Bihar’s Stagnant Exports and Weak Investment Pipeline Will Deepen Jobs Challenge

The National Democratic Alliance (NDA) government in Bihar is staring at a serious employment challenge as the state continues to lag significantly in exports, industrial growth, and foreign investment. A Moneycontrol analysis shows that Bihar’s participation in global value chains remains negligible, restricting its ability to generate sustainable jobs and economic momentum.

Exports Stuck at Just 0.5% of India’s Total

Despite efforts to push industrial activity, Bihar’s share in India’s merchandise exports has remained stagnant at only 0.5%, underscoring a deep structural problem.

In FY25:

• Bihar’s exports: $2.04 billion

• Gujarat’s exports: $116 billion

• Tamil Nadu’s exports: $52 billion

These numbers highlight the stark contrast between Bihar and India’s top manufacturing states. Gujarat alone now accounts for 30% of India’s total exports, while Tamil Nadu contributes 13.4%.

Bihar, meanwhile, continues to struggle with a limited industrial base, insufficient infrastructure, and a narrow export basket.

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Narrow Export Base Led by Petroleum Products

Even within the small export portfolio, Bihar’s export base is highly concentrated.

In FY25:

• Petroleum products formed 63% of Bihar’s exports, yet the state contributed only 2.8% to India’s overall petroleum-product exports.

• Meat and dairy, the next major category, made up 10% of Bihar’s export revenues, but accounted for merely 3% of the national share.

This narrow and low-impact export structure highlights how limited Bihar’s integration is with national and global markets.

FDI Inflows Among the Lowest in India

While other fast-growing states attract significant foreign direct investment (FDI), Bihar remains one of the weakest performers. The state struggles to build a strong investment pipeline, further weakening its prospects for job creation and industrial expansion.

The continued lack of investment also reduces the state’s ability to develop manufacturing clusters, logistics capacity, and export-oriented industries—key drivers of employment in competitive states like Gujarat, Tamil Nadu, and Karnataka.

A Tough Road Ahead for Job Creation

The data underscores the challenge facing the NDA government in Bihar. The combination of:

• stagnant exports,

• a narrow industrial base,

• low FDI inflows, and

• weak integration into national supply chains

creates a structural constraint on the state’s ability to generate the large-scale jobs needed for its young population.

With exports stuck at 0.5% and investment flows among the lowest in the country, Bihar’s employment problem is poised to intensify unless major structural reforms are implemented.

This is a developing story with more insights expected as policymakers respond to the widening gap between Bihar and India’s high-growth industrial states.

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