BIHAR THE LAND OF BUDDHA For updated information, please visit www.ibef.org July 2017 Table of Content 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 State Acts & Policies…….……….........…66 Doing Business in Bihar……………..…...61 State Acts & Policies……………………..62 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. the 12th Five- India Year Plan. Fastest per capita . Bihar has witnessed strong growth in per capita net state domestic product. At current prices, per capita income growth NSDP of the state grew at a CAGR of 13.04% during 2005-06 to 2015-16. Leader in the production . Bihar is the 3rd largest producers of vegetables & the 6th largest producer of fruits in India. of fruits and vegetables . Bihar has high agricultural production making it one of the strongest sectors of the state. About 80% of the Strong agriculture sector state’s population is employed in agriculture, which is much 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 75.66 million mobile subscribers in May 2016, Bihar accounted for the 4th largest mobile subscriber subscriber base base among all Indian states. Source: Central Statistics Office, Ministry of Statistics and Programme Implementation, Ministry for Integrated Development of Horticulture, NSDP- Net State Domestic Product 3 BIHAR For updated information, please visit www.ibef.org ADVANTAGE: BIHAR GSDP High Economic Growth with flourishing Policy incentives NSDP industries . As per the women empowerment policy, the state is State GSDP . Bihar’s economy is projected to grow at a CAGR of increasing its focus on women empowerment by State NSDP grew at a 13.40% during the 12th Five-Year Plan. ensuring availability of resources (education & grew at a employment) for women, which would in turn lead to CAGR of . Food processing, dairy, sugar, manufacturing & CAGR of increased contribution from women in development of 14.51% healthcare are some of the fast growing industries in the 14.68% the economy during state. The state has planned initiatives for the during development of other sectors such as education & . In May 2017, the state government has given around 2005-06 to 2005-06 to tourism. 3.65 lakh government employees & 6 lakh pensioners 2015-16 a revised pay scale from the month of May as per the 2015-16 7th pay scale recommendations Advantage Bihar Rich labour pool Location advantage . The state has a large base of cost-effective industrial . The state enjoys a unique location specific advantage labour, making it an ideal destination for a wide range of because of its proximity to the vast markets of eastern industries. & northern India, access to ports such as Kolkata & . The state has institutes of national importance such as Haldia & to raw material sources & mineral reserves National Institute of Technology & 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 4 BIHAR For updated information, please visit www.ibef.org STATE VISION . Knowledge and religious hubs to be built & will . GSDP projected to grow at a CAGR of attract 100,000 tourists per year by 2022. 13.40% during 12th Five-Year Plan. Construct mega religious theme parks . Agriculture to play a significant role with (Buddhism & Jainism). opportunities in food processing & agro- . Eight centres for educational, cultural & based industries. religious tourism planned. Use quality seeds & fertilisers & upgraded . Planned roadmap for improved connectivity; technology luxury hotels to be constructed through PPP . Provide institutional credit & crop insurance. mode. GSDP Growth Tourism . Develop infrastructure with focus on roads & . Tourism service centres to be set up. energy sector. Vision 2022 Health Education . Build medical institutions, create awareness & . Achieve zero dropout rate in secondary bring about technological advancements. education. Introduce radiology & pathology services in . Increase spending on building schools and every district. colleges with easy access and upgraded . Government hospitals across 36 districts to be infrastructure. provided with CT scan services. Launch policy initiatives to ensure . All government hospitals likely to commence compulsory enrolments dialysis services. Open vocational training institutes. Source: Confederation of Indian Industry 5 BIHAR For updated information, please visit www.ibef.org BIHAR FACT FILE . The most commonly spoken languages in the state are Hindi, English, Urdu, Bhojpuri, Maithili & Angika. The 4 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 Total population (million) 104.1 by Nepal in the north, West Bengal in the east, Uttar Pradesh in the Male population (million) 54.3 west & Jharkhand in the south. Female population (million) 49.8 . The state has a number of rivers; the most important of which is the Ganges. Sex ratio (females per 1,000 males) 918 . Patna, Gaya, Bhagalpur, Muzaffarpur & Darbhanga are some of the Literacy rate (%) 61.8 key cities in Bihar. Source: Government of Bihar website, Census 2011 6 BIHAR For updated information, please visit www.ibef.org 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 3.05 100.0 Central Statistics Office Directorate of Economics & Statistics of Bihar, GSDP growth rate (%) 10.59 8.71 Central Statistics Office Directorate of Economics & Statistics of Bihar, Per capita GSDP (US$) 696 1,546 Central Statistics Office Physical Infrastructure Installed power capacity (MW) 3,835.54 330,273.65 Central Electricity Authority, as of June 2017 Telecom Regulatory Authority of India, as of March Wireless subscribers (No) 84,560,000 1,170,180,000 2017 Telecom Regulatory Authority of India, as of March Internet subscribers (No) 24,100,000 422,190,000 2017 National Highway length (km) 4,678.79 100,087.08 NHAI & Roads and Building Department Airports (No) 2 125 Airports Authority of India 7 BIHAR For updated information, please visit www.ibef.org BIHAR IN FIGURES … (2/2) Parameter Bihar All states Source Social Indicators Literacy rate (%) 61.8 73.0 Census 2011 Birth rate (per 1,000 population) 27.6 21.6 SRS Bulletin Investments Department of Industrial Policy & Promotion, April FDI equity inflows (US$ billion) 0.1031 332.11 2000 to March 2017 Industrial Infrastructure PPP projects under construction & 7 479 DEA, Ministry of Finance, Government of India operational (no) PPP projects operational (no) 8 717 DEA, Ministry of Finance, Government of India 1Including Jharkhand, PPP: Public-Private Partnership, SRS: Sample Registration System 8 BIHAR For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – GSDP . In 2015-16, Bihar’s GSDP* at current prices was around US$ 72.4 GSDP of Bihar at current prices (in US$ billion) billion. The state’s GSDP grew at a CAGR of 14.51% between 2005-06 and 80.0 CAGR 14.51% 2015-16. 70.0 72.4 60.0 66.7 50.0 57.0 54.1 51.9 40.0 44.6 30.0 34.4 30.8 28.2 20.0 22.3 18.7 10.0 17.4 0.0 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 OfficeGSDP* - Bihar Socio Economic Survey 2015-16 9 BIHAR For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – NSDP # . In 2015-16, NSDP of Bihar was US$ 66.1 billion. Bihar’s NSDP at current prices (in US$ billion) . Average NSDP growth rate in the state was about 14.68% between 2005-06 and 2015-16. 70.0 CAGR 14.68% 60.0 66.1 61.3 50.0 52.3 49.5 47.4 40.0 40.7 30.0 31.2 28.1 20.0 25.5 20.2 16.8 10.0 15.7 0.0 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 10 BIHAR For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – PER CAPITA GSDP . The per capita GSDP^ of Bihar increased from US$ 207 in 2005-06 Bihar’s per capita GSDP at current prices (US$) to US$ 696 in 2015-16. The per capita GSDP of Bihar increased at a CAGR of 12.87%, 800 CAGR 12.87% between 2005-06 and 2015-16. 700 696 600 653 500 564 542 527 400 460 300 358 326 303 200 244 207 196 100 0 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 11 BIHAR For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – PER CAPITA NSDP . Bihar’s per capita NSDP& increased from US$ 186 in 2005-06 to Per capita NSDP of Bihar at current prices (in US$) US$ 635 in 2015-16. Robust growth across secondary & tertiary sectors resulted in 700 CAGR 13.04% growth in average per capita NSDP of Bihar at a CAGR of around 13.04% between 2005-06 and 2015-16.