Purvodaya plan to boost eastern India’s development

Finance Minister Nirmala Sitharaman announced the Purvodaya plan to develop Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh. Bihar received Rs 26,000 crore for road projects and Andhra Pradesh Rs 15,000 crore. 

Image Credit: Bihar Tourism

Finance Minister Nirmala Sitharaman announced on Tuesday that the government will devise a plan, Purvodaya, aimed at the comprehensive development of Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh to achieve the goal of ‘Viksit Bharat.’

Although the Centre refused special category status to Bihar, it has significantly boosted the state’s infrastructure with a budget allocation of Rs 26,000 crore for various road projects. Additionally, the government proposed Rs 15,000 crore for Andhra Pradesh, with more funds to follow in future years.

Continuing its focus on the eastern region, the Narendra Modi government is planning Purvodaya for the all-round development of the area. “The States in the eastern part of the country are rich in endowments and have strong cultural traditions. We will formulate a plan, Purvodaya, for the all-round development of the eastern region of the country covering Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh,” Finance Minister Nirmala Sitharaman said in Parliament on Tuesday. Sitharaman stated that the plan will encompass human resource development, infrastructure, and economic opportunities to make the region an engine for achieving Viksit Bharat.

Sitharaman made these announcements while presenting her seventh consecutive budget, surpassing the late Moraji Desai’s record of six consecutive budgets. This budget, the first full budget for 2024-25 under the Modi 3.0 government, was highly anticipated. Sitharaman had previously presented the interim budget in February, addressing financial needs until a new government was formed after the Lok Sabha polls. She emphasized the government’s commitment to making the Eastern region a “powerful driver” of India’s growth, ensuring these states become engines of growth towards Viksit Bharat 2047.

Economists note that the eastern region requires special attention. Despite their rich natural resources and cultural heritage, they have lagged in economic growth compared to other regions in India. They have high poverty rates and significant income disparities.

Union Minister Dharmendra Pradhan hailed the government’s decision to formulate Purvodaya, particularly highlighting the benefits for his home state, Odisha. “Comprehensive focus on development of human resources, infrastructure, and economic opportunities and assistance to Odisha for development of tourism, temples, beaches, and craftsmanship, among others, will harness the full potential of a resource-rich and naturally-endowed state like Odisha,” he said. Pradhan expressed confidence that eastern India, particularly Odisha, will become the epicenter of prosperity and a key driver of India’s future economic growth.

While presenting the Union Budget 2024-2025, Sitharaman also announced that the Centre will support the development of an “industrial node” at Gaya as part of the Amritsar Kolkata Industrial Corridor. “This corridor will catalyze industrial development of the eastern region. The industrial node at Gaya will also be a good model for developing our ancient centres of cultural importance into future centres of the modern economy. This model shall showcase ‘Vikas bhi Virasat bhi‘ in our growth trajectory,” she said.

Additionally, the Finance Minister revealed that more than 100 branches of India Post Payment Bank will be established in the North East region to enhance banking services.

S K Behera, Chairman of CII Eastern Region, praised the government’s initiative for Purvodaya and its focus on tourism development of heritage sites in the eastern region.

“I am grateful to PM Modi and the Finance Minister for their decision to formulate plan Purvodaya for the all-round development of the eastern region of our country, including Odisha under the budget for ‘Viksit Bharat’,” Pradhan told reporters.