Patna: The Bihar government is preparing the 2026–27 state budget with a sharp focus on doubling the per capita income of its people over the next five years. Several new announcements are expected as part of this strategy, and the government is considering consultations with leading economists from across the country to shape the roadmap.
Officials said the state aims to double Bihar’s per capita income between 2025 and 2030. For this, the government has already reached out to experts, including former Delhi School of Economics director TCA Anant and other noted economists, to seek guidance on policy and structural reforms.
Target and Growth Math
At current prices, Bihar’s per capita income in 2025–26 is estimated at about Rs 86,333 per year. To double this to Rs 1,72,666 by 2029–30, the state’s gross domestic product (GSDP) will need to grow at an average annual rate of 14.9 percent. After factoring in an annual population growth of around 1.5 percent, the economy would have to expand at nearly 16.4 percent every year.
At constant prices, per capita income in 2025–26 stands at Rs 43,878. The target is to raise it to Rs 87,756 by 2029–30, which would also require an average annual growth rate of about 14.9 percent.
Past Growth Not Enough
Achieving such a high growth rate will be a major challenge. Bihar’s economy has crossed this level only once in recent years. In 2022–23, the state recorded a growth rate of 17.9 percent. In most other years, growth has remained well below the level needed to meet the 2029–30 target.
Bihar Lags National Average
In 2024–25, Bihar’s per capita income at current prices was just 37.3 percent of the national average, and at constant prices it was 35.7 percent. Economists warn that unless Bihar grows much faster than the national economy, the gap with the rest of the country will widen further.
Key Obstacles to Growth
Economist Naval Kishore Chaudhary said several structural issues are holding back income growth in Bihar. A large population still depends on agriculture, which keeps per capita income low. Inflation and population growth are eroding real income gains, while agriculture-linked economic activities have not developed adequately. He added that underemployment remains common in rural areas and the benefits of growth are not reaching the lowest levels of society effectively.
How Income Can Be Doubled
Experts suggest that Bihar must accelerate urbanisation and shift from a largely agriculture-based economy to an industrial one. Developing the food processing sector, creating at least six months of additional income opportunities for farmers, and increasing capital flow through higher infrastructure and government spending are seen as critical steps to achieve the ambitious target.
