BIHAR December 2020 For updated information, please visit www.ibef.org Table of Contents Executive Summary 3 Introduction 4 Economic Snapshot 9 Physical Infrastructure 15 Social Infrastructure 23 Industrial Infrastructure 26 Key Sectors 28 Key Procedures & Policies 35 Appendix 43 2 Executive summary 1 Fastest growing state 5 Third largest mobile in India subscriber base . With 84.22 million mobile subscribers in • The Gross State Domestic Product (GSDP) of Bihar increased at a CAGR January 2020, Bihar* accounted for the of 13.27% from 2015 to 2020 and is 5 third largest mobile subscriber base among projected to register a CAGR of 13.17% all the Indian states. between 2015 and 2021. 1 2 Fastest per capita 4 Strong agriculture income growth 2 4 sector . Bihar has witnessed strong growth in • Bihar has high agricultural production per capita net state domestic product. making it one of the strongest sectors At current prices, per capita NSDP of of the state. About 80% of the state’s the state grew at a CAGR of 13.41% (in population is employed in agriculture, which is much higher as compared to Rs.) between 2015 and 2021. 3 India’s average. The state has . developed as the number one state in the eastern region in terms of 3 Leader in the production of agricultural production. fruits and vegetables • Bihar is the fourth largest producer of vegetables and the eighth largest producer of fruits in India. Note: * - includes Jharkhand, Source: Central Statistics Office, Ministry of Statistics and Programme Implementation, Ministry for Integrated Development of Horticulture, NSDP- Net State Domestic Product 3 INTRODUCTION 4 Bihar fact file Patna Capital 1,106 persons per sq km 120,590,000 Population density total population 94,163 sq.km. geographical area 49,800,0000 54,300,000 female population male population 918 63.8% Sex ratio literacy rate administrative districts: 38 (females per 1,000 males) Key Insights . Bihar is located in the eastern part of India. The state is surrounded by Nepal in the north, West Bengal in the east, Uttar Pradesh in the west and Jharkhand in the south. The state has a number of rivers; the most important of which is the Ganges. Patna, Gaya, Bhagalpur, Muzaffarpur and Darbhanga are some of the key cities in Bihar. The most commonly spoken languages in the state are Hindi, English, Urdu, Bhojpuri, Maithili and Angika. Theo- 4 agr climatic seasons and fertile soil of Bihar support cultivation of a wide range of crops. Source: Government of Bihar website, Census 2011 5 Advantage: Bihar High Economic Growth with Policy incentives flourishing industries • As per the women empowerment policy, the state is • The GSDP of Bihar increased at a CAGR of 13.27% increasing its focus on women empowerment by ensuring between 2015-16 and 2019-20. availability of resources (education and employment) for • Food processing, dairy, sugar, manufacturing and women, which would in turn lead to increased contribution healthcare are some of the fast-growing industries in from women in development of the economy. the state. The state has planned initiatives for the • The total number of registered workers under the ESIS development of other sectors such as education and was 2.02 lakh in 2017-18, and the number has increased tourism. to 2.83 lakh in 2018-19, an increase of 40%. Rich labour pool Location advantage • The state has a large base of • The state enjoys a unique cost-effective industrial labour, location specific advantage making it an ideal destination because of its proximity to the for a wide range of industries. vast markets of eastern and • The state has institutes of northern India, access to ports national importance such as such as Kolkata and Haldia and National Institute of to raw material sources and Technology and Indian Institute mineral reserves from the of Technology, which provide neighbouring states. skilled manpower to industries. Source: Ministry of Statistics and Programme Implementation, News articles 6 Bihar in figures Bihar Contribution to Indian Economy (2018-19) Physical Infrastructure in Bihar GSDP GSDP as a percentage of all states’ GSDP Installed power capacity (MW) (as of November India: 100.0 | Bihar: 3.76 2020) India: 3,74,199.04 Bihar: 5797.14 GSDP growth rate** (%) India: 10.0 | Bihar : 13.27 Wireless subscribers (million) (as of June 2020) Per capita GSDP* (US$) India: 1,140.71 | Bihar: 83.67 India: 1977.60| Bihar : 725.93 Internet subscribers (million) (as of June 2020) India: 749.07 | Bihar : 49.59 Social Indicators National highway length (km) (as of September 2019) Literacy rate (%) India: 132,499.5 | Bihar: 5,357.6 India: 77.7| Bihar : 70.9 Airport (No.) Birth rate (per 1,000 population) (2018) India: 153 | Bihar : 5 India: 20| Bihar : 26.2 Industrial Infrastructure Investments (as of September 2020) Cumulative FDI equity inflows (From October PPP projects under construction (no) India: 466| Bihar : 11 2019 to September 2020) (US$ million) India: 53,884.85 | Bihar : 16.42 PPP projects operational and maintenance stage (no.) India: 901| Bihar : 10 Note: GSDP, per capita GSDP figures are taken at current prices, For source refer to Annexure 7 State vision 2 HEALTH 3 EDUCATION . Build medical institutions, create awareness and bring about . Achieve zero dropout rate in secondary education. technological advancements. Increase spending on building schools and colleges . Introduce radiology and pathology services in every district. with easy access and upgraded infrastructure. Government hospitals across 36 districts to be provided . Launch policy initiatives to ensure compulsory with CT scan services. enrolments . All Government hospitals likely to commence dialysis . Open vocational training institutes. services. 1 TOURISM . Knowledge and religious hubs to be built and will attract 100,000 tourists per year by 4 GSDP GROWTH 2022. Agriculture to play a significant . Construct mega religious role with opportunities in food theme parks (Buddhism and processing and agro-based Jainism). 2 3 industries. Eight centres for educational, . Use quality seeds and cultural and religious tourism fertilisers and upgraded planned. technology . Planned roadmap for . Provide institutional credit and improved connectivity; luxury crop insurance. hotels to be constructed . Develop infrastructure with through PPP mode. 1 4 focus on roads and energy . Tourism service centres to be sector. set up. Source: Confederation of Indian Industry 8 ECONOMIC SNAPSHOT 9 Economic Snapshot – GSDP GSDP of Bihar at current prices Bihar’s per capita GSDP at current prices 120.00 CAGR (In Rs.) 13.17% 8 800.00 60,000 CAGR (In Rs.) 11.17% 7 700.00 100.00 50,000 6 6.86 600.00 80.00 725.93 98.25 6.12 5 50,735 40,000 500.00 638.88 87.65 621.65 5.30 60.00 4 44,652 77.09 4.69 552.27 72.73 400.00 30,000 40,065 4.21 3 507.46 37,052 62.76 40.00 3.72 56.77 300.00 33,218 2 20,000 20.00 200.00 1 10,000 0.00 0 100.00 0.00 0 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21BE 2015-16 2016-17 2017-18 2018-19 2019-20 US$ billion Rs. trillion US$ Rs. In 2019-20, Bihar’s GSDP at current prices was about Rs. 6.11 trillion (US$ 87.65 billion). The per capita GSDP of Bihar increased to Rs. 50,735 (US$ . The state’s GSDP expanded at a CAGR (in Rs.) of 13.27% between 725.93) in 2019-20. 2015-16 and 2019-20. The per capita GSDP of Bihar rose at a CAGR of 11.17% (in . The GSDP for 2020-21 (at current prices) is projected to be Rs. Rs.) between 2015-16 and 2019-20. 6,85,797 crore (US$ 98.25 billion), 11.1% higher than the revised estimate for 2019-20. Note: BE- Budget Estimate Source: Central Statistics Office 10 Economic Snapshot – NSDP Bihar’s NSDP at current prices Per capita NSDP of Bihar at current prices 90.00 CAGR (in Rs.) 13.41% 6 800.00 50,000 CAGR (In Rs.) 11.30% 80.00 700.00 45,000 5.63 5 70.00 40,000 80.51 600.00 4.87 46,664.15 35,000 60.00 4 667.68 69.65 500.00 4.31 66.89 30,000 40,981.99 50.00 586.38 571.76 3.87 57.67 3 400.00 36,849.78 25,000 507.45 3.40 51.96 40.00 34,044.90 464.46 20,000 300.00 30,403.87 30.00 2 15,000 200.00 20.00 10,000 1 10.00 100.00 5,000 0.00 0 0.00 0 2015-16 2016-17 2017-18 2018-19 2019-20 2015-16 2016-17 2017-18 2018-19 2019-20 US$ billion Rs. trillion US$ Rs. Bihar’s per capita NSDP stood at Rs. 46,664.15 (US$ 667.68) . In 2019-20, Bihar’s NSDP was Rs. 5.63 trillion (US$ 80.51 in 2019-20. billion). Robust growth across secondary and tertiary sectors boosted . Average NSDP growth rate in the state was ~13.41% (in Rs.) the average per capita NSDP of Bihar at a CAGR of ~11.30% between 2015-16 and 2019-20. (in Rs.) between 2015-16 and 2019-20. Note: Conversion rate - As per slide 45 Source: Central Statistics Office 11 Economic snapshot – Percentage distribution of GSVA . In 2019-20, the tertiary sector contributed 55.74% to Bihar’s Gross VisakhapatnamPercentage port distribution traffic (million of GSVA tonnes) State Value Added (GSVA) at current prices, followed by the secondary sector (22.13%) and primary sector (22.13%).