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Bihar: 3rd largest producer of vegetables in India

Bihar is one of the strongest agricultural states in India where 79% of the state population is engaged in the sector. Manufacturing, power – thermal and renewable, hospitality, communications and aquaculture are some of the fast-growing sectors in the state. Bihar has developed eight tourism circuits including the popular Buddhist circuit that showcases holy sites of Buddhism, to take advantage of the high tourism potential.

The state enjoys a unique location-specific advantage because of its proximity to the vast markets of eastern and northern India and Nepal. Bihar is well connected to the rest of India through Golden Quadrilateral Highway that passes through the districts of Kaimur, Sasaram, Aurangabad, Gaya, and Patna. Eastern Dedicated Freight Corridor also passes through Bihar, giving the state access to ports in East India—Kolkata and Haldia, raw materials sources and mineral reserves in the neighbouring states. Bihar currently has 50 industrial areas and mega industrial parks. India's first electric locomotive manufacturing facility, located in Madhepura district, opened as a JV between Alstom of France and Indian Railways. The JV launched its first electric locomotive engine in March 2018.

Key upcoming projects include:

  •  Pristine Mega Food Park in Khagaria, spread across 28 ha area     
  •  Gas pipeline network, in association with GAIL and Indian Oil, to ensure availability of natural gas as clean energy for industrial development     
  •  Diesel locomotive manufacturing plant in Saran district, set up as a JV between General Electric of US and Indian Railways, to manufacture and supply diesel-electric locomotives     
  •  Air Cargo Complex has been proposed in Patna/ Gaya for products of export-oriented industrial units and transportation of perishable agriculture goods     
  •  Four power projects across Aurangabad, Buxar, Bhagalpur, Lakhisarai, Banka and West Champaran, expected to increase the power generation capacity of Bihar by 8,600 MW     
  •  Smart Cities Mission, for which Muzaffarpur, Bhagalpur, Patna, and Biharsharif are the cities identified in Bihar     

Key upcoming industrial corridor:

  •  Amritsar Kolkata Industrial Corridor that connects Punjab in the north with West Bengal in the east, is the key upcoming corridor passing through Gamhariya district in Bihar.

Highlights

  • 2nd highest cotton 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

View Our State Policies

  • 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

    3

  • Engineering colleges

    91 (AICTE approved)

  • Polytechnic institutes

    64

  • Agricultural colleges

    4

  • Industrial training institutes

    723

  • Medical colleges

    8

Key Sectors

Bihar is fundamentally an agrarian economy. Total vegetable production in the state was 14.3 mn tonnes in 2016-17, which was third-highest amongst 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 about 100,000 weavers. Tasar silk of Bhagalpur is an exclusive product of Bihar, which has the potential to fetch premium prices. Bihar had produced around 72.2 tonnes silk during 2015-16.  The state also produces more than 2.5 mn bovine hides and 5 mn bovine skins annually.

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