Bihar Election Results 2025: Even after winning the Bihar battle, Nitish faces this biggest challenge, PM Modi also keeping a close eye on it.
The formation of an NDA government in Bihar is likely to maintain the pace of economic growth. According to economists, industrialization and increasing per capita income are major challenges. Promoting the manufacturing sector should be a priority. Employment will be the best way to utilize the young population, for which expanding manufacturing is essential. Focus will be on improving per capita income and eliminating unemployment.
Ankush Pandey
Highlights
- Economic growth is expected from the NDA government.
- Industrialization and income growth are challenges.
- Manufacturing will be prioritized.
The NDA government is poised to form Bihar once again. This is likely to bring continuity to the state's economic policies. Economists believe that Bihar's economic growth rate, which has remained strong for the past decade, will continue. However, the new government will face the significant challenge of increasing industrialization and per capita income.
In this context, economists believe that promoting the manufacturing sector should be a top priority for the new state government. Following the construction of better roads and adequate power supply in the state over the past decade, efforts to attract private sector manufacturing may now yield better results. Prime Minister Narendra Modi is also closely monitoring this.
What did the former Vice Chairman of NITI Aayog say?
Rajiv Kumar, former Vice Chairman of NITI Aayog and former member of the Bihar State Economic Advisory Committee, says, "The youth population is Bihar's greatest asset, and it will be best utilized for the state's development only if employment is available. Employment opportunities will only be created through the expansion of manufacturing.
It is a matter of concern that manufacturing contributes 16 percent to the country's GDP, but it probably accounts for less than eight percent of Bihar's economy. I believe that the groundwork is ripe for attracting manufacturing companies in Bihar, as over the past decade, road connectivity has reached every village and electricity supply is adequate. Greater attention should be paid to attracting small and medium-sized manufacturing companies."
According to Reserve Bank data, the state's economic growth rate from 2021-22 to 2024-25 has been 10.6 percent, 10.6 percent, 9.2 percent, and 9.2 percent, respectively.
It is also expected to remain at 10 percent during the current financial year. This has increased the state's GDP from ₹2.47 lakh crore in 2011-12 to ₹9.76 lakh crore in 2024-25. However, Bihar's ranking in terms of per capita income has not improved significantly.
Per capita income (at constant prices) in 2024-25 is only ₹36,333, which is about one-third of the national average. The level of multidimensional poverty has declined significantly (from 51.89 percent to 33.76 percent), but it still remains the worst in the country. Bihar also faces a particularly dire situation with regard to youth unemployment.
How will unemployment be addressed?
The dependence of over 70 percent of the population on agriculture is a major reason for this situation. Gaurav Shah, President of the Bihar Cell of CII, also believes that unemployment can only be addressed by prioritizing manufacturing.
He says, "The announcements made by the NDA before the elections to establish district-wise industrial parks and a pharma park in Begusarai should be implemented immediately. Furthermore, the state has immense potential for the leather and textile industries. All of these have significant potential to generate employment, which Bihar desperately needs."
Jyoti Vij, General Secretary of the industry chamber FICCI, congratulated Chief Minister Nitish Kumar on the NDA's landslide victory. "The decisive voting gives hope that the government will advance the economic reform agenda with greater vigor and take more assertive steps towards the development agenda."
