Finance Minister Nirmala Sitharaman's defense of the Union Budget 2025 proposals for Bihar comes at a time when the state, with its rich cultural heritage and diverse population, has long been overlooked in terms of infrastructural development. Addressing concerns that the Budget was politically motivated due to the upcoming elections, she dismissed such claims, asserting that the proposals should be seen as part of a larger, long-term development plan rather than a temporary, politically driven initiative. Speaking at the India Today-Business Today Budget Round Table, Sitharaman reiterated that the measures announced were in line with the Prime Minister’s Purvodaya (Eastward Rise) plan and were meant to uplift Bihar, a state that has been historically underserved despite its immense potential.
Sitharaman responded to criticisms by emphasizing that "Any time in a 5-year period is a political time. If you do anything during any point of a five-year period during which you are elected, it is bound to be viewed through a political lens." While acknowledging that any Budget proposal in the lead-up to elections would naturally be perceived as politically motivated, she strongly advocated for Bihar’s developmental needs, arguing that the state’s underdevelopment over the years has left it in dire need of infrastructural and economic rejuvenation.
Bihar, with a population of over 130 million, has long struggled with inadequate infrastructure, poor connectivity, and insufficient industrial development, hindering its economic growth. As part of the Union Budget, Sitharaman allocated a significant share of resources to the state, including plans to expand the Patna airport and build four new greenfield airports. Additionally, a brownfield airport will be constructed in Bihta, a region that has seen rapid growth and development potential but has lacked modern transport infrastructure. This infrastructural boost, Sitharaman pointed out, was long overdue, particularly as Bihar’s tourism sector continues to attract a growing number of visitors, especially from the global Buddhist community.
Sitharaman didn’t hesitate to take a direct shot at opposition parties, questioning why they had failed to prioritize the creation of an international airport in the state, particularly given Bihar's historical and cultural significance as a global center of Buddhist pilgrimage. “Bihar has been waiting for one international airport worth its name for several years. Other parties should be asked why they didn't think about it for a state with such a dense population that attracts the global Buddhist community to Bihar,” she said, underscoring the gap in infrastructure despite Bihar’s potential to become a key player in the tourism industry.
One of the most significant announcements in the Budget was the setting up of a Makhana Board in Bihar. Makhana, or foxnuts, a highly nutritious crop grown primarily in the Mithilanchal and Seemanchal regions of Bihar, has gained international recognition as a "superfood." However, despite its commercial success abroad, local farmers have struggled to benefit economically from its cultivation. Sitharaman highlighted that while Makhana is exported in large quantities, very little of the revenue generated reaches the farmers or their communities, which are among the most economically disadvantaged in the state. Many Makhana farmers, who belong to backward communities, are also hit every year by the floods caused by the River Kosi. The establishment of the Makhana Board, Sitharaman explained, would address this issue by providing better market access, incentives, and support to the farmers who cultivate this essential crop. The initiative is expected to elevate the status of Makhana within India and globally, creating opportunities for both farmers and local economies.
In addition to the Makhana Board, the Budget also proposed the establishment of a National Institute of Food Technology, Entrepreneurship, and Management in Bihar. This initiative aims to foster a more robust food processing industry and promote entrepreneurship in the region, encouraging innovation in Bihar's agricultural sector. Sitharaman also highlighted an Rs 11,500 crore allocation for the Western Kosi Canal Emergency Restoration Measures (ERM) project, intended to protect the state from recurring floods and provide much-needed infrastructure to support agriculture and livelihoods in flood-prone areas.
While these announcements focus primarily on agriculture, food processing, and infrastructure, they are reflective of the government’s broader vision for Bihar’s long-term development. The proposals aim to enhance Bihar’s industrial capacity, increase employment opportunities, and improve the living conditions of its rural populations, many of whom are affected by poor infrastructure, economic stagnation, and flooding.
Sitharaman's Budget speech also made it clear that Bihar’s growth was a priority for the central government. The measures proposed are meant to transform Bihar from a region suffering from infrastructural gaps and economic neglect into a vibrant hub of agricultural production, entrepreneurship, and tourism. Whether these announcements translate into tangible outcomes will depend on their implementation, but they undoubtedly represent a significant shift in how the state’s development is viewed by the central government. As the elections loom closer, these proposals will likely become a focal point of political discourse, with both the ruling party and opposition parties debating the effectiveness and motivations behind the Budget’s initiatives for Bihar.
Bihar's historically low industrialization and lack of basic infrastructure have contributed to its economic struggles. Sitharaman's proposals aim to correct these imbalances by targeting key sectors such as agriculture, transportation, and food processing. In doing so, the government hopes to create a blueprint for Bihar’s economic revitalization, ensuring that the state is no longer left behind in India's overall development trajectory. While the political implications of such a Budget cannot be ignored, the underlying goal appears to be one of fostering long-term, sustainable growth for Bihar, which has waited for decades for the development it deserves.
