Economic Disparity in Bihar: Richest and Poorest Districts in the State

KKN Gurugram Desk | Bihar, one of the most populous states in India, exhibits significant economic disparity across its districts. The state’s economic landscape is marked by a stark contrast between its wealthiest and poorest regions. While Patna, the capital, stands as the most prosperous district, Shivhar remains the poorest. This division in economic development has sparked debates on regional inequality and growth rates across Bihar.

Economic Disparity: Patna vs. Shivhar

Patna, with its thriving economy, is miles ahead of other districts in terms of prosperity. The capital city benefits from a booming real estate market, increasing commercial activity, and an expanding services sector. On the other hand, Shivhar, a rural district located in the north of Bihar, faces severe economic challenges. The income levels in Shivhar are far lower, and the district struggles with high levels of poverty and underdevelopment.

Bihar’s economic development is not uniform, and disparities are evident when you look at the Gross District Domestic Product (GDDP) and per capita income. The consumption of petrol, diesel, and LPG is also often used as indicators to gauge economic prosperity in the state. Patna’s GDDP is significantly higher compared to districts like Shivhar, which is ranked at the bottom.

Key Economic Indicators: Per Capita Income and Consumption

According to the latest data, the per capita income in Patna stands at ₹121,396, which is remarkably higher than that of Shivhar, which is just ₹19,561. Other districts such as Begusarai and Munger also perform better economically with per capita incomes of ₹49,064 and ₹46,795, respectively. In contrast, districts like Sitamarhi and Araria report incomes of ₹21,931 and ₹22,204, which are still far below the state average.

The consumption patterns of essential products like petrol, diesel, and LPG also reflect these economic differences. In terms of petrol consumption, Patna, Muzaffarpur, and Purnia are at the forefront, while districts like Lakhisarai, Banka, and Jehanabad lag behind. Similarly, in terms of diesel and LPG consumption, Patna again leads, while districts like Shivhar, Siwan, and Gopalganj report significantly lower consumption levels.

Districts in Bihar: Economic Overview

• Wealthiest Districts:

  1. Patna: As the state capital, Patna’s economy thrives due to its high industrial output, services, and government-driven initiatives.
  2. Begusarai: This district benefits from a strong industrial base, including petrochemical industries and heavy industries.
  3. Munger: Munger has experienced a rise in industrial activities and infrastructure development, contributing to its economic growth.

• Poorest Districts:

  1. Shivhar: Despite efforts at development, Shivhar remains Bihar’s poorest district with a low standard of living.
  2. Sitamarhi: The district faces issues such as underdeveloped infrastructure, a high rate of poverty, and poor industrial development.
  3. Araria: Araria is another district struggling with economic stagnation, especially in terms of industrial output and employment opportunities.

Bihar’s Economic Growth: A Decade of Progress

Bihar’s economy has been steadily growing despite several setbacks, and recent economic surveys show an impressive growth rate. According to the Economic Survey for 2023-24, the state’s Gross State Domestic Product (GSDP) has more than tripled from ₹2.47 lakh crore in 2011-12 to ₹8.54 lakh crore in 2023-24. This substantial growth has outpaced the national average, placing Bihar among the top performers in terms of growth rate.

During a press conference, Deputy Chief Minister Samrat Chowdhary highlighted that Bihar’s economic growth was fueled by central government support and the effective leadership of Chief Minister Nitish Kumar. In fact, Bihar ranks second in the country for economic growth, just behind Telangana. According to the report, Bihar’s per capita income has also increased to ₹66,828 in the current fiscal year, marking a 12.8% increase from the previous year.

Contribution of Key Sectors: Agriculture vs. Services

While Bihar’s economy has diversified over the years, the agriculture sector remains crucial for the state’s prosperity. As of the latest reports, agriculture contributes approximately 20% to the state’s economy. During the COVID-19 pandemic, when other sectors faced a slowdown, agriculture played a significant role in maintaining Bihar’s economic stability. The state has seen a steady increase in the production of paddy, wheat, and maize, along with a rise in the area under cultivation of fruits like mango and lychee.

However, the services sector, or the tertiary sector, has become the largest contributor to Bihar’s GSDP, accounting for around 59% of the state’s total economic output. This includes sectors like trade, banking, insurance, real estate, and tourism. Over the years, the government’s push for infrastructure development and digitalization has contributed to the growth of the services sector.

Electricity Consumption: A Reflection of Agricultural Development

The government has made significant investments in improving agricultural infrastructure, particularly in terms of electricity supply. In 2023-24, the state’s agricultural sector accounted for 17.6% of the total electricity consumption, a sharp rise from just 4.3% in 2019-20. This increase in electricity consumption is reflective of the government’s efforts to provide better irrigation facilities and support farmers in rural areas.

Government’s Focus on Social Welfare

In addition to economic development, the government has been heavily investing in social welfare programs to improve the quality of life for its citizens. According to the recent fiscal reports, the government’s expenditure on social services has risen significantly. From ₹57,816 crore in 2019-20, the allocation for social services has reached ₹83,225 crore in 2023-24. This includes spending on health, education, and social security programs that are critical for poverty alleviation and improving living standards across the state.

Infrastructure Development and Capital Expenditure

Bihar’s infrastructure development has been a key driver of economic growth. The state has seen substantial increases in capital expenditure, which refers to the funds allocated for the creation of long-term assets like roads, bridges, and public buildings. From 2019-20 to 2023-24, capital expenditure in the state has tripled, indicating a clear focus on building a more robust infrastructure that can sustain future economic growth.

Bihar has also made significant strides in terms of connectivity, with the expansion of road networks, improvements in air transport facilities, and the development of urban infrastructure in cities like Patna. These infrastructural changes are expected to further accelerate economic growth in the coming years.

Bihar’s economy has shown remarkable growth over the last decade, but significant economic disparities persist across districts. While Patna, Begusarai, and Munger continue to shine as the wealthiest districts, regions like Shivhar, Sitamarhi, and Araria still face economic challenges. The state’s reliance on agriculture and its growing services sector are critical for its future, but more focused efforts are needed to reduce regional inequalities.

As the government continues to invest in infrastructure, social welfare, and agriculture, the hope is that more districts in Bihar will experience economic upliftment. The growth of Bihar’s economy is an ongoing journey, and with the right policies and resources, the state can continue its rise towards greater prosperity, ensuring that economic development reaches all corners of Bihar.