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 2024-25, Bihar’s GSDP at current prices is projected to be Rs. 9.76 trillion (US$ 116.45 billion). The state’s GSDP expanded at a CAGR (in Rs.) of 11.31% between 2015-16 and 2024-25.

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 the fourth-largest producer of vegetables and the eighth-largest producer of fruits in India. Bihar has high agricultural production, making it one of the strongest sectors of the state. The percentage of the population employed in agricultural production in Bihar is around 80%, which is much higher than the national average. 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. 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.

As of FY25 (Until August), Bihar had a total installed power generation capacity of 7,993.27 MW, of which 6,843.12 MW was contributed by central utilities, 70.70 MW by state utilities and 1,079.45 MW by private utilities. 

Key Sectors:

• According to the Telecom Regulatory Authority of India (TRAI), Bihar had 96.05 million wireless subscribers and 1.11 million wireline subscribers, as of July 2024.
• According to the Department for Promotion of Industry and Internal Trade (DPIIT), cumulative FDI inflows in Bihar were valued at US$ 214.99 million between October 2019-June 2024.
• In 2023, tourist arrivals stood at eight lakh. The increase in tourism is credited to the wide range of attractions that appeal to different religious and cultural preferences.
• 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 2020-21, the total production of horticulture crops in the state was expected to be 22,872.91 thousand metric tonnes, and the area under production was 1,294.67 thousand hectares. In 2021-22, the total production of vegetables and fruits in the state was estimated at 17,767.84 thousand metric tonnes and 4,986.74 thousand metric tonnes, respectively.
• In March 2021, the state government announced that they will provide an electricity connection to every agricultural land at a lower rate in the state by the end of March 2022.
• With 64.31 million mobile subscribers as of March 2022, Bihar accounted for the sixth-largest mobile subscriber base among all Indian states.
• Total merchandise exports from the state stood at US$ 2,050.00 million in 2023-24. Key items exported from the state included petroleum products, buffalo meat, other cereals and rice (other than basmati).
• During the sugar season 2019-20, 11 sugar mills were operating in the state of Bihar. During 2019-20, 220.50 lakh MT of sugar is estimated to have been produced in Bihar. In FY22, Bihar exported US$ 6.35 million worth of sugar.