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Bihar: Second largest producer of fruits in India

Bihar is one of the strongest agricultural states of India and 80% of the state population is employed in the agriculture sector. Food processing, dairy, sugar, manufacturing and healthcare are some of the fast-growing industries in the state. With a high potential in the tourism sector, Bihar has developed eight tourism circuits, including the popular Buddhist circuit. 

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 neighboring states. Golden Quadrilateral Highway passes through Bihar in the districts of Kaimur, Sasaram, Aurangabad, Gaya, and Patna. It is also connected to the Eastern Dedicated Freight Corridor, which lends accessibility to the port in east India and major states in north India. Bihar currently has 50 industrial areas and mega industrial parks spread across capital city Patna and other districts. India's first electric locomotive manufacturing facility was recently opened in Madhepura by Alstom, under a joint venture worth USD 3.3 bn with Indian Railways, to manufacture and supply electric locomotives for freight transportation.

 

Key upcoming projects include:

  •  Pristine Mega Food Park, in Khagaria, in 40 ha area     
  •  Bio-control labs for the purpose of agricultural research across Bihar     
  •  Diesel locomotive manufacturing plant in Saran, set up as a part of joint venture between General Electric and Indian Railways, to manufacture and supply diesel-electric locomotives     
  •  Smart Cities Mission, for which Muzaffarpur, Bhagalpur and Patna are the cities identified in Bihar     

Key upcoming industrial corridor:

  •  Amritsar Kolkata Industrial Corridor is the key upcoming corridor passing through Gamhariya in Bihar and connecting Punjab in north with West Bengal in East of India     

Highlights

  • Highest maize productivity in India
  • Husk Power Systems in Bihar is India's first enterprise to use rice husk to generate clean energy for rural electrification
  • Tourist arrival of over 2.8 mn, with more than 50% growth in domestic tourists between 2011-15
  • GSDP (Current price)

    USD 65 bn (2016-17)

  • GSDP growth rate (YoY)

    15% (2016-17)

  • Per capita income

    USD 530 (2016-17)

  • FDI inflow

    USD 113 mn (2000-17)
    (includes Jharkhand)

Demographics

Bihar is the 3rd most populated state in India, with 9% of its total population.

The population of Bihar stands at 103.8 mn. It is the most densely populated state in India and would rank 13th most populated in the world if it were to be an independent country.

About 52% of the population of Bihar lies in the working age group of 15-59 years.

  • 11%

    Urbanisation rate

  • 918

    females/ 1000 males

Skilled manpower
  • Central universities

    3

  • State universities

    15

  • Private universities

    2

  • Engineering colleges

    27

  • Polytechnic institutes

    64

  • Agricultural colleges

    3

Key Sectors

Bihar is fundamentally an agrarian economy. Total vegetable production in the state was 15.3 mn tonnes in 2015-16, which was highest in all the states. The state government offers incentives to various food processing units such as fruits and vegetables, food grains, milk, meat and honey processing units.

The textile industry is a highly labor-intensive industry, and Bihar is home to around 10,000 weavers. Tasar silk of Bhagalpur is an exclusive product of Bihar, which has the potential to fetch premium prices. Bihar had produced around 60 tonnes silk during 2014-15.  The state also produces 2.6 mn bovine hides and 5.1 mn bovine skins.

The government of Bihar has initiated several steps to address the supply-demand gap in electricity, by implementing large power projects. Bihar has renewable energy potential of more than 12.5 GW and hence gives enormous opportunities to the industries for setting up units for renewable energy modular-product manufacturing.

Bihar is a land of ancient universities of Nalanda and Vikramshila; the remnants of these two ancient universities, the antiques and artefacts attract tourists in huge numbers. The state’s great competitive strength from tourism point of view is its ancient and yet living civilisation that gave rise to two of the world's great religions - Buddhism and Jainism.

Major Investors