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Why did the creation of Jharkhand create economic challenges for Bihar?
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Bihar
Mahabodhi Buddhist temple, built in the 2nd century ce, Bodh Gaya, Bihar, India.
The creation of Jharkhand from the southern region of Bihar in 2000 significantly strained Biharās economy by stripping it of vital industrial and natural resources.12
The primary economic challenges stemmed from the following factors:
- Loss of Mineral Wealth: The partition resulted in the Chota Nagpur plateauāthe region containing the vast majority of Biharās mineral resourcesābecoming part of the new state of Jharkhand.3
- Energy Shortages: Bihar lost several hydroelectric power and thermal power stations during the separation, which exacerbated existing energy deficits and left many villages without regular electricity.3
- Industrial Impact: The loss of these resource-rich areas hindered Biharās ability to build upon the mining and manufacturing gains it had achieved in the late 20th century, leaving the state to rely heavily on an agricultural sector that employs nearly three-fourths of its population.13
These losses contributed to Bihar continuing to lag behind other Indian states in per capita income, with a large portion of its population remaining below the poverty level.1