Industrial Development & Economic Growth in Bihar

Latest update: August, 2018

Economic Snapshot
Economic Snapshot


August, 2018

Bihar is one of the fastest growing states in India. The Gross State Domestic Product (GSDP) of Bihar grew at a CAGR of 12.13% between 2011-12 and 2016-17. Bihar has witnessed strong growth in per capita net state domestic product (NSDP). At current prices, per capita NSDP of the state grew at a CAGR of 10.35 per cent during 2011-12 to 2016-17. 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. About 80 per cent of the state’s population is employed in agriculture, which is much higher as compared to India’s average. 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. Major initiatives taken by the government to develop Bihar are:

  • Bihar is the 4thlargest producers of vegetables & the 8thlargest producer of fruits in India
  • Total FDI for Bihar & Jharkhand, between April 2000 and March 2018, stood at US$ 113 million.
  • As per Budget 2018-19, Rs 6,889.12 crore (US$ 1.07 million) has been allocated for road construction in the state.
  • During 2018-19*, Patna handled 7,070 aircraft movements and 1,017,269 passengers. During the same period Gaya airport handled 332 aircraft movements and 22,624 passengers.
  • The Bihar government has identified 900 spots, which are to be developed as tourist places to attract tourists from across the world.
  • As per 2018-19 Budget, 1.25 crore children are provided daily mid-day meals in 70,371 schools.
  • As of June 2018, Bihar had a total installed power generation capacity of 4,341.47 MW, of which 3,024.32 MW was contributed by central utilities, 780.70 MW by state utilities &536.45 MW by private utilities.
  • During 2017-18^, 438,000 MT sugar was produced in Bihar. Sugarcane production in Bihar stood at 16.51 million MT during 2017-18 (P)

Note: * - Upto June 2018, ^ - Upto February 2018, P - Provisional

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