Bihar Economy

Economy of Bihar is an integral part of the government of Bihar, because it is through a progressive economy that a state can become a progressive state. Thus, the economy of Bihar highly influences the administrative set up.

Agriculture in Bihar

Agriculture has been the backbone of the economy of Bihar since a long time. Irrespective of the fact that Bihar has a rugged topography which sometimes proves to be unfavorable for agriculture, agriculture has been the only means of survival.

Agriculture in Bihar witnesses two different agricultural season. To name them:

Kharif season - It starts from the month of May and lasts till the end of October.
Rabi season - The intervening period between the Kharif season is the Rabi season.
Moreover, the important crops and vegetables that form a constituent of agriculture in Bihar are:

Although, agriculture has been the source of wealth in the economy of Bihar for a long time; yet it is through this sole dependence that the state has become impoverished. The problem of uneconomic holdings, along with the fragmentation, viz. dividing the holding of most of the farmers, adding to the labor of the cultivators, decreasing the efficiency of the cultivators, etc, has been some of the set-backs.

But, in recent years, the initiative taken by the State government has worked wonders for the economy of Bihar. This, ultimately, has resulted in the enhancement of the agriculture in the state.

In Bihar, we find two basic cropping seasons that contribute heavily towards the economy of the state. These cropping seasons are:

  • Kharif season (3rd week of May, which lasts till the end of October), and
  • Rabi season (the intervening period between the Kharif season).
Some of the principal crops and vegetables that contribute immensely towards the economy of Bihar are:

  • Rice
  • Paddy
  • Wheat
  • Jute
  • Maize
  • Oil Seeds
  • Sugarcane
  • Potato
  • Barley
  • Cauliflower
  • Cabbage
  • Tomato
  • Radish
  • Carrot
  • Beat, etc.
Industries in Bihar

Industry and infrastructure of a state or a country at large serves as an index of its economic growth profile. North Bihar, happens to be a predominant agricultural area. So it has an industry and infrastructure chiefly associated with agricultural products.

The industry and infrastructure of the northern plains of Bihar include the numbers of sugar factories distributed all throughout. There are many rice and edible oilmills as well in this part of the state.

The industry and infrastructure here also includes some significant manufacturing plants among which mention may be made of the:

Button Factory at Mehsi
Arthur Butler and Company at Muzaffarpur.
To add to the industry and infrastructureof Bihar , as soon as India got her independence, a big industrial complex developed around Barauni. The industries that grew there are:

the Fertilizer Factory,
the Oil (petroleum) Refinery Plant,
the Thermal Power Station.
Now you will find a Thermal Power plant also at Kanti, in the Muzaffarpur district.

Banking and Finance

Banking and finance of a state is the principal key to its economy, prospect and growth. The greater and greater of investment a state owns more will be its industrial as well as its technological upsurge.

Banking and finance in Bihar is the sphere where you save resources to others with better and more efficient uses for them. This is however in turn raises the income of not only the saver but as well as the borrower simultaneously. If a state does not have a proper system of banking and finance the money invested would not give substantial return. You might have to encounter several risk factors as well.

For a stabilized economy the state Bihar had to think of a robust banking and finance machinery. They thus put emphasis on some of the salient features that can make this sector more powerful:

  • proper trading
  • specialization of production
  • professionalism
  • savings
  • efficient use of resources
  • risk-taking
The banking and finance at Bihar forms as a bridge between the gaps developed within the hugely organized financial institutions and very much unorganized private savers. This is the key factor which has made the foundation of the financial market even stronger.


Forestry and wildlife are an important component of Bihar economy. Forest covers around 6.87% of the total geographical area of Bihar. Agriculture being the main occupation has laid the foundation stone for the participation of forestry and wildlife of Bihar in the state's economy.

Forestry and wildlife is the practice of studying and managing forests and wild animals for further economical use. Forestry of Bihar have contributed wood and various other raw materials of export quality which has made the state as well as the country earn good revenue.

Out of the total land area, 32808.47 square kilometers of land in Bihar falls under the protected forest area cover. Forestry and wildlife cannot exist separately. Wildlife can survive only in the forest area where it gets the natural environment.

The areas which mainly contribute to the state economy through its forestry and wildlife of Bihar are West Champaran, some parts of Darbhanga, Jamui, Nalanda and Rohtas.

Minerala and Energy

The principal mover of the economy of a state is its resources particularly the minerals and energy. Sufficient as well as dependable availability of minerals and energy are essential for sustained growth of the economy.

Renewable and non-renewable sources form the two arms of energy.

Renewable sources of energy comprises of hydro-power, fuel wood, bio-gas, solar, wind, geo-thermal and tidal power. Non-renewable sources of energy come from coal, oil and gas.

The potentiality of performance of all the principal sectors in the economy starting from agriculture down to commerce and industry is dependent on the power. The urge for electricity is mounting up day by day. To mitigate this, it is absolutely needed that the energy has its optimum utilization as well as diminution of transmission and distribution losses.

Bihar is a state in the eastern part of the country of India which is known worldwide for its rich deposit of the minerals.

Bihar hoards a large deposit of coal and the Bihar coal fields supply minerals and energy to the whole of India.
The next important deposit in Bihar is that of the iron ore. If you go there, you will find the iron and steel factories.
In Bihar, one can find the deposit of copper ore.
Bihar provides an important source of mica in India.
One can find the deposits of pyrite in Bihar.
Apart from the above mentioned minerals and ores, the state of Bihar also brings you

Live Stock

Livestock are those domestic animals which are reared to make use of them for some food, fibre or some kind of work. Today livestock is an important part of agriculture and Bihar being an agricultural state, livestock is slowly and steadily grabbing its share in Bihar's economy.

The livestock in Bihar are used for both sustenance and profit. Till date people in Bihar rear livestock to make a living. Many of them use the domesticated beasts for transport or for agricultural purpose in their farms.

Hence livestock implies to animals who are kept by human beings for useful and even commercial purpose. They can be fully domestic, semi domestic or captive wild animals. Livestock in Bihar serve various purposes listed below :

Meat : Livestocks offer this rich in protein and energy producing food.

Dairy Products : Livestocks who are mammals gives milk from which other dairy products such as cheese, butter, yogurt, etc. can be obtained. Further, these dairy products can be sold and money can be earned. Many rich people who start their dairy farm have to rear the livestocks.

Fibre : Livestocks such as sheep, goats, yak, etc. offer various fibre for cloth making which can be used personally or can be sold to make profit.

Fertilizer : The organic wastes of livestocks such as cows, buffaloes, goats, sheeps, etc. are mixed with the fertilizers so as to make the land more fertile for production of good crops.

Filed Work : Livestocks such as horses, donkey, cows, etc, can be used for field work in bullock carts, etc. or for ploughing the field or for carrying off the loads.


Bihar tourism has been boosted after the establishment of Bihar State Tourism Development Corporation. Though Bihar tourism is not the chief revenue contributor into the state's economy but in the recent times it has shown wide development and seems to be growing.

The main aim of this Tourism Development Corporation was to commercialize all the tourists resources of Bihar so as to increase tourism in Bihar and this is why hotels, restaurants, cafetaria, have been developed near all the tourist spots.

To improve tourism in Bihar, new plans have been made as per which the following infrastructure needs to be installed in the state for growth of Bihar tourism :

  • Tourist Information Centers
  • Proper Road Transport
  • Hospitality Resource Creation on Highways
  • Development of Heritage Hotels
  • Establishment of wildlife sanctuary and maintenance of national parks

The above mentioned things have already been started given proper attention, now the day is not far away when Bihar tourism would be a grand contributor not only to the state's economy but also to the country's economy.

And all this have started showing their effect as tourism at Bihar has gone up. Another aspect of Bihar tourism is that most of the tourism is attracted by Buddhist sites such as Rajgir, Bodhgaya, Nalanda, etc. These are the tourist destinations for people across the the globe and this is why steps are being taken to develop tourism at Bihar, especially in these areas.

The new revolution has already begun, wait and watch its impact on the tourism of Bihar and economy of the country as a whole.

Last Updated on 30 March 2012