Economy of Bihar
From Wikipedia, the free encyclopedia
Bihar has one of the fastest-growing economies in India. It is largely service-based, with a significant share of agricultural and industrial sectors. The GDP of the state was ₹9,76,514 crores (US$120 billion) at the current market price (2024–25).[9]
Currency | Indian Rupee (INR, ₹) |
---|---|
1 April – 31 March | |
Statistics | |
Population | 130,725,310 (2023 Cast census) |
GDP | ₹9.77 lakh crore (US$120 billion) (2024–25)[1] |
GDP rank | 15th |
GDP growth | 10.98% (2022–2023) |
GDP per capita | $923 (nominal, 2023 est.) |
GDP per capita rank | 33rd |
GDP by sector | Agriculture 20% Industry 20% Services 60% (2021–22)[2] |
7.3% (2020–21)[3] | |
Population below poverty line | 33.73% in poverty (2017–18)[4] |
0.581 medium (2019)[5] (36th) | |
Labour force by occupation | Agriculture 56% Industry 8% Services 36% (2015)[6] |
Unemployment | 11.4% (Sep 2022)[7] |
Public finances | |
38.66% of GSDP (2022–23 est.)[2] | |
₹−25,885 crore (US$−3.2 billion) 2.97% of GSDP (2022–23 est.)[2] | |
Revenues | ₹1.97 lakh crore (US$25 billion) (2022–23 est.)[2] |
Expenses | ₹2.23 lakh crore (US$28 billion) (2022–23 est.)[2] |
Economic aid | 7.9% (2017–18)[3] |
This state also has a small industrial sector. As of 2021 agriculture accounts for 24%, industry 15% and service 61% of the economy of the state[10] For the period 2002–2007, average growth rate of Manufacturing in the state was 0.38%, against the national average of 7.8%.[11] Bihar has the lowest GDP per capita in India, but there are pockets of higher per capita income like the southern half of the state and its capital city Patna.
The GSDP stands at 9.765 lakh Crores Rupees ($120 billion nominal GDP) as per 2023-24.[1][9] In actual terms, as of 2012–2013, Bihar state GDP is ranked 8 out of 29 states. Corruption is an important hurdle for the government to overcome according to Transparency International India, which the government has also acknowledged.[12][13] Since November 2005, the government led by Nitish Kumar has implemented a number of economic and social reforms. A consequence has been a positive improvement in the economy of the state and also of Patna. For example, in June 2009, the World Bank reported that Patna was the second best city in India to start a business, after Delhi.[14] Between 1999 and 2008, state GDP grew by 5.1% a year, which was below the Indian average of 7.3%.[15] However, in January 2010, the Indian government's Central Statistics Organisation reported that in the five-year period between 2004–2005 and 2008–09, Bihar's GDP grew by 11.03%, which made Bihar the second fastest growing economy in India during that 5-year period, just behind Gujarat's growth of 11.05%.[16] Another survey conducted by Central Statistical Organisation (CSO) and National Sample Survey Organisation, under MOSPI, said that Bihar saw 14.80 percent growth in factory output in 2007–08, which was slightly less than the Indian rate of 15.24 percent.[17]