Economy of Bihar

Bihar is one of the fastest growing states in India. For the 2025–2026 year, Bihar is estimated to have 22% GDP growth rate. Bihar is largely service-based, though agriculture and industry also contribute substantially. At current prices, the state's GDP was estimated at ₹1,309,155 crore (US$150 billion) for 2026–27. After the formation of the new government in the state, the cabinet of Nitish government (2025) has proposed an ambitious initiative called "New Age Economy" for overall economic development in the state of Bihar.

As of 2021, agriculture accounts for 19.9%, industry 21.5% and service 58.6% of the economy of the state. During the 2002–2007 period, average growth rate of manufacturing in the state was 0.38%, against the national average of 7.8%.In fiscal year 2021-22 Bihar's manufacturing sector grew by 3.9% and has shown improvement in manufacturing sector in recent years. Bihar has the lowest GDP per capita in India, but there are pockets of higher per capita income like the southern half of the state and its capital city, Patna.

The GSDP stands at 13.09 lakh Crores Rupees ($150 billion nominal GDP) as per 2026–27. In actual terms, as of 2025–26, Bihar state GDP is ranked 14 out of 28 states. Corruption is an important hurdle for its government to overcome, according to Transparency International India, which the government has also acknowledged. Since November 2005, the government, led by Nitish Kumar, has implemented a number of economic and social reforms. Such reforms have yielded a positive improvement in the economy of the state and also of Patna. For example, in June 2009, the World Bank reported that Patna was the second best city in India to start a business, after Delhi. Between 1999 and 2008, state GDP grew by 5.1% a year, which was below the Indian average of 7.3%. However, in January 2010, the Indian government's Central Statistics Organisation (CSO) reported that in the five-year period between 2004–2005 and 2008–09, Bihar's GDP grew by 11.03%, which made Bihar the second fastest growing economy in India during that 5-year period, just behind Gujarat's growth of 11.05%. Another survey conducted by the CSO and the National Sample Survey Organisation, under MOSPI, said that Bihar saw a 14.80% growth in factory output in 2007–08, which was slightly less than the overall Indian rate of 15.24%.