Bihar Economic Survey (Ch-4)

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👉🏻Also Read|Bihar Economic Survey (Ch-3)



  • In 2016-17 and 2017-18, the manufacturing sector registered growth rates of 7.6 percent and 2.7 percent per annum, respectively.
  • The contribution of industrial sector in GSVA was only 19.2 percent in Bihar in 2016-17, registering a fall of 1.2 percentage points from 2015-16.
  • Contribution of Industrial Sector in GSVA (2016-17) is Highest for Gujarat (49.8%); India (31.5%).
  • It is a well-known fact that, given proper infrastructure, Bihar has comparative advantage in agro-based industries.
  • In this direction, Bihar has shown tremendous promise, as indicated by the growth rate of its agro-based industries (19.2 percent) over the last 10 year period.
  • This growth in agro-based industries was almost five times the growth rate achieved across all states of India.
  • Of the total number of industries in operation in India, share of Bihar was only 1.5 percent in 2015-16.
  • Low scale of industrial production in Bihar is primarily due to low injection of capital.
  • No. of factories operational in Bihar: 2918; Highest in Tamil Nadu (29925).
  • Bihar has the potential to develop as a major industrial hub, particularly in agro-based industries.
  • It is perceived that an expansion of agro-based industries would play a dual role; on the one hand, it would utilise Bihar’s crop and horticultural production to add value to the perishable commodities and, on the other, it may generate large employment to skilled and semi- skilled workforce, as agro-based industries are generally labour-intensive.
  • Cultivation of fibre, oilseeds, fruits and vegetables, sugarcane along with food grains give Bihar enormous opportunity to establish agro-based industries across the state to harness economic growth.
  • Moreover, the large population of animal resources add to the prospect of agro-based industries here.

Sugar Industries

  • In Bihar, 11 sugar mills are presently in operation, of which nine are part of private sector and two of public sector.
  • The sugar recovery rate was 9.57 percent in 2017-18, 0.40 percentage point more than in the previous year.
  • To increase productivity and recovery percentage of sugar, a three-tier seed replacement programme has been implemented under Mukhya Mantri Ganna Vikas Yojana for the 2017-18 financial year.
  • Under Mukhya Mantri Ganna Vikas Yojana farmers are given a subsidy of Rs 160 per quintal (Rs. 200 per quintal for SC/ST farmers) on purchase of certified sugarcane seeds of 16 selected varieties. This scheme is meant for sugarcane growers with a maximum of 2.5 acres under sugar cultivation.
  • Harinagar Sugar Mill (W. Champaran) is the highest producer of sugar in the state.



  • If one looks at the locational concentration of handlooms in Bihar, it is found that at least 15 districts are involved in different kinds of production.
  • The Mega Handloom Cluster in Bhagalpur was sanctioned by the central government. Under this project, Bhagalpur and Banka districts will have 10 large clusters, two dye house and one designer studio and product development centres.
  • Under the Bhagalpur Mega Handloom Cluster project, technological upgradation was undertaken.



  • In Bihar, three types of silk are cultivated — mulberry, tasar, and eri.
  • Under the Mukhyamantri Kosi Mulberry Scheme, seven districts in Koshi region (Saharsa, Supaul, Madhepura, Araria, Kishanganj, Katihar and Purnea) were selected for promotion of mulberry production.
  • Jeevika has been given the full responsibility to implement the Mulberry Project.
  • Mukhyamantri Tasar Development Project (2012-17) has been implemented in six districts — Banka, Munger, Nawada, Kaimur, Jamui and Rohtas.
  • Eri silk rearing is confined to Begusarai district.


Khadi and Village Industries

  • The Khadi and Village Industries Commission (KVIC) has the responsibility of promoting rural industries, including Khadi producing units.
  • In Bihar, the number of khadi organisations is 84, of which 65 are currently functional.
  • To promote khadi products, in the Champaran Satyagrah Centenary year, khadi fair was
    organised in Ara, Rajgir, Muzaffarpur and Bhagalpur.


Bihar Industrial Area Development Authority (BIADA)

  • Under the aegis of the Bihar Area Development Act, 1974, BIADA was established to develop infrastructure for industries.
  • Among its various tasks, BIADA performed key role in acquiring land for different industrial projects.
  • Presently, BIADA has four regional offices— Patna, Darbhanga, Bhagalpur, and Muzaffarpur.

Ease of Doing Business

  • Ease of doing business is an index developed by the World Bank, where distance to frontier score on all indicators is computed and all the scores are aggregated.
  • The state of Bihar has made tremendous progress in projecting itself as a favourable destination for business.
  • In March 2018, the state’s achievement level increased to 87.47 percent from 75.82 in the previous year.



  • Bihar is among few states in India which are rich in historical and religious heritage.
  • Department of Tourism has identified eight tourism circuits in Bihar, such as Buddhist Circuit, Jain Circuit, Ramayana Circuit, Shiv Shakti Circuit, Sufi Circuit, Sikh Circuit, Gandhi Circuit, and Nature/Wildlife Circuit.
  • Between 2016 and 2017, there has been a growth of 13.4 percent in the arrival of tourists.
  • More encouragingly, the growth rate of foreign tourists’ arrival was 7.1 percent between 2016 and 2017.

👉🏻Also Read|Bihar Economic Survey (Ch-3)