Mumbai, Aug 19 (PTI) Bihar's economy is likely to grow to USD 1.1 trillion by 2046-47 considering the huge underlying potential of the state, according to a report released on Tuesday.

In the immediate term, the state's economy is estimated to grow more than double at USD 219 billion by 2030-31, in an optimistic scenario, industry body CII said in its report.

"CII estimates Bihar's economy to more than double by 2030-31 and reach USD 219 billion levels (the optimistic scenario). Over a longer horizon, the economy is expected to reach the size of USD 1.1 trillion by 2046-47," said the report titled "Bihar: A USD 1-trillion Economy," released at the 4th CII East India Summit here.

According to the report, Bihar is emerging as a unique opportunity for investors buoyed by rapid economic transformation, demographic advantage, and policy-driven dynamism.

The state is one of the fastest-growing states in the country.

In 2023-24, Bihar recorded a GSDP of Rs 8.54 lakh crore, growing at 14.4 per cent at current prices, surpassing India's growth rate of 12 per cent for the corresponding year, it said.

This surge is the result of sustained structural improvements underpinned by policy reforms, expanding infrastructure and a deliberate pivot towards industrial growth.

Traditionally known for its rich agricultural base, Bihar is now strategically shifting its focus towards agro-based industries, IT and IT-enabled services (ITES), textiles and leather sectors, manufacturing and healthcare among others, the report stated.

In 2016, the state launched the Bihar Industrial Investment Promotion Policy for promoting industrial development in the region. The policy was further amended in 2020 and extended till 2025 to make it more investor-friendly, CII said in the report.

The policy offers a wide range of incentives, including capital subsidies, power and rental rebates employment generation and skill training grants, SGST reimbursements and land subsidies.

Besides, the state government has also been very proactive in terms of notifying policies for other emerging industries such as biofuel, logistics, startups, IT, tourism and exports among others, as per the report.

In addition, the single-window system, digital land records, and pro-business reforms are enhancing the ease of doing business, while the Startup Bihar initiative is nurturing grassroots innovation, CII said in its report.

Stating that Bihar's economy has several comparative advantages that underpin the target of USD 1 trillion by 2047, the report said, adding that the state is blessed with abundant natural resources, including fertile land, minerals, and water.

These resources offer immense potential for various industries, such as agriculture, food processing, and manufacturing, it said.

Moreover, the majority of the state remains a rural economy with a 12 per cent urbanisation compared to 35 per cent at the all-India level. This presents a huge economic opportunity for the state to plug in, it said, adding that this also would mean a growing consumer market.

Also with nearly 58 per cent of the state's 12.7 crore residents under the age of 25, it has the youngest population among Indian states. This creates a vast, trainable, and cost-elective workforce -- critical for industries, the report added. PTI IAS TRB TRB

Industrial investment policy spurs Bihar's shift to industry with incentives and reforms to attract private investment and jobs. Policy measures supporting Bihar's projected economic expansion centre on the Bihar Industrial Investment Promotion Policy, recently amended and extended to enhance investor-friendliness through capital subsidies, power and rental rebates, employment generation and skill training grants, SGST reimbursements and land subsidies. These incentives, together with sectoral policy notifications for emerging industries, a single-window clearance system, digital land records, pro-business reforms and the Startup Bihar initiative, are described as the operative mechanisms to improve ease of doing business and attract investment across agro-processing, manufacturing, IT/ITES, textiles, leather, healthcare and related sectors.