Government of India Denies Special Category Status to Bihar

New Delhi, July 22, 2024 – In a response to an unstarred question posed in the Lok Sabha by Shri Ramprit Mandal, the Government of India has clarified its stance on granting Special Category Status to the state of Bihar. The question, directed to the Ministry of Finance, sought to understand whether the government plans to provide special status to Bihar and other backward states to promote economic growth and industrialization.

Minister of State for Finance, Shri Pankaj Chaudhary, responded that the criteria for Special Category Status have been well-defined by the National Development Council (NDC) and include factors such as hilly and difficult terrain, low population density, significant tribal population, strategic location along borders, economic and infrastructural backwardness, and non-viable state finances.

The Minister mentioned that earlier also Bihar’s request for Special Category Status had been reviewed by an Inter-Ministerial Group (IMG) which submitted its report on March 30, 2012. The IMG concluded that based on the existing NDC criteria, Bihar does not qualify for Special Category Status.