One of India’s rapidly-growing states, Bihar, has a population of about 30 million people. From 2005-2006 to 2014-2015, Bihar’s GDP increased by 10.5% yearly at regular prices, making it one of India’s many developing states. Bihar’s recent economic transformation results from a comprehensive, state-led reform initiative launched by the Bihar government industrial policy. Public finance and government expenditures were reformed, and public investments in developing infrastructure were expanded. The state has planned to grow various industries, such as the production of agricultural implements and small machines, tourism, information technology, and renewable energy.
Recent Developments in Bihar’s Industrial sector
The Bihar Industries Department also revamped the law and order apparatus. These changes have created a favourable setting for state-level private investment and increased industrial involvement. The availability of land is critical to the state’s industrialisation. Since land acquisition is more important, a corpus fund with a ceiling of INR 1,500 crore has been proposed to be set up for it. This ceiling was then increased to INR 2,500 crore to fulfil the growing demand for land by factories and other affiliated businesses. Recently, the Bihar State Government has sanctioned an amount of INR 1,650+ crore in favour of the Bihar Industrial Area Development Authority (BIADA) and Bihar Industries Department to acquire land, ensuring the speedy development of the land area and special industrial zones.
Economic liberalisation, privatisation, and globalisation have significantly affected the industrial landscape. Micro, small, and medium-sized enterprises are receiving a lot of attention (MSME). For the benefit of the manufacturing sector and the well-being of MSME entrepreneurs, the Bihar Industries Department is promoting cluster-based growth. It is now establishing specialised clusters to develop small machines, plastics, garments, jute & textiles, and food processing.
Bihar is steadily implementing policies like the Bihar government industrial policy to make the state more welcoming and attractive to investors. UDYOG SAMVAD portal for grievance redressal, effective implementation of the single window system, development of an online inspection system, provision for submission of a single integrated return under various labour laws, differentiated compliance inspection requirements based on industry risk profile, provision of synchronised/joint inspection under various labour laws are some of the key reform measures implemented.
Entrepreneurs may file complaints relating to Bihar industrial services and have their concerns addressed via the policy’s well-established mechanisms for implementation, monitoring, and restitution.
Aim of the Bihar Industrial Policy 2016
The Bihar Industries Department has announced that the priority sectors include food processing, tourism; small machine manufacture; IT; ITeS; electrical and electronic hardware, textile, plastic and rubber, renewable, leather, and technical education. By building new businesses and producing cash and job opportunities, the state’s natural resources will be used to their full potential. An attempt has been made to consider the concerns of industry leaders such as trade associations, investors, and subject matter experts while crafting this policy. It is anticipated that the policy’s adoption would help the state industrialise, create jobs, and contribute to its overall development.
The strategy of the Bihar Industrial Policy 2016
- Value-added and income-enhancing investments in food crops, especially vegetables and fruits, are encouraged.
- Handloom and handicrafts may be sold to a broader audience if marketed well. They are making Bihar the preferred source for trained people, whose services may be well in demand in the country and international markets.
- Favouring small and medium-sized businesses (SME) because of their lower land requirements and higher labour absorption rates per unit of capital and energy.
- Cluster growth in the MSME sector should be encouraged by the Bihar Industries Department.
- The emphasis is on sectors dependent on domestic production, expertise, and consumption.
- It provides preferential treatment to companies that use less energy and produce less pollution.
- Large-scale industrial establishments in the projected Integrated Manufacturing Cluster under the Amritsar-Kolkata-Industrial Corridor are encouraged (AKIC). The Bihar industrial services envisage that investors who choose to build units outside of these specified regions would locate adequate land on their own, even though the state government will help them.
- It’s important to encourage additional investment in the state’s rich historic tourist industry.
- Development of new facilities and management of existing facilities under the PPP approach will be rewarded.
This article briefly studied all the important aspects of the Bihar Industries Department, Bihar Industrial Policy 2016, etc. The State Government and the Bihar Industries Department developed the Industrial Investment Promotion Policy in 2016 to help accomplish this objective. Developing support infrastructure is a key method for attaining the policy’s objectives, emphasising advanced technology, skill enhancement, a modified package of aid, and a balanced approach to regional development, i.e., spreading investment benefits equitably throughout the state. This strategy also aims to improve the lives of the underprivileged and female entrepreneurs by providing them with a tailored help package.