Industrial Development & Economic Growth in Bihar

Latest update: February, 2016

Economic Snapshot: GSDP of Bihar

Bihar's gross state domestic product (GSDP) was at US$ 66.4 billion over 2014-15.

Economic Snapshot: GSDP of Bihar

Economic Snapshot: NSDP of Bihar

Bihar's net state domestic product (NSDP) was at US$ 61 billion over 2014-15.

Break up of outstanding investments in Bihar


February, 2016

Bihar is one of the fastest growing states in India. The economy of Bihar is projected to grow at a compound annual growth rate (CAGR) of 13.4% during 2012-2017 i.e. the 12th Five-Year Plan. Bihar has witnessed strong growth in per capita net state domestic product (NSDP). At current prices, per capita NSDP of the state grew at a CAGR of 12.91 per cent during 2004-05 to 2014-15.

Bihar is the largest producer of vegetables and the second-largest producer of fruits in

India. Bihar has high agricultural production making it one of the strongest sectors of the state. About 80 per cent of the state’s population is employed in agriculture, which is much higher as compared to India’s average.

The state has a large base of cost-effective industrial labour, making it an ideal destination for a wide range of industries. The state enjoys a unique location specific advantage because of its proximity to the vast markets of eastern and northern India, access to ports such as Kolkata and Haldia and to raw material sources and mineral reserves from the neighbouring states.

Major initiatives taken by the government to develop Bihar are:

  • The Government of Bihar has approved 224 food processing projects in FY 2015.
  • In 2015, the central government approved an FDI project worth US$ 396.03 million for manufacturing world class diesel and electric locomotive factories in Bihar.
  • Under Jawaharlal Nehru National Urban Renewal Mission (JNNURM), eight projects costing US$ 117.5 million have been sanctioned for urban centres such as Patna and Bodh Gaya. The key areas of development are solid-waste management system, water supply and sewage.
  • According to State Plan, the budgeted outlay for roads and highways is US$ 2,081.87 million for 2015-16.
  • The Bihar government is preparing a 20-year master plan for promotion and development of tourism in the state.
  • In May 2015, the central government sanctioned an investment of US$ 8,294.62 million for the construction of roads in Bihar. The construction activity for this project is expected to begin by the end of 2015.
Bihar State Presentation

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Bihar Map


x IBEF : India Brand Equity Foundation