Bihar, one of India’s most populous and flood-prone states, is undiversified, with over 90 percent of the population living in rural areas. Yet it is the second fastest growing state in India, achieving annual growth rates of around 11 percent in recent years.

The IGC-Bihar programme started in November 2009 and currently focuses on state capacity, structural transformation and flood management. In addition, the programme also studies the growth experience in Bihar. Specific contributions include work on fiscal consolidation and debt management, accountability of local government service delivery, and streamlining investment process to improve the business climate. To understand the high rates of growth recently observed, studies have been planned to first understand the growth experience and also to analyse the determinants of growth in the State. The IGC-Bihar team will contribute policy options on the targeting of flood relief and a study on the effects of floods on growth, as well as convening an interdisciplinary group of flood management experts.