The state of Bihar is situated in eastern India. The state is the 12th largest in India as per size and is the 3rd most populous one. The capital of the state is Patna.


Bihar is extremely rich in minerals, such as iron ore, coal, and bauxite. The state also boasts of a fertile soil capable of producing a variety of crops, such as wheat, sugarcane, paddy, jute, and lentils.


Bihar is one of the leading producers of fruits and vegetables of India. Agriculture and its allied activities are the main occupation of people of Bihar. Thus, there is great potential for the food processing industry in this state. Participation of the private sector in this sector is being promoted heavily by the state government. It is offering major subsidies for tea processing plants.

The largest agriculture-based industry in the state is sugar. The sugar industry offers numerous investment opportunities in the manufacture of ethanol, sugar-based confectionaries, generation of power, manufacture of paper, and expansion of existing sugar mills.


Bihar has the second-highest jute production in the country after West Bengal. The state is home to about 1 lakh weavers. The state has availability of cheap labor, raw jute, and power that make an investment in the jute industry a profitable venture.


Other major industries of the state are fertilizer manufacturing plants, oil refineries, cotton mills, railway wagon plants, medicine manufacturing units, finished leather industries, cement industries, distilleries, food processing units, and sugar mills. Some new industries gaining a strong foothold in the state are engineering goods, information technology, and tourism.


The government of Bihar has formulated several schemes and incentives to attract investors to the state. The goals of the state government are to promote industrialization, create infrastructural facilities, and to generate employment opportunities for people.


To boost industrial growth in the state, the government has come up with an Industrial Incentive Policy. The main aims of this policy are to accelerate development of social infrastructure in the state, make labor laws development-friendly, revive closed and sick units, promote cottage and village industries, and provide development schemes and land to industries.


The policy also has an objective to create a conducive environment to attract investments in industries, which is planned to be achieved by implementing the Bihar Single Window Clearance Act. This act will accelerate the procedures for establishing an industry. The state also plans to simplify the inspection of factories, develop human resources to push industrialization, and provide legislation to monitor aspects of financing, licensing, construction, and operation to minimize the delays in industrialization.


The government has undertaken several infrastructure-based projects in the state.  The state has a good telecom network and excellent transportation facilities that comprise roadways, railways, aviation, and waterways. The power supply is also reliable.


With a trained workforce, helpful administrative system, good infrastructure, and investor-friendly environment, Bihar is attracting investors and entrepreneurs from all over the world. The natural advantages of the state are contributing to rapid economic development.

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