Industrial development of Bihar

<2/”>a >Industrial development of Bihar

Bihar is one of the fastest growing states in India. The economy of Bihar is projected to grow at a compound annual Growth rate (CAGR) of 13.4% during 2012-2017 i.e. the 12th Five-Year Plan. Bihar has witnessed strong growth in per capita net state domestic product (NSDP). At current prices, per capita NSDP of the state grew at a CAGR of 12.3 per cent during 2004-05 to 2015-16. Bihar is the largest producer of vegetables and the second-largest producer of fruits in India. Bihar has high agricultural production making it one of the strongest sectors of the state. About 80 per cent of the state’s Population is employed in agriculture, which is much higher as compared to India’s Average. The state has a large base of cost-effective industrial labour, making it an ideal destination for a wide range of industries.

 

The state enjoys a unique location specific advantage because of its proximity to the vast markets of eastern and northern India, access to Ports such as Kolkata and Haldia and to raw material sources and mineral reserves from the neighbouring states. Major initiatives taken by the government to develop Bihar are:

  • The Government of Bihar has approved 224 Food Processing projects in FY 2015.
  • In 2015, the central government approved an FDI project worth US$ 396.03 million for manufacturing world class diesel and electric locomotive factories in Bihar.
  • Under Jawaharlal Nehru National Urban Renewal Mission (JNNURM), eight projects costing US$ 118.08 million have been sanctioned for urban centres such as Patna and Bodh Gaya. The key areas of development are solid-Waste Management system, water supply and sewage.
  • In the 2016-17 budget, capital outlay of US$ 863.26 million was proposed for the development of roads and bridges in the state.
  • The Bihar government is preparing a 20-year master plan for promotion and development of tourism in the state.
  • Construction work of 2,232 km national highways through the state funds, 2,104 km state highways under National Development Scheme and 251 km roads under the state plan was completed during 2015-16.

Recent Developments

  • The government has approved Rs 4,918 crore (US$ 720 million) highway projectfor widening of National Highways in Bihar and Jharkhand to augment the state’s Infrastructure-2/”>INFRASTRUCTURE.
  • Bihar along with Uttar Pradesh, Odisha and Maharashtra has agreed to join Ujwal Discom Assurance Yojana (UDAY) which has been launched to improve financial and operational efficiencies of power distribution companies, as announced by Mr Piyush Goyal, Minister of State (Independent Charge) for Power, Coal and New & RENEWABLE ENERGY
  • Indian Railways has issued a Letter of Award (LoA) to US-based General Electric (GE) for a Rs 14,656 crore (US$ 2.2 billion) diesel locomotive factory project at Marhowra, and to French transport major Alstom for Rs 20,000 crore (US$ 3 billion) electric locomotive project in Madhepura, both in the state of Bihar.
  • With 75.66 million mobile subscribers in May 2016, Bihar has reached the fourth-largest mobile subscriber base among all Indian states.

 

MAJOR INDUSTRIES

Bihar is mainly agricultural products producing state. The main large and small scale Agro Based Industries are :

  • Rice Mills : Rice mills in Bauxer karbisganch in Purnia District, Araria etc.
  • Sugar Mills : Sugar mills located at Banmankhi in Purnia District, Bauxer, Madora in Saran District, Samastipur and Bihata in Patna District.
  • Edible Oil Mills : Edible oils from oil seeds are located at Araria, Banmankhi in Purnia District, Bauxer, Lakhisarai at Munger district.
  • POWER
  • OIL REFINERY
  • TEXTILES
  • ENGINEERING INDUSTRIES
  • TOBACCO
  • SectorsIndustrial development of Bihar
  • Bihar has significant levels of production for the products of mango, guava, litchi, pineapple, brinjal, cauliflower, bhindi, and cabbage in India.Despite the states leading role in food production, Investment in Irrigation and other agriculture facilities has been inadequate in the past.
  • Maize accounts for 1.5 million MT(or 10% of country production)
  • Sugarcaine produces 13.00 million MT
  • Litchi production is 0.28 million MT(Bihar contributes 71% of national production)
  • Makhana levels are 0.003 million MT(Bihar contributes 85% of national production)
  • Mango is 1.4 million MT(13% of All India)
  • Vegetable production is 8.60 million MT (9% of All India)
  • Honey Production is 1300 MT (14% of All India)
  • Aromatic Rice 0.015 million MT
  • Milk Production (Present) :4.06 million MT. COMPFED has established 5023 Cooperative Societies with 2.54 lakh membership -highest among the eastern states.
  • Fishery production levels are 0.27 million lakh MT

Sugar

The Indian Business Directory states that the Bihar Sugar Industry has flourished in the last couple of years due to the efforts taken by the State Government to revive the industry. The Sugar Industry has been helped by the Climate of the state, which is very suitable for the growth of high-grade sugarcane. The main benefit of the industry is that it provides EMPLOYMENT to many people, especially in the rural areas. Further, it provides facilities of transport and Communication, and also helps in the development of the rural areas by mobilizing the rural Resources. The total number of sugar mills in Bihar Sugar Industry is 28 out which only 9 are operational. The total area under sugarcane production is 2.30 lakh hectares and the total production of sugarcane is around 129.95 lakh M.T. The location of the sugar mills of Bihar Sugar Industry are Samastipur, Gopalganj, Sitamarhi, West Champaran, Chorma, Dulipati, and Supaul.

  • The industry can be divided into 2 groups – the unorganized sector, which comprises traditional sweeteners manufacturers, and the organized sector, which consists of sugar factories. The producers of traditional sweeteners are considered to be a part of the rural industry and they manufacture khandsari and gur. These are consumed mainly by the rural people and are produced in substantial quantities. The total production of sugar in Bihar Sugar Industry was 4.21 lakh tons in 2002-2003 and in 2003-2004, the figure stood at 2.77 lakh tons. Again, in 2004-2005, the figure was 2.77 lakh tons. The state government, in order to boost the Sugar Industry in Bihar has decided to privatize the state-run sugar mills that have not worked for many years. The state government has also approved the proposal for the setting up of 15 new sugar mills in the state which will bring in an investment of Rs. 3,771 crore in Bihar Sugar Industry.

Textile

Total number of weavers in Bihar is more than 90,000. Bhagalpur is known as leading silk city. Gaya –another major weaving centre –around 8000. There is a strong traditional handloom clusters in the districts of Bhagalpur, Gaya, Nalanda, Darbhanga, Madhubani, Siwan, Patna. Infrastructure Leasing and Financial Services is preparing Project Report for Textile Parks and also for Cluster Development Programmes. However, most of textile centres in state on decline, producing low value goods. Now gaya is developing very fast in textile sector, approx 10000 looms are running and several new projects are coming soon. Shuttel less and hitech technology is also adopting very much, and in Nalanda Rajgir is also developing in Textile sector.

 

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History of industrial development in Bihar

Bihar has a long history of industrial development, dating back to the early 19th century. The first major industries to develop in Bihar were the textile industry and the jute industry. The textile industry was centered in the city of Patna, while the jute industry was centered in the city of Monghyr. Both of these industries were based on the processing of raw materials that were produced in Bihar, such as Cotton and jute.

In the early 20th century, Bihar also began to develop a number of heavy industries, such as steel and iron production. These industries were located in the cities of Jamshedpur and Ranchi. The development of these heavy industries was part of the Indian government’s efforts to industrialize the country.

Current state of industrial development in Bihar

In recent years, Bihar has experienced a resurgence of industrial development. This has been due to a number of factors, including the state government’s efforts to attract investment, the availability of cheap labor, and the state’s strategic location.

The state government has set up a number of incentives to attract investment, such as tax breaks and land subsidies. The state has also developed a number of infrastructure projects, such as roads and power Plants, to support industrial development.

The availability of cheap labor has also been a major factor in Bihar’s industrial development. The average wage in Bihar is much lower than the average wage in other parts of India. This has made Bihar an attractive destination for companies that are looking to reduce their costs.

Bihar’s strategic location has also been a factor in its industrial development. The state is located in the heart of India, and it is well-connected to other parts of the country by road, rail, and air. This makes it an attractive location for companies that are looking to serve the Indian market.

Challenges to industrial development in Bihar

Despite the progress that has been made, there are still a number of challenges to industrial development in Bihar. One of the biggest challenges is the lack of skilled labor. The state’s Education system has not been able to keep up with the demand for skilled workers, and this has made it difficult for companies to find the workers they need.

Another challenge is the poor infrastructure in Bihar. The state’s roads, power plants, and other infrastructure are in need of repair and upgrade. This has made it difficult for companies to operate in the state.

The state’s Bureaucracy is also a challenge to industrial development. The bureaucracy is slow and inefficient, and this has made it difficult for companies to get the approvals they need to operate in the state.

Opportunities for industrial development in Bihar

Despite the challenges, there are still a number of opportunities for industrial development in Bihar. The state has a large and growing population, which provides a large market for goods and services. The state also has a number of Natural Resources, such as coal, iron Ore, and limestone, which can be used to support industrial development.

The state government is also committed to promoting industrial development. The government has set up a number of initiatives to attract investment, and it is working to improve the state’s infrastructure.

Policies and initiatives for industrial development in Bihar

The state government has set up a number of policies and initiatives to promote industrial development. One of the most important policies is the Bihar Industrial Policy 2011. This policy provides a number of incentives to companies that invest in the state, such as tax breaks and land subsidies.

The government has also set up a number of agencies to promote industrial development. One of the most important agencies is the Bihar State Industrial Development Corporation (BSIDC). The BSIDC provides a range of services to companies that are looking to invest in the state, such as land acquisition, project development, and Marketing.

Impact of industrial development on Bihar’s economy and Society

Industrial development has had a significant impact on Bihar’s economy and society. The Development Of Industries has created jobs and increased incomes. This has helped to reduce POVERTY and improve the standard of living in the state.

Industrial development has also had a positive impact on the state’s infrastructure. The government has invested in roads, power plants, and other infrastructure to support industrial development. This has improved the Quality Of Life for people in the state.

Future of industrial development in Bihar

The future of industrial development in Bihar is bright. The state has a number of advantages, such as a large population, natural resources, and a government that is committed to promoting industrial development. These advantages will help Bihar to attract investment and develop its industries.

Here are some frequently asked questions and short answers about industrial development:

  • What is industrial development?
    Industrial development is the process of increasing the number and size of factories and other industrial enterprises in a country or region. It can be achieved through a variety of means, such as government investment in infrastructure, tax breaks for businesses, and the provision of training and education for workers.

  • What are the benefits of industrial development?
    Industrial development can lead to a number of benefits, including:

  • Increased economic growth: As more factories are built and more goods are produced, the economy will grow. This can lead to higher incomes, more jobs, and a better standard of living for everyone.
  • Increased innovation: Industrial development can lead to new technologies and products being developed. This can help to improve the quality of life for people and make the economy more competitive.
  • Increased employment: As more factories are built, more jobs will be created. This can help to reduce Unemployment and poverty.
  • Increased tax revenue: As businesses grow, they will pay more taxes. This can be used to fund government services and infrastructure.

  • What are the challenges of industrial development?
    Industrial development can also lead to a number of challenges, including:

  • Environmental pollution: Factories can produce a lot of pollution, which can harm the Environment. This can include Air Pollution, Water Pollution, and Noise Pollution.
  • Social problems: Industrial development can lead to social problems, such as crime, overcrowding, and traffic congestion.
  • Economic inequality: Industrial development can lead to economic inequality, as some people benefit more than others. This can lead to social unrest and political instability.

  • What are some examples of successful industrial development?
    Some examples of successful industrial development include:

  • The Industrial revolution in the United Kingdom: The Industrial Revolution began in the United Kingdom in the late 18th century. It was a period of rapid economic growth and technological innovation. The Industrial Revolution led to the development of new industries, such as textiles, iron and steel, and coal mining. It also led to the growth of cities and the development of new transportation systems.
  • The rise of Japan as an economic power: Japan was devastated by World War II. However, the country quickly rebuilt its economy and became one of the world’s leading economic powers. Japan’s success was due in part to its focus on manufacturing and exports.
  • The rise of China as an economic power: China has experienced rapid economic growth in recent decades. The country has become one of the world’s leading producers of goods and services. China’s success has been due in part to its low labor costs, large population, and government support for industry.

  • What are some of the challenges facing industrial development in the future?
    Some of the challenges facing industrial development in the future include:

  • The rise of automation: Automation is the use of machines to do tasks that were previously done by humans. Automation is leading to job losses in some industries, such as manufacturing.
  • The changing nature of work: The nature of work is changing as new technologies are developed. This is leading to the need for workers to be more adaptable and to have new skills.
  • The need for Sustainable Development: Industrial development needs to be sustainable, meaning that it should not damage the environment or harm future generations. This will require businesses to invest in new technologies and to adopt more environmentally friendly practices.

  • What are some of the opportunities for industrial development in the future?
    Some of the opportunities for industrial development in the future include:

  • The growth of emerging markets: Emerging markets are countries that are experiencing rapid economic growth. These countries offer new opportunities for businesses to invest and to sell their products.
  • The development of new technologies: New technologies are constantly being developed, which can lead to new industries and new jobs. Businesses need to be aware of these new technologies and to be prepared to adapt to them.
  • The need for Infrastructure Development: Infrastructure, such as roads, bridges, and Airports, is essential for Economic Development. Businesses need to invest in infrastructure in order to be able to operate effectively.
  1. Which of the following is not a major industry in Bihar?
    (A) Agriculture
    (B) Mining
    (C) Manufacturing
    (D) Tourism

  2. Which of the following is the largest city in Bihar?
    (A) Patna
    (B) Gaya
    (C) Bhagalpur
    (D) Muzaffarpur

  3. Which of the following is the Official Language of Bihar?
    (A) Hindi
    (B) Urdu
    (C) English
    (D) Bengali

  4. Which of the following is the chief minister of Bihar?
    (A) Nitish Kumar
    (B) Lalu Prasad Yadav
    (C) Ram Vilas Paswan
    (D) Tejashwi Yadav

  5. Which of the following is the Literacy rate in Bihar?
    (A) 63.8%
    (B) 70.9%
    (C) 77.7%
    (D) 84.4%

  6. Which of the following is the population of Bihar?
    (A) 104,099,198
    (B) 109,794,037
    (C) 115,598,986
    (D) 121,403,935

  7. Which of the following is the area of Bihar?
    (A) 94,163 sq km
    (B) 96,341 sq km
    (C) 98,521 sq km
    (D) 100,701 sq km

  8. Which of the following is the GDP of Bihar?
    (A) $100 billion
    (B) $110 billion
    (C) $120 billion
    (D) $130 billion

  9. Which of the following is the per capita GDP of Bihar?
    (A) $1,000
    (B) $1,100
    (C) $1,200
    (D) $1,300

  10. Which of the following is theHDI of Bihar?
    (A) 0.614
    (B) 0.624
    (C) 0.634
    (D) 0.644

  11. Which of the following is the poverty rate in Bihar?
    (A) 39.1%
    (B) 41.1%
    (C) 43.1%
    (D) 45.1%

  12. Which of the following is the infant mortality rate in Bihar?
    (A) 44 per 1,000 live births
    (B) 46 per 1,000 live births
    (C) 48 per 1,000 live births
    (D) 50 per 1,000 live births

  13. Which of the following is the life expectancy in Bihar?
    (A) 67 years
    (B) 68 years
    (C) 69 years
    (D) 70 years

  14. Which of the following is the literacy rate for Women in Bihar?
    (A) 51.6%
    (B) 53.6%
    (C) 55.6%
    (D) 57.6%

  15. Which of the following is the literacy rate for men in Bihar?
    (A) 75.3%
    (B) 77.3%
    (C) 79.3%
    (D) 81.3%

  16. Which of the following is the sex ratio in Bihar?
    (A) 919 females per 1,000 males
    (B) 939 females per 1,000 males
    (C) 959 females per 1,000 males
    (D) 979 females per 1,000 males

  17. Which of the following is the unemployment rate in Bihar?
    (A) 10.5%
    (B) 11.5%
    (C) 12.5%
    (D) 13.5%

  18. Which of the following is the agricultural land in Bihar?
    (A) 57.1%
    (B) 59.1%
    (C) 61.1%
    (D) 63.1%

  19. Which of the following is the