Economy of Bihar

The economy of Bihar is largely service oriented, but it also has a significant agricultural base. The state also has a small industrial sector. As of 2008, agriculture accounts for 35%, industry 9% and service 55% of the economy of the state Manufacturing has performed very poorly in the state between 2002–2007, with an average growth rate of 0.38% compared to India's 7.8%. Bihar has the lowest GDP per capita in India but there are pockets of higher per capita income like the southern half of the state and its capital city, Patna, has per capita income greater than that of Bangalore or Hyderabad. The GSDP today stands at 112,424 Crores Rupees ($21 billion nominal GDP). In actual terms, as of 2008, Bihar state GDP is ranked 14 out of 28 states. Corruption is an important hurdle for the government to overcome according to Transparency International India, which the government has also acknowledged. Since November 2005, a new government led by Nitish Kumar has implemented a number of economic and social reforms. A consequence has been a positive improvement in the economy of the state and also of Patna. For example, in June 2009, the World Bank reported that Patna was the second best city in India to start a business, after Delhi. Between 1999 and 2008, state GDP grew by 5.1% a year, which was below the Indian average of 7.3%. However, in January 2010, the Indian government's Central Statistics Organisation reported that in the five-year period between 2004–05 and 2008–09, Bihar's GDP grew by 11.03%, which made Bihar the second fastest growing economy in India during that 5 year period, just behind Gujarat's growth of 11.05%. Another survey conducted by Central Statistical Organisation (CSO) and National Sample Survey Organisation, under MOSPI, said that Bihar saw 14.80 percent growth in factory output in 2007-08, which was slightly less than the Indian rate of 15.24 percent.