Economy of Bihar
The economy of Bihar has been among the fastest-growing state economies in India in recent years. During the financial year 2025–26, Bihar's gross state domestic product (GSDP) is projected to grow by around 10–12% at current prices. The economy of Bihar is largely based on services, though agriculture and industry also contribute substantially. At current prices (not adjusted for inflation), the state's GSDP was estimated at ₹1,309,155 crore (US$140 billion) for 2026–27. After forming a new state government in 2025, Nitish Kumar's cabinet has proposed a new initiative called the New Age Economy, which aims to promote economic development in the state. As of 2021, the service sector accounted for 58.6% of the state's economy, with industry contributing 21.5% and agriculture 19.9%. During 2002–2007, the average growth rate of manufacturing in the state was 0.38%, significantly lower than the national average of 7.8%. In the financial year 2021–22, Bihar's manufacturing sector grew by 3.9...
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