Bihar posts 13.1% growth in 2024-25, surpasses national average: economic survey

The 20^th edition of the Bihar Economic Survey 2025-26 was tabled in the State Assembly on Monday (February 2, 2026), reporting that the State recorded 13.1 % economic growth in 2024-25, higher than the national average of 9.8%.

Presenting the report on the inaugural day of the Budget session, which will continue till February 27, Finance Minister Bijendra Prasad Yadav said Bihar was “progressing along a high-growth trajectory”, supported by macroeconomic stability, sectoral diversification, increased investment and a sustained focus on human capital development, employment generation and infrastructure enhancement.

Robust growth

“Bihar’s Gross State Domestic Product (GSDP) recorded a robust growth of 13.1%, compared to the national growth rate was 9.8% during 2024-25. The States’ fiscal trajectory also demonstrates disciplined financial management, with the total State Government expenditure increasing from ₹1.66 lakh crore in 2020-21 to ₹2.82 lakh crore in 2024-25”, said the Minister.

Praising the government’s fiscal management through moderate borrowing and effective debt servicing, he said that the State had consistently prioritised spending on education, health, energy, transport, irrigation and agriculture.

The Survey’s overview described an “optimistic, forward-looking evaluation, noting that Bihar’s per capita GSDP at current prices rose from ₹ 46,412 in 2020-21 to ₹ 76,490 in 2024-25. At constant (2011-12) prices, per capita GSDP increased from ₹ 30,159 in 2020-21 to ₹40,973 over the same period.

Lowest per capita income

Economist Sudhanshu Kumar to The Hindu that the State’s GSDP growth had remained higher than the national average over the past three years, though in the long run it has been equal to the national average. “Additional fiscal support from the Central Government could make the task of achieving its targets easier,” he said. Mr. Kumar, however, cautioned that despite the positive economic performance, Bihar continues to have the lowest per capita income in the country. “Fiscal constraints persist as a significant challenge, underscoring the need for a stronger growth impetus to close the gap with the national average,” he said.

“According to the latest quick estimates for 2024-25, Bihar’s GSDP grew by 8.6% at constant prices and 13.1% at current prices, reaching ₹5,31,372 crore and ₹9,91,997 crore, respectively,” said the report, adding, “It also shows that Bihar’s secondary sector Gross State Value Added (GSVA) grew by 11.1% at constant prices and 15.5% at current prices.” “The tertiary sector registered growth of 8.9% at constant prices and 13.5% at current prices, while the primary sector expanded by 4.1 % at constant prices and 9.6% at current prices,” added the report.