In post-Nitish era, Bihar should unleash potential of its human capital

The question of who will succeed Nitish Kumar in Bihar’s political landscape has been dominating the State’s political discourse for some time now, much before his election to the Rajya Sabha. The question became more pronounced after the Janata Dal(U) led by him won 85 seats in the 2025 Assembly election, up from the 43 in 2020. Yet, as the State braces for a new Chief Minister, likely from the BJP, questions about the post-Nitish era should not be about who occupies that post, but whether or not Bihar can finally transcend the symbolic politics of Sushashan (good governance) and dare to chase a bolder vision of human capital and innovation, or is it destined to lag behind in India’s overall growth story?

Arguably, as Bihar’s longest serving Chief Minister, Mr. Kumar will go down in history as the restorer of law and order in the aftermath of the “Jungle Raj” of the Lalu-Rabri regime. Though his control over his own model of governance got weakened particularly in the last few years of his term, it remains his most credible achievement. One could even argue that it indeed is Bihar’s misfortune that despite holding a pivotal position following the 2024 Lok Sabha election, Mr. Kumar preferred the exit route instead of leveraging his political capital to catapult the State into the upper echelons of growth and development.

The contrast with Chief Minister N. Chandrababu Naidu in Andhra Pradesh is stark and instructive. In the aftermath of the 2024 election, while Bihar secured ₹26,000 crore for road projects and promises of new infrastructure under the Purvodaya plan which it shares with four other States, Andhra Pradesh secured ₹15,000 crore specifically for the development of its capital, Amaravati, along with a full commitment for the Polavaram irrigation project. More significantly, Andhra Pradesh has been able to position itself as an investment destination achieving an impressive economic growth rate of 11.28% in 2025 and attracting $120 billion in investment pledges.  Mr. Naidu leveraged his political opportunity to build a modern, forward-looking State, while Bihar, despite its substantial allocations, continues to languish in the lack a clear coherent vision for a modern, knowledge-based economy.

Missed opportunity

One could argue that the change of guard, with a BJP nominee occupying the Chief Minister’s post, will give Bihar the much-needed “double engine” push, creating the required momentum. However, that is easier said than done, given the fact that perceptibly no present leader from the BJP in Bihar commands statewide support or popularity. Nor does anyone possess the developmental vision and acumen of the late Sushil Kumar Modi. It is precisely why Mr. Kumar’s exit implies yet another profound missed opportunity for Bihar, as the setting was ideal for the JD(U) to pull strings more effectively. While Mr. Kumar’s failing health has been cited to legitimise the changeover, the inability of the JD(U) to trust or elevate its second-line leadership to the position of Chief Minister raises serious questions about its long-term plans, strategy of survival, and existence.

That said, the immediate priority for the new incoming government in Bihar ought to be on establishing a model of governance that is radically pivoted towards human development. This is an existential imperative. Bihar’s current human development metrics are alarming. With a Human Development Index (HDI) score of 0.609 in 2022, it ranks lowest among the States. The educational sector is in a crisis, with total school enrolment falling by over 23% recently and a staggering secondary school dropout rate of 19.5%. Only 31.5% of students transition from upper primary to secondary school. Bihar today ranks amongst the last three States and UTs with 25.5% GER in higher education enrolment. These failures are systemic and fuelling a massive brain drain, and an ever increasing outflow of Bihar’s human capital with around 65% of households having a migrant member and an estimated 7.5 million people leaving the State for work.

Strategic opening

Bihar requires an immediate turnaround and to that end it must shift to proactive, technology-driven law enforcement. Implementing a centralised, AI-powered command and control centre — similar to the models used in Hyderabad — can enhance predictive policing and rapid response capabilities. Furthermore, establishing a dedicated security mechanism for proposed tech parks and Global Capability Centre (GCC) zones will provide immediate traction to multinational corporations evaluating Bihar as a potential destination. India currently hosts 1,700 GCCs employing 1.9 million people. However, more than 90% of these are located in just six major cities. This is where Bihar can capitalise on the opportunity. The global shift towards decentralised tech operations presents a strategic opening. With Tier-1 cities experiencing significant infrastructure bottlenecks and escalating costs, Tier-2 and -3 cities are becoming appealing alternatives for the GCCs and data operations infrastructure. By an estimate, India is projected to host over 2,500 GCCs by 2030 and so Bihar can capture a share of this market by positioning its Tier-2 cities as cost-effective, high-retention alternatives to saturated metros.

The exponential growth of AI has already pushed the need up setting large-scale data centre infrastructure. By taking advantage of its location and relatively low real estate costs, Bihar has the potential to grow into an expanding data hub. The strategy’s primary goal should be the development of specialised “AI cities” or tech parks. High-density power infrastructure, integrated renewable energy sources, and sophisticated cooling systems are needed in these areas. Additionally, by giving academic institutions and start-ups subsidised access to high-performance computing, the State government can promote regional innovation and establish a domestic AI ecosystem.

Bihar’s education structures require urgent interventions. Developing public-private partnerships (PPPs) with leading tech companies to institutionalise skilling and training facilities particularly in data sciences, and artificial intelligence could be of help. By adapting the curriculum to the particular needs of incoming GCCs and data centres, Bihar can ensure a steady stream of employable graduates.

There is already a clear political desire for this kind of change. Despite not winning any seats in the most recent elections, Prashant Kishor’s Jan Suraaj Party made a significant impact with a focus on youth involvement and employment. As a matter of fact, his persistence on Bihar’s political turf is predicated only on the hope that the youth of Bihar, disillusioned from traditional caste-based politics would eventually look towards a future centred on opportunity and governance. Such demands are already growing louder, and the new leadership needs to address it right away.

Bihar does not have the luxury of following the conventional bricks-and-mortar path of industrial development as it cannot afford to wait another two decades for conventional industrial investments to mature. The real movement of Bihar will come only when its cities grow and become hubs of innovation and knowledge. As a State with the highest proportion of young voters and rising aspirations, Bihar has the immediate need to pivot toward global capability centres, artificial intelligence, and related high-tech industries.

The use of power to unleash the enormous, unrealised potential of Bihar’s human capital must define the post-Nitish era, not who is in charge. The new government’s willingness to take the audacious and unorthodox step of turning Bihar into a hub for international innovation will be its real litmus test. Bihar’s transition from an agrarian, low-HDI state to a dynamic, technology-driven economy is achievable within a short-term horizon. The State is in dire need of this fresh start. The window of opportunity is narrow, and the youth of Bihar are watching.

Chandrachur Singh is a Professor in the Department of Political Science at Hindu College, University of Delhi. Views expressed are personal

Published – March 27, 2026 12:19 am IST