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Industry in Bihar Presentation and Growth Report | IBEF

Last updated on Aug, 31 2021

Economic Snapshot
Economic Snapshot


Bihar is located in the eastern part of India.

Gross State Domestic Product (GSDP) of Bihar grew at a CAGR of 13.27% between 2015-16 and 2019-20. 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 2016 and 2021.

Bihar is the fourth largest producer of vegetables and the eight largest producers of fruits in India. Bihar has high agricultural production making it one of the strongest sectors of the state. 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 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. 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.

Key Sectors:

  • In May 2021, the Bihar government announced that it aims to complete wheat procurement based on the minimum support price (MSP) by May 31st, 2021. The state government aims to procure around 1 lakh metric tonne wheat to start the procurement drive through primary agriculture cooperative societies (PACS) and Vyapar Mandals.
  • In March 2021, the state government announced that they will provide electricity connection to every agricultural land at a lower rate in the state by the end of March 2022.
  • According to the Department for Promotion of Industry and Internal Trade (DPIIT), the cumulative FDI inflows in Bihar were valued at US$ 50.62 million between October 2019 and March 2021.
  • In 2019, eight investments were filed in the state and the amount of investment proposed was Rs. 671 crore (US$ 96.01 million).
  • With 84.22 million mobile subscribers in January 2020, Bihar** accounted for the third largest mobile subscriber base among all Indian states.
  • Total merchandise export from the state stood at US$ 1,661.13 million in 2020. In 2020-21 (until January 2021), exports stood at US$ 1,160.72 million.
  • As of April 2021, Bihar had a total installed power generation capacity of 6,330.21 MW, of which 5,265.89 MW was contributed by central utilities, 70.70 MW by state utilities and 993.62 MW by private utilities.
  • 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 tourist arrival reached 1.093 million, whereas, and domestic tourist arrival stood at 33.99 million.
  • 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.

Note: P - Provisional, ** Includes Jharkhand

Bihar State Presentation

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