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Summary This article is talking about the economic growth of India.

It is worth mentioning that Bihar has outperformed the most developed states. For the fiscal 2010-2011, it has been shown that an annual growth rate of 14.45 % which exceeded the GDP figures of some of the most developed states. Bihar has witnessed a growth rate of GDP which is over 14% thrice in the past five years. It also has been made global headlines as the fastest growing Indian state. The growth rate is then followed by Chhattisgarh, Tamil Nadu and Maharashtra with growth rates at 11.57%, 11.74% and 10.47% respectively. A steady GDP growth rate which is about 9% has been shown by other states such as Haryana and Himachal. Besides, in 2010-2011, Uttar Pradesh has witnessed its GDP growth rate by 8%. Orissa continue to left behind with a growth rate of 5.67% . Based on Pratya Amrit, the high GDP rate of the state is attributed to construction centric growth in the state. The growth has especially been in terms of infrastructure in the past three years.

Analysis Based on the article, the GDP rate of most of the states in India have been grown especially Bihar. Basically, GDP is Gross Domestic Product. It can be defined as the market value of all the final goods and services produced within a country in a given time period. It is used as a primary indicator to measure the wealth of a countrys economic. GDP also represents economic production and growth. The change of percentage in GDP is a measurement of economic growth. As we can see that the year-to-year GDP of Bihar is over 14%, this means that the economy of Bihar has grown by over 14% over the last year. Economic growth is basically an expansion of production. It can increase livings standard . However, at the same time we face trade-off. Basically, economic growth is generated by technology change and capital accumulation. Bihar is the second larger population in India. Therefore, with the technology change and growth of capital accumulation, Bihar has opportunity to produce a better infrastructure. This lead to the economic growth. Based on the research, agriculture is the most important sector in Bihar and it plays a important role for economic growth. However, there are some constraints which are lack of general infrastructure, land holding pattern and other environment factor. These constraints have led to the relatively low crop yields. To solve the problem, Bihar made a lot of investment in infrastructure and cross border agreement backed by central government intervention. Therefore, Today, the economics of Bihar has actually grown a lot of compared to last time.
Investment in infrastructure ($ million )

8 6 4 2 -------_ PPF (0) 1 2 3 4 5 6 PPF (1) Crop yields ( millions) B1 B2

PPF (0) shows that the limit to the crop yields and investment in infrastructure, with the production of all other goods and services remaining the same. If we do not spend money on investment in infrastructure and produce 4 million crops yields, our production possibilities will remain the same PPF(0). But if we decrease crop yield to 3 million and spend 6 million dollar on investment in infrastructure, at point B1, our production possibilities will expand. After one period, the PPF(0) rotates outward to PPF(1) and we can produce at point B1. We can rotate the PPF outward, but we cannot avoid opportunity cost. The opportunity cost of producing more crop yield in the future is fewer crop yield today.

http://indiatoday.intoday.in/story/bihar-outdoes-developed-states-in-gdpgrowth/1/155056.html