From Nalanda to now: Can cultural pride fuel Bihar’s economic revival?

Bihar. A name heavy with memory. It is not just a state; it is a palimpsest, an ever-rewritten manuscript of history, legend, and longing. Every year on March 22, Bihar Diwas marks the formation of one of India’s most historically significant states. It is a day to celebrate Bihar’s rich cultural legacy, reflect on its contributions to India’s civilizational ethos, and confront the stark realities that have hindered its progress. This year, as the state government organizes cultural programmes to showcase its vibrant traditions, Bihar stands at a crossroads—a juncture where pride in its past must fuel actionable strategies for its future.

The disproportion

The paradox lies in the troubling broad socio-economic statistics—home to 9% of India’s population, it contributes a mere 2.8% to the national GDP. Bihar’s share of India’s GDP fell from 7.8% in 1960-61 to 4.3-4.4% by 2000-01, where it has since remained. This decline coincided with a drop in national ranking from 5th to 15th between 1960-61 and 2023-24. Further, the state’s relative per capita income fell from 70.3% in 1960-61 to 31% by 2000-01, following which it stabilized around 33%, that means almost one-third of the national per capita! The manufacturing sector contributes just 0.77% to India’s GVA in manufacturing (2023-24 at 2011-12 constant prices), with limited private investment and so limited employment opportunities. Over 34% live in multidimensional poverty, literacy lags at 62%, and anaemia afflicts 70% of children. Gender disparities persist, with female labor participation at 30.5% and rampant child marriage.

The region that once led the subcontinent in governance, philosophy, and trade now struggles with poverty, migration, and underdevelopment. Development in Bihar must be understood not as a mere statistical transformation—of rising GDPs, industrial output, or infrastructural expansion—but as a deeper shift in the consciousness of its people, and a storytelling exercise—how does Bihar reimagine itself. The region has long been defined by survival-driven exodus or distressed migration, with its most enterprising spirits seeking prosperity elsewhere, leaving behind a landscape of yearning. The question then is: How does a place abandoned by its best reclaim itself?

Glimmers of hope: Initiatives and innovations

Recent efforts, however, suggest a shift. The Nitish Kumar government’s Saat Nishchay programme focuses on rural infrastructure and education. Projects like the Kosi-Mechi irrigation link aim to stabilize agriculture, while the Gaya industrial node under the Amritsar-Kolkata corridor could revive manufacturing. Tourism corridors around Nalanda and Mahabodhi Temple, inspired by Kashi Vishwanath’s success, promise economic dividends. Healthcare improvements—such as rising institutional deliveries (76%) and skilled birth attendance (79%)—signal progress. The CM’s recent push for accountability, urging officials to expedite Pragati Yatra promises, reflects urgency.

The path forward: A call for integrated action

For Bihar Diwas to transcend symbolism, the state must embrace a three-pronged renaissance:

• Cultural Pride as Economic Catalyst

Leverage heritage tourism, promote handicrafts globally, and revive festivals as platforms for trade and investment. Bihar’s Bihari cuisine, Madhubani paintings, Sujani embroidery, Tikuli art, and Manjusha art, along with traditional crafts like bamboo work, pottery, and silk weaving can drive a creative economy.

• Address Structural Bottlenecks

1. Agriculture: Promote FPOs to aggregate produce, negotiate better prices, and invest in shared infrastructure (e.g., cold storages, packaging units). NABARD’s Rs 2,000-crore Agri-Market Infrastructure Fund could be tapped here. Align the Bihar Agriculture Roadmap with the state’s Saat Nishchay programme to prioritize rural infrastructure. Incentivize private players to set up collection centers and processing units.
2. Industry: Historically, Bihar was the cradle of inclusive institutions where property rights and the rule of law encouraged innovation and investment. Yet, over time, as extractive institutions replaced those that were inclusive, the incentives for productive economic activities eroded. The absence of secure property rights and the lack of effective institutions have diminished the confidence of entrepreneurs and labor alike, stifling investment and innovation. Simplify regulations, improve ease of doing business (ranked 21st), and incentivize sectors like renewable energy and IT-enabled services.
3. Education: Prioritize digital literacy, vocational training, revival of past higher educational learning hubs in different cities in the state, and girls’ education to build a skilled workforce.

• Social Empowerment

Combat anaemia and child marriage through community-driven health campaigns. Utilize technology for healthcare delivery, as seen in Andhra Pradesh’s community paramedic model.

Conclusion: From stagnation to sankalp

Bihar Diwas is more than a celebration—it is a sankalp (resolve). The state’s journey from the glory of Nalanda to the struggles of today demands collective introspection and action. As India strides toward Viksit Bharat 2047, Bihar’s revival is not just a regional imperative but a national necessity. Let this Bihar Diwas rekindle the spirit of its ancient scholars: one that marries wisdom with innovation, resilience with ambition, and pride with progress. The road ahead is arduous, but as the land that gave the world the Ashoka Chakra—a symbol of perpetual motion—Bihar must keep moving forward.