Four charts that show how Bihar fared on major economic indicators

After a charged-up poll campaign that saw a plethora of promises of cash transfers to women and job creation to youth, Bihar will today finally see who won the race.

Going by early leads, the National Democratic Alliance (NDA) is leading on over 160 seats, pointing to a comeback of Nitish Kumar, who has been the state’s chief minister for nearly two decades.

Bihar has remained India’s poorest state, with its per capita net state domestic product (NSDP)—a rough indicator for average income earned per person—at just ₹32,227 at 2011-12 prices in FY24. This means people in Bihar have an income that is just one-sixth of people in Gujarat, a leading state. In fact, compared to Uttar Pradesh, Bihar’s per capita income is just two-thirds.

The main reason behind Bihar’s poor state is both historical—it was always behind–and the lack of progress on investments and continued heavy reliance on agriculture.

This does not mean that Bihar is not making any progress at all. In recent years, its gross state domestic product (GSDP) growth has consistently surpassed all-India growth. However, given Bihar’s low base, it would take years before the fast pace of growth changes.

Lack of employment opportunities in the state has forced people to migrate to other states in search of jobs, which has been one of the major poll issues.

Despite the state witnessing promises of development and job creation, Bihar continues to suffer from a high unemployment rate, especially for the younger population.

The reason for Bihar’s continued poor performance is a lack of investments and focus on capital expenditure. A Mint analysis of capital expenditure by Bihar showed that it has lagged behind many of its peers (states with low per capita income) such as West Bengal, Uttar Pradesh, Madhya Pradesh and Jharkhand.

While the state is on its way to re-elect the same government again, its development and progress remain a challenge. The state will require efforts to increase investments and keep its productive workforce in the state by creating more jobs if it wants to leave the “poorest state” tag behind.