive is well above the national average of 29.8 percent. The improvement in basic health, education, and equality. incidence of poverty in West Bengal at 26.7 percent is only three percent lower than the national average. The following paragraphs compare the HDI across the Corridor states using an index based on the A close examination of the variation in poverty levels UNDP HDI methodology. This index aggregates the among the Corridor states shows that almost half the following four dimensions which were selected to population is living below the poverty line in Bihar and accommodate available data and social context the eastern parts of UP (see Fig. 4). Jharkhand and the at the state level in India: (i) long and healthy life; central parts of UP also have poverty rates which are (ii) knowledge; (iii) gender equality; and (iv) standard higher than 39 percent, and are also higher than the of living. Each dimension consists of related average in the Corridor states. Of the six states, Punjab indicators (see Fig. 5). Figure 5: Construction of Human Development Index DIMENSIONS Long and Healthy Life Knowledge Life Expectancy INDICATORS Infant Mortality Enrolment Rate: at Birth (2011) Literacy Rate (2011) Rate (2011) Primary Level (2010) DIMENSION INDEX Health Index Education Index DIMENSIONS Gender Equality Standard of Living INDICATORS Sex Ratio Gender Equality Male-Female Maternal Violence against GDSP per Capita Below Proverty (2011) at Primary Literacy Rate Mortality Females (2011-12) Line (2011) School Level Ratio (2011) Rate (2009) (2005-06) (2005-06) DIMENSION INDEX Standard of Living Index Health Index Source: World Bank staff calculations, 2013. 4 Demographic and Economic Overview of the Corridor States The six states are benchmarked against Maharashtra The ‘Long and Healthy Life’ dimension consists of two which is one of the ‘Relatively Developed’ states criteria, namely life expectancy and Infant Mortality Rate identified by the Ministry of Finance, GoI. Maharashtra (IMR). Life expectancy at birth in Bihar, Jharkhand, and was selected on the basis of its population size, UP was 66.0, 63.0, and 65.6 years, respectively in 2011, area, and ongoing development of WDFC. The ‘Least and significantly lower than 73.4 years in Maharashtra. Developed States’ (UP, Bihar, and Jharkhand), with All Corridor states had high IMR relative to Maharashtra high concentration of poverty, have lower human in 2011. Specifically, the IMR at 57 per 1,000 live births development performance in all dimensions as in UP was more than twice as high as Maharashtra’s IMR compared with Maharashtra (see Fig. 6(a)). at 25 per 1,000 live births (see Table 1). Figure 6(a): Lower Human Development Index in UP, Bihar and Jharkhand HDI HDI HDI 1.00 1.00 1.00 0.80 0.80 0.80 0.60 0.60 0.60 Standard 0.40 Health Standard 0.40 Health Standard 0.40 Health of Living 0.20 of Living 0.20 of Living 0.20 0.00 0.00 0.00 Gender Education Gender Education Gender Education Uttar Pradesh Bihar Jharkhand Maharashtra Maharashtra Maharashtra Source: World Bank staff calculations based on various sources, 2005-2012. Figure 6(b): Relatively high Human Development Index in Punjab, Haryana and West Bengal HDI HDI HDI 1.00 1.00 1.00 0.80 0.80 0.80 0.60 0.60 0.60 Standard 0.40 Health Standard 0.40 Health Standard 0.40 Health of Living 0.20 of Living 0.20 of Living 0.20 0.00 0.00 0.00 Gender Education Gender Education Gender Education Punjab Haryana West Bengal Maharashtra Maharashtra Maharashtra Source: World Bank staff calculations based on various sources, 2005-2012. Table 1: Long and healthy life - health index Health State Life expectancy (2011) Infant mortality rate (2011) Sub-index (years) (per 1,000 live births) Punjab 74.5 30.0 0.81 Haryana 72.9 44.0 0.74 Uttar Pradesh 65.6 57.0 0.62 Bihar 66.0 44.0 0.68 Jharkhand 63.0 39.0 0.68 West Bengal 70.2 32.0 0.77 Maharashtra 73.4 25.0 0.82 Source: Data on life expectancy, HDI Report, UNDP, 2011; Data on infant mortality, Family Welfare Statistics in India, 2011. 2. Overview of the Six Corridor States 5 Table 2: Knowledge - education index Education State Literacy rate (2011) Gross enrollment ratio: Sub-index (%) primary level (2010) (%) Punjab 79.9 96.0 0.88 Haryana 76.6 99.7 0.88 Uttar Pradesh 71.7 96.0 0.84 Bihar 63.8 84.3 0.74 Jharkhand 67.6 92.4 0.80 West Bengal 77.1 100.0 0.89 Maharashtra 80.1 100.0 0.90 Source: Data on literacy rate, NFHS, 2011; Data on gross enrollment ratio: primary level, Family Welfare Statistics in India, 2011. Figure 7: Gender equality - gender equality index Sex Ratio Maternal Mortality Rate 1,000.0 (Females per 1,000 males, 0-6 yrs) (per 1,00,000 live births) 400.0 950.0 350.0 300.0 900.0 250.0 846 200.0 850.0 834 150.0 800.0 100.0 50.0 750.0 0.0 Bihar Bihar Punjab Haryana Punjab Jharkhand W. Bengal Maharashtra Uttar Pradesh Haryana W. Bengal Jharkhand Maharashtra Uttar Pradesh Source: Census of India, 2012. Source: Data Portal India (2011, http://planningcommission.gov.in). Violence against Female Gender Inequality at Primary School (Percentage of married women age 15-49 who (Gender Parity Index data from DISE (2007)) have ever experienced physical, sexual violence) 1.00 60 Physical Violence .95 50 Sexual Violence .90 40 .85 30 .80 20 .75 10 .70 0 Bihar Bihar Punjab Punjab Haryana Haryana W. Bengal W. Bengal Jharkhand Jharkhand Maharashtra Maharashtra Uttar Pradesh Uttar Pradesh Gender Equity in Education: A Review of Trends and Factor, 2008, Source:   ender Equality and Women’s Empowerment in India, NFHS-3, Source: G NUEPA. 2005-06. In terms of education, all Corridor states face huge diminishing their potential to participate in the work challenges, performing far below Maharashtra. Bihar force and enjoy a healthy and safe life. The ‘gender had the lowest literacy rate of only 63.8 percent and equality’ dimension captures gender discrimination 84.3 percent gross enrollment at the primary school in the areas of education, health, and violence against level, followed by Jharkhand (see Table 2). women. The ‘violence against women’ indicator measures the percentage of married women in the Human development issues have been more age group 15-49 years who have experienced physical challenging, particularly for women in the country, and sexual violence. 6 Demographic and Economic Overview of the Corridor States Table 3: Gender equality index Gender Sex ratio, Gender Difference Maternal Violence against Sub- State 0-6yrs (2011) inequalities between male- mortality rate females (2005-06) index (females per at primary female literacy (2009) Physical Sexual 1,000 males) school level rate (2011) (% (per 10,000) (2005-06) points) Punjab 846 0.86 9.0 172.0 23.7 6.8 0.80 Haryana 834 0.91 18.0 153 25.6 7.2 0.75 Uttar Pradesh 902 0.91 20.0 359.0 41.4 9.2 0.66 Bihar 935 0.80 19.0 261.0 56.0 19.3 0.64 Jharkhand 948 0.90 22.0 261.0 34.6 12.4 0.69 West Bengal 956 0.98 11.0 145.0 31.6 21.1 0.77 Maharashtra 894 0.90 12.0 104 30.4 8.2 0.79 Source: Sex ratio, Male-female literacy rate ratio, Census of India, 2011; Gender inequalities at the primary school level - A Review of Trends and Factors, 2008, NUEPA; Maternal mortality rate, Data Portal India, 2009; Violence against females, NFHS-3, 2005-06. The inequality in education between men and women Economic Performance in the is measured by the difference between male and female literacy levels. In Jharkhand, female literacy Six Corridor States level is 22 percentage points lower than the male literacy level. Bihar and UP also fare poorly in terms In 2012-13, the six Corridor states accounted for of literacy rates as compared with Punjab and 28.6 percent of the country’s GDP and 40 percent Maharashtra. The Maternal Mortality Rate (MMR) of the population. Among them, UP and West in Jharkhand, UP, and Bihar was particularly high Bengal have the highest GDP, at INR 676 billion and compared with Maharashtra and other Corridor states. INR 549 billion respectively, more than twice that These three states also showed a high incidence of of Punjab. However, the per capita share of GDP in violence against females according to the National both UP (INR 26,234) and West Bengal (INR 47,373) Family Health Survey (NFHS) (see Fig. 7 and Table 3). is lower than Punjab (INR 73,084). Furthermore, the economic productivity of different districts in UP and Bihar is highly disparate, and is concentrated in Figure 8:  Economic performance in the Six Corridor the districts within close proximity of the Corridor or States (GDSP) state capitals. Legend EDFC_Line State The GDSP growth rates of Haryana, Bihar, and West Punjab 40-100 Bengal were higher than the national average, and 100-200 200-500 the lowest in Punjab (see Table 4). In particular, Haryana 500-1000 Bihar experienced an annual GDSP growth rate of 1000-3700 25.2 percent, more than four times that of India as a Uttar Pradesh whole. This is a peculiar trend where significantly high poverty rates and low GDSP per capita occur alongside Bihar high growth rates of GDSP. Jharkhand West Bengal The correlation between the poverty rate and GDSP per capita is strong for the six states (see Fig. 9).The N GDSP per capita in Bihar, UP, and Jharkhand is markedly low with a high proportion of people living Source: Directorate of Economics and Statistics of each state, 2011. below the poverty line. 2. Overview of the Six Corridor States 7 Table 4: Economic growth rate in 2011-12 (as percentage of GDSP growth) State Punjab Haryana UP Bihar Jharkhand West Bengal India GDSP growth rate (%) 5.60 8.12 6.23 25.20 6.60 8.40 6.88 Source: Directorate of Economics and Statistics of each state, 2011. Figure 9:  Correlation between poverty and per Figure 10: GDSP distribution by sector, 2010-11 capita GDSP 6,000 GDP Per Capita in Rs. below Poverty Line 1,20,000 % of Population 1,00,000 5,000 80,000 41.4 60,000 40.3 32.8 30.7 40,000 24.7 GDSP (in billions, INR) 14 4,000 20,000 8.4 0 Haryana Punjab Uttar Pradesh Bihar Jharkhand W. Bengal Maharashtra 3,000 2,000 Source: Directorate of Economics and Statistics of each state, 2011. 1,000 In all six states, the economy is led by the tertiary or 0 services sector which comprised more than half of Haryana Bihar Jharkhand Punjab Uttar Pradesh W. Bengal the total GDSP of each state in 2011(see Fig. 10). The share of the tertiary sector in Bihar and Haryana is significantly high, accounting for more than 70 percent Other Services Public Admin, Defence & Quasi-Govt. Bodies Real Estate, Ownership of Dwellings & Business Services Banking & Insurance Trade, Hotels & Restaurants  istrict share of state GDSP in primary Figure 11: D Transport, Storage & Communication Construction sector (agriculture), 2010-11 Electricity, Gas & Water Supply Manufacturing- Unregistered Manufacturing- Registered Mining & Quarrying Legend Fishing Forestry & Logging Agriculture District’s share of State’s Industrial GDDP 0.00-0.005 Source: Reserve Bank of India, 2011-12. Punjab 0.005-0.012 0.012-0.023 0.023-0.043 and 60 percent of the state GDSP, respectively. At the Haryana 0.043-0.253 subsector level, agricultural activities are the largest contributors to the overall GDSP of Punjab, UP, and Uttar Pradesh West Bengal. The registered manufacturing sector is relatively large in Haryana as compared with the other Bihar states. The industrial sector is almost non-existent in Bihar, while trade, hotels and restaurants are the Jharkhand West Bengal dominant subsectors. N Almost 60 percent of the land in all six states comes under agricultural use, the only exception Source: Directorate of Economics and Statistics of each state, 2011. being Jharkhand which has more than 40 percent Punjab: 2nd largest producer of wheat & 3rd largest producer of cotton of area under forest cover. In West Bengal and UP, Haryana: Cotton comprises approx. 10% of total production of the state the primary sector share of GDSP is almost twice Uttar Pradesh: Largest producer of sugarcane, wheat; 2nd largest in rice that of the other four Corridor states (see Box 1). Bihar: Largest producer of vegetables and litchi in country The agricultural productivity of the districts in Jharkhand: Accounts for 9% of total value of national mineral Punjab and West Bengal is higher than in UP, and production West Bengal: Largest producer of rice, raw jute and mesta; this could be attributed to high cropping intensity of 2nd largest in tea these terminal states. 8 Demographic and Economic Overview of the Corridor States Box 1:  GDSP in primary sector in 2011-12 the NCR (see Fig. 12). Secondary sector activity in (INR billion) West Bengal is higher in the districts through which the Corridor traverses and in areas closer to the Punjab: 665 UP: 1,570 Jharkhand: 243 Ganges delta. Haryana: 523 Bihar: 450 West Bengal: 1,044 As with the primary and secondary sectors in the Corridor states, UP, and West Bengal have high shares West Bengal, UP and Haryana have the largest GDSP of the tertiary sector in GDSP. Figure 13 illustrates in the secondary sector among the six Corridor states. each district’s contribution to the state’s GDSP for However, there are large variations in productivity the tertiary sector. In all states, the districts with large within each state. In UP, the contribution of each urban centers or higher secondary sector activity also district to the state’s GDSP is much lower relative have correspondingly larger shares of tertiary sector to other states but higher in the districts closer to activity (see Fig. 13). Box 2:  GDSP in secondary sector in 2011-12 Box 3:  GDSP in tertiary sector in 2011-12 (INR billion) (INR billion) Punjab: 338 UP: 550 Jharkhand: 163 Punjab: 1,022 UP: 3,134 Jharkhand: 526 Haryana: 404 Bihar: 91 West Bengal: 407 Haryana: 1,456 Bihar: 1,472 West Bengal: 2,877 Figure 12:  District share of state GDSP in the Figure 13:  District share of state GDSP in the tertiary secondary sector, 2010-11 sector, 2010-11 Legend Legend District’s share of District’s share of State’s Services GDDP State’s Industrial GDDP 0.00-0.007 Punjab 0.00-0.008 Punjab 0.007-0.011 0.008-0.014 0.011-0.019 0.014-0.026 0.019-0.036 Haryana Haryana 0.026-0.042 0.036-0.435 0.042-0.229 Uttar Pradesh Uttar Pradesh Bihar Bihar Jharkhand Jharkhand West Bengal West Bengal N N Source: Directorate of Economics and Statistics, 2010-11. Source: Directorate of Economics and Statistics, 2010-11. Punjab: Food products and beverages, textiles, basic metals, Haryana: Asia’s largest textile wholesale market in Rohtak machinery-leading sectors for investment Uttar Pradesh:  18.3% of domestic tourists-highest in India; 9.7% of Haryana: Automobiles and auto components, IT/ITeS, textiles, agro- foreign tourists in India, ranks fourth based, oil refining - key industries Jharkhand: Contributes 1.3% of total domestic and 0.4% of total Uttar Pradesh:  Food products, chemical, rubber & plastics, metal, paper - international tourists in India main investment sectors West Bengal: 2.6% of domestic tourists and 6.2% of foreign tourists in Jharkhand: Produces over 20% of country’s steel; large sericulture India base and leading tussar (non-mulberry silk) producer West Bengal: Contributes 10% of country’s steel production; 55% of national leather exports originate in state; tea, petroleum, other major industries. 2. Overview of the Six Corridor States 9 Table 5: Summary of social and economic profile of the Corridor States Bihar Haryana Jharkhand Punjab UP West Bengal Area (sq km) 94,163 44,212 79,714 50,362 240,928 88,752 Population (2011) 103,804,637 25,353,081 32,966,238 27,704,236 199,581,477 91,347,736 Population density 1,102 573 414 550 828 1,029 (persons per sq km) Decadal population growth rate 25% 20% 22% 14% 20% 14% (2001-2011) Sex ratio 916 877 947 893 908 947 Urban population 11,729,609 8,821,588 7,929,292 10,387,436 44,470,455 29,134,060 Urbanization level 11% 35% 24% 37% 22% 32% (ratio of urban to total population) Cities with population Patna Faridabad Dhanbad, Amritsar, Meerut, Kolkata, > 1 million, 2011 Ranchi Ludhiana Varanasi, Howrah Lucknow, Kanpur, Allahabad, Agra Area under agricultural use 57% 81% 16% 83% 69% 61% (percent of total) Area under non-agricultural use 23% 13% 17% 10% 14% 21% (percent of total) Per capita income 25,262 122,007 36,215 93,641 33,875 60,196 Below poverty line (percent, 2009-10) 53.5 20.1 39.1 15.9 37.7 26.7 Literacy rate (percent, 2004-05) 54 68 60 67 58 68 Workforce participation ratio 33.7 39.62 37.52 37.47 32.48 36.77 Total workers (in thousands, 2011) 26,681 89,157 26,137 138,311 194,701 107,021 Gross state domestic product, 262,230 309,326 119,386 259,424 676,083 549,876 (in INR billion, current 2011-12) Total GDP 2011-12 (in INR billion) 2,013 2,393 932 2,025 5,254 4,327 Primary 22% 22% 26% 33% 30% 24% Secondary 5% 17% 17% 17% 10% 9% Tertiary 73% 61% 56% 50% 60% 66% GDP per capita (2011-12) 19,389 94,369 28,275 73,084 26,324 47,373 GDP growth rate (India @6.88%) 25.2% 8.1% 6.6% 5.6% 6.2% 8.4% 10 Demographic and Economic Overview of the Corridor States 3. State-Level Overview This section provides a broad description of each to or greater than 1.25 are highlighted on the map. Corridor state organized as follows: (A) Demographic This representation assists in identifying which overview; (B) Economic overview; and (C) Commodity industries are unique in a district as also their movement by rail. agglomeration in the state. A. Demographic overview C. Commodity movement by rail This includes a description of the decadal population This covers the composition and movement of food growth trends at the district and regional levels, grains, coal, fertilizers, containers, cement, mineral and in major metropolitan areas within each state. oil (POL), raw materials, iron and steel, and other Urbanization within the states is related to the goods. The inbound, outbound, and inter-state concentration of population in urban areas as well movement of various commodities is represented as spatial expansion. Satellite imagery capturing the graphically. The volumes of inbound and outbound intensity and extent of night time lights between 2001 commodities at the district level are also provided and 2010 represents the trends in spatial expansion. for each state. The data is based on satellite imagery secured from the Defense Meteorological Satellite Program-Optical Line Scanner (DMSP-OLS). Punjab A. Demographic overview B. Economic overview Punjab is one of the ‘Relatively Developed’ states This focuses on the major sectors driving the state’s in India with a total population of approximately economy and changes in the economic structure 27.7 million in 2011, according to the Census of India. between 2005 and 2010. A snapshot of the state’s Ludhiana and Amritsar are the only two million plus economy, disaggregated by 13 subsectors, is cities in the state, with annual population growth included to provide a refined distribution of GDP rates in their respective districts lower than the state in the state’s economy. Location quotients, which (2.52 percent) or national average (1.74 percent) measure the concentration of a subsector or industry (see Fig. 14). Overall, the population growth rate of in a district relative to the state, are also provided. the northern part of the state is below the national The location quotient is calculated as a ratio of the average. The Corridor traverses through three densely sector’s share of GDP in the district to the sector’s populated districts, namely Ludhiana, Fatehgarh share of GDP in the state, where possible. The Sahib, and Patiala, which constitute 22 percent of the districts in which the location quotient was equal state’s population. 3. State-Level Overview 11 Figure 14:  Punjab: Population growth rate at the Figure 16 shows the disaggregated distribution district level between 2001 and 2011 of GDSP across sectors. The agriculture sector Corridor district (29 percent), registered and unregistered Population Growth Rate between 2001 and 2011 Northern Region Southern Region manufacturing (17 percent), and trade, hotels and 34.95 restaurants (12 percent) held the highest portions of 29.95 GDSP in 2010. Punjab contributes almost 31 million 24.95 tonnes, (3.4 percent) to India’s total agricultural 19.95 production, which is supported by its high net sown 14.95 area, standing at 82.5 percent, compared with the 9.95 national average of 43 percent. Almost 65 percent of 4.95 the secondary sector comprises food products and 0.05 Gurdaspur Sahibzada Ajit Singh Nagar Shahid Bhagat Singh Nagar Bathinda Firozpur Sangrur Jalandhar Rupnagar Kapurthala Patiala Tarn Taran Ludhiana Fatehgarh Sahib Hoshiarpur Muktsar Barnala Faridkot Mansa Moga Amritsar Figure 15:  Urban spatial patterns, Punjab, 1999-2010 Growth rate of night-time lights Log base e of average DN Source: Census of India, 2001 and 2011. Positive 3.2 to 0.5 Growth rate 0.5 to 0 Negative 0 to (-0.5) A high proportion of Punjab’s population resides in Growth rate (-0.5) to (-2.9) urban areas, giving it an urbanization rate of 37 percent. In most districts, the level of urbanization is between 25 percent and 35 percent. In the northern region of the state, Amritsar and Jalandhar have the highest levels of urbanization. This trend is also reflected in the spatial patterns of growth observed from night time lights maps (see Fig. 15). In Amritsar, urbanization increased by 19.32 percent between 1999 and 2010. Similarly, SAS Nagar and Patiala have the highest concentrations of urban population in the southern region of the state. Patiala shows 45.91 percent urban Figure 16:  GDSP contribution by sector, Punjab, expansion between 1999 and 2010. 2009-2010 Other Real Estate Services B. Economic overview Ownership Public of Dwellings & Admin 10% Business Services 5% 5% Agriculture The economy in Punjab is dominated by the tertiary Banking 29% sector (CSO, 2010) which drives almost 42 percent of & Insurance 5% the state’s GDSP, followed by agriculture (31 percent), Communication 1% and manufacturing (27 percent). Punjab is the second Storage 0% Forestry & Logging largest producer of the main staples, namely wheat Transport 2% by other Fishery and rice and also exports the largest volume of food means Railways 0% 3% 1% grains. However, the primary sector’s contribution Mining & Quarrying 0% to GDSP declined by 8 percent between 2005 and Trade, Hotels Registered & Restaurants Manufacturing 2010. During the same period, the contribution of 12% Electricity, 10% Gas & Water the secondary sector increased from 25 percent to Construction 8% Supply Unregistered 2% Manufacturing 31 percent, reflecting underlying shifts in the structure 7% of the state’s economy. Source: Economic Advisor, Government of Punjab, 2009-2010. 12 Demographic and Economic Overview of the Corridor States Figure 17:  Location quotients in three sectors, (1.9). Fatehgarh Sahib and Ludhiana also specialize in Punjab electricity, gas, and water supply subsectors with high location quotients. Legend State The state provides special incentives to promote LQ_Tertiary (>=1.25) 1.25-2.0 industrial development in Amritsar, Tarn Taran, Amritsar 2.01-3.0 Firozpur, and Gurdaspur along its western boundary. LQ_Secondary (>=1.25) Amritsar and Tarn Taran districts are also centers of Jalandhar 1.25-2.0 major tourist activity. Firozpur 2.01-3.0 Ludhiana Roopnaga Moga LQ_Primary (>=1.25) 1.25-2.0 Patiala 2.01-3.0 C. Commodity movement by rail Sangrur LQ < 1.25 Mansa LQ < 1.25 The main commodities that either originate or enter the state are food grains, coal and fertilizers, which Source: World Bank calculations, 2013. account for almost 77 percent of total commodity movements (see Fig. 18a). Almost all the food grains beverages, textiles, basic metals, fabricated metal are exported from the state, primarily to Assam, products and machinery and equipment, which West Bengal, Karnataka, Maharashtra, and UP. The emerge as the main subsectors. state’s main imports by volume are coal, fertilizers and cement, which originate in Jharkhand, Gujarat, and The spatial dynamics of the economic sectors can be Rajasthan. Nearly the full requirement of iron and steel, understood by means of the location quotients. The and raw materials is imported into the state, although tertiary sector is dispersed across the state as none of these form a small percentage of the total commodity the districts are areas of tertiary sector concentration movement. The only three commodities that are moved (see Fig. 17). The southern belt of the state has a high within the state are fertilizers, POL, and cement. concentration of agriculture and animal husbandry and other agricultural subsectors. Mining related Figure 19 shows the inbound and outbound shares activity is concentrated in the districts of Roopnagar, of commodities moved by rail in each district. Overall, SAS Nagar, and Gurdaspur and fishing is concentrated 55 percent of the goods movement by rail is outbound in Firozpur and Amritsar districts with high location and 45 percent is inbound. The districts within 120 km quotients of 5.26 and 5.76, respectively. Manufacturing of the Corridor, namely Ludhiana, Nawan Shahar, and activity is concentrated in Ludhiana (1.8) and Moga Fatehgarh Sahib have higher shares of inbound Figure 18(a): Composition of total commodity movement, Punjab Figure 18(b): Movement of commodities, Punjab, 2006-2007 100 4% 3% 0% 90 4% 80 44% 5% 70 Food Grain 33% 60 Coal 50 7% 1% Fertilizer 40 Containers 30 Cement 20 55% 12% 10 POL 0 Other Goods Fertilizer Containers Food Grain Coal Iron & Steel POL Raw M Steel Grand Total Cement Other Goods Iron & Steel Raw M Steel 32% From Punjab to other States Punjab to Punjab Other States to Punjab Source: Indian Rail Freight Movement Database, 2006-07. 3. State-Level Overview 13 Figure 19:  Commodity movement through rail, Punjab also traverses two districts, Ambala and Yamuna Nagar, which accommodate 9 percent of the state’s Legend population. EDFC Line2 EDFC Buffer_120% Sum of Fields Approximately 40 percent of the NCR falls within Gurdaspur 4,100 Haryana. As a result, 35 percent of the state’s population Amritsar Hoshiarpur is concentrated in urban areas. Southern Haryana, Out grand total Kapurthala In grand total which is in the immediate vicinity of Delhi, has a high Tarn Taran Jalandhar Kapurthala urbanization rate. From the night time lights data, Nawan Shahar the spatial expansion is occurring more rapidly in the Rupnagar Moga Ludhiana rh immediate vicinity of the NCR and along the eastern ga ehb Firozpur Faridkot at F ah i S A S Nagar boundary of the state leading into Punjab (see Fig. 21). Barnala S Muktsar Bathinda Sangrur Patiala Mansa N B. Economic overview Haryana has undergone a structural shift in its economy Source: Indian Rail Freight Movement Database, 2006-07. with the tertiary and secondary sectors becoming dominant contributors to the state’s GDSP, more commodity movement, while Jalandhar, Sangrur, than 50 percent of which accrues from the tertiary and Patiala, have a larger proportion of commodities sector in which trade, hotels, and restaurants form a leaving the districts. major portion, namely 22 percent of the overall GDSP (see Fig. 22). The manufacturing sector is the second largest sector (18 percent), followed by agriculture Haryana (16 percent). Between 2005 and 2010, the shares of both sectors, manufacturing and agriculture, declined A. Demographic overview by an average of 5 percent. Haryana had a population of 25.3 million in 2011, with Industrial activity is centered in Gurgaon, Faridabad, high population growth rates in the eastern districts Sonepat, Panchkula, Ambala, and Yamuna Nagar of Gurgaon, Faridabad, and Panipat. Gurgaon, in districts. The main industries in Faridabad are abrasives particular, had an annual population growth rate of and asbestos products. Box 4 summarizes some of the 5.8 percent during the last decade, almost thrice the industrial products and manufacturing locations. national average (see Fig. 20). Faridabad is the only city with a population over one million. The Corridor Figure 21:  Urban spatial patterns, Haryana, 1999-2010  aryana: Population growth rate at the Figure 20: H This map shows the change in the log base e of the averaged DN values between 1999 and 2010. ADN threshold of 10 district level between 2001 and 2011 was applied to eliminate noise at the low of the data. Population Growth Rate Between 2001 and 2011 Corridor district 70 Western Region Eastern Region 60 50 40 30 20 Growth rate of 10 night-time lights 0 Log base e of average DN Positive 3.2 to 0.5 Gurgaon Fatehabad Bhiwani Palwal Rewari Sirsa Mahendragarh Hisar Jind Panipat Panchkula Yamuna Nagar Kaithal Rohtak Jhajjar Mewat Ambala Faridabad Karnal Kurukshetra Sonepat Growth rate 0.5 to 0 Negative 0 to (-0.5) Growth rate (-0.5) to (-2.9) World Bank staff calculations based on analysis of DMSP-OLS Source:  Source: Census of India, 2001 and 2011. night time lights data, 2013. 14 Demographic and Economic Overview of the Corridor States Figure 22: G  DSP contribution by sector, Haryana, IT, textiles, agro-based industries, business tourism 2011-2012 and commerce. Other Public Services Agriculture & Animal Real Estate Ownership Admin 2% 6% Husbandry 16% C. Commodity movement by rail Forestry & of Dwellings, Legal & Logging Business Services 9% 1% Fishing Haryana has a larger share than the other states 0% Banking of inbound goods movement which constitutes & Insurance Mining & 6% Quarrying approximately 64 percent of rail traffic, 34 percent 0% of outbound commodities, while intra-state traffic Transport, Manufacturing Storage & 18% accounts for only 2 percent (see Fig. 23a). The main Communication 9% inbound commodities are coal and fertilizers, cement, Electricity, Gas & Water Supply iron and steel, originating in Jharkhand and Gujarat. 2% Food grains and POL are the main commodities leaving Construction Trade, Hotels & Restaurants 9% the state, for Rajasthan, Maharashtra, UP, and Madhya 22% Pradesh. A large portion of the intra-state commodity Source: Development & Economic and Statistics, Haryana, 2011-2012. flow is made up of POL and fertilizers. Box 4: Industrial products and districts, Haryana Uttar Pradesh Industrial products Districts Abrasives, asbestos products Faridabad A. Demographic overview Cement Bhiwani Ceramics Bahadurgarh With a population of almost 200 million (Census Fertilizers, petroleum refinery Panipat of India, 2011), UP is India’s largest state in terms Iron and steel Hissar of population. Over the last decade, its annual Source: Development & Economic and Statistics, Haryana, 2011-2012. population growth rate has averaged 2 percent which is higher than the national average. However, on a The state has been actively promoting industrial district by district basis, growth is uneven (see Fig. 24). investment through the creation of industrial parks Of the 70 districts in the state, only 10 had growth and infrastructure. Its policy incentives support rates exceeding 2.5 percent per year between 2001 sectors such as automobiles and auto components, and 2011, namely Bahraich, Bahrampur, Chitrakoot, Figure 23(a):  Composition of total commodity Figure 23(b):  Movement of commodities, Haryana, movement 2006-2007 Raw Material Steel 100 0% Cement 90 POL 9% 80 64% 14% 70 Other Goods 60 5% 50 2% Iron & Steel 40 5% 30 Iron Ore 20 34% 0% Coal 10 34% 0 Fertilizer Containers Food Grain Steel Cement Coal Iron Ore Iron & Steel POL Grand Total Other Goods Raw Material Food Grain 22% Container Fertilizer 2% 9% From Haryana to other States Haryana to Haryana Other States to Haryana Source: Indian Rail Freight Movement Database, 2006-07. 3. State-Level Overview 15 Figure 24: UP: Population growth rate at the district level between 2001 and 2011 55% Corridor district Population Growth Rate between 2001 and 2011 Bundelkhand Central Region Eastern Region Western Region 45% 35% 25% 15% 5% -5% Hardoi Raebareli Bareilly Chitrakoot Fatehpur Bahraich Balrampur Kushingar Varanasi Jyotiba Phule Nagar Firozabad Mahamaya Nagar Allahabad Saharanpur Etah Lalitpur Banda Jalaun Jhansi Lucknow Kheri Sitapur Bara Banki Kanpur Dehat Unnao Kanupr Nagar Sonbhadra Siddharthnagar Kaushambi Maharajganj Sant Kabir Nagar Mau Ghazipur Chandauli Ambedkar Nagar Faizabad Basti Sultanpur Gorakhpur Pratapgarh Ballia Azamgarh Sant Ravidas Nagar (Bhadoni) Jaunpur Shravasti Ghaziabad Moradabad Pilibhit Mathura Aligarh Rampur Bulandshahr Farrukhabad Badaun Kannauj Shahjahanpur Bijnor Mainpuri Auraiya Baghpat Hamirpur Agra Mahoba Gonda Etawah Deoria Gautam Buddha Nagar Muza arnagar Meerut Mirzapur Source: Census of India, 2001 and 2011. Figure 25: Urban spatial patterns, UP, 1999-2010 The state has seven cities with population exceeding one million. It has high growth potential as the Growth rate of night-time lights Corridor traverses the vicinity of six of these cities. Log base e of average DN Even though UP’s overall urbanization at 22 percent Positive 3.2 to 0.5 Growth rate 0.5 to 0 is lower than the national average, the state has Negative 0 to (-0.5) the second largest urban population in the country Growth rate (-0.5) to (-2.9) at 44.5 million. The districts in the vicinity of the NCR have higher urbanization levels. This trend is also observed in the spatial expansion of cities This map shows the change in (see Fig. 25). Agra in the western region of the state the log base e of the averaged DN values between 1999 and 2010. expanded spatially by 118 percent between 1999 and ADN threshold of 10 was applied to eliminate noise at the low of the data. 2010 as borne out by the night time lights analysis. Lucknow also experienced dramatic expansion on a similar scale as Agra. Source: World Bank staff calculations based on analysis of DMSP-OLS night time lights data, 2013. B. Economic overview The economy in UP is led by the tertiary or Gautam Buddha Nagar, Ghaziabad, Kheri, Lucknow, services sector which accounted for 50 percent of Moradabad, Siddharthnagar and Sonbhadra. the total district GDSP in 2011. The total district Three districts had annual growth rates exceeding GDSP contribution of the tertiary sector was 3.5 percent, namely Bahraich (4.6), Gautam Buddha Rs. 2,92,563 crore, in 2011, at current prices (CSO, Nagar (3.7), and Ghaziabad (4.2). The largest 2010). The second largest sector was the primary or metropolitan area in the state, Kanpur Nagar, agricultural sector at 29 percent. The manufacturing experienced a population growth rate of only one or secondary sector contributed 22 percent of the UP percent per year between 2001 and 2011. GDSP in 2011 (see Fig. 26). 16 Demographic and Economic Overview of the Corridor States  DSP contribution by sector, UP, Figure 26: G Figure 27:  Location quotients in three sectors, UP, 2010-2011 2010-2011 Other Legend Services Agriculture & State 8.9% Public Animal Husbandry LQ_Tertiary (>=1.25) Admin 25.7% 1.25-2.0 7.5% 2.01-3.0 LQ_Secondary (>=1.25) Meerut 1.25-2.0 Real Estate Ownership of 2.01-3.0 Forestry & Greater Noida Dwellings & Logging LQ_Primary (>=1.25) Business Services 2.0% 1.25-2.0 8.5% 2.01-3.0 Banking Fishing LQ < 1.25 & Insurance 0.3% Agra LQ < 1.25 3.5% Mining & Firozabad Lucknow Quarrying Trade, Hotels 0.6% Kanpur & Restaurants Registered 12.3% Manufacturing Communication 6.1% Allahabad 1.7% Construction Unregistered 9.3% Manufacturing Other means of Railways 5.4% 1.7% Electricity, Lalitpur Transport & Storage 5.4% Gas & Water Supply 1.0% Source: UP Directorate and Economics, 2010-2011. Source: World Bank staff calculations, 2013. The agriculture and animal husbandry subsector Major industrial activities and investments are taking still contributes the largest share to the state’s GDSP, place in the districts along the Corridor, which followed by trade, hotels, and restaurants which come include Ghaziabad, Meerut, Gautam Buddha Nagar, under the tertiary sector. The economy has gradually Kanpur, Muzaffarnagar, Bulandshahar, Agra, Bareilly, shifted from agriculture to the services sector between Allahabad, and Varanasi. Food products, chemicals, 2005 and 2010, when the services sector expanded by rubber and plastic products, electrical machinery, 7 percent to 54 percent while the agriculture sector metal industries, repair services, and paper products contracted to 22.5 percent. and printing sectors have received almost 72 percent of the total investment in industries. Uttar Pradesh is the largest producer of sugarcane and wheat, and the second largest producer of rice in India. The districts in western UP are the main producers C. Commodity movement by rail of agriculture and related goods. Muzzafarnagar, Saharanpur, Bijnor and Bulandshahar are the top four In UP, the commodity movement is composed mainly districts specializing in the agriculture and animal of coal (48 percent), fertilizers (11.8 percent), cement husbandry subsector in 2011. Gautam Buddha Nagar, (11.3 percent), and POL (7.1 percent) (see Fig. 28a). The Kanpur and Ghaziabad were the largest contributors inbound coal comes from Jharkhand and Maharashtra, to the state’s GDSP in the manufacturing sector. The and cement and fertilizers from Madhya Pradesh and registered manufacturing subsector comprised a Gujarat. Almost all the iron and steel, and cement is large portion of economic activity in Gautam Buddha imported into UP.  West Bengal, Assam, and Jammu Nagar, Ghaziabad, and Agra, while unregistered and Kashmir are the main destinations for outbound manufacturing was predominant in Allahabad. The food grains. Raw materials are the second largest construction subsector dominated the secondary outbound commodity. The main intra-state movement sector activity in Kanpur and Lucknow. Finally, the is in fertilizers, coal, and food grains. largest sector, namely the tertiary sector is located in the main urban centers in the state, that is Kanpur, Inbound commodity movement at approximately Lucknow, Allahabad, Ghaziabad, and Agra. Transport, 70 percent is significantly larger than the outbound communication, and trade are the main subsectors commodity flow. A large percentage of freight across all large cities, while public administration was movement in all districts located within 120 km of the concentrated in Lucknow, Kanpur, and Allahabad. Corridor, with the exception of Allahabad, have larger 3. State-Level Overview 17 Figure 28(a):  Composition of total commodity Figure 28(b):  Movement of commodities, UP, movement, UP, 2006-2007 2006-2007 Raw Material Steel 100% POL 0.5% 90% Cement 7.7% 11.3% 80% 70% Other Goods 70% 10.6% 60% 50% Iron & Steel 6% 2.8% 40% 30% Food Grain 4.5% 20% 24% 10% 0% Fertilizer Fertilizer Containers Food Grain Steel Cement Coal Iron & Steel POL Raw Material Grand Total Other Goods 11.8% Coal 48.0% Container 2.8% From UP to other States From UP to UP From other States to UP Source: Indian Rail Freight Movement Database, 2006-07. growth rate is largely even across the districts with the  ommodity movement through rail, UP, Figure 29: C exception of Gopalganj and Darbhanga (see Fig. 30). 2006-2007 Patna, the state’s capital, and the only city with a population exceeding one million, grew at a rate Saharanpur Legend Jy ot EDFC Buffer_120 km below the average of 1.40 percent per year between ib EDFC Line aP Muzaffarnagar Bijnor hu le Commodity Movement by Rail 2001 and 2011. The Corridor traverses five districts Na Sum of Fields along the southern region, where 13 percent of the ad Baghpat Meerut ga r dab Rampu r 2,000,000 Ghaziabad state’s population is concentrated. Mora illy Pilibhit In Grand Total Bare Bulandshahr Bu Out Grand Total r dau pu Bahraich Shravasti Aligarh n Kheri an r r ga jah The urbanization level in Bihar is only 11.3 percent, Balrampu Mathura nj Etah na ah Sitapur jga rth Sh Hatharas Farrukhabad San ara t Ka which is below the national average by approximately a dh bir hp Mah Firozabad Hardoi Ba Gonda Nag Sid Agra Mainpuri ra ar Etawah Kannauj Lucknow ank B 20 percent. The urban population is largely ur Basti Kushingar De pur Kan a i Faizabad aiy hat Unnao rh rak concentrated in the southern region, exceeding 30 Aur Sultanpur Deoria ga Go Kanpur Raebareli Ambedkar Nagar Jalaun Fat Mau percent only in Patna district. Patna also expanded am eh Pratapgarh pu Ballia Az Hamirpur r All Gh ah Jaunpur Jhansi Kaushambi abad Vara n a s i azip ur spatially, as observed in the night time lights data uli Mahoba Banda nda Chitrakoot pu r which shows that the city’s footprint increased by Cha rz a Mi Lalitpur 48.7 percent between 1999 and 2010 (see Fig. 31). Sonbhadra N Incidentally, the districts with low urbanization, such as, Araria (6%), Jamui (13%), Aurangabad (9%), Madhepur Source: Indian Rail Freight Movement Database, 2006-07. (2%) and Kishanganj (16%) are also experiencing the fastest population growth rate. In the northern region shares of inbound commodity movement (see Fig. 29). less than 10 percent of the population lives in urban Additionally, the commodity flows are higher in volume areas. However, the state has almost 25 cities with in the eastern and western parts of the state. populations between 1,00,000 and 5,00,000, and these are likely to form the large- and medium- sized urban centers in the next decade. Bihar A. Demographic overview B. Economic overview Bihar is the most densely populated state in India, The tertiary sector had the largest share of the state’s with the third highest concentration of population GDSP at 56 percent in 2011-12, followed by the at 103 million persons per sq km. The population primary sector at 26 percent, and manufacturing 18 Demographic and Economic Overview of the Corridor States Figure 30: Bihar: Population growth rate at the district level between 2001 and 2011 60 Southern Region Northern Region Population Growth Rate between 2001 and 2011 50 � Corridor district 40 30 20 10 0 � Nawada � Aurangabad Lakhisarai � Rohtas East Champaran West Champaran Siwan Jamui Bhagalpur Patna Buxar Bhojpur Nalanda Sheikhpura Jehanabad Madhepura Araria Supaul Vaishali Kathiar Sheohar Begusarai � Kaimur (Bhabua) Saran Arwal Munger Purnia Sitamarhi Saharsa Samastipur Darbhanga Madhubani Gopalganj Muza arpur Kishanganj Source: Census of India, 2001 and 2011. Khagaria Figure 31:  Urban spatial patterns in Bihar, 1999-2010 Figure 32:  GDSP contribution by sector, Bihar, 2010-2011 Growth rate of night-time lights Log base e of average DN Other Positive 3.2 to 0.5 Services 11% Agriculture & Animal Growth rate 0.5 to 0 Public Negative Husbandry 0 to (-0.5) Admin 23% Growth rate (-0.5) to (-2.9) 6% Forestry Real Estate 2% 6% Fishing Banking 1% 3% Mining & Quarrying 0% This map shows the change Manufacturing in the log base e of the 5% averaged DN values between 1999 and 2010. ADN threshold of 10 was applied to eliminate Construction noise at the low of the data. Trade, Hotels 12% 25% Electricity, World Bank staff calculations based on analysis of DMSP-OLS Source:  Transport Gas & Water Supply night time lights data, 2013. 5% 1% Source: Finance department, Government of Bihar, 2010-2011. at 18 percent (see Fig. 32). While the tertiary sector dominated the state’s GDSP in 2005-06, the of the Corridor, have a large inflow of domestic and economy gradually shifted from the primary to international tourists. Patna is also an important the secondary sector during the second half of the trading center for agricultural products such as food last decade. The share of the manufacturing sector grains, sugarcane and rice, and this is supported increased from 3 percent to 18 percent between by the high location quotient of the district in the 2005 and 2010. tertiary sector. The agriculture and animal husbandry subsector follows closely, constituting 23 percent The trade and hotels subsector has the largest share of the GDSP. With approximately 60 percent of of sector-wise GDSP at 25 percent, largely driven by the state’s land under agriculture, Bihar provides a strong tourism industry. Patna, Gaya, and Nalanda, 4.5 percent or 30.9 million tonnes of the country’s all located in the southern region within the vicinity food grains. 3. State-Level Overview 19 Figure 33:  Location quotients in three sectors, Bihar, C. Commodity movement by rail 2010-2011 Coal and cement have the largest share of overall commodity movement in the state (see Fig. 33a). Coal Legend LQ_Tertiary (>1.25) and petroleum are the main commodities that are 1.25-2.0 Siwan Sheohar Supaul Araria 2.01-3.0 distributed outside, primarily to Jharkhand, UP, and LQ_Secondary (>1.25) 1.25-2.0 Delhi. Almost all the cement moves in from Madhya 2.01-3.0 Patna Khagaria LQ_Primary (>1.25) Pradesh, Jharkhand, and Chhattisgarh, which are Shekhpura Bhagalpur 1.25-2.0 2.01-3.0 not located on the Corridor with the exception of Bhabhua Aurangabad N LQ < 1.25 Jharkhand. Iron and steel, containers, fertilizers, and LQ < 1.25 raw materials are the other inbound commodities. Source: World Bank staff calculations, 2013. Coal, POL, and food grains are the main commodities that undergo intra-state movement by rail. Box 5: Industrial products and districts, Bihar A large percentage of the commodity movement is Industrial sector District inbound and spread all across the state. Of the total Manufacturing hubs Patna, Muzzaffarpur commodity movement, the outbound movement is Textiles and sericulture Bhagalpur, Gaya Cement, fertilizer, Rohtas, Patna, Dhanukagra, petroleum refinery Muzzarfarpur, Barauni Figure 33(b):  Movement of commodities, Bihar, 2006-2007 The main regional centers in the manufacturing 100 90 sector are located in the center of the state and are 80 outside the 120 km buffer zone of the Corridor. 70 60 50 The state provides incentives to the sugar, renewable 40 energy, food processing and tourism sectors. Since 30 20 2008, the State Investment Promotion Board has 10 also approved 45 investment proposals in the steel 0 Fertilizer Food Grain Cement Coal Iron Ore Exp Iron & Steel Other Goods POL Raw Materials Grand Total Containers processing and cement sectors. Petroleum and natural gas exploration is also being actively pursued by Oil and Natural Gas Corporation Limited (ONGC) and Petrodine. From Bihar to other States From Bihar to Bihar From other States to Bihar Figure 33(a):  Composition of total commodity Figure 34:  Commodity movement through rail, movement, Bihar Bihar, 2006-2007 POL 6% Cement Paschim Champaran 18% Other Goods Purbi Champaran 16% Gopalganj Sitamarhi Shivhar Madhubani Muza arpur Supaul Kishanganj Siwan Darbhanga Araria Saran Madhepura Iron & Steel Samastipur Purnia Legend Saharsa Vaishali EDFC Bu er_120 km 1% Begusarai Khagria Katihar EDFC Line Buxar Ara Patna ur Sum of Fields alp Food Grain Nalanda Luckeesarai ag Arwal Jahanabad Shekhpura 2,100,00 Bh Munger 6% Kaimur Banka In Grand Total Rohtas Aurangabad Nawada Jamui N Out Grand Total Gaya Fertilizer Coal 8% 44% Containers 1% Source: Indian Rail Freight Movement Database, 2006-07. 20 Demographic and Economic Overview of the Corridor States only 35 percent and originates in Saharsa, Begusarai, have an average urbanization level of 10 percent, and Bhagalpur districts, which are more than 120 km which is 14 percent below the state average of 24 from the Corridor (see Fig. 34). The entire movement of percent. Ranchi and Dhanbad are the two main urban commodities in Patna is inbound, followed by Rohtas centers, each with a population exceeding one million. and Gaya, which are in the vicinity of the Corridor. These cities have also expanded spatially over the last decade. Based on night time lights data, the urban extent of Ranchi expanded by 186 percent between Jharkhand 1999 and 2010 (see Fig. 36). A. Demographic overview Figure 36:  Urban spatial patterns, Jharkhand, Jharkhand has a population of 33 million, constituting 1999-2010 only 2.7 percent of the national population. The Growth rate of night-time lights Corridor traverses three districts in Jharkhand which Log base e of average DN have 18 percent of its population. The population Positive 3.2 to 0.5 Growth rate 0.5 to 0 growth rate varies across the districts, especially in the Negative 0 to (-0.5) Growth rate (-0.5) to (-2.9) eastern region. Koderma has the highest population growth rate at approximately 3.3 percent annually, which is higher than the state average by 1.1 percent (see Fig. 35). Dhanbad district, which also has the second largest city in the state, namely Dhanbad, experienced the slowest growth rate of approximately This map shows the change in the log base e of the averaged DN values 1.1 percent annually. In the western region, Simdega, between 1999 and 2010. ADN threshold of 10 was Purbi Singhbhum, and Ramgarh have lower than applied to eliminate noise at the low of the data. average population growth rates. The urban population is mainly concentrated in four districts, namely Ranchi, Dhanbad, Purbi Singhbhum World Bank staff calculations based on analysis of DMSP-OLS Source:  and Paschimi Singhbhum. The remaining districts night time lights data, 2013. Figure 35: Jharkhand: Population growth rate at the district level between 2001 and 2011 34.95 Eastern Region Western Region Population Growth Rate between 2001 and 2011 29.95 � Corridor district 24.95 19.95 14.95 9.95 4.95 -0.05 Latehar Lohardaga Purbi Singhbhum Jamtara Pakur Dumka � Bokaro Dhanbad Garhwa Palamu Saraikela-Kharasawan Ranchi Gumla Khunti Pashchimi Singhbhum Simdega Ramgarh � Kodarma � Giridih Deoghar Hazaribagh Sahibganj Chatra Godda Source: Census of India, 2001 and 2011. 3. State-Level Overview 21  DSP contribution by sector, Figure 37: G Figure 38:  Location quotients in three sectors, Jharkhand Jharkhand, 2008-2009 Other Real Estate & Public Services Admin Forestry & Sahibganj Business 8% Agriculture Logging Services 4% 8% 1% Pakur Legend 6% Koderma Deoghar State Fishing LQ_Tertiary (>=1.25) Banking & Insurance 0% 1.25-2.0 2% Hazaribagh Bokaro 2.01-3.0 Mining Communication & Quarrying Lohardaga Dhanbad LQ_Secondary (>=1.25) 1% 11% 1.25-2.0 Ranchi 2.01-3.0 Transport (other) & Storage Gumla LQ_Primary (>=1.25) N 3% 1.25-2.0 Jamshedpur 2.01-3.0 Railways LQ < 1.25 4% Registered LQ < 1.25 Manufacturing 27% Trade, Hotel Source: World Bank staff calculations, 2013. & Restaurants 11% Unregistered Construction 8% Electricity, Manufacturing The state government is promoting growth centers Gas & Water 3% Supply in Hazaribagh, Ranchi, and Chaibasa, structured 1% in three tiers and based on the scale of operation Source: Jharkhand Directorate and Economic, 2008-2009. and the type of industrial sector. The state government has also identified 56 clusters including B. Economic overview a refractory cluster in Dhanbad, mini cement cluster in Ramgarh, bell metal clusters at Bishnugarh, The secondary and tertiary sectors constitute the Hazaribagh and Khunti, steel processing cluster at largest share of the GDSP in Jharkhand at 39.7 percent Giridih, hard coke cluster at Dhanbad and a forging and 39 percent respectively (see Fig. 37). The primary and hand tool manufacturing cluster at Bhendra in sector has gradually declined to approximately Bokaro. 21 percent of the GDSP. C. Commodity movement by rail Jharkhand has large reserves of minerals, estimated at 40 percent of the national deposits. The state is the Coal and raw materials are the primary commodities sole producer of coking coal, uranium, and pyrites, being moved by rail in Jharkhand. Coal is the main while iron ore, copper ore, and mica also constitute a outbound commodity, moving to West Bengal, UP, large share of the mining sector. Mining and quarrying, Punjab and Haryana, all located along the Corridor. which contribute 11 percent to the GDSP are the West Bengal, Maharashtra, Haryana, Odisha, and UP main drivers of the primary sector. Steel production, are the main destinations for outbound iron and steel, accounting for one-fifth of national production, is the and raw materials. Fertilizers and food grains are the main secondary sector activity. The industrial sector is main inbound commodities. concentrated in the southern parts of the state along the national highway connecting Delhi and Kolkata. Box 6 summarizes the location of industrial activities Box 6: Industrial sector by districts, Jharkhand in the state. Industrial Sector District Manufacturing activities are concentrated in Deoghar, Engineering cluster Bokaro, Jamshedpur Sahibganj, and Pakur in the north-eastern region of Industrial area development Ranchi, Bokaro, authority Adityapur the state (see Fig. 38). Mining, forestry and logging Auto cluster and SEZ Adityapur activities are concentrated in Hazaribagh, Bokaro, and Pakur, with location quotients exceeding 1.5. Most of Mega food park (planned) Ranchi these districts are also located within 120 km of the Apparel park (planned) Chaibasa AKIC Corridor. Mega growth centers (planned) Barhi, Hazaribagh 22 Demographic and Economic Overview of the Corridor States Figure 39(a):  Composition of total commodity Figure 39(b):  Movement of commodities, movement, Jharkhand, 2006-2007 Jharkhand, 2006-2007 Cement 100% 6% 90% 28% Raw Materials 80% 24% 7%0 60% 20% 50% POL 40% 1% 30% 51% 20% Other Goods 10% 8% Coal 0% 50% Iron Ore Exp Fertilizer Containers Food Grain Cement Coal Iron & Steel POL Raw Materials Grand Total Other Goods Iron & Steel 6% Iron Ore Exp 4% Fertilizer 0% From Jharkhand to other States From Jharkhand to Jharkhand From other States to Jharkhand Source: Indian Rail Freight Movement Database, 2006-07. Intra-state commodity movement is a substantial Figure 40:  Commodity movement through rail, portion (20 percent) of the goods movement in Jharkhand Jharkhand. The main intra-state commodities are raw materials, coal, cement, and iron and steel. Outbound Legend movement of commodities originates in Ranchi, EDFC Bu er_120 km EDFC Line Dhanbad, and Hazaribagh, which are within 120 km Godda Shibganj Sum of Fields Pakur 4,500 of the Corridor. Ranchi and Purbi Singhbum have high Koderma Giridih Dumka In Grand Total Deoghar volumes of inbound commodity movement and, in Palamu Chatra Out Grand Total Garhwa Jamtara Hazaribag Giridih, located along the Corridor, almost the entire Latehar Dhanbad Ramgarh commodity movement is inbound (see Fig. 40). Lohardaga Ranchi Bokaro Gumla Khunti Seraikela N West Bengal Kharsawan Simdega Purbi Singhbhum Paschimi Singhbhum A. Demographic overview Source: Indian Rail Freight Movement Database, 2006-07. West Bengal is the fourth largest state in terms of concentrated in the eastern parts of the state. Based population, with 91.3 million constituting 7 percent on the night time lights analysis, spatial expansion of the national population. The population growth is occurring near Durgapur in the western border rate of the state at 1.4 percent per year between of the state. Even though the population of Kolkata 2001 and 2011 was below the national average. Uttar district declined, the spatial extent of the city Dinajpur, Maldah, and Murshidabad are among the expanded by 72.8 percent between 1999 and 2010 fastest growing districts in the state (see Fig. 41). (see Fig. 42). The population growth rates in the state vary highly between the districts. The western, northern, and central-west portions of the state have low population B. Economic overview growth rates. Over the last decade, the population in Kolkata district, which also has the state’s capital, has The economy in West Bengal is dominated by the declined. tertiary sector (61 percent), followed by agriculture (21 percent) and the secondary sector (18 percent). The overall rate of urbanization in West Bengal is Between 2005 and 2010, the shares of both primary 32 percent; however, the urban population is highly and secondary sectors declined to 21 percent and 3. State-Level Overview 23  est Bengal: Population growth rate at the district level between 2001 and 2011 Figure 41: W Population Growth Rate between 2001 and 2011 Western Region Northern Region S. Eastern Region Central Region Central West Region 23.0 18.0 � Corridor district 13.0 8.0 3.0 -2.0 � Bardhaman Four Parganas Four Parganas Puruliya Bankura Darjeeling Jalpaiguri Kolkata Dinajpur Nadia Dakshin Dinajpur Haora � Hoogli Cooch Behar Uttar Murshidabad Birbhum Medinipur Maldah South Twenty North Twenty Source: Census of India, 2001 and 2011.  rban spatial patterns, West Bengal, Figure 42: U Figure 43:  GDSP contribution by sector, West 1999-2010 Bengal, 2009-2010 Other Services Agriculture 13% 19% Public Forestry Growth rate of night-time lights Admin 1% 6% Fishing Log base e of average DN 3% Positive 3.2 to 0.5 Real Estate & Growth rate 0.5 to 0 Ownership Mining & Quarrying Negative of Dwelling 1% 0 to (-0.5) Business Manufacturing Growth rate (-0.5) to (-2.9) Services (registered) 9% 5% Manufacturing Banking (unregistered) & Insurance 5% 6% Construction 6% Trade, Hotel & Restaurants Electricity, Railways Gas & Water 15% Storage 2% Supply Communication 0% 2% This map shows the change in the log base e of the averaged DN 1% Transport by values between 1999 and 2010. other means ADN threshold of 10 was applied 6% to eliminate noise at the low of the data.  ureau of Applied Economics and Statistics, Government of Source: B West Bengal, 2009-2010. World Bank staff calculations based on analysis of DMSP-OLS Source:  night time lights data, 2013. produced in India. The tertiary sector is driven by 18 percent respectively, and the tertiary sector tourism. The state ranks sixth in the volume of foreign increased by 6 percent. tourists visiting India, which registered a 5.6 percent growth in 2010-2011. The major economic activity is agriculture comprising 19.5 percent of the state’s GDSP followed by the trade, The secondary sector currently has relatively low hotels and restaurant subsectors at 17 percent. The contribution to the state’s GDSP. However, certain state contributes 26 million tonnes or 4.5 percent segments such as steel and leather have the potential to national agricultural production (see Fig. 43). for growth. The state accounts for approximately Darjeeling and Jalpaiguri districts are dominated by 10 percent of the country’s steel capacity, and 55 tea estates, accounting for 23 percent of the tea percent of the country’s leather exports. The state 24 Demographic and Economic Overview of the Corridor States  ocation quotients in three sectors, West Figure 44: L Box 7: Industrial sector by districts, West Bengal Bengal, 2009-2010 Industrial Sector District Integrated leather complex Eastern fringe of Kolkata Jalpaiguri (over 1,100 acres) Industrial parks Purulia, Borjora, West Midnapore, Howrah, Kolkata, Bardhaman, 24 Parganas North Tourism 24 Parganas, Darjeeling Airport cities ‘Aerotropolis’ Durgapur-Asansol region Legend State Greenfield container terminal Kulpi, east bank of River Baharampur LQ_Tertiary (>=1.25) Hoogly 1.25-2.0 2.01-3.0 LQ_Secondary (>=1.25) 1.25-2.0 and iron ore are the main inbound commodities, Durgapur Puruliya 2.01-3.0 originating from Chhattisgarh, Jharkhand, UP, Bardhaman LQ_Primary (>=1.25) Bankura 1.25-2.0 Punjab, Odisha, and Madhya Pradesh. Petroleum, 2.01-3.0 fertilizers, and iron and steel are the major outbound Kolkata LQ < 1.25 Medinipur LQ < 1.25 commodities, moving to Jharkhand, Odisha, UP, and N Punjab. Commodity movement within the state is mainly composed of coal, followed by cement and Source: World Bank staff calculations, 2013. iron and steel. government is planning special economic zones that All commodity flows are primarily inbound, focus on specific sectors (see Box 7). constituting 52 percent of the total goods movement. The districts along the Corridor have higher volumes C. Commodity movement by rail of commodity movement. Bardhaman district, which is located along the western boundary of the state, has Coal, cement and raw materials account for 75 percent high volumes of outbound commodities, compared of the commodities transported by rail into and with other districts where the commodities are mainly outside West Bengal (see Fig. 45a). A large share of the inbound. Bardhaman district also has a high share of goods movement is inbound. Cement, food grains, overall commodity movement (see Fig. 46). Figure 45(a):  Composition of total commodity Figure 45(b):  Movement of commodities, movement, West Bengal, 2006-2007 West Bengal, 2006-2007 100% Raw Materials Cement 9% 90% 9% POL 80% 4% 70% Other Goods 60% 11% 50% 40% Iron & Steel 30% 3% 20% Iron Ore Exp 10% 3% 0% Coal Food Grain 53% Iron Ore Exp Fertilizer Containers Food Grain Cement Coal Iron & Steel POL Raw Materials Grand Total Other Goods 4% Fertilizer 8% Containers 1% From WB to other States From WB to WB From other States to WB Source: Indian Rail Freight Movement Database, 2006-07. 3. State-Level Overview 25  ommodity movement through rail, West Bengal, 2006-2007 Figure 46: C Darjeeling Jalpaiguri Legend EDFC Bu er_120 km Cooch Behar EDFC Line 2 Sum of Fields 2,100,000 Uttar In Grand Total Dinajpur h Dakshin Out Grand Total lda Ma Dinajpur Murshidabad Birbhum Bardhaman Nadia Puruliya Bankura Ho og hl y North 24-Parganas Purbi Howrah ta lka Medinipur Ko N Paschim Medinipur South 24-Parganas Source: Indian Rail Freight Movement Database, 2006-07. 26 Demographic and Economic Overview of the Corridor States 4. CONCLUSION This report has provided an overview of the socio- Despite the disparities across the six states reviewed economic and commodity flow patterns in the in this report, each of them can benefit from the six states through which the Corridor passes. development of the Corridor. Freight movements will The Corridor is expected to be a critical driver not become more efficient, and the reduction in traffic on only for the national economy but also each of these the existing Indian Railways passenger corridors and states and should hence be viewed as creating an adjacent road networks is likely to promote higher rates important opportunity for national and regional of rural to urban migration, regional level commuting development. and enhance overall connectivity. All these effects will generate significant benefits and boost productivity. International experience suggests that regions can best leverage the benefits of enhanced connectivity While this report does not advocate specific proposals by strategically locating industrial and logistics hubs or policy actions, it does provide an invaluable along rail corridors. Canada, China, Europe, and the compilation of data on the characteristics of the USA have all used rail corridor development as a means Corridor states. The report should thus be seen as an of increasing logistical productivity and opening up important information tool for informing the planning lagging regions for development. dialogue at the national and Corridor state levels. 4. CONCLUSION 27 This report is printed on recycled paper.  This paper is FSC certified and is thus 100% environment friendly with its pulp coming from sustainable forests.