Bihar is located in the eastern part of India. The state is surrounded by Nepal in the north, West Bengal in the east, Uttar Pradesh in the west and Jharkhand in the south. The state enjoys a unique location-specific advantage because of its proximity to the vast markets of eastern and northern India, as well as access to ports such as Kolkata and Haldia, and to raw material resources and mineral reserves from the neighboring states.
The economy of the state has grown at around 11.95 per cent during the 11th Five Year Plan. Bihar has also topped in per capita income growth, registering a growth of 11.75 per cent in per capita net state domestic product at constant (2004-05) prices for fiscal 2011-12. Food processing, dairy, sugar, manufacturing and health sectors are some of the fast growing industries in the state. Bihar has also taken several initiatives for the development of other sectors such as education and tourism.
Bihar is one of the strongest agricultural states, with very high productivity. The percentage of population employed in agricultural production in Bihar is estimated to be 74 per cent, which is much higher than the national average. It is the largest producer of vegetables and the second largest producer of fruits in India.
The state offers a wide range of policy incentives for businesses under the Industrial Incentive Policy, 2011. It also provides specific incentives for information technology, renewable energy, sugar, food processing and tourism. The state has a large base of cost-effective industrial labour, making it an ideal destination for a wide range of industries. It has institutes of national importance such as National Institute of Technology and Indian Institute of Technology, which provide skilled manpower to the industries.