Bihar’s economy expanded faster than the national average in 2024–25, with the state’s gross output reaching a record Rs 9.9 lakh crore, underpinned by a sharp rise in manufacturing and construction activity.
Quick estimates in the Economic Survey 2025–26 place Bihar’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, The Indian Express reported. This translates into growth of 13.1% at current prices and 8.6% in real terms, outpacing India’s GDP growth of 9.8% and 6.5%, respectively, over the same period.
The survey, prepared by the Bihar Institute of Public Finance and Policy, points to a gradual structural shift in the state’s economy, with the secondary sector gaining share and public capital expenditure rising steadily.
Manufacturing and construction led the acceleration, lifting the secondary sector’s share in Gross State Value Added to 26.8% in 2024–25, up from 21.1% in 2020–21, according to the survey. Over the same period, the share of agriculture declined to 18.3%, while services eased to 54.8%.
In real terms, the secondary sector grew 11.1% in 2024–25, compared with 8.9% for services and 4.1% for the primary sector, the data showed. At current prices, growth in manufacturing and construction reached 15.5%, well ahead of the other sectors.
Rising incomes accompanied the expansion. Per capita GSDP increased to Rs 76,490 at current prices in 2024–25 from Rs 66,828 a year earlier, while real per capita income rose to Rs 40,973, the survey said.
State finances also strengthened. Total government expenditure rose to Rs 2.82 lakh crore in 2024–25 from Rs 2.52 lakh crore the previous year. Crucially, the share of capital expenditure climbed to 22.3% of total spending, up from 15.8% in 2020–21, signalling a shift towards asset creation. Revenue expenditure declined as a proportion of overall outlays.
Revenue receipts reached Rs 2.18 lakh crore, with tax revenue accounting for 84% of the total, reflecting improved collections, The Indian Express reported. Developmental expenditure now accounts for nearly two-thirds of the state budget.
Agriculture posted steady, though slower, gains. Rice production rose 4.3%, wheat 7.1% and maize 12.6% year on year, while milk, egg and fish output also increased. Public spending on irrigation and electricity subsidies for agriculture expanded sharply, with irrigation outlays rising more than 60% in 2024–25.
Infrastructure investment continued to gather pace. The survey highlighted Rs 70,560 crore spent on road connectivity over the past 15 years, alongside rising contributions from aviation and urban transport projects, including the Patna Metro, which is under construction.
The data suggest Bihar’s growth momentum is becoming more broad-based, supported by manufacturing, infrastructure and public investment. Whether this pace can be sustained will depend on continued capital spending and the state’s ability to attract private investment as it seeks to narrow long-standing income gaps with the national average.