Patna: Construction, manufacturing and services sectors are growing faster with the share of industrial sector increasing sharply in the last four years, according to the Bihar Economic Survey (2025-26) tabled in the legislative assembly on Monday. It shows one of the biggest changes in the structure of Bihar’s economy, which was earlier dominated by agriculture.However, agriculture still remains the backbone of Bihar as production of rice, wheat and maize has increased. The state continues to be a leading producer of fruits, vegetables, makhana and litchi. Milk, fish and egg production has also grown strongly. Farmers are getting better access to seeds, irrigation, electricity and loans. New schemes for fish farming, seed home delivery, irrigation and farm machines are helping farmers increase their income and protect themselves from climate problems like floods and droughts.
Construction accounted for 15.1% of the gross state value added (GSVA) and led the secondary sector while manufacturing contributed 9%, electricity, gas, water supply and other utilities contributed 2.7%.In the tertiary sector, trade, repair, hotels, and restaurants collectively accounted for 13.3% of the state’s GSVA. Trade and repair services alone contributed 12.2% while transport, storage, communication and broadcasting accounted for 10.2%. Real estate, ownership dwellings and professional services contributed 9.1%.In the primary sector, the crops sub-sector accounted for 9.1% of the GSVA in 2024-25, followed by livestock at 5.8%.But loans and advances from the central govt have increased as fresh borrowings rose from Rs10,672 crore in 2023-24 to Rs16,500 crore in 2024-25. The outstanding liability in this category grew from Rs36,051 crore, as of March 31, 2024, to Rs51,220 crore as of March 31, 2025.The state govt’s outstanding liabilities increased from Rs12,484 crore in 2020-21 to Rs19,678 crore in 2024-25..The trend in outstanding liabilities indicates a steady rise in absolute terms. In 2020-21, outstanding liabilities stood at Rs2,27,196 crore, amounting to 36.7% of the GSDP. By 2024-25, outstanding liabilities rose to Rs3,74,134 crore, while the ratio to GSDP increased to 37.7%, continuing the trend of expansion in absolute liabilities.The expenditure on salaries has increased from Rs21,842 crore in 2020-21 to Rs38,475 crore in 2024-25.Developmental spending has reached 67.4% of the total state govt expenditure in 2024-25, from Rs1,12,122 crore in 2020-21 to Rs1,89,892 crore in 2024-25.Non-developmental expenditure increased from Rs 53,574 crore in 2020-21 to Rs 92,047 crore in 2024-25.The total receipt in the revenue account of the state has increased from Rs1,28,168 crore in 2020-21 to Rs 2,18,658 crore in 2024-25, indicating steady fiscal expansion.The state received 4,353 investment proposals, of which 3,539 secured Stage-1 clearance between 2016-17 and 2025-26 (up to Sept 2025). The total proposed investment amounted to Rs1.11 lakh crore, with significant inflows between 2016-23 and 2024-25. Furthermore, 956 industrial units became operational under the Bihar Industrial Investment Promotion Policy 2016, representing an investment of Rs10,635.90 crore and generating employment for 42,999 people.Under the Mukhyamantri Udyami Yojana and the Bihar Laghu Udyami Yojana, the total number of applications was 7,74,567 between 2023-24 and 2024-25. Under the Bihar Startup Policy 2022, 1,239 startups were certified by the end of 2024-25, and the state govt disbursed Rs32.18 crore as seed funding.The survey shows expansion in industry and businesses. Tourism is growing with higher spending on tourist facilities.
