Beyond remittances: Why experts say Bihar can no longer rely solely on exporting its labour

4 min readPatnaJun 7, 2026 05:38 PM IST

Industry leaders and policymakers at GTRI 6.0 stressed that Bihar must focus on industrialisation, investment and job creation to unlock its economic potential (File photo for representative use).

Written by Yuvraj Singh

At a time when Bihar continues to grapple with low industrialisation, outward migration, and poor revenue generation, various policymakers, industrialists, bankers, and economic experts convened in Patna on Saturday to discuss the state’s industrial and economic future.

Bihar’s economic future cannot be built on exporting labour, remittances, and demographic dividends alone, speakers at Grand Trunk Road Initiatives (GTRI) 6.0 argued. They stressed the need for stronger institutions, increased investment, and large-scale industrialisation to convert the state’s human resources into sustainable and measurable economic growth.

The event commenced with the launch of the third edition of the Bihar Journal and a welcome address by GTRI Curator Aditi Nandan, who described dialogue, cooperation, and access to knowledge as crucial to Bihar’s future.

Former Chief Justice Sanjay Kumar, while delivering the keynote address, highlighted the importance of institutional trust, governance, and law and order in driving economic development. Pointing out that investors do not invest to lose money, he stated that Bihar must nurture an environment that inspires confidence and trust through better governance, administrative efficiency, and judicial efficiency.

The conference’s first session, centred on Bihar’s financial architecture, examined the state’s fiscal situation, migration patterns, and development model. The delegates noted that, despite signs of economic progress, Bihar continues to lag behind much of the country in per capita income and industrial development.

A recurring concern throughout the discussion was migration. Delegates observed that Bihar continues to export a significant share of its workforce, generating substantial remittance inflows but often losing skilled labour in the process. While remittances and microfinance were identified as major strengths of the state’s economy, speakers argued that long-term development would require creating opportunities that retain talent and attract investment.

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The discussion also highlighted Bihar’s dependence on external revenue sources. Speakers stressed that while central transfers remain important, stronger revenue generation within the state is necessary to improve fiscal autonomy and support long-term growth. Emphasis was placed on the quality of public expenditure, with speakers arguing that investments in infrastructure, education and human capital must ultimately generate measurable economic returns.

Bihar’s demographic profile emerged as another major theme. With one of the youngest populations in the country, the state is often viewed as possessing a significant demographic dividend. However, speakers cautioned that a youthful population alone does not guarantee prosperity. Without adequate skills, employment opportunities and industrial expansion, demographic advantages may fail to translate into economic growth.

Discussions on entrepreneurship and industrialisation focused on improving Bihar’s investment ecosystem. Delegates advocated for streamlined administrative procedures, stronger institutional capacity and greater ease of doing business to encourage private investment and support economic expansion.

Technology and financial inclusion featured prominently in the second half. Speakers highlighted the transformative impact of digital payments, fintech platforms and expanded banking access in enhancing financial participation. They noted that digital infrastructure has reduced transaction costs, increasing efficiency and broadening access to various formal financial services across the country, which will trickle down to Bihar.

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A speaker also remarked that while the state may have missed earlier waves of industrial development, it should not miss opportunities in terms of artificial intelligence. The role of artificial intelligence was also discussed, particularly its potential to simplify compliance procedures and reduce administrative burdens for businesses. Delegates argued that rather than replacing workers outright, AI could help small enterprises improve efficiency and navigate regulatory requirements more effectively.

Another concern raised during the conference was the scale of Bihar’s informal economy. With a large proportion of the workforce operating outside formal structures, speakers argued that greater formalisation would improve access to credit, strengthen economic data and support more sustainable growth.

Across discussions on migration, finance, technology and entrepreneurship, a common theme emerged: Bihar’s future depends not merely on infrastructure projects or government spending, but on its ability to strengthen institutions, attract investment and convert its considerable human capital into productive economic activity.

As GTRI 6.0 concluded, delegates expressed cautious optimism about Bihar’s industrial prospects while acknowledging that sustained economic transformation would require coordinated efforts across government, industry, and civil society.

The writer is an intern with The Indian Express.