Bihar’s story is not just one of poverty and backwardness; it is also one of resilience and potential. Yet, despite high economic growth rates, the state remains one of the least developed in India. The problem isn’t just numbers—it is a history of neglect, policy missteps, and a lack of industrialization that has kept Bihar from realizing its full potential.
Bihar’s Gross State Domestic Product (GSDP) has grown significantly, rising from ₹2.47 lakh crore in 2011-12 to ₹8.54 lakh crore in 2023-24. In recent years, it has consistently recorded one of the highest growth rates among Indian states. However, this growth has not translated into prosperity for its people. The state’s per capita income remains one of the lowest in the country—around $1,002 (₹82,000) as of 2025—less than a third of the national average. Economic growth without employment and infrastructure is like a road that leads nowhere.
Historically, Bihar was a center of learning and industry. Nalanda University was the seat of knowledge, and its fertile land made it a major agrarian hub. However, post-independence policies worked against Bihar’s interests. The Freight Equalization Policy of the 1950s allowed industries in other states to access Bihar’s mineral resources at the same cost, which led to the flight of industries to states like Maharashtra, Gujarat, and Tamil Nadu. This single policy decision crippled Bihar’s industrialization for decades.
Even today, Bihar’s economy is still largely dependent on agriculture, which employs around 56% of its workforce. But the sector is outdated, plagued by small landholdings, poor irrigation, and frequent floods. Despite being India’s largest producer of litchis and makhana, the state lacks food-processing industries that could generate local employment. Instead, most of Bihar’s agricultural produce is processed in other states, reaping benefits that should have stayed within Bihar.
Infrastructure remains another major roadblock. While road networks have expanded, power shortages continue to disrupt industrial and business growth. Investors shy away from Bihar due to an unpredictable electricity supply and the absence of large-scale industrial zones. The state’s share in India’s manufacturing output is abysmally low, contributing only about 15% to its economy, compared to the national average of 25%. Without industries, there are no jobs, and without jobs, Bihar’s youth have no choice but to migrate in search of work.
This migration is perhaps the biggest indicator of Bihar’s development failure. More than 10 million Biharis work outside the state, employed in everything from construction to IT. Cities like Delhi, Mumbai, and Bengaluru are built on the labor of Bihar’s workforce, yet their home state remains underdeveloped. This mass exodus not only drains Bihar of its skilled and unskilled labor but also disrupts families and hinders local economic growth.
Education and healthcare paint an equally grim picture. Bihar’s literacy rate, though improving, is still below the national average. Schools suffer from a lack of teachers and infrastructure, and dropout rates remain high, particularly among girls. Higher education institutions, once a source of pride, have deteriorated due to political interference and mismanagement. The result is a generation that is either under-educated or forced to leave Bihar for better opportunities.
The state’s healthcare system is stretched thin, with one of the lowest doctor-to-patient ratios in India. Rural healthcare centers often lack basic facilities, and people must travel long distances to access quality medical care. Infant and maternal mortality rates, though improving, remain a concern. Bihar spends less on healthcare than many other states, and its public health infrastructure has failed to keep pace with population growth.
Government initiatives in recent years have tried to address these issues. The allocation of 10.6% of Bihar’s budget to rural development is among the highest in India, but the amount spent on agriculture—just 3.1%—is below the national average. While road construction and electrification have seen improvements, industrialization is still sluggish. The government has made efforts to bring investment into Bihar, but businesses remain hesitant due to land acquisition issues, corruption, and bureaucratic delays.
So why does Bihar continue to lag behind? The answer lies in a combination of historical disadvantages, weak governance, and a failure to modernize its economy. Growth figures might look impressive on paper, but without industries, infrastructure, and human development, Bihar remains at the bottom of the development ladder.
The road ahead is not impossible, but it requires a complete shift in how Bihar is governed and developed. Industrialization needs to be a priority, agriculture must be modernized, and education and healthcare must be treated as essential pillars of progress. Above all, Bihar needs to retain its youth by creating jobs at home. If the millions of Biharis who built other states could build their own, Bihar would not be a laggard but a leader in India’s development story.