Bihar’s Economic Outlook:
● The Gross State Domestic Product (GSDP) of Bihar for 2025-26 (at current prices) is
projected to be Rs 10.97 lakh crore, amounting to growth of 22% over 2024-25.
● Expenditure (excluding debt repayment) in 2025-26 is estimated to be Rs 2,94,075 crore, a
decrease of 10% from the revised estimates of 2024-25. In addition, debt of Rs 22,820 crore
will be repaid by the state.
● Receipts (excluding borrowings) for 2025-26 are estimated to be Rs 2,61,357 crore, an
increase of 7% as compared to the revised estimate of 2024-25.
● Revenue surplus in 2025-26 is estimated to be 0.8% of GSDP (Rs 8,831 crore), as
compared to a revenue deficit of 4.1% of GSDP (Rs 36,788 crore) at the revised estimate
stage in 2024-25.
● Fiscal deficit for 2025-26 is targeted at 3% of GSDP (Rs 32,718 crore). In 2024-25, as per
the revised estimates, the fiscal deficit is expected to be 9.2% of GSDP, higher than the
budgeted 3% of GSDP.
Percentage Distribution of workers by industry in Bihar as compared to India
Introduction to Bihar’s Industrial Growth
The Bihar government is gearing up to establish special industrial zones across the state, riding high
on the success of the Bihar Business Contact Summit, where the investment proposals worth Rs
1.81 lakh crore were received. Therefore, the upcoming in demand industries are:
● Renewable Energy sector – Rs 90,734 crores total worth of proposals
● General Manufacturing – Rs 55,888 crores
● Food Processing sector – Rs 13,663 crores
● Urban Infrastructure – Rs 5,566 crores
● Healthcare - Rs 3,360 crores
● Tourism – Rs 2,988 crores
● Textile and leather – Rs 1,295 crores
● Plastic and rubber Rs 665 crores
Times of India
The Hindu
Key Sectors in Bihar:
● In 2023, tourist arrivals stood at eight lakh. The increase in tourism is credited to the wide
range of attractions that appeal to different religious and cultural references.
● According to the Telecom Regulatory Authority of India (TRAI), Bihar had 96.05 million
wireless subscribers and 1.11 million wireline subscribers, as of July 2024. With 64.31 million
mobile subscribers as of March 2022, Bihar accounted for the sixth-largest mobile subscriber
base among all Indian states.
● Food processing, dairy, sugar, manufacturing, and healthcare are some of the
fastest-growing industries in the state.
● The state has planned initiatives for the development of other sectors such as education and
tourism and provides incentives for information technology and renewable energy projects.
● Bihar has allocated 21.7% of its expenditure on education in 2025-26. This is higher than the
average allocation for education by states in 2024-25, making Education a priority sector.
● Example case showcasing sectoral job potential- Mr. Dilip Shanghvi, Managing Director of
Sun Petrochemicals, signed an MoU to invest ₹36,700 crore in Bihar, with potential to create
30,000 jobs in renewable energy and green infrastructure.
Most funded industries by Bihar government:
● Education: Bihar has allocated 21.7% of its expenditure on education in 2025-26. This is
higher than the average allocation for education by states in 2024-25 (15%).
● Health: Bihar has allocated 6.6% of its expenditure on health in 2025-26. This is higher than
the average allocation for health by states in 2024-25 (6.2%).
● Rural development: Bihar has allocated 10.3% of its expenditure on rural development in
2025-26. This is higher than the average allocation for rural development by states in
2024-25 (5.1%).
● Roads and bridges: Bihar has allocated 3% of its expenditure on roads and bridges in
2025-26. This is lower than the average allocation for roads and bridges by states in 2024-25
(4.3%).
● Agriculture: Bihar has allocated 2.7% of its expenditure on agriculture in 2025-26. This is
lower than the average allocation for agriculture by states in 2024-25 (6.3%).
● Irrigation: Bihar has allocated 3.2% of its expenditure on irrigation in 2025-26. This is lower
than the average allocation for irrigation by states in 2024-25 (3.4%).
Education Scenario in Bihar:
General colleges dominate (594),
followed by arts (224), while specialized
institutions like medical (17), engineering
(61), and law (19) remain scarce.
Bihar's literacy rate
shows a significant
gender gap (71% male
vs. 52% female), with
higher education
enrollment skewed
toward males. The state
has diverse universities
(17 public, 7 private) but
technical/medical
institutions remain
limited (3 each).
Nursing dominates standalone
institutions (56%), followed by teacher
training and polytechnics (20% each),
while hotel management (0.63%) and
paramedical (1.9%) remain marginal.
Male students (13.44
lakh) outnumber
females (11.04 lakh) in
total enrolment, and
similarly in out-turn
(males: 2.28 lakh,
females: 1.82 lakh).
Undergraduate
programs dominate with
21.1 lakh enrolments
and 3.38 lakh
graduates. PG Diploma
and Ph.D. levels have
the lowest enrolments
(1,241) and out-turns
(2,322), suggesting
limited participation.
Skills Required by Industries:
Why is Skilling Required?
Training Technique:
Phase Component Details
1️ Orientation & Foundation Module Soft skills: communication, teamwork, digital literacy- Sector overview- Safety training
2️ Basic Technical Training Core tools, machines, or platforms- Real-world demos- Regional context applications
3️ Advanced Skill Development Complex tools/software/methods- Case studies- Project/problem-solving approach
4️ Hands-On Practical / On-the-Job Training Factory visits, internships, or simulations- Tool handling, system integration, mock tasks
(Such as Apprenticeship, AEDP etc)
5️ Assessment & Certification Pre/Post testing- NSQF/NASSCOM Sector Skill Council certifications
6️ Entrepreneurship / Job Readiness Resume building- Interview skills- Govt and state schemes awareness (like PMKVY)
7️ Placement/Pathway Guidance Local industry tie-ups- Gig/freelance options- Further skill laddering recommendations
