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.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), the cumulative FDI inflows in Bihar were valued at US$ 16.42 million between October 2019 and September 2020.
Total merchandise export from the state stood at US$ 1,661.13 million in 2020. In 2020-21 (until October 2020), exports stood at US$ 702.21 million.
- In December 2020, Union Minister for Road Transport and Highways, Mr. Nitin Gadkari, inaugurated the three lane 1.5 km long Koilwar bridge in Bihar, a major road for transport between Bihar and UP. A sum of Rs. 266 crore (US$ 35.96 million) has been spent on the bridge.
- In Bihar, road work worth Rs. 30000 crore (US$ 4.06 billion) is undergoing. For compensation against land acquisitions, a total of Rs. 4600 crore (US$ 621.81 million) has been announced.
- By 2023, a 7-km four lane Koshi bridge worth Rs. 1478 crore (US$ 199.79 million) is likely to be constructed.
- On December 17, 2020, SpiceJet announced the launch of 30 new domestic flights, including six new flights from Darbhanga, Bihar, which stated its operations on a phased basis from December 20, 2020.
- In October 2020, Minister for Communications, Electronics & Information Technology, Mr. Ravi Shankar Prasad stated that ~46,000 villages in Bihar will be connected through optical fibre network in next 6-7 months.
- On September 27, 2020, a 660-MW unit of its supercritical thermal power plant in Bihar was synchronised with the grid by NTPC Ltd., which would enable the commercial generation of electricity from it. Five units with a capacity of 660 MW each, spread over 3,200 acres of land at Barh in the Patna district, were set up by NTPC.
- 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.
- In 2019-20, the total production of horticulture crops in the state was expected to be 20,676.37 thousand metric tonnes and area under production was 1,175.98 thousand hectares. In 2019-20, the total production of vegetables and fruits in the state was estimated at 16,327.53 thousand metric tonnes and 4,256.21 thousand metric tonnes, respectively.
- 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