East has potential to drive India's growth: Finance minister Nirmala Sitharaman

Finance minister Nirmala Sitharaman on Thursday said eastern India has potential to emerge as the country's growth engine with a decisive push to industrialisation, adding that a mineral-rich state like Jharkhand must get rid of rampant corruption to draw businesses.

Pitching for a change in governance, the minister said Jharkhand has been reeling under rampant corruption, migration and lawlessness. The state is ruled by a coalition government led by the Jharkhand Mukti Morcha and the BJP is the main opposition party.

Sitharaman was speaking at an event on "Eastern India: Engine of Growth For Vikshit Bharat" in Ranchi. The minister reiterated that India would become the world's third-largest economy "in the coming year or so" from the fifth-largest, as announced by PM Narendra Modi.

She said: "Jharkhand used to feature among the top five states in ease-of-doing business. But now, 'jungle raj' prevails here. The state will attract more investment if law and order improves... Change in governance is the need of the hour in Jharkhand." Thousands of signatures are required to clear a project in Jharkhand, and every signature passes through corrupt practices, she said. "Businesses are not growing because of lawlessness and monumental corruption," the minister added.

'

No step-motherly treatment'

The minister termed as "baseless" the Opposition's charges of step-motherly treatment being meted out to Jharkhand. In the interim Budget for 2024-25, Jharkhand was allocated a record Rs 7,200 crore for rail projects. This is way above the annual budgetary allocation of ₹457 crore during the UPA-II period of 2009-14, Sitharaman said.