Trends of GDP Growth in Bihar in past

Independence in 1950 the state administration of Bihar was identified as one of the best in India by Paul Appleby. But owing to its consistently prolonged poor governance and strongly stratified social order and cast system, the Bihar, now, has come to be referred as the ‘prosperous poor’. For last few decades, the State was highlighted in two topics of discussion - politics and poverty. Not, the ‘poverty of politics’, rather the politics with poverty

The past growth trend of Bihar can be categorized as two distinct phase

- Phase I from 1950 to 1980 

- Phase II from 1980 to 2005 

For the country, Phase I is known slow growth in both absolute and per capita terms when compared with growth in Phase II which is also known as Hindu rate of growth. India grew at an average pace of only 3.6 % per annum in absolute terms and 1.2 % in per capita terms in Phase I. However, growth speedup to 6.0 %in absolute terms and 4.0 % in per capita terms in Phase II. 

In case of Bihar, the State grew at an average of around 3 % in Phase I, but economic growth worsened in Phase II vis-à-vis the national average. Within these two broad phases there are some interesting variations. A look at the table below would indicate how the trend in Bihar has been since the 1950s in comparison to the national average.

Trend of economic growth in India and Bihar (percent per annum)

State/Year Bihar India Average

1950-60 --- 3.9

1960-70         2.3              3.7

1970-80         3.1              3.1

1980-90         4.8              5.6

1990-2000 3.6              5.7

2000-2003 0.2              6.0