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 will increase at a CAGR of 13.17% between 2015-16 and 2020-21. Bihar has witnessed strong growth in per capita net state domestic product. At current prices, per capita NSDP of the state grew at a CAGR of 13.41% (in Rs.) between 2015 and 2021.
Bihar is one of the strongest agricultural states. The percentage of population employed in agricultural production in Bihar is around 80%, which is much higher than the national average. It is the fourth largest producer of vegetables and the eight largest producers 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 has a large base of cost-effective industrial labour, making it an ideal destination for a wide range of industries.
Total FDI inflow for Bihar stood at US$ 16.28 million between October 2019 and June 2020. In 2019, eight investments were filed in the state worth Rs. 671 crore (US$ 96.01 million). Total merchandise export from the state stood at US$ 1,661.13 million in 2020. In 2020-21 (till July 2020), export stood at US$ 323.99 million.
- On September 15, 2020, The Union Cabinet, chaired by the Prime Minister, Mr. Narendra Modi, approved establishment of a new All India Institute of Medical Sciences (AIIMS) at Darbhanga, Bihar, under the Pradhan Mantri Swasthya Suraksha Yojana (PMSSY).
- In September 2020, Power Minister, Mr. R K Singh, inaugurated NTPC developmental projects in Bihar. The govt aims to generate 10,000 MW of electricity in the state.
- To boost the state’s petroleum and gas sector, Bihar introduced 10 projects worth Rs. 21,000 crore (US$ 2.85 billion). Out of 10, three projects were launched in September 2020 for the Petroleum sector in Bihar’s Durgapur-Banka section of the Paradip-Haldia-Durgapur pipeline augmentation project and two LPG bottling plants. The other five initiatives were completed projects.
- In September 2020, Prime Minister, Mr. Narendra Modi inaugurated the ‘Kosi Rail Mahasetu’ project and new rail lines and electrification projects in Bihar. These projects include a new railway bridge on the Kiul river, two new railway lines, five electrification projects, one electric locomotive shed at Barauni and a third line between Barh and Bakhtiyarpur.
- In September 2020, Union Minister for Road Transport and Highways, Mr. Nitin Gadkari approved Rs. 971 crore (US$ 131.91 million) for Munger-Bhagalpur NH road in Bihar. This route offers commercial conectivity, with a volume of ~25 thousand vehicles per day; developments/upgrades with further increase vehicle traffic to ~6000 vehicles.
- Under BSHP - 2, construction of ROB (part of SH 83 - Baghi-Barbigha Road) was expected to complete in January 2019. Total cost of the project was Rs. 32.74 crore (US$ 5.08 million)
- During 2019-20, Patna and Gaya handled 30,959 and 3,606 aircraft movements, respectively. Patna and Gaya handled 45,25,765 and 2,37,452 passengers respectively in same period. Patna airport handled 12,249 MT freight traffic during same period.
- Total horticulture production in the state for 2018-19^ was 21,204.97 thousand metric tonnes (MT) with 1,185.36 thousand hectares of area under production.
- State produced 6,787.8 thousand MT of rice and 62 thousand MT of pulses in 2018-19*.
- Sugarcane is grown in approximately 6 percent of the total area under cultivation in Bihar. Sugarcane production in the state for 2018-19 (P) stood at 182.85 lakh MT. During sugar season 2019-20, 11 sugar mills were operating in the state of Bihar. During 2019-20, 220.50 lakh MT sugar is estimated to be produced in Bihar.
- In 2019, foreign and domestic tourist arrival reached 1.093 million and 33.99 million, respectively.
Note: * - 1st Advance Estimates, P - Provisional, ^-3rd advance estimate