Bihar is India’s new miracle economy. In the five-year period between 2004-05 and 2008-09, Bihar’s GDP has grown by a stunning 11.03%, way beyond the definition of 7% growth for a “miracle economy”.

In this period, Bihar – traditionally a laggard state that actually saw a 5.15% negative growth in 2003-04 – is the second fastest growing state, just a shade behind Gujarat’s well-publicized growth of 11.05%.

Among the 18 states and UTs of which data is available, Bihar recorded the highest State SGDP of 11.44% in 2008-09.

The latest Central Statistical Organisation (CSO) data gives out this dramatic story of Bihar on steroids. This high growth period also coincides with Nitish Kumar taking up the reins as chief minister from Lalu Prasad Yadav. It can, therefore, be said that good governance can work miracles for even the most backward of states. Not just Bihar, most of the traditionally backward states, including Orissa, Uttarakhand, Uttar Pradesh, Chhattisgarh and Jharkhand, have done well in this period, indicating a more inclusive growth at an all-India level.

There is no official data on poverty beyond 2004-05. So, the CSO data on the economic growth of the states, highlighting the fact that five of India’s most backward states have grown at a rate beyond 7%, provides pointers to some kind of poverty mitigation.

Apart from Bihar, the growth rate of the other four are: Uttarakhand 9.31%, Orissa 8.74% and Jharkhand 8.45%. The all-India growth during this period was 8.49% with major contributions coming from the eight poorest states.

Experts say that Bihar could grow much faster if Maoists terrorism and corruption is checked effectively.