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. 10.97 trillion (US$ 128.89 billion) and increased at a CAGR (in Rs.) of 11.42% between 2015-16 and 2025-26.
The per capita GSDP of Bihar increased to Rs. 66,828 (US$ 785.47) in 2023-24 and rose at a CAGR of 9.13% (in Rs.) between 2015-16 and 2023-24.
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 8.45% (in Rs.) between 2015-16 and 2021-22.
Bihar is one of the strongest agricultural states in the country. The percentage of the 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 eighth-largest producer of fruits in India. 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.
Total merchandise exports from the state stood at Rs. 15,987 crore (US$ 1,878.36 million) in FY25 (until February 2025). Key items exported from the state included petroleum products, buffalo meat, other cereals and rice (other than basmati).
In FY25, Bihar had a total installed power generation capacity of 7895.25 MW, of which 6655.99 MW was contributed by central utilities, 70.70 MW by state utilities and 1168.56 MW by private utilities.
Hydropower plants accounted for a power generation capacity of 110 MW, while 450.15 MW of installed power generation capacity was from renewable sources.
