Bihar's Economic Challenges: Jobs and Investments Needed
Bihar is at a pivotal moment as it prepares for elections that could define its trajectory for the next decade. With 3.16 crore residents registered on the e-Shram portal seeking employment, the state grapples with an urgent need for job creation. Alarmingly, among the youth aged 15-29, only 33.9% are actively searching for work, significantly lower than the national average of 42%. This lack of job opportunities has led to a concerning trend of out-migration, as many seek better prospects elsewhere.
Political parties are keenly aware of the employment crisis, making it a central theme in their campaigns. Notably, Tejashwi Yadav from the Rashtriya Janata Dal (RJD) proposed that if elected, his party would guarantee a government job for one person in every household within 20 months. However, the sustainability of such commitments raises questions, especially considering Bihar’s existing financial challenges.
The state’s budget for 2025-26 reveals that committed expenditures, including salaries and pensions, consume nearly 40% of total spending. This heavy financial burden complicates the feasibility of new job guarantees. Bihar’s fiscal health is further scrutinized, with analysts noting discrepancies in the state’s budget estimates, often leading to inflated fiscal deficit figures.
In addition to government jobs, initiatives like cash transfers to women under the Mukhyamantri Mahila Rozgar Yojana are being touted as potential solutions. While these schemes aim to empower women and promote entrepreneurship, they also contribute to rising revenue expenditures, raising concerns amid calls for increased capital investment to stimulate growth.
Bihar’s economic indicators show a mixed picture. Despite achieving a commendable growth rate of 11.1% in the Gross State Domestic Product (GSDP) over recent years, the state still struggles with high poverty levels. The NITI Aayog reported that Bihar had the highest proportion of multidimensionally poor people in India in 2019-21. This underscores the need for a robust strategy focusing on attracting investments, especially in the services sector, which remains underdeveloped.
As the elections approach, the challenge for Bihar is clear: to create sustainable jobs that can retain its youth and provide a better quality of life. Without significant investment in infrastructure and services, the promises made during the election campaigns may not translate into long-term economic stability or growth.
