The economy of Bihar is mainly based on agricultural and trading activities. The soil of Bihar is extremely fertile which makes it ideal for agriculture.

Bihar is the first largest producer of vegetables and second largest producer of fruits in the country. Production of maize, sugarcane, litchi, makhana, mango, vegetables, and aromatic rice is also carried out. Bihar is the largest producer of honey in the country.

The major agro based industries of Bihar are of rice, sugar, edible oil.

The rice mills are located at Bauxer Karbisganch in Purnia district, Araria. Sugar mills are located at Banmankhi in Purnia District, Bauxer, Madora in Saran District, Samastipur and Bihata in Patna District.

The edible oil mills are located at Araria, Banmankhi in Purnia District, Bauxer, Lakhisarai at Munger district. The textile industries are at Bhagalpur, Gaya, Nalanda, Darbhanga, Madhubani, Siwan and Patna.