Bihar’s economy recorded robust growth in the 2024–25 financial year, significantly outpacing India’s overall GDP performance, according to the latest Bihar Economic Survey tabled in the state assembly. Quick estimates in the 20th edition of the survey show that Bihar’s Gross State Domestic Product (GSDP) reached an estimated ₹9.92 lakh crore at current prices, registering a 13.1 per cent expansion compared with the previous year. In contrast, India’s GDP expanded by 9.8 percent over the same period. At constant (2011–12) prices, Bihar’s real GSDP is estimated to have grown by 8.6 percent, surpassing the national growth figure of 6.5 percent.

Key Highlights

• Bihar’s economy grew faster than India’s GDP, reaching nearly ₹10 lakh crore in FY25.
• Manufacturing and infrastructure investment emerged as key drivers of the state’s accelerated economic growth.

The survey highlights a gradual structural shift in the state’s economy, with the secondary sector — including manufacturing and construction — playing a larger role in economic output. Between 2020-21 and 2024-25, the share of industry in Gross State Value Added rose from 21.1 percent to 26.8 percent, driven by stronger activity in manufacturing and infrastructure development. During the latest year, the secondary sector grew by 11.1 per cent at constant prices, outpacing gains in the primary and tertiary sectors.

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State finances also showed signs of strengthening, with total government expenditure rising from ₹2.52 lakh crore in 2023–24 to ₹2.82 lakh crore in 2024–25 and a sustained shift toward capital investment. Infrastructure spending, including road connectivity and urban projects like the Patna Metro, has been a key focus. Agriculture and allied sectors also posted steady gains, with increased production of rice, wheat, maize, milk, eggs, and fish.

Despite these strong growth trends, the survey underscores ongoing challenges, including lower per-capita income compared with national averages. Nonetheless, Bihar’s rapid expansion places it among India’s fastest-growing state economies for the year.