Bihar is located in the eastern part of India. It is surrounded by Nepal in the north, West Bengal in the east, Uttar Pradesh in the west and Jharkhand in the south. Bihar has location specific advantage because of its closeness to the huge markets of eastern and northern India, it has to access the ports such as Kolkata and Haldia and to the sources of raw material and mineral reserves from the nearby states.
Economy of the state is expected to grow at the rate of 13.4 per cent during the 12th Five-Year Plan. Bihar’s per capita GSDP increased from US$ 195.8 in 2004-05 to US$ 596.4 in 2014-15.
Bihar is one of the strongest agricultural states of the country . Around 80 per cent of the population is employed in agricultural production in Bihar , which is much higher than the national average. Bihar is the biggest producer of vegetables and the second largest producer of fruits in the country.
Food processing, dairy, sugar, manufacturing and healthcare are some of the fast growing industries in the state. Bihar has planned initiatives for the development of sectors like education and tourism, provides incentives for information technology and renewable energy.
Bihar enjoys a unique location, which acts as an advantage because of its closeness to the vast markets of eastern and northern India , access to ports such as Kolkata and Haldia and to raw material sources and mineral reserves from the neighbouring states. It has a large base of cost effective industrial labour, making it an ideal destination for a wide range of industries.
Government has approved Rs 4,918 crore (US$ 720 million) highway project in order to widen up the National Highways in Bihar and Jharkhand.
Bihar along with Uttar Pradesh, Odisha and Maharashtra has agreed to join Ujwal Discom Assurance Yojana (UDAY) , the program has been launched in order to improve financial and operational efficiencies of power distribution companies, as declared by Piyush Goyal, Minister of State for Power, Coal and New & Renewable Energy.
Indian Railways has issued a Letter of Award to US-based General Electric for a Rs 14,656 crore (US$ 2.2 billion) diesel locomotive factory project at Marhowra, and to French transport major Alstom for Rs 20,000 crore (US$ 3 billion) electric locomotive project in Madhepura, both in Bihar.