New Delhi: Bihar, one of India’s most populous states, has made progress in education but still faces large challenges in economic growth and living standards. While education is important, Bihar urgently needs to focus on strengthening its manufacturing sector to increase income, reduce migration, and improve human development. Here are seven key reasons why manufacturing is more critical than education alone, supported by data mostly from 2023-25.
Low Per Capita Income Despite Education Gains
According to the Bihar Economic Survey 2024-25 and MOSPI data, Bihar’s per capita income was around Rs 66,828 at current prices in 2023-24, which is still among the lowest in India and far below national averages (over Rs 2,15,000 estimated for India in 2023-24). Education alone without enough industrial jobs has not raised incomes enough.
High Migration Due to Lack of Local Jobs
Bihar has one of the highest outward migration rates in India as many educated youth move to other states seeking industrial and manufacturing work. Lack of local manufacturing jobs is a main reason for this migration, which manufacturing growth can reduce by creating local employment.
Manufacturing Drives Sustainable Economic Growth
Manufacturing accounted for only about 21.5 percent of Bihar’s GDP as of 2021-22, lower than over 30 percent in more industrialized states like Tamil Nadu or Gujarat. Expanding manufacturing will generate sustained incomes, exports, and a stronger tax base essential for development.
Improved Human Development through Economic Opportunities
Human Development Index (HDI) improves not just with education but with higher income and health. Manufacturing jobs usually pay better wages and provide social security, improving overall living standards. This is key to raising Bihar’s currently low HDI.
Value Addition Over Raw Education
Bihar’s economy remains largely agrarian with many low-income workers. Manufacturing adds value to raw materials, increasing productivity and diversifying the economy, leading to better job quality, unlike education without industry to absorb skilled workers.
Attracting Investments Leads to Broader Development
Recent investment efforts in Bihar (reported 2024-25) attracted over Rs 50,000 crore, mainly in manufacturing-related sectors like agro-processing and textiles. Such investments improve infrastructure, electricity, and technology, which also indirectly support education and healthcare.
Comparative Advantage Against Other Industrial States
Compared with Maharashtra, Gujarat, and Tamil Nadu, Bihar has a smaller industrial base but a young workforce and low costs. By focusing on manufacturing growth, Bihar can leverage these strengths to reduce unemployment and raise per capita incomes close to those states.
