MAJOR CHALLENGES

FACED BY THE
BUSINESS
ORGANISATIONS IN
STATE OF JHARKHAND.

COMPILED BY:-
SHUBHAM
B.A; LL.B {Hons.}
1764
WHAT IS BUSINESS?
 A business is defined as an organization or enterprise
entity engaged in commercial, industrial, or professional
activities.​
 The term “business” also refers to the organized efforts
and activities of Individuals to produce & sell goods &
service for Profit.
 Business range in a scale from Sole Proprietorship to
international corporations.​
ISSUES FACED BY BUSINESS
ORGANISATIONS IN JHARKHAND.
 Existence of poor infrastructure.
 Problems due to Left Wing Extremism(LWE) and
Naxals.
 High level of poverty gaps with 39% of ST/SC
population.
 Resource availibility & Geographical factors.

 Literacy; lack of education among tribal people and

greed of politicians.
 Red Tapeism/ Corruption/ Buying Powers.
EXISTENCE OF POOR
INFRASTRUCTURE.
 Difficulty in land acquisition, poor road connectivity,
deteriorating law and order situation, and lack of
facilities for investors have been hurdles in the state’s
industrial aspirations.
 Lack of land availibility due to CNT-SPT Act and poor
history of MoUs are making investors shy away from
investing here.
 Ultimately the poor infrastructure is all credited by the
lack of education among the tribal people as the state
constitutes majority of them.
PROBLEMS DUE TO LEFT WING
EXTREMISM (LWE) AND NAXALS.
 Naxal problem is one of the major administrative and
social menace in Jharkhand.
 Experiments of Saranda (west singhbhum district) &
Sarayu (Latehar district) need to be replicated in other
pockets of the state facing this menace.
 Countering this problem and fighting naxals certainly
put pressure on state revenue.
 It also adversely affects development of social &
economic infrastructure.
HIGH LEVEL OF POVERTY GAPS WITH
39% OF ST/SC POPULATION.
 Agriculture is the main source of livelihood for most of the rural
people. About 70% of farm households own less than 1 hectare of
farm land. However, average size of land holding in Jharkhand is
comparatively higher (0.56 ha) than neighbouring states, but only
66% of land owned by farmers is under cultivation in sample
villages, indicating abundance of culturable waste land. The state is
rich in mineral resources and poor in agricultural production. More
than 75% of work force is engaged in agriculture, but generates only
20% of state’s GDP. About 45% area is under non-agricultural use
and 32% is cultivable wastes which are unsuitable for agricultural
production and only 23% area is under cultivation.
 Socio-economic indicators provide a background to understanding the poverty
scenario in a country. These indicators provide data on education, gender, poverty,
housing, amenities, employment and other economic indicators. These indicators
for the country as well as states will help in identifying the linkages between
socio-economic indicators and achievement of health goals. The incidence of
poverty in Scheduled Caste (SC) and ST (Scheduled Tribe) households is much
higher than among non-scheduled households. There is a non-linear relationship
between age and poverty incidence across all three social groups, with the poverty
rate increasing as we move from age group 20-29 to 30-39, and then decreasing
for ages 40 years and above. Poverty increases with household size, highest
poverty rates observed among households that have seven or more members.
While literacy is negatively related to the incidence of poverty, the negative
correlation between educational attainment and poverty incidence seems weaker
for SC households as compared to ST and non-scheduled households. There was a
higher incidence of poverty among agricultural laborers across all three social
groups as compared to other occupations. The SC and ST households had a lower
mean age for the head of the household and smaller (mean households size) as
compared to non-scheduled households. A much higher proportion of SC and ST
households were not literate compared with non-scheduled households. With
respect to occupation, a majority of SC households (54 percent) were engaged as
agricultural laborers, however this proportion is lower in ST households (44
percent) are agricultural laborers followed by non-scheduled households (38
percent).
LITERACY; LACK OF EDUCATION AMONG
TRIBAL PEOPLE AD GREED OF POLITICIANS.
 Most of the tribal people lives in village has little or minimal
formal education, they are easily gullible by local politicians.
 Whenever a big project (building dams, power plants,
industries, educational institutions, highways, airport et)
requires land acquisition by govt. or pvt. sector goon like
local politicians exasperate local people that land acquisition
will create havoc in their lives.land acquisition will render
them landless, homeless , jobless(most of people work in
agriculture)and most important god will enraged by the
construction. After that people do not agree to give their land
at any cost, and protest march against govt,which leads to
strike which mostly effects daily wage earner of Jharkhand.
RED TAPEISM, CORRUPTION &
BUYING OF POWERS.
 Jharkhand is a state full of corruption and red tapeism.
 It is one of the most disturbing thing in doing business
for the investors.
 Under table work in government instituitions and to the
local goons and politicians is very common practice for
doing business in the state.
THANK YOU!