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Bihar the Land of Buddha BIHAR THE LAND OF BUDDHA JANUARY 2017 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 2016-17……....… 16 Infrastructure Status………………......... 17 Business Opportunities…….…….....…. 37 Doing Business in Bihar…………......… 61 State Acts & Policies…………………..... 62 JANUARY 2017 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 income growth prices, per capita NSDP of the state grew at a CAGR of 12.3% during 2004-05 to 2015-16. 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% of the state’s population is employed in agriculture, which is much higher as sector 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 75.66 million mobile subscribers in May 2016, Bihar accounted for the fourth-largest subscriber base mobile subscriber base among all Indian states. Source: Central Statistics Office, Ministry of Statistics and Programme Implementation, NSDP- Net State Domestic Product JANUARY 2017 For updated information, please visit www.ibef.org 3 BIHAR THE LAND OF BUDDHA ADVANTAGE BIHAR Policy incentives GSDP High economicGrowing demandgrowth with NSDP • As per the women empowerment flourishing industries policy, the state is increasing its focus State GSDP on women empowerment by ensuring grew at a • Bihar’s economy is projected to grow at a availability of resources (education and State NSDP CAGR of 13.40% during the 12th Five- employment) for women, which would in CAGR of grew at a Year Plan. turn lead to increased contribution from 13.84% women in development of the economy. CAGR of • Food processing, dairy, sugar, 14% during during manufacturing and healthcare are some • The state also provides incentives for 2004-05 to information technology, renewable 2004-05 to of the fast growing industries in the state. energy, sugar, food processing and 2015-16 The state has planned initiatives for the tourism. 2015-16 development of other sectors such as • The state government has reserved education and tourism. over 50% seats in subordinate and superior judicial services, with 21% Advantage seats reserved for EBC, 16% for SC, Bihar 12% for OBC, and 1% for ST. 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 EBC: Extremely Backward Class JANUARY 2017 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% during 12th • Build medical institutions, create Tourism awareness and bring about 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 JANUARY 2017 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, 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) 1,106 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) 918 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 JANUARY 2017 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 2015-16 2015-16 Directorate of Economics & Statistics of Bihar, GSDP as a percentage of all states’ GSDP 3.49 100.0 Central Statistics Office Directorate of Economics & Statistics of Bihar, GSDP growth rate (%) 17.9 8.64 Central Statistics Office Directorate of Economics & Statistics of Bihar, Per capita GSDP (US$) 696 1,546 Central Statistics Office Physical Infrastructure Installed power capacity (MW) 3,029.89 304,505.75 Central Electricity Authority, as of June 2016 Telecom Regulatory Authority of India, as of Wireless subscribers (no) 75,663,431 1,033,157,014 May 2016 Telecom Regulatory Authority of India, as of Internet subscribers (no) 18,680,000 334,340,000 January 2016 National Highway length (km) 4,678.79 100,087.08 NHAI & Roads and Building Department Airports (no) 2 125 Airports Authority of India JANUARY 2017 For updated information, please visit www.ibef.org 7 BIHAR THE LAND OF BUDDHA BIHAR IN FIGURES … (2/2) Parameter Bihar All states Source Social Indicators Literacy rate (%) 61.8 73.0 Census 2011 Birth rate (per 1,000 population) 27.6 21.6 SRS Bulletin Investment Department of Industrial Policy & Promotion, FDI equity inflows (US$ billion) 0.0931 288.51 April 2000 to September 2015 Industrial Infrastructure PPP projects under construction & 15 1,246 DEA, Ministry of Finance, Government of India operational (no) PPP projects operational (no) 3 1,382 DEA, Ministry of Finance, Government of India 1Including Jharkhand, PPP: Public-Private Partnership, SRS: Sample Registration System JANUARY 2017 For updated information, please visit www.ibef.org 8 BIHAR THE LAND OF BUDDHA ECONOMIC SNAPSHOT – GSDP In 2015-16, Bihar’s GSDP* at current prices was around GSDP of Bihar at current prices (in US$ billion) US$ 72.4 billion. 72.4 The state’s GSDP grew at a CAGR of 13.84% between 66.7 CAGR 2005-06 and 2015-16. 57.0 13.84% 51.9 54.1 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 2015-16 Source: Directorate of Economics & Statistics of Bihar, Central Statistics Office GSDP* - Bihar Socio Economic Survey 2015-16 JANUARY 2017 For updated information, please visit www.ibef.org 9 BIHAR THE LAND OF BUDDHA ECONOMIC SNAPSHOT – NSDP In 2015-16, NSDP# of Bihar was US$ 66.1 billion. Bihar’s NSDP at current prices (in US$ billion) 66.1 Average NSDP growth rate in the state was about 14% 61.3 CAGR between 2004-05 and 2015-16. 52.3 14.00% 47.4 49.5 40.7 31.2 28.1 25.5 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 2015-16 Source: Directorate of Economics & Statistics of Bihar, Central Statistics Office NSDP# - calculated using per capita NSDP x Population in million JANUARY 2017 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 increased from US$ 195.8 in Bihar’s per capita GSDP at current prices (US$) 2004-05 to US$ 696 in 2015-16. The per capita GSDP of Bihar increased at a CAGR of 696 12.22%, between 2004-05 and 2015-16. CAGR 653 564 12.22% 527 542 460 358 303 326 244 196 207 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Source: Directorate of Economics & Statistics of Bihar, Central Statistics Office Per Capita GSDP^ - calculated using GSDP million US$ / Population in million JANUARY 2017 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$ 177 in 2004- Bihar’s per capita NSDP at current prices (US$) 05 to US$ 635 in 2015-16.
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