The Story of Bihar

 

Bihar’s Story: from Magadh to Modern Struggles

Bihar, a state rich in its culture, language and food, is located in the eastern part of India surrounded by Nepal in the north, West Bengal in the east, Uttar Pradesh in the west and Jharkhand in the south. The elections are scheduled to be held in Bihar on November 6 and 11 this year, but will they bring any real change to the state’s story of stagnation? Governments have come and gone, promises have been made and forgotten, yet Bihar’s growth remains painfully slow. Despite being home to one of the world’s oldest civilizations and the cradle of ancient learning at Nalanda and Vikramshila, today the state struggles with poverty, unemployment, and migration. The question that looms large is — why does Bihar, despite its rich history and abundant human potential, continue to lag behind? Here in this article, we will explore the challenges that have led to underdevelopment in Bihar and the road ahead.

 

History

Bihar played an important role in early Indian history. For thousands of years, this region remained the capital of several powerful kingdoms and the primary center of learning. The first kingdom established in Bihar was by Bimbisara and his son Ajatshatru (Haryanka Dynasty). In ancient times, it was home to flourishing empires like the Mauryas and Guptas, when Pataliputra (modern-day Patna) was a global center of learning, trade, and governance. The Magadha kingdom, with Pataliputra as its capital, was the name given to the Mauryan Empire, which prospered under the leadership of some of the world's most talented kings, including Chandragupta Maurya and Emperor Ashoka.

 Ruins of Nalanda Mahavihara by Sumitsurai, licensed under CC BY-SA 4.0

 The state witnessed the growth of Nalanda (built by Kumargupta I of Gupta Dynasty in 5th century CE) and Vikramashila (built by Pala king Dharmapala between the late 8th and early 9th century CE) as international universities providing education to Indian and foreign students. The fertile plains nourished by the Ganga boosted the agricultural economy.

However, the medieval and colonial periods changed the state’s economic trajectory. Under Mughal rule, Bihar’s resources were heavily taxed and its industries—especially textiles and handicrafts—suffered due to exploitation and shifting trade routes. The situation worsened during British colonial rule as they extracted raw materials like indigo and opium from Bihar to serve their imperial markets, while neglecting local industries and infrastructure. This extractive economic model left the state impoverished and dependent on subsistence agriculture.

After Independence, Bihar struggled to revive its economy. The partition of Bengal in 1947 and later the bifurcation of Jharkhand in 2000 further weakened Bihar’s industrial base—most mineral-rich regions went to Jharkhand, leaving Bihar largely agrarian and resource-poor. Despite numerous development plans, bureaucratic inefficiency, political instability, and poor infrastructure continued to hold the state back economically.

 Chhath Festival of Bihar

It is one of the most sacred festivals of the state, celebrated six days after Diwali for four days. This festival is dedicated to the worship of the Sun God (Surya Dev) and Chhathi Maiya, the goddess associated with prosperity and well-being. Unlike most Hindu festivals, Chhath involves no idols or grand rituals but pure devotion, discipline, and simplicity.

Chhath Festival in Bihar by 9melons, licensed under CC BY-SA 4.0

Women, known as vratin, observe rigorous fasts, often standing in waist-deep water to offer arghya (prayers) to the setting and rising sun. The festival signifies gratitude for life and nature — the sun’s light, the river’s water, and the earth’s fertility — all elements central to Bihar’s agrarian identity. It unites people across caste, class, and religion, as communities come together on riverbanks to sing traditional folk songs like “Kaanch hi baans ke bahangiya...” and light thousands of diyas that illuminate the ghats.

Chhath Puja is more than just a religious observance — it is a symbol of resilience, purity, and the deep-rooted cultural pride of Bihar. Even those who have migrated far from their villages carry the tradition with them, turning urban rooftops and balconies into makeshift ghats. It stands as a reminder that while Bihar’s economy may still be developing, its cultural heritage remains rich and radiant.

Potential Bihar Holds

Agriculture and Agro-based Industries: Bihar lies entirely in the Gangetic plain, with extremely fertile alluvial soil suitable for rice, wheat, maize, sugarcane, pulses, and horticulture crops.  It also has abundant water resources from the Ganga and its tributaries make irrigation potential high, especially with modernization of canals and flood control systems. Agro-processing industries in Bihar can become a hub for food processing, cold storage, packaging, and exports of fruits like litchi (Muzaffarpur), mangoes (Bhagalpur), bananas (Vaishali), and makhana (Mithilanchal). Recently in September this year, the Prime Minister inaugurated the Makhana Board in Purnea, Bihar. The state of Bihar contributes to around 90% of India's makhana production. Better grading, packaging, and branding can make Mithila Makhana a premium international product, raising farmer incomes.
Industrial and Manufacturing Potential: Since Bihar borders three Indian states and has access to Nepal and the eastern trade corridor, it offers immense potential for logistics and transport industries. It has deposits of limestone, silica, and pyrite (mainly in Rohtas, Jamui, and Gaya) which can support cement, glass, and chemical industries. Upcoming Industrial Corridors like The Amritsar–Kolkata Industrial Corridor (AKIC) and Eastern Dedicated Freight Corridor (EDFC) pass through Bihar — these can attract manufacturing and logistics parks if policies and infrastructure align. Areas like Bhagalpur are famous for silk production (Tussar silk). Reviving and branding these traditional sectors can generate large-scale employment, especially for women.

Human Capital and Demographic Dividend: Over 58% of Bihar’s population is below 25 years, giving it one of the youngest workforces in India. With focused investment in skill development, technical education, and digital literacy, Bihar can become a major labor and service hub for India’s growing economy. Remittances from Bihar’s workers (in Gulf countries, metros, etc.) are already a lifeline for many families. Tapping into this through returnee entrepreneurship programs could fuel local economic growth.

Tourism and Cultural Heritage: Bihar is the birthplace of Buddhism and Jainism — with sites like Bodh Gaya, Rajgir, Nalanda, Vaishali, and Pawapuri attracting international pilgrims. Ancient Magadha, Maurya, and Gupta empires were rooted in Bihar — it has huge potential for archaeological and heritage tourism. Various sites of cultural and ancient significance must be considered to be in the list of UNESCO World Heritage Site which will in turn protect its significance and promote tourism in the state. Bihar and Nepal share not just a border but a bond — one woven deeply through centuries of cultural, familial, and emotional ties. Popularly known as the “roti-beti ka rishta” (relation of food and marriage alliance), this phrase captures the enduring social, cultural, and economic interdependence between the people of the two regions.

Infrastructure & Connectivity Potential: Ongoing projects like the Ganga Expressway, Patna Metro, and Buxar–Varanasi highway can enhance connectivity and attract investment. The National Waterway-1 (Haldia–Varanasi stretch) passes through Bihar — it can reduce logistics costs and promote trade, tourism, and fishing industries.

Education and Knowledge Hub: Bihar historically was home to Nalanda and Vikramshila Universities, ancient centers of learning. Reviving Nalanda University (modern campus) and building educational clusters around Patna, Gaya, and Muzaffarpur can turn the state into an educational and research hub of Eastern India.

 

Factors leading to underdevelopment in Bihar

Bihar is considered as one of the poorest state in India, primarily due to its low per capita income and high poverty rates according to multiple indices. Its present situation is a result of inefficient bureaucracy, governance, geography and political structure which together have created a cycle of stagnation that continues to hinder the progress.  There are various factors for the stagnant state of Bihar, such as:

Geography of Bihar: Several rivers flow through Bihar — one of the most troublesome being the Kosi River, often called the ‘Sorrow of Bihar, as it causes severe flood in Bihar during rainy season affecting its economy. The state’s geographical location in the Gangetic plains makes it highly prone to annual floods in the north and droughts in the south. These recurring disasters damage crops, infrastructure, and livelihoods, discouraging industrial investment. The absence of a coastline limits trade and access to global markets, increasing dependence on neighboring states for port connectivity. Agriculture is dominated by small and marginal farmers, making mechanization and productivity improvements difficult.

Historical and Colonial Legacy: During British rule, Bihar was primarily treated as a resource-extraction zone for indigo, opium, and raw materials. Industrial and educational investments were concentrated in Bengal, leaving Bihar underdeveloped. After Bihar’s bifurcation in 2000, when Jharkhand was carved out, Bihar lost most of its mineral-rich and industrialized regions, severely reducing its revenue base.

Poor Industrial Growth and Infrastructure: Even today, Bihar contributes only around 3–4% to India’s total industrial output, far behind states like Maharashtra or Gujarat, this is because of scarcity of contiguous land parcels for industrial use and bureaucratic hurdles in acquisition make it hard for investors to set up large factories. Unreliable electricity supply discourages industries from setting up in the region. Weak transport and logistics, though improving, Bihar’s road density and rail connectivity to industrial hubs remain inadequate for large-scale production and exports. For e.g.: The Maruti Suzuki project, once proposed near Muzaffarpur in the 1990s, was shifted to Haryana due to political instability and poor infrastructure readiness. Similarly, IT and service industries that thrive in cities like Pune or Bangalore avoid Bihar due to inadequate urban amenities and lack of connectivity.

Lack of Investment: the primary hurdle in the backwardness of the state is lack of investment by the MNC’s and this is due to the complex paper work that keeps getting delayed and takes months and years to get approval, forcing industries/companies to shift to new states. The key infrastructure services that require public sector delivery are water management and roads, particularly for boosting investment and output of agriculture. In short, we can say that investment and infrastructure are linked to some extent affecting the growth of the state.

Governance and Corruption Issues: Frequent bureaucratic transfers, poor coordination, and procedural delays hinder project execution. Public funds, especially in welfare schemes like MNREGA or PMGSY, often face misuse or underutilization. Although there’s improvement in recent years, Bihar’s image as a state plagued by crime and political interference still deters investors.

Language map of Bihar by district (2011 Census) by WeaponizingArchitecture, licensed under CC BY 4.0

Educational Backwardness: Even though Bihar produces the second largest number of bureaucrats (after U.P.) in the country, the quality of education remains poor, especially in rural areas. Shortage of teachers, poor infrastructure, and low learning outcomes restrict the development of skilled human capital. As a result, youth migration continues, creating a brain drain from the state.

Overdependence on Agriculture: Over 70% of Bihar’s population depends on agriculture, but the sector contributes less than 20% of GSDP. Lack of diversification, irrigation inefficiency, and low-value crops trap farmers in poverty. Non-farm employment opportunities remain limited, forcing people to migrate seasonally to other states. People are trapped in disguised unemployment in the state, these people need to shift their skills and efforts in other areas as well as it will lead to holistic development of all the sectors.

Political Instability and Populism: Bihar has seen frequent political changes, caste-based mobilization, and populist policies rather than consistent long-term planning. Developmental agendas often take a backseat to electoral considerations. Absence of strong industrial and administrative continuity hampers the policy implementation process.

Migration and Urban Pressure: Every year, lakhs of Biharis migrate to Delhi, Punjab, Maharashtra, and Gulf countries for work. While remittances help families survive, mass migration drains the state of skilled manpower and weakens the local economy. The remaining population exerts heavy pressure on limited urban infrastructure in cities like Patna and Gaya.

 

Path to Recovery

Infrastructure Modernization: Expanding expressways, rural roads, and rail links can connect remote areas with major markets. Projects like the Ganga Expressway, Patna Metro, and Freight Corridors must be executed efficiently. Investments in renewable energy — particularly solar power in south Bihar’s arid regions — can reduce electricity shortages and attract industries. Cities like Gaya, Muzaffarpur, and Bhagalpur can be developed as regional growth hubs with better waste management, public transport, and housing facilities. Places with significant historical and cultural importance must be promoted and developed so as to increase tourism in the state.

Agro-Based Industrialization: Bihar’s biggest strength is its agriculture. Instead of just producing raw crops, the state should focus on food processing, cold storage chains, and agro-based industries to increase farmers’ income. Promotion of dairy, fisheries, and horticulture can diversify rural livelihoods. Special Economic Zones (SEZs) for food processing can be established near fertile districts like Samastipur, Purnea, and Nalanda.

Strengthen the Investment Climate:  it involves improving Bihar’s investment environment to enhance the use of Bihar's current agricultural and human resource base, attract new productive resources and create jobs. Generating productive income-earning opportunities in agriculture remains pivotal to reducing chronic poverty while the rural economy continues to dominate economic opportunity over the medium term. The public sector has an important role in basic capital investment and maintenance of large- and medium-scale water management systems for irrigation, as well as sanitation and urban water supply. Reliable and affordable power supply is also an important part of the investment climate; a reform agenda in the power sector should aim to reduce public subsidies to the ailing Bihar State Electricity Board (BSEB), and explore alternative partnerships and decentralized models of power supply, particularly for rural areas.

Strengthen Social Service Delivery: A critical complement to the first development pillar is investment in human resources to meet social development goals and to support medium-term economic growth. This is particularly important for the rural poor for whom access to basic health and education services is essential to empower them and enable their participation in productive income-earning opportunities, as also movement into off-farm activities. There is a need in Bihar for developing a coherent policy framework based on a strategic plan that reflects the needs of beneficiaries, the responsibilities of service providers and the state, and addresses key delivery constraints. It must also have the support of the political and bureaucratic establishment.

Disaster Management and Climate Resilience: Floods devastate Bihar annually leading to loss of crops and livelihoods, especially for the poor and agricultural sector— adopting sustainable river management, afforestation, and early warning systems can reduce losses. Developing climate-resilient infrastructure and irrigation systems will protect both agriculture and industry. A robust weather forecasting system needs to be adopted in the state so as to take necessary steps before any mishap could occur.

Governance and Transparency: Bihar’s recovery depends on clean and efficient governance. Strong anti-corruption measures, e-governance, and citizen grievance redressal systems must be prioritized. Decentralization — empowering Panchayati Raj Institutions — can ensure better implementation of welfare schemes. Ensuring effective utilization of central and state funds, especially under schemes like the Special Assistance to Bihar, can bridge regional disparities.

Leveraging Regional and Cultural Linkages: Strengthening economic and cultural ties with Nepal through border trade and tourism can create new opportunities. The shared “Roti-Beti ka Rishta” can be re-imagined through cross-border infrastructure, cultural festivals, and trade in agricultural goods, boosting employment and people-to-people contact. Promoting heritage tourism (Nalanda, Rajgir, Bodh Gaya) can generate sustainable revenue while preserving Bihar’s historical identity.

Conclusion

Collective efforts of citizens and government can help Bihar regain its older image- a land of prosperity, knowledge and cultural richness. Bihar has the potential to script a new development story — one rooted in transparency, innovation, and inclusive growth. With strong leadership, empowered local governance, and active citizen participation, Bihar can once again emerge as a symbol of India’s progress and resilience.