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.
The Gross State Domestic Product (GSDP) of Bihar grew at a CAGR of 12.14% between 2011-12 and 2016-17. Bihar's per capita GSDP increased from US$ 365.1 in 2011-12 to US$ 598.3 in 2016-17.
Bihar is one of the strongest agricultural states. The percentage of population employed in agricultural production in Bihar is around 80 per cent, which is much higher than the national average. It is the third largest producer of vegetables and the sixth largest producer of fruits in India. Food processing, dairy, sugar, manufacturing and healthcare are some of the fast growing industries in the state. The state has planned initiatives for the development of other sectors such as education and tourism and also provides incentives for information technology and renewable energy.
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. The state has a large base of cost effective industrial labour, making it an ideal destination for a wide range of industries.
Total FDI inflows in Bihar and Jharkhand, between April 2000 and June 2017, stood at US$ 113 million.
- As of June 2017, 1,114 major & minor roads in the state were completed under Mukhyamantri Setu Nirman Yojna along with 824 major, minor & mega roads under various other heads.
- As of August 2017, 4 cities of Bihar namely, Bhagalpur, Bihar Sharif, Patna & Muzaffarpur are to be developed as smart cities. As on April 2017, under the AMRUT scheme, US$ 13.84 million were sanctioned to the state of Bihar as a part of the approved central share towards the projects.
- As of March 2017, 21 super specialty departments in 3 government hospitals have been finalised by the state & central government, which are expected to be operational by 2019, with a funding of US$ 29.75 million for each.
- In March 2017, the state government made an announcement to change the Bihar Private University Act, 2013, by relaxing norms to meet the infrastructure requirement of new institutions. It is a proposal to allow universities to start functioning from their temporary makeshift venues while meeting all other conditions.
- With 69.31 million mobile subscribers in February 2017, Bihar has reached the third largest mobile subscriber base among all Indian states.
- Food Processing and Dairy: In 2016-17, total fruit production in Bihar was 4.27 million tonnes and total production of major vegetables was recorded to be 14.23 million tonnes. Bihar is the sixth largest producer of fruits and third largest producer of vegetables in India.
- Education: The state government has allocated a capital outlay of US$ 3.92 billion as per the budget 2017-18 for the development of education sector.
- Textile & Leather Industry: Government has allocated a sum US$ 1.53 million during FY 2015-16, for the development of five common facility centres (CFCs) under the Jute Common Facility Centres (CFCs) scheme for product development, training, market development, etc. These CFCs are sanctioned at five locations, with 3 locations situated in West Bengal, 2 locations in Assam and 1 location in Bihar.
- Tourism: The Bihar government has identified total 900 spots, which are to be developed as tourist places, map to attract tourists from across the world.