Has Bihar's growth caught up with the rest of India?, Pg14.

Key Highlights:

• Bihar's real GSDP nearly doubled from Rs 2.47 lakh crore in 2011-12 to Rs 4.64 lakh crore in 2023-24.
• In terms of total economic output, Bihar bridged the gap with West Bengal but the gap widened with UP and Gujarat.
• Bihar's per capita economic output increased from Rs 21,750 to Rs 32,174, but the gap with other states widened.
• Bihar's manufacturing sector value-added grew from Rs 12,681 crore in 2011-12 to Rs 31,110 crore in 2023-24, bridging the gap with most states except Gujarat.

Per Capita Income (Bihar vs India).png

Detailed Insights:

• While Bihar's overall economic output improved relative to some states, its per capita output lagged due to a higher population growth rate of 18.2% between 2011 and projected 2021, compared to Kerala's 6.2%.
• The growth in Bihar's manufacturing sector appears significant, but it is partly due to a slowdown in manufacturing value-added in other states like Maharashtra.
• Despite high economic growth rates in isolation, Bihar's low base of economic activity means it still struggles to catch up with more developed states.
• Migration patterns of Bihar residents to states like Maharashtra and Punjab highlight the persistent need for better economic opportunities within Bihar.
• The analysis uses real Gross State Domestic Product (GSDP) and real Net State Domestic Product to account for inflation and provide a more accurate comparison of economic growth.

Key Concepts Involved:

• Real GSDP: Inflation-adjusted measure of the total economic output of a state.
• Per Capita Income: Average income earned per person in a specific area in a year.
• Manufacturing Value Added: Net output of the manufacturing sector, calculated by adding the total output and subtracting the intermediate inputs.