A 28-year-old Haryanvi, his voice trembling with frustration and anger, asked, ‘Why can't they stay in Bihar or wherever they're from? Why do they need to come here to Delhi NCR when they should be finding work back home?’ However, for the people of Bihar who migrate to different cities, the reality is far more complex.
Considered one of the least developed states of India, the state struggles with limited job opportunities, inadequate infrastructure, and stagnant economic growth. For many, migration is not a choice, but a survival strategy. The allure of better-paying jobs, education and healthcare in cities like Delhi drives thousands to leave their hometowns behind. Nitish Kumar-led state has consistently been one of the top Indian states when it comes to out-migration.
According to a study by the International Institute for Population Sciences, around 50 per cent of Bihar households have been exposed to migration. In terms of numbers, the Economic Survey of India 2017 estimated that inter-state migration in India was close to nine million between 2011 and 2016, with the highest number of migrants hailing from Uttar Pradesh and Bihar.
The Periodic Labour Force Survey (PLFS) 2020-21, revealed a total migration rate of 28.9 per cent in India and 26.5 per cent in rural areas. As per the data, Uttar Pradesh's migrant workers are at 31,56,125 and Bihar's numbers stood at 7,06,557.
A more specific example can be seen in Baisi block in Bihar's Purnia district, where a majority of the population are migrant workers. These workers migrate mainly to Gujarat, Maharashtra, Rajasthan, Delhi, Uttar Pradesh, and Haryana, with some migration to 17 other states and Nepal also taking place.
"Outward migration from Bihar is primarily driven by limited employment opportunities, inadequate infrastructure, and insufficient access to quality education and healthcare. Establishing production hubs in districts such as Gaya, Patna, and Darbhanga, along with investments in housing, transport, water supply, and essential services, can make urban areas more attractive for both residents and businesses. Additionally, initiatives like the Saat Nishchay program, which focuses on improving rural roads and education, can stimulate local economic growth," said Poonam Muttreja, Executive Director, Population Foundation of India.
Additionally, strengthening education and training facilities within the state can build a skilled workforce capable of meeting local economic needs, experts said and added that the state should focus on people and infrastructure.
State's Economic Issues
Bihar’s per capita net state domestic product (NSDP) of Rs 53,478 in 2022-23 was the lowest out of 33 states and union territories and less than a third of India’s per capita net national income of Rs 169,496. Notably, it contributes only 2.8 per cent to India's total gross domestic product (GDP), despite its population making up 9.2 per cent of the national total. Historically, undivided Bihar was one of the top five states in terms of its share of GDP share in 1960-61.
Agriculture is the dominant sector in Bihar's economy, accounting for 20.7 per cent of the state's gross value added and employing 47.8 per cent of the total workforce in 2021-22. Experts told BW Businessworld that there has been limited diversification into the secondary (manufacturing) and tertiary (services) sectors, both of which are essential for creating broader employment opportunities.
"Bihar is an agrarian economy and a significant share of employment is in agriculture and allied sectors (around 48 per cent). However, the contribution of this sector to the gross value added is just 20 per cent. This confines the growth since the manufacturing base is comparatively low in Bihar and thus limits the employment opportunities in the secondary sector (20 per cent share in gross value added and 26 per cent share in employment)," said Kumar Gaurav, Assistant Professor and Head- Department of Economics, SN Sinha College, Tekari (Magadh University, Bodh Gaya).
Notably, Bihar has for many decades now faced fundamental issues of human and economic development. Although the percentage of people in Bihar living in multidimensional poverty (MDP) decreased from 52 per cent in 2015-16 to 34 per cent in 2019-21, it remains significantly higher than the national average of 14.96 per cent compared to other states.
According to NFHS-5 (2019-21), 69.4 per cent of children aged 6 to 59 months in Bihar are anaemic, while 63.5 per cent of women and 29.5 per cent of men aged 15 to 49 years are also affected by anaemia. Experts noted that such high rates of anaemia among children, women, and men severely impact productivity and economic potential by impairing physical and cognitive performance, raising healthcare costs, and perpetuating cycles of poverty and malnutrition.
Additionally, with one-third of the state’s population living in multidimensional poverty, there is immense pressure on state resources. High poverty levels increase dependency on welfare schemes, such as MNREGA, further straining fiscal resources that could otherwise be directed towards broader economic development and infrastructure investment.
"Low ranking in human development indicators often hampers economic growth. An almost empty coiffeur has also done little to ensure either growth in business or social development. Literacy has also been below average which affects the quality of labour, which is a deterrent for any industry that is looking to set up shop in the state," said Nirupama Soundararajan, Founder, Policy Consensus Centre.
Soundararajan added that the government (centre and state) should continue to focus on the people of Bihar. An improvement in their lives and livelihood will eventually lead to economic growth. Female life expectancy at birth in Bihar for the period 2016-2020 was 69.8 years, nearly ten years lower than Kerala's 79.2 years. In the 2019-20 SDG Index by Niti Aayog, it ranked last with a score of 50, while Kerala led the list with a score of 70, followed by Himachal Pradesh (69) and Andhra Pradesh (67).
The national average score was 60. Bihar, along with West Bengal and Tripura, ranks among the top three states in India with the highest prevalence of child marriage, each reporting rates exceeding 40 per cent. This is significantly higher than the national average of 23 per cent, as reported in NFHS-5.
"Bihar's progress has been significantly hindered by the neglect of its social sectors. Typically, the expansion of social opportunities is closely linked to income growth and poverty reduction, but this has not been the case in Bihar. The state continues to face high levels of deprivation alongside low income. A major factor contributing to this disparity is the denial of equal opportunities for women, driven by deeply ingrained social norms that limit their freedoms," stated Muttreja.
For example, the female labour force participation rate for those aged 15 and above in Bihar was just 30.5 per cent in 2023-24, one of the lowest in India and well below the national average of 41.7 per cent. Additionally, between 2019 and 2021, 38.5 per cent of women aged 15 to 49 in Bihar had received no formal schooling—the highest proportion among Indian states and significantly higher than the national average of 22.6 per cent.
In 2011, the state's literacy rate was just 61.8 per cent, significantly lower than the national average of 72.9 per cent, and far behind Kerala, which had the highest literacy rate at 94 per cent.
"Equally important is improving the quality of education and reducing access barriers, especially for girls. Targeted interventions to enhance primary and secondary education outcomes—such as Poshan Abhiyan, teacher training programs, and expanding digital education access—will contribute to long-term human capital development. Addressing gender disparities, particularly in education, health, and employment, is equally crucial for reducing overall poverty levels, as empowering women has been shown to directly improve household economic conditions," Muttreja stated.
Complex Private Sector
In October this year, Chandan Raj, founder of Suresh Semicon, took to the social media site X (formerly Twitter) to express his frustration over neglected infrastructure issues at the local level. He admitted that starting a startup in Bihar was his biggest mistake. The post went viral, gaining public attention and raising questions about accountability. In response, the administration acted and the resolution process began.
Notably, according to the World Bank's Ease of Doing Business indicators, states with more proactive regulatory environments tend to attract more industries. With a score of just 16.41 per cent, Bihar ranked 21st among 32 Indian states and union territories in the Department for Promotion of Industry and Internal Trade’s Ease of Doing Business rankings.
In a column for BW Businessworld, Amit Kapoor, Chair, Institute for Competitiveness, India wrote, "This trend reflects the current state of industrial stagnation, indicating a potential future crisis in employment generation and economic diversification."
Soundararajan added that in terms of ease of doing business, Bihar has been lagging. These issues have all prevented the state from prospering. Infrastructure development is necessary for industry. And with industry will come opportunities for the people. Currently, limited earning opportunities are what drive migration of people, of different socio-economic strata, outside of the state.
A media report stated that the state received Rs 12,000 crore worth of investment proposals between 2022 and 2024 — significantly higher than the Rs 2,500 crore received between 2016 and 2022.
Gaurav added, "Low industrial base and dearth of big private investments coupled with power shortage and operational inefficiencies escalates the situation. Bihar has a huge potential for food-processing and agro-based industries. He added that the government still has to work a lot not only at the policy level but on the ground that is still lagging behind.
Contribution To India's Growth Story
Low state GDP ultimately affects the country's growth. Furthermore, it means low revenue for the state. Apart from its minimal contribution to India's GDP, its unemployment rate was 3.9 per cent between July 2022 and June 2023, compared to the national average of 3.2 per cent.
"For Bihar citizens to avail government jobs, their levels of education and skill need to improve. In the meanwhile, sectors such as ecommerce and agro processing can be a good way to increase employment. Both sector don't require large specialised skills. These sectors could provide scope for employment in the short term," Soundararajan added.
Experts noted that Bihar can strengthen its healthcare workforce and enhance capacity building by implementing strategic measures. To start, state healthcare interventions should focus on the specific needs of the population, making them user-centred. They also mentioned that empowering informal healthcare providers as community paramedics, an approach already successful in states like Andhra Pradesh and West Bengal can also help expand the healthcare workforce.
"Addressing healthcare inequalities and ensuring equitable access, particularly for marginalised communities, will also enhance health outcomes and contribute to broader economic development. When combined with efficient fund management and timely disbursement of healthcare resources, these strategies can significantly improve health services and support Bihar’s long-term economic growth," said Muttreja.
In recent years, the Bihar government has taken some steps to improve access to quality healthcare services, particularly in rural areas which faced issues like inadequate healthcare infrastructure, a shortage of doctors and healthcare providers, and socio-cultural barriers that limit access, especially for marginalised communities.
These initiatives have begun to yield positive results. For example, institutional deliveries in the state increased to 76 per cent in 2019-21 (NFHS-5), up from 64 per cent in 2015-16 (NFHS-4). Similarly, the percentage of births attended by skilled health personnel rose to 79 per cent in 2019-21, compared to 70 per cent in 2015-16.
Meanwhile, leveraging technology, such as interactive voice response systems and teleconsultations, can improve service delivery and facilitate real-time monitoring. Moreover, task-shifting within the health workforce and training programs for healthcare professionals can further enhance the healthcare system.
Bihar's economy is indeed in a precarious state, plagued by limited job opportunities and inadequate infrastructure, which has led to widespread migration and stagnated economic growth. The state's dismal rankings in human development indicators, ease of doing business, and healthcare access only exacerbate the issue. The state government must prioritise investments in education, healthcare, and infrastructure, while also fostering a business-friendly environment to attract industries and create jobs.
