The Economic Survey of Bihar for 2019-20 highlights that Bihar has achieved a higher growth rate than the national average in recent years. This growth is significant as it reflects Bihar’s improving economic scenario despite being one of India’s less-developed states. Several sectors have contributed to this progress, particularly in areas such as agriculture, industry, construction, and the services sector.

Key Sectors Contributing to Bihar’s Growth

1. Agriculture and Allied Activities
   • Agriculture has historically been the backbone of Bihar’s economy, employing a majority of the population. In recent years, the state has seen increased productivity and diversification within this sector.
   • Programs like the Mukhyamantri Horticulture Mission have encouraged the cultivation of fruits, vegetables, and other high-value crops, enhancing farmers’ incomes. Improvements in irrigation and the promotion of organic farming have also boosted agricultural output.
   • Fishery and livestock sectors have also seen substantial growth due to initiatives aimed at increasing production and providing modern facilities for farmers​
2. Construction Sector
   • The construction sector has been one of the fastest-growing sectors in Bihar, contributing significantly to the state’s GDP growth. The state government has invested in building infrastructure, including roads, bridges, and public buildings, under various development schemes.
   • For example, the Bihar State Road Development Corporation has focused on connecting remote areas with better road networks. Improved connectivity has not only boosted economic activities within the state but also attracted investment in infrastructure and industry​
   • Although Bihar has historically lagged in industrial development, recent years have seen a resurgence, particularly in small and medium-scale industries. Initiatives like the Bihar Industrial Investment Promotion Policy have encouraged entrepreneurship and attracted investments in food processing, textile, and manufacturing sectors.
   • The establishment of food processing units has helped reduce wastage in agricultural produce, adding value to local resources and generating employment. Additionally, Bihar has encouraged micro and small enterprises, especially in rural areas, through financial and technical support
   • The service sector is another major contributor to Bihar’s economic growth. Key services, such as retail, trade, education, and healthcare, have expanded rapidly, helping to drive the economy forward.
   • Increased investment in education and skill development programs has created a more skilled workforce, further strengthening the service sector. The growth of banking, insurance, and financial services has also facilitated better financial inclusion, with more people gaining access to credit and financial services.
   • The tourism sector has seen growth as well, with Bihar promoting its historical and religious sites like Bodh Gaya and Nalanda, attracting tourists and boosting local businesses
3. Public Health and Education Investments
   • The Bihar government has allocated significant resources toward improving health and education, aiming to uplift the socio-economic standards of the population. Increased access to quality healthcare and schooling supports a more productive workforce, indirectly contributing to economic growth.
4. Infrastructure Development Schemes
   • Infrastructure projects like the Bihar State Highways Project and the Mukhya Mantri Gram Sampark Yojana have improved rural connectivity, allowing smoother movement of goods and people across the state. This investment in connectivity has encouraged economic activity in previously underdeveloped areas .

Challenges aForward

Despite impressive growth in these sectors, Bihar faces challenges, such as the need for further industrialization, improved education quality, and skill development. The state’s reliance on agriculture, coupled with seasonal flooding, requires more robust disaster management and climate-resilient agricultural practices.