Economy of Bihar
Economy of Bihar
Over the past two decades, Bihar has demonstrated significant economic resilience, characterised by consistent improvements in Gross State Domestic Product (GSDP) and per capita income, as well as sectoral diversification. The Bihar Economic Survey 2025-26 highlights that the state's growth trajectory has often surpassed the national average, indicating robust economic momentum driven by public investment, infrastructure development and increased economic activity.
As per the recent estimates, Bihar's GSDP in 2024-25 increased by 8.6 percent at constant prices and 13.1 percent at current prices, reaching Rs. 5,31,372 crore and Rs. 9,91,997 crore, respectively. Over the past three years, Bihar's GSDP growth has consistently outpaced India's GDP growth at both constant and current prices.
The per capita GSDP for Bihar is estimated at Rs. 76,490 at current prices and Rs. 40,973 at constant prices in 2024-25, reflecting growth rates of 11.5 percent and 7.1 percent, respectively. The sectoral composition of Gross State Value Added (GSVA) in Bihar has undergone a structural transformation, with the primary, secondary, and tertiary sectors contributing 18.3 percent, 26.8 percent, and 54.8 percent, respectively. Gross Fixed Capital Formation in the state has nearly doubled over the past five years reaching Rs. 34,905 crore in 2024-25, with its share in GSDP rising to 3.5 percent.
Bihar Economy: An Overview
01
As per the latest quick estimates for 2024-25, Bihar's Gross State Domestic Product (GSDP) at constant (2011-12) prices increased by 8.6 percent, while at current prices it expanded by 13.1 percent, reaching Rs. 5,31,372 crore and Rs. 9,91,997 crore respectively.
02
Over the past three years, Bihar's economic growth has consistently outpaced India's GDP growth, both at current and constant prices. Bihar's GSDP growth rates reached 17.9 percent in 2022-23 and 14.9 percent in 2023-24, compared to India's 14.0 percent and 12.0 percent respectively at current prices. As per the quick estimates for 2024-25, Bihar's GSDP (current prices) growth is estimated at 13.1 percent and India's GDP growth at 9.8 percent. At constant (2011-12) prices, Bihar's economy is estimated to have achieved 8.6 percent growth in 2024-25, exceeding India's 6.5 percent. These figures place Bihar among the fastest-growing states in India.
03
The quick estimates for 2024-25 indicate that the secondary sector's Gross State Value Added (GSVA) in Bihar grew by 11.1 percent at constant (2011-12) prices and 15.5 percent at current prices. The tertiary sector followed with growth rates of 8.9 percent at constant prices and 13.5 percent at current prices, while the primary sector recorded increases of 4.1 percent at constant prices and 9.6 percent at current prices.
04
Between 2020-21 and 2024-25, the secondary sector's share of Bihar's GSVA at constant (2011-12) prices increased substantially from 21.1 percent to 26.8 percent, mainly due to growth in construction and manufacturing sectors. In contrast, the primary sector's share declined from 21.9 percent to 18.3 percent, while the tertiary sector's share decreased from 57.0 percent to 54.8 percent. These changes indicate increasing diversification in the state's economic activities.
05
Bihar's per capita GSDP at current prices increased from Rs. 46,412 in 2020-21 to Rs. 76,490 in 2024-25, showing a steady upward trend. At constant (2011-12) prices, per capita GSDP rose from Rs. 30,159 to Rs. 40,973 during the same period.
06
Within Bihar, the Patna district recorded the highest per capita Gross District Domestic Product (GDDP), followed by Begusarai and Munger. The per capita GDDP at current prices was Rs. 2,41,220 for Patna, Rs. 1,05,600 for Begusarai, and Rs. 93,921 for Munger.
07
Overall, the Bihar Economic Survey 2025-26 presents an optimistic and forward-looking assessment, highlighting that the state is progressing along a high-growth trajectory supported by macroeconomic stability, sectoral diversification, increased investment, and continued focus on human capital development, employment generation, and infrastructure improvement.
State Finances
01
Bihar's fiscal trajectory demonstrates disciplined financial management, as total expenditure by the State government increased from Rs. 1.66 lakh crore in 2020-21 to Rs. 2.82 lakh crore in 2024-25.
02
The proportion of capital expenditure in total expenditure rose significantly from 15.8 percent to 22.3 percent, while revenue expenditure declined from 84.2 percent to 77.7 percent, highlighting infrastructure focus.
03
Revenue receipts increased from Rs. 1.28 lakh crore to Rs. 2.18 lakh crore, with tax revenue share rising from 70 percent to 84 percent.
04
Social Services accounted for 46 percent of total expenditure, while Economic Services increased slightly to 22 percent, maintaining balanced development.
05
Scheme expenditure increased to 39.9 percent, reflecting a shift toward welfare and development initiatives.
06
Development expenditure reached 67.4 percent of total spending, showing strong focus on growth-oriented sectors.
07
Outstanding debt stood at Rs. 3,74,134 crore (37.7 percent of GSDP), with 84.6 percent being public debt, primarily from internal sources.
