The state of Bihar in India is divided into 9 divisions.
1. Patna Division
Head Quarters: Patna
Districts (6 Nos): Patna District; Nalanda District, also called Biharsharif District; Bhojpur District, also called Arrah District; Rohtas District, also called Sasaram District; Buxar District; Kaimur District, also called Bhabhua District.
2. Tirhut Division
Head Quarters: Muzaffarpur
Districts (6 Nos): West Champaran, also called Bettiah District; East Champaran, also called Motihari District; Muzaffarpur District; Sitamarhi District; Sheohar District; Vaishali District, also called Hajipur District.
3. Saran Division
Head Quarters: Chapra
Districts (3 Nos): Saran District, also called Chapra District, Siwan District, Gopalganj District.
4. Darbhanga Division
Head Quarters: Darbhanga
Districts (4 Nos): Darbhanga District, Madhubani District, Samastipur District, Begusarai District.
5. Kosi Division
Head Quarters: Saharsa
Districts (4 Nos) : Saharsa District, Madhepura District, Supaul District.
6. Purnia Division
Head Quarters: Purnea
Districts (4 Nos): Purnia District, Katihar District, Araria District, Kishanganj District.
7. Bhagalpur Division
Head Quarters: Bhagalpur
Districts (3Nos): Bhagalpur District, Banka District, Navgachia District.
8. Munger Division
Head Quarters: Munger
Distircts (5 Nos): Munger District, Jamui District, Khagaria District, Lakhisarai District, Sheikhpura District
9. Magadh Division
Head Quarters: Gaya
Districts (5 Nos): Gaya District, Nawada District, Aurangabad District, Jehanabad District, Arwal District
Bihar's gross state domestic product for 2004 is estimated at $19 billion in current prices.
There was a division of Bihar in 2000, when the industrially advanced and mineral-rich southern-half of the state was carved out to form the separate state of Jharkhand. Since then, the main economic activity of Bihar has been agriculture. The new Bihar state produces about 60% of the output of the old Bihar state.
Bihar is among the least developed states of India and has a per capita income of $94 a year against India's average of $255. A total of 42.6% live below the poverty line against India's average of 26.1%. The blame for this stems from many factors: a historical neglect from the center of Indian power, lack of vision of the political classes, and inadequate investments in agriculture, infrastructure and education. Many people believe that mis-rule, caste-dominated politics and rampant corruption by politicians have been the cause of the poverty in the state.
The economy is mainly based on agricultural and trading activities. The vast swath of extremely fertile land makes it ideal for agriculture. Despite a number of rivers and good fertile soil, investment in irrigation and other agriculture facilities has been grossly inadequate. Agriculture is mainly dependent upon the vagaries of the nature.
Recently the dairy industry has picked up very well in Bihar. There also have been some attempts to industrialize the state: an oil refinery in Barauni, a motor scooter plant at Fatuha, a power plant at Muzaffarpur and some agriculture-based industries such as sugar and vegetable oil. However no sustained effort has been made in this direction, and there is little success in its industrialization.