Bihar has immense potential for a turnaround, World Bank India country director Michael Carter said here Saturday.

According to a World Bank report on Bihar - nearly 40 percent of the population lives below the poverty line, the highest in India. Its poverty gap, which measures the depth of poverty, is far above the national average.

"Bihar has the potential for a turnaround - it has remarkable human resource, its people are hard working and it's rich in rural resources," said Carter.

"I'm not suggesting any time frame, but am hopeful of the turnaround," he said.

Carter is part of a World Bank team visiting Bihar to identify the challenges and opportunities in the state, and to identify solutions accordingly. The team would also explore investment opportunities in development projects such as roads, health, education and power.

Carter identified the need to encourage people to go for fruit, vegetable and horticulture productions. "The World Bank has plans for development of the agricultural sector in Bihar for empowerment of the poorest of poor and most disadvantage people," he said.

A World Bank report has said that agriculture is the bedrock of Bihar's economy, employing 80 percent of the workforce and generating nearly 40 percent of gross domestic product.

"I visited the Bihar State Cooperative Milk Producers' Federation Limited (COMFED) dairy project and was delighted to see such a success story in rural Bihar - all because of people's positive approach," he noted.

Carter also said that there is a need to improve the basic infrastructure including communication, telecommunication, law and order to create the "investment climate".

The World Bank's focus would be on improving health, education and communication, he said in his opening speech at a workshop on Bihar's Development Strategy, jointly organised by the Bihar government, the planning commission and the World Bank.