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, access to ports such as Kolkata and Haldia, and to raw material sources and mineral reserves from the neighbouring states.
In 2025-26, Bihar’s GSDP at current prices is projected to be Rs. 11.07 trillion (US$ 125.27 billion) and increased at a CAGR (in Rs.) of 11.52% between 2015-16 and 2025-26.
The per capita GSDP of Bihar increased to Rs. 84,136 (US$ 951.80) in 2025-26 and rose at a CAGR of 9.74% (in Rs.) between 2015-16 and 2025-26.
Bihar has witnessed strong growth in per capita net state domestic product. At current prices, the per capita NSDP of the state grew at a CAGR of 9.64% (in Rs.) between 2015-16 and 2025-26.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), cumulative FDI inflows in Bihar were valued at 1,669.72 crore (US$ 218.01 million) between October 2019-March 2026.
Bihar is the fourth-largest producer of vegetables and the eighth-largest producer of fruits in India. Bihar has high agricultural production, making it one of the strongest sectors of the state. The percentage of the population employed in agricultural production in Bihar is around 80%, which is much higher than the national average. Food processing, dairy, sugar, manufacturing, and healthcare are some of the fastest-growing industries in the state. The state has planned initiatives for the development of other sectors such as education and tourism and provides incentives for information technology and renewable energy projects.
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.
As of April 2026, Bihar had a total installed power generation capacity of 8,698.922 MW, of which 7347.66 MW was contributed by central utilities, 70.70 MW by state utilities and 1280.56 MW by private utilities.
Key Sectors:
- The Bihar Government is boosting tourism and rural infrastructure through major projects, including themed circuits such as the Ramayana, Buddha and Sufi Circuits, and new ropeways in Jehanabad and Rohtas to improve connectivity. Under the Mukhyamantri Gramin Setu Yojana, the state plans to build 700 rural bridges in FY26 to enhance access in remote and flood-prone areas, supporting tourism, education, healthcare and local markets.
- In 2024, Bihar received a total of 49,859,236 tourists, including 49,352,094 domestic and 507,142 foreign tourists. Patna received 11.55% of the total tourists visiting the state, with 5,739,212 domestic and 20,967 foreign tourists.
- Bihar Semiconductor Policy 2026 aims to position Bihar as an emerging semiconductor manufacturing hub and support India's semiconductor ecosystem, with the domestic semiconductor market projected to reach US$ 100–110 billion by 2030. The policy offers capital subsidies and land-related incentives, including allotment of one acre of land at a token rate of Rs. 1 for every Rs. 100 crore (US$ 11.32 million) of approved project cost, along with exemptions from stamp duty, registration charges, and land conversion fees to attract high-value technology investments.
- In Dec 2025, The Ministry of Tourism announced plans to support the development of Nalanda as a major heritage and pilgrimage destination. As part of the initiative, Bihar was requested to submit a Destination Strategy and Development Plan for Nalanda, while tourism infrastructure projects across the state continue to receive support under Swadesh Darshan 2.0, PRASHAD, CBDD, and SASCI schemes. The initiative is expected to enhance Bihar's position as a leading Buddhist and cultural tourism destination.
- The state government has approved a scheme to provide a grant of Rs. 2 lakh (US$ 2,392) to poor households for setting up a small business. The estimated budget allocation for this initiative is Rs. 1,000 crore (US$ 120 million) in FY25, aiming to improve the financial condition of underprivileged households by supporting them in establishing their own small enterprises.
- Mukhyamantri Mahila Rojgar Yojana promotes women entrepreneurship by providing financial assistance of up to Rs. 2 lakh (US$ 2,263) for setting up or expanding micro and small enterprises. The initiative aims to enhance women's economic participation, encourage self-employment, and support the growth of women-led businesses across the state.
- In April 2026, the Bihar government approved the development of 11 hi-tech satellite cities across major urban centers, including Patna, Gaya, Muzaffarpur, Bhagalpur, and Darbhanga. The project will be implemented through a land-poolin g model and is designed to create new residential, commercial, and economic hubs, helping attract private investment and generate employment opportunities across the state.
- As of February 2025, Bihar is implementing 57 railway projects worth Rs. 86,458 crore (US$ 10.16 billion), covering 5,346 km of new lines, doubling tracks, and gauge conversion. Additionally, 98 Amrit Bharat stations are being redeveloped at a cost of Rs. 3,164 crore (US$ 372 million) Since 2014, Bihar has achieved 100% electrification with 3,020 km of tracks electrified. Twelve Vande Bharat trains and one Amrit Bharat Express are now operational.
- In 2025-2026, the total passenger traffic and freight handled at Patna airport was 4,386,376 and 11,298.3 MT, respectively.
- In February 2026, the Bihar Cabinet has approved the development of a greenfield international airport in Sonepur, Saran district, and sanctioned Rs. 1,302 crore for land acquisition. The airport will be built on approximately 4,200 acres between Hajipur and Dumaria, with completion targeted by 2030. Designed to handle large aircraft, including the Airbus A380, the facility will feature two 4,200-meter runways and is expected to become India's fifth-largest airport. The project is anticipated to significantly enhance regional connectivity and support economic development in North Bihar.
Bihar is an agrarian-led state with a rapidly expanding economy, benefiting from its strategic location near major eastern and northern markets and key ports such as Kolkata and Haldia. With a projected GSDP of US$ 128.89 billion in FY26 and sustained double-digit growth, the state is witnessing steady improvements in per capita income and industrial activity. Agriculture remains the backbone of the economy, employing nearly 80% of the population, while food processing, dairy, manufacturing, healthcare and small enterprises are emerging growth drivers. Rising exports, expanding power capacity, improved digital connectivity and large-scale public investment in roads, railways, airports, education and healthcare are strengthening Bihar’s infrastructure base and positioning it as an increasingly attractive destination for investment and inclusive growth.
