
Complete Notes on Major Shifts in Economic Focus– Bihar (post – 2005) for BPSC and Other Competitive Exams in 2025
Economics- 10
Major Shifts in Economic Focus – Bihar (Post-2005)
Bihar, after years of stagnation, has seen visible sectoral shifts in its economy-from a traditional agrarian model to a more diversified structure focusing on services, agriculture infrastructure, and connectivity.
1. Rise in Service Sector (Education, Health, Government Jobs)
Expansion of the Service Economy:
- Service sector is now the largest contributor to GSDP in Bihar.
- Includes:
- Public administration
- Education and health services
- Transport, communication, trade
- Banking and financial services
Key Drivers for Major Shifts in Economic Focus
Education:
- Expansion of schools, colleges, universities (like Patliputra University, Bihar Engineering Colleges).
- Growth in private coaching hubs (e.g., Patna, Gaya).
- Literacy rate has improved (approx. 71.82% in 2021 vs. 47% in 2001).
Health:
- Upgradation of PHCs, CHCs, district hospitals.
- Launch of Jeevika health initiatives, ambulance services.
- Expansion of telemedicine, private clinics, and rural health outreach.
Government Jobs:
- Public sector remains a major employment provider.
- Continuous recruitment drives by BPSC, BSSC, Bihar Police, Education Dept.
- Aspirants dependent on coaching institutes for civil services and exams.
Impact:
- Urban service hubs growing (Patna, Muzaffarpur, Bhagalpur).
- Services contribute over 55% to Bihar’s GSDP.
2. Shift Towards Irrigation and Agriculture Infrastructure
Old Scenario:
- Bihar’s agriculture was monsoon-dependent.
- Poor irrigation and frequent floods/droughts reduced farm yields.
Post-2007 Focus:
Bihar launched the Agriculture Roadmap (2008–2012, 2012–2017, 2017–2022) with focus on:
- Irrigation development
- Input delivery (seeds, fertilizers, credit)
- Mechanization and allied activities
Key Initiatives:
Irrigation:
- Expansion of canal networks, check dams, tube wells.
- Kisan Pumpset Scheme, diesel subsidies for irrigation.
- Encouragement of micro-irrigation (drip, sprinkler).
Infrastructure:
- Construction of grain storage silos, mandis, and rural roads.
- Soil health cards, seed banks, Krishi Vigyan Kendras (KVKs) established.
Outcome:
- Increased cropping intensity, better yield.
- Improved foodgrain production and crop diversification (fruits, vegetables, floriculture).
- Growth in horticulture, dairy, and fisheries.
3. Growth in Infrastructure – Roads, Electricity, Bridges
Roads and Highways:
- Bihar Rajya Pul Nirman Nigam (BRPNN) and Bihar State Road Development Corporation (BSRDC) active in expansion.
- Major state highways and Pradhan Mantri Gram Sadak Yojana (PMGSY) connectivity in rural areas.
- Construction of Ganga river bridges (e.g., Digha–Sonepur rail-cum-road bridge).
Power and Electricity:
- From power-deficit to power-surplus state.
- Implementation of Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) and Saubhagya Scheme.
- 100% electrification of villages (declared in 2018).
- Improved power supply boosted industries, education, domestic use.
Urban Infrastructure:
- Smart City Projects in Patna, Muzaffarpur, Bhagalpur.
- Public transport improvements: City buses, e-rickshaws, roads.
- Better access to drinking water, toilets, drainage under AMRUT and SBM.
Bridges and Connectivity:
- New bridges over Gandak, Kosi, and Ganga built or upgraded.
- Boost to inter-district movement, market access for agriculture.
Impact:
- Accelerated rural-urban connectivity.
- Better logistics and industrial site readiness.
- Boost to migration reversal, local entrepreneurship.
Objective Questions (MCQs)
1. Which sector has emerged as the largest contributor to Bihar’s GSDP in recent years?
A) Agriculture
B) Industry
C) Services
D) Mining
Answer: C
2. Bihar’s Agriculture Roadmap primarily aims at:
A) Urban employment
B) Export promotion
C) Agricultural and irrigation development
D) Forest conservation
Answer: C
3. The Ganga river bridge connecting Digha to Sonepur is known for being:
A) India’s longest road bridge
B) Rail-cum-road bridge
C) Oldest bridge in Bihar
D) Under-construction since 1980
Answer: B
4. Which scheme contributed to 100% rural electrification in Bihar?
A) Ujjwala Yojana
B) Deen Dayal Upadhyaya Gram Jyoti Yojana
C) MNREGA
D) PMAY-Gramin
Answer: B
5. The term “Smart Cities Mission” in Bihar is associated with which cities?
A) Patna, Bhagalpur, Muzaffarpur
B) Gaya, Sasaram, Sitamarhi
C) Motihari, Kishanganj
D) Purnia, Darbhanga
Answer: A
6. What is the approximate contribution of services to Bihar’s economy as of 2023?
A) 30%
B) 40%
C) 55%
D) 70%
Answer: C

Fury of Bihar Flood