Bihar outpaces India’s GDP growth: State economy hits record Rs 9.9 lakh crore as manufacturing surges
State finances also showed expansion alongside a shift toward capital investment, the Economic Survey said
State finances also showed expansion alongside a shift toward capital investment. Bihar’s economy recorded a sharp acceleration in 2024–25, with quick estimates in the Economic Survey 2025–26 placing the state’s Gross State Domestic Product (GSDP) at Rs. 9,91,997 crore at current prices and Rs. 5,31,372 crore at constant (2011-12) prices.
This represents growth of 13.1% at current prices and 8.6% at constant prices, outpacing India’s GDP growth of 9.8% and 6.5%, respectively, during the same period. The latest survey, the 20th edition prepared by the Bihar Institute of Public Finance and Policy, points to a structural shift in the state’s economy, led by stronger performance of the secondary sector and rising public investment. Per capita GSDP at current prices rose to Rs. 76,490 in 2024–25 from Rs. 66,828 in 2023–24, while at constant prices it increased from Rs. 36,333 to Rs. 40,973.
Sectoral data indicate a gradual diversification of the economic base. Between 2020–21 and 2024–25, the share of the secondary sector in Gross State Value Added (GSVA) rose from 21.1% to 26.8%, driven largely by expansion in construction and manufacturing. Over the same period, the share of the primary sector declined from 21.9% to 18.3%, while the tertiary sector’s share fell from 57% to 54.8%.
In 2024–25, the secondary sector recorded growth of 11.1% at constant prices and 15.5% at current prices, compared with 8.9% and 13.5%, respectively, for the tertiary sector and 4.1% and 9.6% for the primary sector.
State finances also showed expansion alongside a shift toward capital investment.
Total expenditure by the state government rose from Rs. 2.52 lakh crore in 2023–24 to Rs. 2.82 lakh crore in 2024–25. The share of capital expenditure in total spending increased from 15.8% in 2020–21 to 22.3% in 2024–25, while the share of revenue expenditure declined over the same period. Revenue receipts grew 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.
The outlay on developmental expenditure climbed from Rs. 1,12,122 crore in 2020–21 to Rs. 1,89,892 crore in 2024–25, accounting for about two-thirds of the budget. Scheme expenditure also increased as a proportion of total spending, while establishment and committed expenditure declined marginally.
Agriculture and allied sectors continued to post steady gains. Between 2023–24 and 2024–25, rice production increased by 4.3%, wheat by 7.1% and maize by 12.6%. Total horticulture production was estimated at around 230 lakh tonnes in 2023–24, up from about 206 lakh tonnes in 2019–20. Milk production rose by 4.2%, egg production by 10.0% and fish production by 9.9% during the same period. The state government expanded 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 rose by 99.3% between 2022–23 and 2024–25 to Rs. 4,056.99 crore. Total expenditure on irrigation increased by 63.1% between 2023–24 and 2024–25, reaching Rs. 2,729.83 crore, with nearly three-fourths of this amount devoted to capital expenditure.
Infrastructure development featured prominently in the report. The state has invested Rs. 70,560 crore in road connectivity over the past 15 years, contributing to improved market access and mobility. The airways sector’s contribution to GSVA increased from 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.
Meanwhile, the Patna Metro project, with an approved cost of Rs. 13,365.77 crore, will cover a total length of 32.5 km across two corridors, with both elevated and underground sections.
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