70^th BPSC Mains

Introduction

Bihar, traditionally an agrarian state, has recognized the imperative of industrialization to diversify its economy, generate employment, and stimulate growth. In recent years, the state government has launched several initiatives to promote industrial development and attract investments.

Body

• Bihar Industrial Investment Promotion Policy (BIIPP) 2016:
  • Introduced to provide a structured framework for industrial growth, offering incentives such as tax exemptions and capital subsidies to investors.
  • Amended in 2020 and extended till 2025 to enhance investor-friendliness and address emerging industrial needs.
• Sector-Specific Policies:
  • Ethanol Production Promotion Policy 2021: Aimed at leveraging Bihar's agricultural base to promote ethanol production, attracting companies which established the state's first ethanol plant in Muzaffarpur.
  • Export Promotion Policy 2024: Designed to enhance the state's export potential by developing infrastructure such as Special Economic Zones (SEZs) and export packhouses.
  • IT Policy 2024: Focuses on developing the IT/ITeS sector by providing incentives for infrastructure development and skill enhancement.
• Infrastructure Development:
  • Integrated Manufacturing Cluster in Gaya: A Special Purpose Vehicle (SPV), Bihar Integrated Manufacturing City Gaya Ltd (BIMCGL), was formed to develop this cluster, aiming to attract investments of approximately ₹16,000 crore.
  • Bihta Dry Port: Inaugurated in October 2024, this inland container depot facilitates exports and reduces logistics costs, enhancing the state's trade capabilities.
• Investment Summits and Promotion:
  • Bihar Business Connect 2024: A global investor summit held to showcase Bihar as a vibrant investment destination, focusing on sectors like manufacturing, infrastructure, and exports.
  • Investor Approvals: The State Investment Promotion Board (SIPB) approved 41 industrial proposals worth ₹844 crore, reflecting growing investor confidence.
• Exit Policy 2025:
  • Introduced to facilitate the smooth exit of non-performing units, ensuring optimal utilization of industrial land and resources.
• Outcomes and Impact:
  • Between 2017 and 2022, Bihar attracted private sector investments totaling approximately ₹304.36 billion, indicating a positive response to its industrial policies.
  • Major corporations, including Adani Group and Coca-Cola, have invested in the state, leveraging its resources and improved infrastructure.

Conclusion

Bihar's multifaceted approach to industrial promotion, encompassing policy reforms, infrastructure development, and proactive investment facilitation, has significantly enhanced its industrial landscape. Sustained efforts in these directions are poised to further accelerate economic growth and development in the state.