Bihar’s economic backwardness is neither a sudden accident nor a mere result of contemporary neglect. Its roots run deep, back to the British colonial era, when exploitative land policies and extractive governance crippled the region’s prosperity. The decline worsened after independence, when successive governments failed to industrialise Bihar or develop its fragile infrastructure. What was once one of the richest cultural and intellectual centres of India gradually slipped into stagnation. Bihar’s political class cannot be absolved. Too often, electoral victories and sharp punchlines took precedence over good governance. The “jungle raj” era, where lawlessness was almost celebrated, further eroded the credibility of the state. This absence of vision translated into economic collapse and institutional fragility, forcing millions of Biharis to migrate in search of low-paying, backbreaking jobs across India. Alongside the hardship, they carried the burden of mockery-humiliating stereotypes, and social media sneers.
Yet, behind this ridicule lies a profound oversight. Bihar is not just another state in the Indian union; it is the cradle of India’s civilisational soul. It is where Valmiki composed the Ramayana, where Buddhism and Jainism found their roots, and where the Khalsa tradition took shape. Vaishali, home to the world’s first republic, and Chanakya’s Arthashastra testify to Bihar’s deep political wisdom. The Maurya and Gupta empires, which shaped Indian history, emerged from its soil, while Nalanda University stood as a beacon of knowledge centuries before modern universities took shape. Bihar’s legacy continues to shape India’s identity today. The Buddha remains the country’s greatest soft power export, drawing pilgrims from across the world to Bodh Gaya. India’s national emblem, the Ashoka Lion Capital, and the Ashoka Chakra on the tricolour are Bihar’s gifts to the nation. The verses of national poet Ramdhari Singh Dinkar still inspire generations. This proud history, however, offers little solace when the present is marked by poverty, humiliation, and despair. The statistics are sobering. Bihar accounts for just 2.86 per cent of India’s landmass but shelters 8.6 per cent of its people. Despite this, it contributes only 2.64 per cent to the national GDP. In 2024, its per capita income was a meagre `60,337 — barely one-third of the national average of `1.84 lakh. Bihar ranks last in literacy, poverty reduction, and multidimensional poverty. On almost every major social and economic indicator, it trails the rest of the nation.
This underperformance is especially stark given Bihar’s outsized political influence. With 40 Lok Sabha seats-among the largest in India — and a steady stream of cabinet ministers and bureaucrats shaping Delhi’s corridors of power, Bihar should have leveraged its clout to rebuild itself. Instead, freight equalisation policies introduced in 1952, which subsidised mineral transport nationwide, disincentivised industries from setting up in mineral-rich states like Bihar and West Bengal. Even after its repeal in 1993, Bihar never recovered the industrial base it had during the pre-independence era, when business houses like the Tatas and Dalmias flourished here. But policy distortions alone cannot explain the tragedy. Successive state leaders failed to invest in long-term reforms. The absence of land reforms, fragmented holdings, poor education outcomes, lack of job creation, and minimal public investment perpetuated a cycle of poverty and hopelessness.
Populism consistently trumped vision. And yet, Bihar’s story need not remain one of decline. What Bihar needs today is not pity but purpose, not token sympathy but systemic reform. Its greatest resource is not coal or minerals, but its people — the hardworking diaspora that has excelled across India and the world. If they can transform their adopted homes, they can help transform their own. Civil society, particularly the youth, must also step forward to demand accountability and innovation. Bihar must reclaim its lost narrative — not as a “basket case,” but as a land of resilience, creativity, and revival. Other states have turned their fortunes around; Bihar can too. Bihar has always been central to the idea of India. A nation that leaves one of its proudest civilisational pillars behind cannot truly rise. Bihar deserves better-and it will get there when its people, both at home and abroad, decide the time for excuses is over, and the time for action is now.
Pankaj Lal is a Professor and Director at Montclair State University, New Jersey, USA and Manvendra Prasad is a public policy and startup advisor