Industrial Development & Economic Growth in Bihar

Bihar is one of the fastest growing states in India. The Gross State Domestic Product (GSDP) of Bihar grew at a CAGR of 12.14% 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 10.36 per cent during 2011-12 to 2016-17. Bihar is the third largest producer of vegetables and the sixth-largest producer 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:

• By the end of August 2016, there were around 407 food processing units in the state, of which 278 were operational.
• In 2015, the central government approved an FDI project worth US$ 396.03 million for manufacturing world class diesel and electric locomotive factories in Bihar. As of October 2017, the work is on track and the first of the 1,000 locomotives has arrived at Mundra Port.
• As of August 2017, 4 cities of Bihar namely, Bhagalpur, Bihar Sharif, Patna &Muzaffarpur; are to be developed as smart cities.
• In the 2017-18 budget, capital outlay of US$ 1.03 billion is proposed for the development of roads & bridges in the state.
• The Bihar government has identified 900 spots, which are to be developed as tourist places to attract tourists from across the world.
• As of June 2017, 1,114 major & minor roads in the state were completed under MukhyamantriSetuNirmanYojna along with 824 major, minor & mega roads under various other heads.

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