Bihar's Economic Surge: State Outpaces National Growth with Record GSDP
Bihar has emerged as a standout performer in India's economic landscape, with the state's Gross State Domestic Product (GSDP) reaching a historic high of Rs 9,91,997 crore at current prices during the 2024-25 fiscal year. According to the Economic Survey 2025-26, prepared by the Bihar Institute of Public Finance and Policy, this represents a remarkable growth of 13.1% at current prices and 8.6% at constant (2011-12) prices.
Outperforming National Benchmarks
What makes Bihar's achievement particularly noteworthy is how it has surpassed India's overall economic performance. While Bihar recorded 13.1% growth at current prices, the national GDP grew at 9.8% during the same period. Similarly, at constant prices, Bihar's 8.6% growth exceeded India's 6.5% expansion, positioning the state as one of the fastest-growing economies in the country.
This economic acceleration has translated into tangible improvements in living standards, with per capita GSDP rising to Rs 76,490 at current prices in 2024-25 from Rs 66,828 in the previous year. At constant prices, per capita income increased from Rs 36,333 to Rs 40,973 during the same period.
Structural Transformation Underway
The Economic Survey reveals a significant structural shift in Bihar's economy, marked by the growing prominence of the secondary sector. Between 2020-21 and 2024-25, the share of secondary sector activities in Gross State Value Added (GSVA) expanded from 21.1% to 26.8%, driven primarily by robust growth in construction and manufacturing.
In contrast, the primary sector's contribution declined from 21.9% to 18.3%, while the tertiary sector's share decreased from 57% to 54.8% over the same five-year period. During 2024-25 specifically, the secondary sector recorded growth of 11.1% at constant prices and 15.5% at current prices, outperforming both the tertiary sector (8.9% and 13.5%) and primary sector (4.1% and 9.6%).
Fiscal Prudence and Investment Focus
State finances have shown healthy expansion alongside this economic growth, with a notable shift toward capital investment. Total government expenditure increased from Rs 2.52 lakh crore in 2023-24 to Rs 2.82 lakh crore in 2024-25. More significantly, the share of capital expenditure in total spending rose from 15.8% in 2020-21 to 22.3% in 2024-25, indicating a strategic focus on long-term infrastructure development.
Revenue receipts grew substantially from Rs 1.28 lakh crore in 2020-21 to Rs 2.18 lakh crore in 2024-25, with tax revenue emerging as the dominant source, accounting for 84% of total revenue. Developmental expenditure climbed from Rs 1,12,122 crore to Rs 1,89,892 crore during this period, representing approximately two-thirds of the state budget.
Agricultural Resilience and Support
Despite the structural shift toward manufacturing and services, agriculture and allied sectors continued to demonstrate steady growth. Between 2023-24 and 2024-25, rice production increased by 4.3%, wheat by 7.1%, and maize by an impressive 12.6%. Total horticulture production reached approximately 230 lakh tonnes in 2023-24, up from about 206 lakh tonnes in 2019-20.
The state government has implemented substantial support measures for farmers, including home delivery of seeds across all districts, with 1,17,064.55 quintals delivered to 4,73,618 farmers in 2024-25. Electricity subsidy for agriculture witnessed a dramatic 99.3% increase between 2022-23 and 2024-25, reaching Rs 4,056.99 crore. Additionally, total expenditure on irrigation surged by 63.1% between 2023-24 and 2024-25 to Rs 2,729.83 crore, with nearly three-fourths allocated to capital expenditure.
Infrastructure Development Accelerates
Infrastructure development has been a key priority, with the state investing Rs 70,560 crore in road connectivity over the past 15 years, significantly improving market access and mobility. The airways sector's contribution to GSVA expanded from just Rs 31 crore in 2011-12 to Rs 453 crore in 2024-25, with four airports currently operational and 13 more in various stages of development.
A major infrastructure highlight is the Patna Metro project, with an approved cost of Rs 13,365.77 crore, which will cover 32.5 kilometers across two corridors featuring both elevated and underground sections. This project symbolizes Bihar's commitment to modern urban infrastructure that can support continued economic growth.
The Economic Survey 2025-26 presents a compelling narrative of Bihar's economic transformation, characterized by diversified growth drivers, prudent fiscal management, and strategic infrastructure investments that position the state for sustained development in the coming years.
