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The NDA government’s tenure is likely to serve as a critical examination of the BJP-JD(U) coaliation’s ability to deliver on its promise of a ‘new Bihar’
Nitish Kumar’s image as the champion of good governance has long been central to Bihar’s political narrative.
Bihar enters a decisive phase as the new government prepares to take charge with the state Assembly elections results declared on Friday, November 14. The incoming administration, expected to be led by JD-U chief Nitish Kumar, inherits a state where hopes for economic revival run parallel to longstanding concerns over governance, unemployment and fragile coalition dynamics.
This tenure is likely to serve as a critical examination of the government’s ability to deliver on its promise of a ‘new Bihar’. Here is an in-depth look at the five major challenges that will shape the state’s political and developmental landscape.
Unemployment
Among Bihar’s most pressing concerns is the widening employment gap, particularly among the youth. Despite the official unemployment rate hovering around 3% in 2023-24, economists point out that these figures conceal widespread underemployment. A significant number of working-age residents remain dependent on informal and home-based occupations, with few opportunities for salaried positions.
According to the Economic Survey 2024-25, the manufacturing segment of the secondary sector accounts for less than 10% of the state’s Gross State Value Added (GSVA), reflecting a weak industrial base. The result is mass migration to other states, a trend the new government must urgently address.
A strategic push for industrial investment, expansion of private-sector avenues, and timely delivery of government employment schemes will be crucial in stemming this exodus and generating sustained livelihoods within the state.
Economic Development and Industrial Growth
Bihar continues to trail behind most states in GDP, per capita income and manufacturing activity. Industrial stagnation is evident from the decline in the number of operational factories, from 3,132 in 2013-14 to 2,782 in 2022-23. This structural weakness poses a direct challenge to the state’s economic ambitions.
For Bihar to reposition itself as an attractive business destination, the government must pursue aggressive implementation of the Bihar Industrial Investment Promotion Package 2025, which offers incentives such as free land and interest rebates. Strengthening infrastructure like roads, electricity supply and digital connectivity will be pivotal in attracting fresh private investments and reigniting economic momentum.
Law and Order
The image of Nitish Kumar as the champion of good governance has long been central to Bihar’s political narrative. However, concerns raised by the Opposition over the alleged return of “jungle raj” continue to resonate. Recent incidents connected to political rivalry and sporadic criminal activity have revived debates over the government’s policing standards.
The new government will need to reinforce public confidence by tightening law enforcement mechanisms, curbing corruption, and ensuring responsive and impartial administration. The credibility of the regime will significantly hinge on its ability to maintain a visible and consistent decline in crime rates.
Coalition Management
Though the NDA has secured a comfortable mandate, managing the balance of power within the coalition remains a delicate task. The altered seat tally between the BJP and JD(U) has shifted the political equation, and allocating key portfolios without triggering discontent will require careful negotiation.
Smaller alliance partners, though no longer pivotal for crossing the majority mark, will still expect representation and influence. Any internal discord, whether over leadership, ministerial allocations or policy direction, could hamper governance and delay legislative initiatives. Sustained coordination will therefore be essential to ensure stability.
Social Welfare
Bihar’s annual confrontation with natural disasters, particularly floods triggered by the Kosi and other rivers, continues to affect lives and derail development. The new government must prioritise a long-term, integrated flood management strategy aimed at reducing displacement, crop loss and livelihood disruption.
Simultaneously, the effective rollout of welfare schemes including Jeevika initiatives, free electricity promises, enhanced pensions and the Chief Minister’s Women Employment Scheme will determine public perception of the administration’s efficiency. Ensuring that these benefits reach citizens without procedural delays or corruption will be central to protecting the government’s reputation.
Bihar, India, India
November 15, 2025, 15:29 IST
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