The economy of Bihar is one of the fastest-growing in India. It is largely service-based, with a significant share of agricultural and industrial sectors. The GDP of the state was ₹7,45,310 crores (US$94 billion) at the current market price (2022–23).
This state also has a small industrial sector. As of 2021 agriculture accounts for 24%, industry 15% and service 61% of the economy of the state For the period 2002–2007, average growth rate of Manufacturing in the state was 0.38%, against the national average of 7.8%. 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 7.57026 lakh Crores Rupees ($104 billion nominal GDP) as per 2013–2014. In actual terms, as of 2012–2013, Bihar state GDP is ranked 8 out of 29 states. Corruption is an important hurdle for the government to overcome according to Transparency International India, which the government has also acknowledged. Since November 2005, a new government led by Nitish Kumar has implemented a number of economic and social reforms. A consequence has been 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 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 Central Statistical Organisation (CSO) and National Sample Survey Organisation, under MOSPI, said that Bihar saw 14.80 percent growth in factory output in 2007–08, which was slightly less than the Indian rate of 15.24 percent.
History
Mauryan
The Magadha economy, under Mauryan royal government, depended mainly on agriculture and the state owned large farm lands for cultivation. The other income of the state came from the taxes levied on agriculture, land, trade, and industrial products such as handicrafts. Mauryan agriculture had two type of landholdings, one were the Rashtra type of holdings which were the direct descendants of the holdings of the former tribal oligarchies who had been subjugated in pre-Mauryan times. The Rashtra landholdings were independent of the state machinery in their internal functioning and administration. Their only obligation was the regular payment of the Rashtra taxes to the state. The second major type of landholdings were the Sita landholdings. These were formed by clearing forest lands with the help of the tribesmen whose tribal way of life had been systematically and annihilated by the Mauryan statecraft. Rice, Wheat, Coarse grains, Sesame, Pepper, Saffron, Pulses, Linseed, mustard, vegetables and fruits of various kinds and sugarcane were grown. The state owned huge farms and these were cultivated by slaves and farm labourers. Water Reservoir and dam were built during this period and they were measured and distributed. The chief industries were mining, metallurgy, jewellery, pot making, textile. The trade was regulated by the state. Artisans and the craftsmen were specially protected by the state and any offences against them were severely punished. Guilds were powerful institutions during this period and they provided economic, political and judicial powers to craftsmen. The chief of the guild was called Jesthaka. A few guilds issued their own coins. These guilds also made donations to learned Brahmans and to the destitute. The Mauryan empire supplied western countries with Indigo and other medicinal substances, cotton, silk. Trade was carried out in both land and sea. Godowns, Warehouses were built and special provisions were made to protect the trade routes. The state controlled the weights and measures.