Economy of Bihar

Economy of Bihar
CurrencyIndian Rupee (INR, ₹)
1 April – 31 March
Statistics
PopulationIncrease 130,725,310 (2023)
GDP₹976,514 crore (US$120 billion) (2024-25)[1] Increase
GDP rank14th
GDP growth
12.64% (2024–2025) [2]
GDP per capita
Increase $925(nominal, 2024 est.)
GDP per capita rank
33rd
GDP by sector
Agriculture 26%
Industry 15%
Services 59% (2021–22)[3]
7.3% (2020–21)[4]
Population below poverty line
Positive decrease 15.73% in poverty (2024–25)[5]
Decrease 0.571 medium (2021)[6] (36th)
Labour force by occupation
Agriculture 56%
Industry 8%
Services 36% (2015)[7]
UnemploymentPositive decrease 11.4% (Sep 2022)[8]
Public finances
Negative increase 38.66% of GSDP (2022–23 est.)[3]
₹−25,885 crore (US$−3.1 billion) 2.97% of GSDP (2022–23 est.)[3]
Revenues₹1.97 lakh crore (US$24 billion) (2022–23 est.)[3]
Expenses₹2.23 lakh crore (US$27 billion) (2022–23 est.)[3]
Economic aidIncrease 7.9% (2017–18)[4]
All values, unless otherwise stated, are in US dollars.
Bihar accounts for 71 percent of India's annual litchi production.[9]

Bihar has one of the fastest-growing economies in India. It is largely service-based, with a significant share of agricultural and industrial sectors. The GDP of the state was ₹9,76,514 crores (US$120 billion) at the current market price (2024–25).[10]

This state also has a small industrial sector. As of 2021, agriculture accounts for 24%, industry 15% and service 61% of the economy of the state.[11] For the 2002–2007 period, average growth rate of manufacturing in the state was 0.38%, against the national average of 7.8%.[12] Bihar has the lowest GDP per capita in India, but there are pockets of higher per capita income like the southern half of the state and its capital city, Patna.

The GSDP stands at 9.765 lakh Crores Rupees ($120 billion nominal GDP) as per 2023-24.[2][10] In actual terms, as of 2012–2013, Bihar state GDP is ranked 8 out of 29 states. Corruption is an important hurdle for its government to overcome, according to Transparency International India, which the government has also acknowledged.[13][14] Since November 2005, the government, led by Nitish Kumar, has implemented a number of economic and social reforms. Such reforms have yielded a positive improvement in the economy of the state and also of Patna. For example, in June 2009, the World Bank reported that Patna was the second best city in India to start a business, after Delhi.[15] Between 1999 and 2008, state GDP grew by 5.1% a year, which was below the Indian average of 7.3%.[16] However, in January 2010, the Indian government's Central Statistics Organisation (CSO) reported that in the five-year period between 2004–2005 and 2008–09, Bihar's GDP grew by 11.03%, which made Bihar the second fastest growing economy in India during that 5-year period, just behind Gujarat's growth of 11.05%.[17] Another survey conducted by the CSO and the National Sample Survey Organisation, under MOSPI, said that Bihar saw a 14.80% growth in factory output in 2007–08, which was slightly less than the overall Indian rate of 15.24%.[18]

  1. ^ "Per Capita Net State Domestic Product (Current Prices)".
  2. ^ a b "Bihar Budget 2024–25: Nitish Kumar Government Presents Rs 2.79 Lakh Crore Budget, Growth Rate 'Highest' in Country at Over 12%". Latestly. 13 February 2024. Retrieved 2 March 2024.
  3. ^ a b c d e "Bihar Budget Analysis 2022–23". PRS Legislative Research. Retrieved 12 March 2022.
  4. ^ a b "Bihar Budget 2019–20" (PDF). Finance department, Govt. of Bihar. Archived from the original (PDF) on 13 February 2019. Retrieved 18 May 2019.
  5. ^ "SDGs India Index". NITI Aayog. 31 December 2019.
  6. ^ "Sub-national HDI – Area Database". Global Data Lab. Institute for Management Research, Radboud University. Archived from the original on 23 September 2018. Retrieved 31 May 2021.
  7. ^ "Bihar Budget Analysis 2016–17" (PDF). PRS Legislative Research. Archived (PDF) from the original on 26 January 2017. Retrieved 5 March 2017.
  8. ^ "Unemployment Rate in India". Centre for Monitoring Indian Economy. p. 1. Retrieved 2 October 2022.
  9. ^ Anand st das (2008). "Distressed Delicacy". Tehelka. Archived from the original on 6 January 2010. Retrieved 29 September 2008.
  10. ^ a b "Budget of Rs 2,78,725.72 Cr for fiscal 2024-25 presented in Bihar Assembly". United News of India. 13 February 2024. Retrieved 2 March 2024.
  11. ^ "Bihar records 10.2% GDP growth rate in 2016–17". The Times of India. 5 August 2017. Archived from the original on 6 August 2017. Retrieved 5 August 2017.
  12. ^ "Archived copy" (PDF). Archived from the original (PDF) on 3 March 2011. Retrieved 20 November 2014.{{cite web}}: CS1 maint: archived copy as title (link)
  13. ^ "Doing business the hard way in Bihar". Financial express. 2008. Archived from the original on 10 May 2008. Retrieved 2 January 2009.
  14. ^ "CM: Corruption biggest challenge". The Times of India. 13 December 2008. Archived from the original on 22 October 2012.
  15. ^ "New Delhi, Patna best cities to start business: World Bank". The Times of India. 30 June 2009. Archived from the original on 16 May 2010.
  16. ^ "A special report on India: Ruled by Lakshmi". The Economist. 11 December 2008. Archived from the original on 10 March 2010.
  17. ^ "Bihar grew by 11.03%, next only to Gujarat". The Times of India. 3 January 2010. Archived from the original on 5 January 2010.
  18. ^ "'Bihar's factory output races to match India's pace'". Indian Express. 21 January 2010. Archived from the original on 8 August 2013. Retrieved 10 June 2013.