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AUGUST 2015 for Updated Information, Please Visit 1 BIHAR the LAND of BUDDHA BIHAR THE LAND OF BUDDHA AUGUST 2015 For updated information, please visit www.ibef.org 1 BIHAR THE LAND OF BUDDHA Executive Summary…………….…….…. 3 Advantage State………………...…..….... 4 Bihar Vision…………………….…….…… 5 Bihar – An Introduction…………….....…. 6 Annual State Budget 2015-16……....… 16 Infrastructure Status………………......... 17 Business Opportunities…….…….....…. 31 Doing Business in Bihar…………......… 49 State Acts & Policies…………………..... 55 AUGUST 2015 For updated information, please visit www.ibef.org 2 BIHAR THE LAND OF BUDDHA EXECUTIVE SUMMARY Fastest growing state in • The economy of Bihar is projected to grow at a CAGR of 13.4% during the 2012-2017 i.e. India the 12th Five-Year Plan. Fastest per capita • Bihar has witnessed strong growth in per capita net state domestic product. At current prices, per capita NSDP of the state grew at a CAGR of 12.91 per cent during 2004-05 to income growth 2014-15. Leader in the production • Bihar is the largest producer of vegetables and the second-largest producer of fruits in of fruits and vegetables India. Strong agriculture • Bihar has high agricultural production making it one of the strongest sectors of the state. About 80 per cent of the population is employed in agriculture, which is much sector state’s higher as compared to India’s average. The state has developed as the number one state in the eastern region in terms of agricultural production. Fifth largest mobile • With 71.6 million mobile subscribers in February 2015, Bihar has the fifth-largest mobile subscriber base subscriber base among Indian states. Source: Central Statistics Office, Ministry of Statistics and Programme Implementation, NSDP- Net State Domestic Product AUGUST 2015 For updated information, please visit www.ibef.org 3 BIHAR THE LAND OF BUDDHA ADVANTAGE BIHAR GSDP High economicGrowing growthdemand with Policy incentives NSDP flourishing industries State GSDP • As per the women empowerment policy, the state is increasing its focus State NSDP grew at a • Bihar’s economy is projected to grow at a CAGR of 13.40 per cent during the 12th on women empowerment by ensuring grew at a CAGR of Five-Year Plan. availability of resources (education CAGR of 14.33% • Food processing, dairy, sugar, and employment) for women, which 14.54% during manufacturing and healthcare are some would in turn lead to increased during 2004-05 to of the fast growing industries in the state. contribution from women in 2004-05 to development of the economy. 2014-15 The state has planned initiatives for the 2014-15 development of other sectors such as • The state also provides incentives for education and tourism. information technology, renewable Advantage energy, sugar, food processing and tourism. Bihar Rich labour pool Location advantage • The state has a large base of cost- effective industrial labour, making it an • The state enjoys a unique location ideal destination for a wide range of specific advantage because of its industries. proximity to the vast markets of eastern and northern India, access to ports such The state has institutes of national • as Kolkata and Haldia and to raw importance such as National Institute of material sources and mineral reserves Technology and Indian Institute of from the neighbouring states. Technology, which provide skilled manpower to industries. GSDP: Gross State Domestic Product NSDP: Net State Domestic Product AUGUST 2015 For updated information, please visit www.ibef.org 4 BIHAR THE LAND OF BUDDHA STATE VISION • Knowledge and religious hubs to be built and will attract 100,000 tourists per year by 2022. • Construct mega religious theme parks (Buddhism and Jainism). • Eight centres for educational, cultural and religious tourism planned. • Planned roadmap for improved connectivity; luxury hotels to be constructed through PPP mode. • Tourism service centres to be set up. • GSDP projected to grow at a CAGR of 13.40 per cent during • Build medical institutions, create Tourism awareness and bring about 12th Five-Year Plan. technological advancements. • Agriculture to play a significant • Introduce radiology and pathology role with opportunities in food processing and agro-based services in every district. Health Vision GSDP growth • Government hospitals across 36 2022 industries. districts to be provided with CT • Use quality seeds and fertilisers scan services. and upgraded technology • All government hospitals likely to • Provide institutional credit and commence dialysis services. Education crop insurance. • Develop infrastructure with focus on roads and energy sector. • Achieve zero dropout rate in secondary education. • Increase spending on building schools and colleges with easy access and upgraded infrastructure. • Launch policy initiatives to ensure compulsory enrolments • Open vocational training institutes. Source: Confederation of Indian Industry AUGUST 2015 For updated information, please visit www.ibef.org 5 BIHAR THE LAND OF BUDDHA BIHAR FACT FILE The most commonly spoken languages in the state are Hindi, English, Urdu and Bhojpuri, Maithili and Angika. The four agro-climatic seasons and fertile soil of Bihar support cultivation of a wide range of crops. Parameters Bihar Capital Patna Geographical area (sq km) 94,163 Source : Maps of India Administrative districts (No) 38 Population density (persons per sq km)* 1,102 Bihar is located in the eastern part of India. The state is surrounded by Nepal in the north, West Bengal in the east, Total population (million) 104.1 Uttar Pradesh in the west and Jharkhand in the south. Male population (million) 54.3 The state has a number of rivers; the most important of Female population (million) 49.8 which is the Ganges. Sex ratio (females per 1,000 males) 916 Patna, Gaya, Bhagalpur, Muzaffarpur and Darbhanga are Literacy rate (%) 61.8 some of the key cities in Bihar. Source: Government of Bihar website, Census 2011 AUGUST 2015 For updated information, please visit www.ibef.org 6 BIHAR THE LAND OF BUDDHA BIHAR IN FIGURES … (1/2) Parameter Bihar All states Source Economy 2014-15 2014-15 Directorate of Economics & Statistics of Bihar, 3.25 100.0 GSDP as a percentage of all states’ GSDP Central Statistics Office Directorate of Economics & Statistics of Bihar, GSDP growth rate (%) 16.44 7.3 Central Statistics Office Directorate of Economics & Statistics of Bihar, Per capita GSDP (US$) 596.4 1,389.61 Central Statistics Office Physical Infrastructure Installed power capacity (MW) 2,759.8^ 272,502.95 Central Electricity Authority, as of May 2015 Telecom Regulatory Authority of India, as of Wireless subscribers (No) 71,619,146^ 973,347,094 April 2015 Telecom Regulatory Authority of India, as of Broadband subscribers (No) 2,300,000*^^ 100,760,000 April 2015 National Highway length (km) 4,321 92,851.07 National Highway Authority of India April-2015 Airports (No) 2 132 Airports Authority of India-April 2015 *Including Jharkhand, ^As of May 2015, ^^As of March 2014 AUGUST 2015 For updated information, please visit www.ibef.org 7 BIHAR THE LAND OF BUDDHA BIHAR IN FIGURES … (2/2) Parameter Bihar All states Source Social Indicators Literacy rate (%) 61.8 74.0 Central Statistics Office, Economic Survey SRS Bulletin (www.censusindia.gov.in), Birth rate (per 1,000 population) 27.6 21.4 September 2014 Investment Department of Industrial Policy & Promotion, FDI equity inflows (US$ billion) 0.05^* 248.5 April 2000 to March 2015 Outstanding investments (US$ billion) 56.1 2,414.2 CMIE (2013-14) Industrial Infrastructure PPP projects (No) 26 1,409 Ministry of Finance, Government of India PPP: Public-Private Partnership, SRS: Sample Registration System, ^Includes Jharkhand *For May 2015 AUGUST 2015 For updated information, please visit www.ibef.org 8 BIHAR THE LAND OF BUDDHA ECONOMIC SNAPSHOT – GSDP In 2014-15, Bihar’s GSDP at current prices was US$ 66.4 GSDP of Bihar at current prices (in US$ billion) billion. 66,4 The state’s GSDP grew at a CAGR of 14.33 per cent 57,0 between 2004-05 and 2014-15. CAGR 51,9 54,1 14.33% 44,6 34,4 28,2 30,8 22,3 17,4 18,7 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 Source: Directorate of Economics & Statistics of Bihar, Central Statistics Office AUGUST 2015 For updated information, please visit www.ibef.org 9 BIHAR THE LAND OF BUDDHA ECONOMIC SNAPSHOT – NSDP In 2014-15, the NSDP of Bihar was US$ 61 billion. Bihar’s NSDP at current prices (in US$ billion) Average NSDP growth rate between 2004-05 and 2014-15 was about 14.54 per cent. 61,0 CAGR 52,3 14.54% 47,4 49,5 40,7 31,2 25,5 28,1 20,2 15,7 16,8 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 Source: Directorate of Economics & Statistics of Bihar, Central Statistics Office AUGUST 2015 For updated information, please visit www.ibef.org 10 BIHAR THE LAND OF BUDDHA ECONOMIC SNAPSHOT – PER CAPITA GSDP The per capita GSDP of Bihar has increased from US$ Bihar’s per capita GSDP at current prices (US$) 195.8 in 2004-05 to US$ 649.2 in 2014-15. The per capita GSDP increased at a CAGR of 12.72 per CAGR 649 12.72% 563 cent between 2004-05 and 2014-15. 527 546 459 358 303 326 244 196 207 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 Source: Directorate of Economics & Statistics of Bihar, Central Statistics Office AUGUST 2015 For updated information, please visit www.ibef.org 11 BIHAR THE LAND OF BUDDHA ECONOMIC SNAPSHOT – PER CAPITA NSDP Bihar’s per capita NSDP increased from US$ 176.6 in 2004- Bihar’s per capita NSDP at current prices (US$) 05 to US$ 596.4 in 2014-15.
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