CITY BUSINESS PLAN

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3 ECONOMIC DEVELOPMENT 3.1 Urban Economy with Regional Potential Muzaffarpur district largely has an agrarian economy. Considering the district as the hinterland for a significant portion of the industrial and commercial activities in the city region, on the basis of year 2005‐06 data5, the district produces 3.0% rice, 3.5% wheat, and 5.9% vegetables of Bihar state‟s total production. The district is famous for fruits e.g. litchi and mango, which are exported to other parts of the country and even abroad. Apart from good concentration of cattle, fisheries, poultry and livestock, the district also has potential for dairy products, cattle feeding plants, honey related products, abattoir, raw hide mandi, leather industries and meat processing. Along with these the district is also rich in handicraft works especially lac bangles, sujni embroidery and appliqué work (CDP Muzaffarpur). 3.2 Work Force Participation Rate As per 2001 Census, Muzaffarpur Municipal Corporation has 25% Work Force Participation Rate (WFPR) which is low when compared to National, State and District averages. The male worker population is 68,206 which is 22.3% of the total population of the city, but it comprises 89% of the total workers in Muzaffarpur city. However, only 11% female workers form part of the total work force which is hardly 2.7% of the total population of the city. As far as engagement of workers in different economic activities are concerned, the highest proportion of workforce is engaged in other activities (94%), followed by HH industries (4%), cultivation (1%) and Agriculture Labour (1%). A summary tabulation of economic activity-mix in the city is tabulated in Table 3.7 below: Table 3.1: Comparative Urban Work Force Participation Rate Particulars Total Workers Male Workers Female Workers WFPR Urban India 92,278,654 76,175,323 16,103,331 32% Bihar 2,222,037 1938181 283,856 26% Muzaffarpur District 89,016 78676 10,340 26% MMC 76,518 68206 8,312 25% Source: Census of India, 2001 Table 3.2: Work Force Participation Rate of Muzaffarpur City Workers Percentage Cultivators 1 Agriculture Laborer 1 HH Industries 4 5 According to the resource mapping undertaken by Gherzi‐Genesis. Final Report 3-1
City Business Plan for Muzaffarpur Municipal Corporation Others 6 94 Source: Census of India, 2001 Table 3.3: Workforce employed in different sector in Bihar State and Muzaffarpur District (employment figure in 000) District name Total main work ers Cultivat ors Agrcultu ral labourer s Livesto ck, forestr y & others Mining & querryi ng H.H. Industr ies Other HH industr ies Construc tion Trade & Comme rce Transp ort , Storage & Comme rce BIHAR 18795 7713 8114 64 12 292 276 89 708 188 1339 % 100 41.0 43.2 0.3 0.1 1.6 1.5 0.5 3.8 1.0 7.1 Muzaffarp ur 823 328 347 5 0 10 18 5 39 15 56 % 100 39.9 42.2 0.6 0.0 1.2 2.2 0.6 4.7 1.8 6.8 Source: SPUR The Table 3.3 above shows the total state level and district level workforce employed in different sectors. In the district, out of total workforce, high majority of workforce is dependent upon agriculture sector (Cultivator- 39.9% & Agriculture Laborer-42.2%) followed by other services (6.8%), Trade and Commerce (4.7%), Other Household Industries (2.2%), Transport, Storage and Commerce (1.8%), Household Industries (1.2%) Construction (0.6%), Livestock and, Forestry and Others (0.6%). It may be concluded that very high majority of the workforce is dependent upon agriculture sector in the district. The city level data of all the components is not available and considering the different economic activities, the district level data cannot be interpolated, therefore, Census 2001 data as given in Table 3.2 is the only authentic data to analyze the employment status. 3.3 Trade and Commerce The economic base of the city is trade and commerce. Muzaffarpur was once a key commercial hub of North Bihar and the wholesale centre of all types of mill cloth. Muzaffarpur also serves as market centre for nearby small cities and villages for supplying various commodities. There are markets, specifically for some products for e.g. Sutapati is well known for jewelry and readymade garments. Muzaffarpur is famous for its lac bangle (Lahthi). The city has wholesale markets as well which are Saryaganj Chowk and Kalayani along Gola area. These form the Central Business District (CBD) of Muzaffarpur. The CBD has narrow lanes and encompasses the congested areas on both sides of Katchary road, Laxmi Narayan road, Mr. Aiya Ganj road, Tilak Maidan road and Raghu Bans road, extending over ward numbers 20 and 23. In addition, commercial activities have mushroomed on both sides of the following roads. Brahmpura road Othe r servic es 6 Other Workers (as per Census): All workers, i.e., those who have been engaged in some economic activity during the last one year, but are not cultivators or agricultural labourers or in Household Industry, are 'Other Workers‟. It may be noted that worker involved in service sector are also part of this category. Final Report 3-2
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City Business Plan for Muzaffarpur
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8 BUSINESS APPROVAL SYSTEM 8.1 Back
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9 REHABILITATION OF STREET VENDORS
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10 STAKEHOLDER CONSULTATIONS 10.1 I
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11 PUBLIC-PRIVATE PARTNERSHIP 11.1
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12 CBP IMPLEMENTATION PROCESS 12.1
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Annexure 1.1: Checklist of Informat
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Final Report v City Business Plan f
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CITY BUSINESS PLAN

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