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Bihar

Bihar, located in Eastern India, is one of the fastest-growing states with a dynamic economy driven by agriculture, industry, and services. As of 2025-26, Bihar's GDP stands at approximately ₹10.97 trillion (US$130 billion), reflecting an impressive 22% growth rate, positioning it as a key emerging business destination. The state benefits from a young, large workforce and strategic infrastructure developments including extensive railway projects and expanding air connectivity, notably with the recent foundation of a civil enclave at Darbhanga Airport. Bihar's economy is service-oriented but also increasingly supported by manufacturing and agro-industry, leveraging its fertile land and rich cultural heritage.

Business Environment

Bihar offers abundant opportunities for businesses due to its rapidly growing GSDP and ongoing investments in infrastructure, including over 57 railway projects worth more than ₹86,000 crore and 100% electrification of tracks. The state is enhancing connectivity and logistics, vital for trade expansion. With a large rural population engaged in agriculture and increasing urbanization, Bihar presents significant scope for agro-processing, manufacturing, and service sectors. The government promotes private-sector partnerships and policies aimed at transforming Bihar into a trillion-dollar economy by 2047, focusing on modernizing agriculture and developing value-added industries.

Key Industries and Opportunities

  • Food and beverages processing, leveraging Bihar’s status as a major producer of litchi, maize, and vegetables

  • Rubber and plastics manufacturing supported by growing industrial infrastructure

  • Transport equipment production enhanced by improved logistics networks

  • Chemicals and pharmaceuticals expanding with local industrial growth

  • Tobacco and textile industries with traditional and modern market linkages

  • Leather and dairy sectors tapping into local resources and skilled labor

  • Agro-industry development focused on smart farming, food parks, cold storage, and export promotion

Trade and Connectivity

Bihar is strengthening its trade infrastructure with major investments in railway electrification and station redevelopment, enhancing freight and passenger movement. Patna airport handles significant traffic and freight volumes, while new projects at Darbhanga airport promise to boost air connectivity further. The state recorded merchandise exports valued at nearly ₹16,000 crore in FY25, with key exports including petroleum products, buffalo meat, and cereals. Expanding digital penetration with over 64 million mobile subscribers also supports a growing digital economy and business ecosystem.

Cultural and Economic Significance

Bihar’s rich cultural heritage, historical significance, and demographic advantage with 58% of its population under 25 years create a unique environment for socio-economic transformation. The state’s diversity in languages and traditions complements its ambitions for economic modernization. As Bihar transitions from a primarily agrarian economy to one driven by industry and services, it offers compelling opportunities for investors and entrepreneurs seeking to participate in India’s future growth story.

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