Business and Economy in Patna

Patna is a riverine city situated on the banks of the holy river Ganga. It is stretch of very fertile land which is bounded by three rivers namely the Ganga, Sone and Poonpun . Hence, the backbone of the city’s economy has been agriculture. Agricultural products trade like raw and processed sugarcane and grain has been the staple trade of the city. Patna is among the cities with highest per capita incomes in the country, although, the state of Bihar ranks among the poor (least average income) states in the country. With time, Patna is emerging as a a thriving service community and is evolving from its previous image as an agriculture based city. At present it has become one of the important centre for business activities in the eastern part of India. Patna is ranked as the 21st fastest growing city in the world, and the fifth fastest growing city in India. The average annual expected growth rate of the city is 3.72%.

Agriculture and Trade in Patna

Patna’s economy largely depends on agriculture and constitutes of a small industrial sector. As of 2008, there has been a significant increase in the service sector of the region. Although Bihar has the lowest GDP per capita in India but Patna’s per capita income is greater than that of Hyderabad or Bangalore. The World Bank in 2009 ranked Patna as the second best city to start a business.

Economy of Patna

Over the years it has been an important agricultural centre of trade. Being a port city, it was considered an important centre for trade. River Ganga is navigable through out the year, hence it is used for the transport of goods round the year. The most common agricultural products that are exported includes grain, sugarcane, sesame, and medium-grained Patna rice. The transport system in Patna is very well established. Patna is well connected with the rest of the country via road, rail and air, which makes it an important transit point during the transport of goods. Patna is one of the most fertile regions of the state. The agricultural products that are grown here include Maize, Pulses, Paddy and Wheat. One third of the total area is used to grow rice. Apart from these, Cash crops like water-melons and vegetables are also grown.

Urban Infrastructure in Patna

Recently Patna is laid with newly constructed roads and flyovers, under the term of Mr Nitish Kumar,
the Chief Minister of the state. This speaks volumes of the economic turnaround in the state. Seven industrial parks will be set up in Bihar and 4,550 acres of land are acquired for this, by the government of Bihar. Mega industrial areas will be constructed by next year. The Government also proposes to set up small industrial areas, in every district. The industrial policy of 2011, was adopted to foster industrial growth and socio economic development of the state. The state government will invest Rs.1.5 lakh crore, in the next five years , which will double productivity in the farms by twofold in the coming ten years. This will have a ripple effect, on the entire agro sector in Bihar.

Industrial Scenario in Patna

Besides agriculture, Patna is home to various small scale and large scale industries. Sugar industry is an important business in this area and there are plenty of sugar mills in and around Patna. Sugar is an important business and Patna is the brand centre for sugar in eastern India. Leather, handicrafts, and agro processing are the other major industries in Patna and these industries provide livelihood to the people of Patna. More than 36 lakh people are employed in the industries and these industries provide livelihood to the people of Patna.

Business and Economy in Patna

In June 2009, the World Bank had ranked Patna as the second-best Indian city to start a business. The real estate industry is also set to boom, with the development of Patna into an industrial hub. The state government is also proving funds for the development of infrastructure, which will further boost the economy of the city. At present, the State government has put in efforts to improve the law and order situation in Patna. This has motivated many companies to set up their branches in the city. As a result there is a real estate boom in Patna. Even during the global recession, the price for residential and commercial complexes in Patna remained high. By the year 2011, Patna’s economy showed sustained economic growth. This growth has been brought about by the increase in Fast Moving Consumer Goods industry, the service sector, and also the Green revolution businesses.

Economic Growth in Patna

As an indicator for the state’ growth, the gross state domestic product (GSDP), has increased as an evidence of sustained growth for a period of the last seven fiscals and also has an impact on the gross district domestic product(GDDP) of the districts Patna , tops the list.The economy here has seen sustained economic growth since 2011. The Fast Moving Consumer Goods, the service sector and Green revolution businesses have boosted the city’s economy.

Patna has been a major exporter of grain, sesame, sugarcane and medium grained Patna rice. Many sugar mills are located in Patna. The city is an important luxury brand and business center of eastern part of India. It manufactures shoes, electrical goods and cotton yarn. It exports all these manufactured goods, milk and other vegetables.

Imports

  • The city is a major importer of cotton, iron, wheat, food grains, wool etc.
  • Food grains: Patna is a major producer of rice. Maize, pulses, sesame, lentils and wheat are the other food grains that are grown here.
  • Non-food crops grown consist mostly of oil-seeds, cash crops such as vegetables, water-melons etc.
Patna has a network of irrigation canals. The state government has implemented various irrigation projects for better irrigation facilities. Many tube wells were constructed under the Patna Barh-Ekangasarai-Bihta Emergency River Pump and Technical co-operation Administration.

This district of Patna is one of the best fishing grounds in the country. Rahu, Katla and Hilsa are found in abundance in the river Ganga. The season for fishing begins in October. The peak time is from early December to February end.The district Fisheries office which is under the administrative control of the Director of Fisheries, Government of Bihar, manages the Fisheries Development Schemes of the districts. The district Fisheries office is located in Patna.


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Comments / Discussion Board - Business and Economy in Patna

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    Karan from Rajgir 1669 Days ago

    agriculture is the main source of economy in patna city. what you say?

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    patnaonline.in Expertfrom 1629 Days ago

    Hi! Yes agrarian economy surely acts as a support base for both Patna and Bihar.

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