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 economy of the state is projected to grow at around 13.4 per cent during the 12th Five-Year Plan (2012-2017). Bihar's per capita GSDP increased from US$ 195.8 in 2004-05 to US$ 695.7 in 2015-16.
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 largest producer of vegetables and the second 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 for Bihar and Jharkhand between April 2000 and March 2016, stood at US$ 93 million.
- The government has approved Rs 4,918 crore (US$ 720 million) highway project for widening of National Highways in Bihar and Jharkhand to augment the state's infrastructure.
- Bihar along with Uttar Pradesh, Odisha and Maharashtra has agreed to join Ujwal Discom Assurance Yojana (UDAY) which has been launched to improve financial and operational efficiencies of power distribution companies, as announced by Mr Piyush Goyal, Minister of State (Independent Charge) for Power, Coal and New & Renewable Energy
- Indian Railways has issued a Letter of Award (LoA) to US-based General Electric (GE) for a Rs 14,656 crore (US$ 2.2 billion) diesel locomotive factory project at Marhowra, and to French transport major Alstom for Rs 20,000 crore (US$ 3 billion) electric locomotive project in Madhepura, both in the state of Bihar.
- With 75.66 million mobile subscribers in May 2016, Bihar has reached the fourth-largest mobile subscriber base among all Indian states.
- Food Processing and Dairy: In 2015-16, total fruit production in Bihar was 4.18 million tonnes and total production of major vegetables was recorded to be 15.29 million tonnes.
- Education: The state government has allocated a capital outlay of US$ 160.84 million as per the budget 2016-17 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: Under the Prasad Scheme, for the promotion of Patna Sahib, the government sanctioned US$ 6.34 million during 2015-16. The government has also released US$ 1.26 million for the improvement of basic facilities in Gaya’s Vishnupad temple.
- Capital: Patna
- Geographical Area (sq km): 94,163
- State Language: Hindi, English, Urdu, Bhojpuri, Maithili and Angika
- Literacy Rate: 61.8 per cent
- Key Industries: Food and beverages, rubber and plastics, transport equipment, chemicals, tobacco, textile, leather and dairy