Why is Bihar Rising?

Even with a lower base, Bihar has emerged as the fastest growing state in India. What are the key factors responsible for the same?

The growth of Bihar is attributed to:

  • Secondary and Tertiary activities like construction and services like communication (CAGR 27.23% b/w 2004-05 and 2010-11). Secondary and tertiary activities grew by 15.04% and 14.07%, respectively, b/w 2004-05 to 2010-11, compared to 3.82% and 5.70% between 1999-2000 and 2004-05.
  • Trade and Hotels (20.22%)
  • Banking & Insurance (16%)

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Below Figures gives an illustration of the break-up of the Bihar’s GSDP CAGR Growth (%).

GSDP – Gross State Domestic Product at constant prices (2004-05)

Source: Economic Survey, Government of Bihar, 2012

at constant 1999-2000 prices

** at constant 2004-05 prices


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