Chhattisgarh at 25: Going strong, but still has a lot on its plate

The state's development record captures both continuity and constraint. Challenges like regional imbalances persist, writes Shikha Chaturvedi

Born out of a long-standing demand for autonomy and focused governance, Chhattisgarh was carved out of Madhya Pradesh on November 1, 2000. Mineral-rich, but lagging in social indicators, the creation of the state was approved by the then National Democratic Alliance (NDA) government led by Bharatiya Janata Party (BJP)’s Atal Bihari Vajpayee. 

Formed by tabling the Madhya Pradesh Reorganisation Act, 2000, in the parliament, the new state comprised 16 districts represented by 11 Lok Sabha constituencies and five Rajya Sabha seats. 

With tribal communities making nearly one-third of its population, initially 34 of the 90 Assembly seats were reserved for Scheduled Tribes (STs). After delimitation, this number came down to 29 for STs and 10 for Scheduled Castes (SCs), respectively. 

While Ajit Jogi of the Congress served as Chhattisgarh’s first chief minister (CM) from 2000 to 2003, BJP’s Raman Singh was at the helm for the next 15 years. In 2018, Congress wrested power from the BJP and picked Bhupesh Baghel to lead its government. 

Five years later, the BJP was back in office with Vishnu Deo Sai, a tribal, taking over as CM. 

Over the years, Chhattisgarh has evolved into an economically vibrant state, balancing welfare-driven governance with an industrial and mining-based economy. 

The state has maintained policy continuity across terms of successive governments, focusing on social spending, rural development, and infrastructure, while leveraging its natural endowments to strengthen its fiscal base. The economy’s trajectory reflects both resilience and dependence. After contracting by 5.2 per cent in 2000–01, the state registered strong growth in subsequent years, reaching double digits on multiple occasions. 

In 2024–25, Chhattisgarh’s growth rate stood at 10.9 per cent, significantly higher than 6.5 per cent at the national level. Its share in national GDP remains around 1.7 per cent, making it the 18th largest among states. 

Chhattisgarh’s fiscal performance, however, shows a more complex picture. Fiscal deficit widened from 1.6 per cent of Gross State Domestic Product (GSDP) in 2016–17 to an estimated 3.8 per cent in 2025–26, while the debt-to-GSDP ratio increased to nearly 30 per cent from 14.5 per cent a decade ago. The state’s own tax revenue, at around 38 per cent of receipts, indicates a limited tax base even as expenditure commitments have grown. On the positive side, capital outlay has risen to nearly 15 per cent of the total expenditure, pointing to stronger investment focus. 

The revenue balance, which turned negative recently, is estimated to improve in the financial year 2025-2026, suggesting cautious fiscal recovery.

 

As far as socio-economic indicators are concerned, Chhattisgarh has made visible progress. Sex ratio has improved from 937 women per 1,000 men in 2017–18 to 991 in 2023–24, now slightly above the national average. Female literacy stands at 72.5 per cent, higher than 71.5 per cent at the national level, while male literacy stood at 82.6 per cent compared to 84.4 per cent nationally. 

The unemployment rate at 2.5 per cent is lower than the national average, though agriculture and informal sectors employ the majority of the population. 

The state’s multidimensional poverty headcount ratio fell from 29.9 per cent in 2015–16 to 16.37 per cent in 2019–21, and the intensity of poverty declined marginally from 44.6 per cent to 42.6 per cent. Still, Chhattisgarh ranks seventh among states with the highest share of population living in multidimensional poverty. While the state’s poverty intensity is slightly below India’s average of 44.4 per cent, this is largely because the national figure is pulled upward by some states performing poorly owing to higher deprivation levels. 

The intensity of multidimensional poverty captures the average share of deprivations faced by those who are classified as multidimensionally poor — essentially showing how deep the hardship is for the most vulnerable. 

The state now has 33 districts. But, gaps persist between development in districts with an industrial base and those in the tribal hinterland. 

Twenty-five years since it was formed, Chhattisgarh’s development record captures both continuity and constraint. Its economy is stronger and its finances more structured than at inception. While social indicators have improved steadily, challenges in the form of regional imbalances persist.

  PM to launch Chhattisgarh silver jubilee celebrations  Prime Minister Narendra Modi will launch the silver jubilee year cel- ebrations of Chhattisgarh’s state- hood on November 1. The Rajyotsav celebrations will be held for five days in the state’s capital Raipur, while three-day cel- ebrations will be held at the district level. During his Raipur visit, the prime minister will inaugurate the new legislative assembly building and a tribal museum.