Jharkhand Economic Survey 2025-26 | 23 Feb 2026

Why in News?

The Jharkhand Economic Survey 2025-26 was tabled in the State Assembly by Finance Minister Radhakrishna Kishore, providing a detailed evaluation of the state’s economic performance, structural transformations, social progress, and future outlook.

Key Points:

• Gross State Domestic Product (GSDP): For 2025–26, Jharkhand’s real GSDP is projected to reach approximately ₹3,21,892 crore, growing at about 6.17% — marking continued expansion after recovery from the pandemic phase.
  • At current prices, the state’s economy is expected to cross ₹5.6 lakh crore in 2025–26 and approach ₹6.1 lakh crore in 2026–27.
  • These estimates reflect moderation from earlier high post-pandemic growth, yet maintain a sustainable mid-6% expansion trajectory, consistent with structural consolidation and recovery.
• Growth Comparison and Context:Growth in 2024–25 is estimated at 7.02%, exceeding the national average (~6.5%), and marking four consecutive years over 7% — indicative of resilience and economic momentum.
• Per Capita Income: A notable outcome of the 2025–26 Survey is that Jharkhand’s per capita income has crossed the ₹1 lakh mark for the first time, reaching ₹1,16,663 at current prices in 2024–25.
  • Projections: At current prices, per capita income is projected to rise further to:
    • ₹1,25,677 in 2025–26, and
    • ₹1,35,195 in 2026–27.
  • In real terms, per capita income at constant prices is estimated to reach ₹71,944 in 2025–26 and ₹65,670 in 2026–27.
  • Significance: Crossing the ₹1 lakh per capita income threshold is a symbolic and economic milestone, reflecting enhanced productivity and improved household incomes in Jharkhand’s economy.

Sectoral Composition and Structural Change:

• Services Sector:The services sector has emerged as the largest contributor to the state’s economy, with its share in Gross State Value Added increasing significantly over the years, surpassing both agriculture and industry.
  • Construction activity within services has grown robustly, reflecting expanding urbanisation and infrastructure projects.
• Industrial Sector:The industrial sector remains central to Jharkhand’s development:
  • Historical data indicate that industrial activity contributed about 44.1% of the state’s GSVA in recent years — placing Jharkhand among the top three industrialised states in India alongside Chhattisgarh and Odisha.
  • This reflects the significance of mining, heavy industries, and medium and small enterprises in the state’s economic base.
• Agriculture and Allied Activities:Agriculture and allied activities contributed about 12.3% of GSVA in 2025–26, down from earlier shares but with absolute value growing — indicating diversification of the economy while maintaining expansion in agricultural output.
  • Absolute agricultural GSVA grew significantly from ₹28,470 crore to an estimated ₹38,200 crore over recent years, signalling productivity gains.
• Inflation and Price Stability:The Economic Survey notes significant declines in inflation, from around 6% in 2023–24 to lower levels in 2024–25.
  • The inflation gap between rural and urban areas has also narrowed, reflecting more equitable price stability across regions.
  • Containing inflation within or below the RBI’s upper tolerance band fosters consumer confidence and enhances the real purchasing power of citizens, especially in a state with significant rural populations.
• Multidimensional Poverty Reduction:Jharkhand has witnessed a sharp decline in multidimensional poverty:
  • From 42.10% in 2015–16 to about 28.81% in 2019–21 — a drop of over 13 percentage points.
  • This reduction, steeper than the national average, reflects the combined impact of economic growth and targeted social interventions across essential services such as electricity access, sanitation, clean cooking fuel, and drinking water.
  • Major Schemes:
    • Maiyan Samman Yojana: Allocated ₹13,363 crore (11% of budgeted revenue receipts) to provide ₹2,500 monthly assistance to women aged 18-50.
    • Education: Significant focus on the Jharkhand Student Research and Innovation Policy 2025 and the establishment of two new universities for skill and fin-tech.
• Social Progress:Consistent improvements in social infrastructure — including education, health facilities, and rural connectivity — underpin broader human development outcomes that often accompany sustained economic expansion.
• MSME Expansion: The state has witnessed rapid growth in micro, small and medium enterprises (MSMEs):
  • Over 83,000 new Udyam registrations were recorded in the first nine months of 2025–26, employing over 3.34 lakh people, with micro enterprises constituting over 99% of these units.
  • A vibrant MSME ecosystem is crucial for job creation, especially in semi-urban and rural areas, and strengthens local supply chains.
• Industrial Diversification:Expansion in services and industry suggests a structural shift away from agricultural reliance towards diversified economic formation — vital for long-term employment generation.
• Fiscal Context:Though the official state Economic Survey document itself is the primary source for detailed fiscal tables, independent reporting indicates that:
  • Budget allocations have increased significantly over time — with the state’s overall fiscal size expanding nearly 20-fold since its formation.
  • Own revenue sources have grown at a strong average annual rate, indicating better revenue mobilisation.
• Growth Prospects:For the next fiscal year (2026–27), Jharkhand’s economy is projected to grow at about 5.96% — slightly lower than the current year — but remains within a sustainable medium-term growth path.
  • Growth moderation is interpreted as part of a transition from post-pandemic rebound to structural consolidation and long-term stability.
• Long-Term Goals:Earlier economic surveys project ambitious economic expansion goals — such as making Jharkhand a Rs 10 lakh crore (₹10 trillion) economy by 2029–30 — contingent on sustained policy support and investment flows. 
• Banking: Expanded to 3,449 branches and 3,338 ATMs by September 2025.
• Power: Installed generation capacity reached 3,212.95 MW as of August 2025. The state allocated ₹5,005 crore for power subsidies to consumers in the FY26 budget.