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. The gross state domestic product (GSDP) of Bihar grew at a compound annual growth rate (CAGR) of 18.8 per cent during 2004–05 and 2012–13 to touch US$ 56.8 billion.
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.