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Bihar's Economy Outpaces India, Aims for Developed State Status in 5 Years

The Bihar government presented an Economic Survey showing the state's economy growing faster than the national average. Key figures include an 8.6% growth in GSDP and a rise in per capita income to Rs 76,490. The survey notes improved fiscal health with increased revenue receipts and a greater share of tax revenue. The government has set an ambitious goal of transforming Bihar into a developed state within the next five years.

Key Points: Bihar's Growth 3.3% Higher Than National Average: Survey

  • GSDP growth at 8.6%
  • Per capita income rises to Rs 76,490
  • Fiscal deficit under control
  • Revenue receipts surge to Rs 2.18 lakh crore
2 min read

Bihar's growth rate 3.3 per cent higher than national average: Economic Survey

Bihar's Economic Survey reveals 8.6% GSDP growth, rising per capita income, and a 5-year target to become a developed state under Nitish Kumar.

"Our GSDP growth rate at current prices stands at 13.1 per cent, compared to the national average of 9.8 per cent. - Anand Kishore"

Patna, Feb 2

The Nitish Kumar government on Monday presented the Economic Survey 2025-26 in the Bihar Legislative Assembly, outlining steady growth across sectors and setting an ambitious target of making Bihar a developed state within the next five years.

After tabling the survey, Finance Minister Bijendra Prasad Yadav said the government is moving rapidly towards this goal and that the upcoming Budget would reflect this vision.

"Chief Minister Nitish Kumar's resolve is to make Bihar a developed state in the next five years. Bihar must be prosperous and wealthy. Work is progressing rapidly in that direction. You will see a glimpse of this in tomorrow's budget," Yadav said.

The Economic Survey revealed that per capita income in Bihar has risen to Rs 76,490 in 2024-25, indicating a consistent upward trend.

Meanwhile, Additional Chief Secretary (Finance) Anand Kishore said Bihar's economic growth rate is 3.3 per cent higher than the national average, while the state's fiscal deficit remains under control.

According to quick estimates for 2024-25, Bihar's Gross State Domestic Product (GSDP) grew by 8.6 per cent at constant prices (2011-12 base year), reaching Rs 5.31 lakh crore and 13.1 per cent at current prices, touching Rs 9.91 lakh crore.

"Our GSDP growth rate at current prices stands at 13.1 per cent, compared to the national average of 9.8 per cent. This means Bihar's growth is 3.3 per cent higher than the national level," Anand Kishore said.

The survey further noted that per capita GSDP at current prices increased from Rs 46,412 in 2020-21 to Rs 76,490 in 2024-25, while per capita GSDP at constant prices rose from Rs 30,159 to Rs 40,973 during the same period.

On the revenue front, state government receipts increased significantly from Rs 1.28 lakh crore in 2020-21 to Rs 2.18 lakh crore in 2024-25.

The composition of revenue also improved; tax revenue share rose from 70 per cent to 84 per cent, non-tax revenue share declined from 5 per cent to 2 per cent, and grants-in-aid reduced from 25 per cent to 14 per cent.

The Economic Survey highlights growing fiscal self-reliance and sustained economic momentum ahead of the presentation of the state budget on Tuesday.

- IANS

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Reader Comments

P
Priya S
Numbers look good on paper, but I want to see this development reach my village in Gaya. Is the per capita income increase felt by farmers and daily wage workers? The promise of a 'developed state' needs real work, not just surveys.
R
Rohit P
The improvement in tax revenue share from 70% to 84% is the real story here. It shows Bihar is becoming more self-reliant and less dependent on central grants. That's a solid foundation for long-term growth. Kudos to the finance team.
S
Sarah B
As someone who has worked in development sectors across states, Bihar's consistent upward trend is impressive. The challenge now is inclusive growth—ensuring women, marginalized communities, and rural areas benefit equally from this GDP rise.
V
Vikram M
Developed state in 5 years? That's a very ambitious target. While the growth numbers are encouraging, we still have a long way to go in education, healthcare, and law & order. Hope the budget allocates funds wisely to these critical sectors.
K
Kavya N
Per capita income of ~₹76,000 is still very low compared to many other states. Yes, it's growing, but the base is so small. The government should focus on attracting big industries to create high-value jobs, not just celebrate statistical growth.
M
Michael C

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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