How Jharkhand’s growth was paralyzed by JMM-led government

Jharkhand CM Hemant Soren

Jharkhand is a story from growth to stagnation during JMM tenure. This is the election plank of the BJP in Jharkhand as PM Narendra Modi, in one of his election campaigns, had aptly put that tribal welfare has always been a priority for the BJP-led NDA govt and he was satisfied by the development of tribal areas under aspirational districts programme.

Defence Minister Rajnath Singh also explained the full meaning of JMM as “Jam Kar Malai Maro” party. The state govt and Union Ministries data had ample in store to prove that under the NDA government, Jharkhand saw a remarkable increase in per capita income, growing by 32% between 2014-15 to 2018-19.

However, the JMM government’s mismanagement led to a significant decline in growth rates, bringing it down to 18% between 2018-29 to 2022-23.

Similarly, the Gross State Domestic Product (GSDP) also reflected this decline, falling from a robust growth rate of 23% under NDA to just 12% under JMM’s tenure.

Under JMM government, Jharkhand has witnessed a significant decline in job creation and economic growth.

Jharkhand, which was once on the path to progress under the NDA, is now struggling with corruption, inefficiency, and lack of vision.

The Hemant Soren-led JMM government has turned a blind eye to the aspirations of Jharkhand’s youth, failing to deliver on its promises and reversing the positive trends set by the NDA government. This drastic slowdown shows that the current government has failed to deliver.

Decline in Job Creation

The JMM government’s neglect is evident in Jharkhand’s formal job market. According to EPFO annual report data, between 2019-20 and 2022-23, only 45.5 lakh formal sector jobs were created, a sharp decline from the 64.2 lakh jobs created under the NDA from 2014-15 to 2018-19, representing a drop of 29.13%. There has also been a drastic fall in placements through employment exchanges in Jharkhand.

The current JMM government has failed to use transparent mechanisms, such as digital portals and employment exchanges, to promote job creation. Placements through employment exchanges fell from 10,450 under the NDA to a dismal 1,420 under JMM. Also, there has been a significant dip in registration by job seekers from 4.60 lakh under the NDA government to 2.04 lakh under the JMM government.

Under the Hemant Soren-led JMM government’s tenure, the BJP believes it has been “Na Rahi Naukri, Na Mila Rozgar”— a tenure marked by corruption and a lack of intent to create meaningful employment opportunities.

Non-farm employment decreased in Jharkhand under the JMM government. Instead of fostering job creation, the JMM government has been involved in illegal mining activities and various scams, jeopardizing economic development. The NDA-led government's efforts to increase non-farm employment were reversed, as non-farm job creation under the JMM government stagnated at 50% in 2023-24, down from 57.22% in 2018-19.

Employment Share by Farm and Non-Farm Sector (%)

Under NDA, there was a notable increase in employment in the manufacturing sector. However, this trend has been reversed under JMM’s rule, with the number of people employed in manufacturing declining significantly from 2,38,472 jobs in 2018-19 to 2,11,954 jobs in 2021-22. Thus, the JMM government demonstrated its inability to sustain growth in crucial sectors.

Lack of Innovation and Start-Up Culture

The JMM government has also failed to foster a start-up culture in Jharkhand. The state ranks a lowly 19th among all states and UTs in terms of the number of registered startups, with just 1,305 startups contributing 0.93% to the total number in India. In a country where innovation and entrepreneurship are key to economic growth, Jharkhand, under JMM, has been left behind with no significant presence in the startup ecosystem.

It is evident that the JMM government has failed to build on the progress made by the NDA government. That's why the BJP accuses the JMM of steering Jharkhand away from prosperity, claiming the state is regressing under its leadership due to corruption, scams, incompetence, and unfulfilled promises.