When one goes to consider the economy of Bihar, charts and graphs showing economic development over the last two decades are of little use. In 2000, the most industrial and mineral rich section of the State, the southern half, was taken away from Bihar to form the new State of Jharkhand. This was devastating to the economy base of Bihar, and resulted in a considerable drop in the tax base. It also left agriculture as the main economic activity. The new Bihar State’s agriculture production is still just slightly over half of what it had been before the division, so much of the agricultural base was lost as well.

The state is one of the most underdeveloped of all the Indian States. Its per capital yearly income of $94 is less than half India’s average. Close to half the people live below the poverty level although the average for India as a whole is closer to one quarter.

There are many reasons for this. The land is ideal for agriculture. There are wide areas of very fertile soil, and a number of rivers. The climate is not harsh. The living conditions of the people should be higher, and the existence of large and populous empires here in the past testify that the land and the climate is not to blame. Most place the blame on neglect and the isolation of the area from the centers of Indian power, and before that British power. The local leaders have lacked vision and there has been little or no attention to those areas that spur economic growth like the basic infrastructure and education The area suffered from the effects of the caste system and wide spread political corruption.

India is a sleeping giant that is slowly waking. Although far from the seat of the new post Independent National Government, Bihar is waking also. There have been some attempts to attract and begin industry in the State. Some are agricultural based industries, but an oil refinery, a motor scooter plant, and a power plant have recently been built. It is a little too early to judge the outcome of these early steps, and many problems still remain. Bihar was once a rich and lush corner of the World, and it is the dream of its people that it will be so again.

Even in the area of agriculture which should be providing the economic boost to raise the level of living in the State, very inadequate investments have been made. Despite the fertile land, almost nothing has been done in the area of irrigation. The people are as dependent on nature, and at its mercy, as were the inhabitants of those ancient empires.