Bihar

Recent Developments in Key Sectors

• The Bihar Government is boosting tourism and rural infrastructure through major projects, including themed circuits such as the Ramayana, Buddha and Sufi Circuits, and new ropeways in Jehanabad and Rohtas to improve connectivity. Under the Mukhyamantri Gramin Setu Yojana, the state plans to build 700 rural bridges in FY26 to enhance access in remote and flood-prone areas, supporting tourism, education, healthcare and local markets.
• According to the Telecom Regulatory Authority of India (TRAI), Bihar had 94.65 million wireless subscribers and 1.19 million wireline subscribers, as of September 2024.
• According to the Department for Promotion of Industry and Internal Trade (DPIIT), cumulative FDI inflows in Bihar were valued at US$ 215.76 million between October 2019- December 2024.
• The state government has approved a scheme to provide a grant of Rs. 2 lakh (US$ 2,392) to poor households for setting up a small business. The estimated budget allocation for this initiative is Rs. 1,000 crore (US$ 120 million) in FY25, aiming to improve the financial condition of underprivileged households by supporting them in establishing their own small enterprises.
• In 2023, education and the rural sector get top priority in Bihar’s US$ 31.78 billion (Rs 2.61 lakh crore) Budget.
• Under the State Budget 2025-26:
  • Rs. 8,832 crore (US$ 1.04 billion) was allocated towards roads and bridges.
  • Rs. 13,401 crore (US$ 1.57 billion) was allocated for the energy department.
  • Rs. 10,928 crore (US$ 1.28 billion) has been allocated for urban development.
  • Rs. 63,335 crore (US$ 7.44 billion) was allocated towards the education, sports, art and culture sectors.
  • Rs. 19,184 crore (US$ 2.25 billion) was allocated towards health and family welfare.
  • Rs. 8,039 crore (US$ 944.54 million) was allocated towards agriculture and allied activities.
• In Bihar, road work worth Rs. 30,000 crore (US$ 4.06 billion) is undergoing. For compensation against land acquisitions, a total of Rs. 4,600 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.
• As of February 2025, Bihar is implementing 57 railway projects worth Rs. 86,458 crore (US$ 10.16 billion), covering 5,346 km of new lines, doubling tracks, and gauge conversion. Additionally, 98 Amrit Bharat stations are being redeveloped at a cost of Rs. 3,164 crore (US$ 372 million) Since 2014, Bihar has achieved 100% electrification with 3,020 km of tracks electrified. Twelve Vande Bharat trains and one Amrit Bharat Express are now operational.
• On October 20, 2024, Prime Minister Mr. Narendra Modi laid the foundation stone for a Rs. 912 crore (US$ 107.16 million) civil enclave project at Darbhanga Airport. The civil enclave at Darbhanga Airport will significantly enhance air connectivity for the Mithila region and northern Bihar.
• At Patna's Jayaprakash Narayan International Airport, >26.75% work on a new domestic terminal building and other auxiliary facilities has been completed, as of August 2021. The Airports Authority of India (AAI) has been given Rs. 1,216.9 crore (US$ 166.09 million) by the Central Government for the redevelopment project, which is expected to be completed by December 2023.

Bihar is an agrarian-led state with a rapidly expanding economy, benefiting from its strategic location near major eastern and northern markets and key ports such as Kolkata and Haldia. With a projected GSDP of US$ 128.89 billion in FY26 and sustained double-digit growth, the state is witnessing steady improvements in per capita income and industrial activity. Agriculture remains the backbone of the economy, employing nearly 80% of the population, while food processing, dairy, manufacturing, healthcare and small enterprises are emerging growth drivers. Rising exports, expanding power capacity, improved digital connectivity and large-scale public investment in roads, railways, airports, education and healthcare are strengthening Bihar’s infrastructure base and positioning it as an increasingly attractive destination for investment and inclusive growth.