With a young demographic, Bihar holds a promising potential to capitalize on its demographic and contribute to our national objectives, provided steps are taken continuously to address the prevalent gaps.
‘When everybody is included, everybody wins’ -Jesse Jackson
Bihar, once a flourished land with a rich cultural heritage and an important centre of education where world-renowned universities like Nalanda, Odantapuri and Vikram Shila were established, is now counted as one of the least literate states in India. With 61.8 per cent literacy, below the national average of 74 per cent, the figures are even more disappointing for female literacy. As per the Human Development Index, Bihar stands at 36th position; Niti Aayog’s SDG India index 2023-24 ranked Bihar as the worst-performing state. The condition of Bihar could be attributed to multi-dimensional factors like recurring natural disasters (heavy floods), over-reliance on agriculture, lack of infrastructure, poor governance, inadequate education, rampant unemployment, insufficient healthcare facilities and labour migration in search for better job opportunities in other states; the list is long.
Recently, Prime Minister Modi visited Bhagalpur, where he released the 19th instalment of Kisan Samman Nidhi, prioritising the welfare, happiness, and prosperity of farmers. He addressed a gathering of farmers of more than 5 lakh, unfortunately which has been now linked with the Bihar elections 2025. But this is beyond politics. Bihar really needs attention and requires support and demands a special grant. The dream of Viksit Bharat 2047 needs the support of Bihar, and PM Modi is just ensuring that no one is left behind. This year’s Budget also addressed the same, supporting Bihar to rebuild its lost glory.
Budget 2025 and Bihar
Budget 2025-26 is themed on ‘Sabka Vikas’, stimulating balanced growth of all regions. One area that caught special attention was the fund allocation of Rs 86,000 crores to Bihar and the preferred waring of Madhubani printed motif saree by the finance minister Nirmala Sitaram on the budget day. Debates signalled around the involvement of political interests in the upcoming legislative assembly elections in the state. This could be one of the possible reasons. However, if we look from an economic angle, it was a necessary and deliberate step given the conditions surrounding the state. Therefore, through this budget, certain attempts were made by the government to address some of the gaps surrounding the state, some of them are as follows,
Establishment of Makhana Board:
As per a paper by the Indian Council of Agricultural Research 2020, Bihar contributes nearly 90% of India’s total makhana production, producing nearly 10,000 tons of makhana [foxnut], majorly by Darbhanga, Madhubani, Purnia, Katihar district among others. Establishing a makhana board will help improve production, processing, value addition, and marketing. Additionally, to fill and address the handholding and training gaps, these people will be organized into Farmer’s produce organisations, i.e. FPOs.
IIT Patna on expansion horizon:
IIT Patna was established as one of the first national institutions to be set up in Bihar in 2008. As per the NIRF rankings 2024, it stood at 34th position in the engineering field and 73rd overall. Given the noteworthy performance of the institute, and as a part of a broader initiative to strengthen IITs, the finance minister pointed out the need for its major expansion requirements. The budget proposed the allocation for expanding the hostel and infrastructure at IIT Patna, thereby increasing the accommodating capacity to 6500 for students, researchers, and faculty. Also, the institute received approval of 125 crores for a technological park funded by both the centre and the state, and it plans to add management studies to this curriculum soon. this initiative is expected to attract more talent to the state. This is a welcome step towards addressing the educational needs of the state.
Addressing the Sorrow of Bihar with western Kosi cannel ERM project:
To benefit the farmers of the Mithila region, cultivating around 50000 hectares of land, the Finance Minister announced financial aid for this project. Kosi is considered the sorrow of Bihar because of the tendency of the river to frequently change its course and render a large cultivable land unfit for cultivation for a long time due to flooding and waterlogging during monsoons. Developing proper channel and water management practices is the only sustainable solution to this evergreen problem.
Expansion of airports:
Due to growing demand in the area for commuters, greenfield airports are encouraged. Along with this, there is a proposed expansion plan for Patna Airport for improved connectivity. Also, a brownfield airport at Bhita is proposed. Greenfield projects offer a clean slate, requiring more planning and investments from scratch; on the contrary, Brownfield airports are expansion plans based on existing projects.
National Institute for Food Technology, Entrepreneurship and Management:
To promote food processing activities in the eastern region of Bihar, NIFTEM is proposed to be established. This initiative aims to accelerate the additional value of agriproducts and ultimately increase farmers’ income. In addition to this, the institute will serve as a hub for skill enhancement among the youth and help them to equip themselves with industry-relevant skills. This will further help Agri-produce startups create employment in the region.
Boost up Infra-framework:
The infrastructure sector received a significant allocation, with a major push to road projects worth 26,000 and for other infrastructure improvements. This will lead to increased intra-state connectivity in rural areas and enhanced logistic movements, thus aiding Bihar’s growing economy.
The effectiveness of a policy is not measured in terms of how a developed state is developing further, but how an underdeveloped state is brought at par to compete with its counterparts. The 2025-26 budget truly reflected its theme, ‘SABKA VIKAS’; the apt allocation of budget to the imperative region clearly indicates the government’s intentions to not just understand but address the issues surrounding the state. With a young demographic, Bihar holds a promising potential to capitalize on its demographic and contribute to our national objectives, provided steps are taken continuously to address the prevalent gaps.
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