Bihar, a state in eastern India, is undergoing a significant transformation as it sheds its image as an industrial laggard. For decades, Bihar has been left behind by India’s growth story, with its per-capita GSDP being just ₹66,828 in 2023-24, barely a third of the national average. However, with the post-pandemic shift in focus towards rural industrialization, the state is now witnessing a surge in investments and job creation.
The Bihar government has introduced various policies and incentives to attract investors, including the Bihar Industrial Investment Promotion Policy of 2016, which offers capital subsidies, GST reimbursements, and stamp duty waivers. The state has also introduced sector-specific policies, such as the Textile and Leather Policy, Export Promotion Policy, and IT Policy. As a result, Bihar has seen a significant increase in investments, with 2,154 factories receiving Phase One clearance between 2020 and 2024, attracting ₹90,503 crore in investment, a 434.5% increase.
The state’s industrial push is being driven by the growth of manufacturing units, particularly in the textile and food processing sectors. Women are playing a crucial role in this growth, with many becoming part of the workforce in factories, earning a steady income, and improving their families’ quality of life. The state’s flagship women’s collective, Jeevika, has over 1.40 crore members, who are powering the growth of female labor force participation.
Infrastructure development is also a key factor in Bihar’s growth story. The state has expanded its road network, launched new highways and expressways, and improved its power supply. The average daily power supply has increased from 7-8 hours to 24 hours, and peak demand has touched 8,752 megawatts. The Adani Group has committed ₹27,900 crore to set up a greenfield ultra-supercritical power plant in Bhagalpur, which will be India’s largest thermal power project.
Despite the progress, there are still challenges to be addressed. The state needs to sustain its pace of growth and ensure that the momentum endures beyond the current election cycle. Law and order, which has been a major concern in the past, will be crucial in the years ahead. The state also needs to avoid slipping back into old patterns and ensure that its bureaucracy remains investor-friendly.
Overall, Bihar’s transformation is a story of cautious optimism. The state has made significant progress in the past few years, and its growth story is being driven by a combination of government policies, infrastructure development, and private sector investments. While there are still challenges to be addressed, the state’s future looks promising, and it is poised to become a major player in India’s industrial landscape.