Bihar

BIHAR

General Profile

Bihar is located in the eastern part of the country (between 83°-30′ to 88°-00′ longitude). It is an entirely land-locked state, although the outlet to the sea through the port of Kolkata is not far away. Bihar lies mid-way between the humid West Bengal in the east and the sub humid Uttar Pradesh in the west which provides it with a transitional position in respect of climate, economy and culture. It is bounded by Nepal in the north and by Jharkhand in the south. The Bihar plain is divided into two unequal halves by the river Ganga that flows through the middle from west to east.

Advantage Bihar

• The Gangetic plain of Bihar, the biodiversity of Bihar, backed by good climate & fertile soil.
• Direct access of 46% of country’s population having common boundaries with UP, Orissa, Jharkhand and West Bengal and international border with Nepal & NE states with chicken neck.
• The state has a strong agricultural base for setting up agro-based industries like agri & food processing units for sugar, jute, tea, etc.
• The state has virtual monopoly in production of Litchi, Makhana and Honey.
• Fairly motivated and hard working manpower.
• The state is capable of producing mushrooms of best quality and in abundant quantity.
• Traditional knowledge weavers are available in plenty.
• Very close to international silk route.
• Producer of tasar, eri and mulberry silk of good quality.
• Water resource is available in abundance

Economic Profile

• The per capita income of Bihar was US$ 236 in 2007-08 as compared to US$ 850 for all India.

Major industries

Agriculture

The production scenario of agricultural sector is outlined below:

Crop/Enterprise	Annual Production(Million MT)	Bihar’s share in National pool (%)	Marketable surplus (percentage)
Vegetables	8.59	9.0	100
Fruits	3.35	8.0	80
Food grains	11.90	5.6	75
Sugarcane	13	5.5	100
Fish	0.27	8.3	100
Milk	4.06	4.4	100

Sugar Industry

Sugar industry is the largest agro-based industry in Bihar. This industry generates sizeable employment in the farm sector directly as well as through ancillary industries and related activities. It is estimated that about five lakh farmers and their dependents are engaged in the cultivation of sugarcane and approximately another half a lakh unskilled and skilled personnel, including highly qualified and trained technologists are engaged in the sugar industry in the state.

Investment opportunities in sugar and allied industries in Bihar:

• Green field sugar mills
• Capacity expansion of existing sugar mills
• Ethanol manufacture
• Manufacturing of Molasses based alcohol and commercial spirit
• Cogeneration of power
• Engineering units related to sugar industry
• Manufacture of sugar- based confectionery items

Food processing industry

Bihar is the leading state in the production of fruits and vegetables. It is the first largest producer of vegetables and second largest producer of fruits in the country.

There exists huge scope of investment in the food-processing sector in the state Private Sector participation is being encouraged in packaging and food processing sectors to ensure better quality. Also, the state welcomes private investment for comprehensive development of tea industry and capital subsidy is available for setting up tea processing units.

Further, there is huge potential for development of farming and processing of medicine (herbal and aromatic plants) in the state on account of natural environment and geographical location of the state. The active participation of private sector and Non Government Organizations is encouraged and incentives are provided under the Industrial Policy.

Textile Industry

Textile sector also offers huge potential to the investors. The state has strong weaving traditions. The total number of weavers in the state is over 90,000. The major locations for the textile industry are Bhagalpur, Gaya, Nalanda, Darbhanga, Madhubani, Siwan and Patna.

Investment Profile in the State

Investment opportunities for the investors does exist in the following sectors-

• Agro based industries
  • Cattle feed
  • Jute, hemp, sisal and other fabrics
  • Tea cultivation, processing and packaging
  • Paper
  • Floriculture
• Industries based on medicinal and aromatic plants
• Sericulture /Tasar
• Chemical based industries
• Power generating and allied industries
• Electronic and computers and IT based industries
• Industries based on non-conventional energy
• Livestock based industries, such as dairy, poultry, piggery, equipment meat processing, etc.
• Industries based on recycling of wastes, eco-friendly raw materials and processes.
• Super specialty Health services
• Telecommunications and related products
• Food processing industry
• Tissue culture products
• Seeds and planting materials
• Foods and Vegetable processing
• Bio-technological processes and products
• Post Harvest technologies
• Tourism
• Cold storage
• Plastic and Plastic based industries
• Pharmaceutical drugs based industries
• Leather based Industries
• Technical education
• Ceramics
• Sports Goods
• Packaging
• Metallurgical industries including power intensive units like induction furnaces, furnaces ferro alloys, oxygen plants, graphite and gas plants and calcium carbide plants.
• Textile, hosiery, knitwear
• Handicrafts
• Natural Gas based industries
• Housing fixtures and related industries

Sector wise investments in the state-