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Purvodaya: Transforming Eastern Region Of India Into An Economic Powerhouse – IMPRI Impact And Policy Research Institute

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Policy Update 1 1

Policy Update
Rahul Mondal

Eastern part of India is culturally bountiful and abundant in culture and natural resources however it has not been as industrially and infrastructurally developed as the western and southern regions of India. To address this gap the government launched the Purvodaya initiative to push economic growth and industrialisation in Bihar, Jharkhand, Odisha, West Bengal and Andhra Pradesh. 

India’s east and northeast brim with enormous potential, government’s ...

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The concept of Purvodaya was first introduced by the Prime Minister Narendra Modi in 2015 during the inauguration of an Indian Oil Corporation refinery in Paradip, Odisha. The initiative stepped up in Union Budget 2024-25 with Finance Minister Nirmala Sitaraman allocating significant funds for infrastructure, industrial and skill development programs in the region. This policy aims to position India as a global economic powerhouse by leveraging the potential of all regions under the broader vision of Viksit Bharat 2047.

The main goal of Purvodaya is to transform the eastern region into an economic powerhouse by improving connectivity, industrial output and employment opportunities. The policy focuses on three key areas includes:

  • Infrastructure Development– Improvements of roadways, railways, waterways and power generation.
  • Industrial Growth– Establishing industrial corridors and promoting investments.
  • Skill Development and Human Capital– Empowering the local workforce with necessary skills for new age industries.

How Purvodaya Works-

Purvodaya is structured on three strategic pillars that drive its implementation:

Infrastructure Development- Infrastructure plays an important role in economic development and Purvodaya places a strong emphasis on improving connectivity across the eastern region. Some major projects under this pillar includes:

  • The development of Patna-Purnia Expressway to improve road connectivity in Bihar.
  • New bridges over the Ganges River to enhance intra-state movement.
  • Investments in Port development in Odisha and West Bengal to improve maritime trade. 
  • Upgradation of the rail and air transportation to support industrial growth
  • Flood management projects in Bihar to reduce impacts of flood and protect economic assets.

Industrial Growth and Economic Opportunities- Eastern part of India is very rich in minerals and natural resources and this makes it an ideal hub for industries like steel, coal and energy production. Under Purvodaya:

  • The Amritsar-Kolkata Industrial Corridor (AKIC) is being developed with important industrial hubs in Bihar and Jharkhand.
  • Special incentives are being provided to investors to attract them in sectors like steel, textiles and manufacturing.
  • Tourism and cultural industries are also experiencing a boost in historically significant areas like Nalanda and Rajgir.
  • Startups and MSMEs are being encouraged through funding and improvement programs.
Dharmendra Pradhan on Twitter: Dharmendra Pradhan on Twitter:

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Skill Development and Human Capital- Economic growth cannot be sustained without a skilled workforce and to address this government is investing under Purvodaya in:

  • Skill development programs in manufacturing and technology sectors.
  • Establishment of new medical colleges, ITI colleges and vocational training centers to improve education, skills and healthcare facilities.
  • Support for women entrepreneurs and small businesses to create inclusive economic growth.

Projects Under Purvodaya-

Since its official launch in 2024, Purvodaya has made visible progress in some key areas like:

Budget Allocation and Expenditure-

  • Bihar received ₹26000 crore for road and connectivity projects.
  • Jharkhand and Odisha got ₹18000 crore in investments for industrial and mining related development.
  • ₹11500 crore allocated for flood management in Bihar.
  • West Bengal and Odisha received ₹5000 crore for initiatives related to tourism.

Industrial and Infrastructure Growth- 

  • Commencement of Amritsar-Kolkata Industrial Corridor in Gaya, Bihar.
  • New coal based power plants were established in Jharkhand to enhance energy production
  • Expansion of Paradip and Kolkata ports to improve global trade.
  • SAIL has kick started participation in purvodaya programSAIL has kick started participation in purvodaya program

Source- https://www.psuconnect.in/

Skill Development and Employment Generation-

  • Over 2 lakh youth trained in vocational courses across five states.
  • More than 50000 new jobs created in MSMEs and startup ecosystems.
  • Increase in female workforce participation through targeted skill development programs. 

The Impact of Purvodaya–

The policies under Purvodaya have started showing positive results in terms of economic and social development.

  • Economic Growth- The improved connectivity has led to an increase in trade between the eastern region and other parts of the country. Industrial hubs are attracting businesses, creating more jobs and boosting the local economy.
  • Social Development- Skill development programs are empowering the local youth to take up employment in new industries with increased involvement of women. Also, better medical and educational facilities are improving the quality of life of the people in the region. 
  • Cultural and Tourism Boost- More people are visiting heritage sites like Nalanda, Rajgir and Bodh Gaya, which also helps local businesses to grow and promotes cultural tourism.

Emerging Issues and Challenges-

Purvodaya has made significant progress but still faces several challenges.

  • Uneven Allocation of Resources- Bihar has received major investments but West Bengal has not gotten as much attention.
  • Execution Delays- Bureaucratic hurdles and inter-state coordination issues are the reasons for slowing down of the project implementation. 
  • Limited Tourism Integration- Stakeholders of West Bengal tourism industry expressed concerns regarding lack of attention in the Vajrayana Buddhist circuits and importance of engaging international visitors.
  • Private Sector Hesitation- Despite incentives, some industries are feeling hesitant to invest because of land acquisition issues and policy uncertainties.
  • Environmental Concerns- Rapid industrialisation raises concern about deforestation and pollution in mineral rich regions. 

Way Forward-

A Strategic and inclusive approach is essential to achieve Purvodaya’s long term success and transform the Eastern region of India into a major economic and industrial hub. A well planned equal distribution of resources between all five states including Bihar, Jharkhand, West Bengal, Odisha and Andhra Pradesh will help to prevent regional imbalances and ensure uniform industrial growth. Targeted investments in infrastructure, manufacturing and logistics will drive sustainable economic development. Setting up a stronger monitoring framework will help to overcome bureaucratic delays and inefficiencies. Set up of easy approval processes, clear timeline and digital tracking systems could improve faster project execution. 

The success of Purvodaya also depends on the engagement of local communities in decision making. Empowerment of people through skill development programs will ensure more active participation in the industrial projects. This will also create jobs and align development with local needs to foster inclusive growth. Tourism could be an important economic factor for the Eastern region. A focused approach to develop cultural, religious and eco-tourism sites across these states will boost local businesses, improve infrastructure and create employment opportunities in related sectors. 

Land acquisition challenges and policy concerns must be addressed with clear and investor friendly regulations to attract more industries. Establishing special economic zones (SEZs), offering tax incentives and simplifying compliance procedures could make the region more attractive to investors. A strategic collaboration approach involving the government, private sector and local body will be an important factor for the vision of Purvodaya. The Eastern region of India could emerge as a powerhouse of industrial and economic growth with the right policies and efficient execution. 

Conclusion-

Purvodaya is an important initiative aimed to turn the eastern region into a thriving economic hub. It could bridge historical gaps and drive national growth by strengthening infrastructure, boosting industries and creating jobs. Its success depends on fair resource allocation, smooth execution and involvement from all stakeholders, which makes it a vital part of India’s growth story. 

References

About the Contributor: Rahul Mondal is a Research Intern at IMPRI. He has a MA in Defence and Strategic Studies from Rashtriya Raksha University, also specializing in India-Bangladesh border security, geopolitics, insurgency and defence. 

Acknowledgement– The author extends his sincere gratitude to Dr. Arjun Kumar, Aasthaba Jadeja and all the members of IMPRI team to guide him through this process.

Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.

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