Industries In Bihar

Bihar is located in the eastern part of India. The state is bordered to the north by Nepal, the east by West Bengal, the west by Uttar Pradesh and the south by Jharkhand. The state benefits from a particular geographic advantage due to its proximity to the sizable markets of eastern and northern India, access to ports like Kolkata and Haldia, and raw material and mineral resources from the neighbouring states.

The state of Bihar is a prime location for a variety of industries due to its substantial pool of inexpensive industrial labour. The Department for Promotion of Industry and Internal Trade (DPIIT) estimates that Bihar received cumulative FDI inflows worth US$ 167.09 million between October 2019 and December 2021.

From the perspective of the next BPSC exam, these topics are important, and finding comprehensive material in the texts takes a lot of work. Therefore to make the task easier for the aspirants a complete list of significant industries and their locations, as well as a list of industrial towns, are provided in this article.

Learn more about the BPSC Exam in detail, by visiting the linked article.

Contribution Of Industrialisation on Economy

The industrial sector is the most significant engine for an economy’s growth. Increased employment, urbanisation, revenue collection (as a result of value creation), and the development of other industries are all consequences of industrialisation. The role of industrialisation in India is as follows:

• Changing Economic Structure: Underdeveloped nations require structural transformation through industrialisation in order to develop their economies. The benefits of industrialisation will ‘trickle down’ to the other sectors of the economy in the form of the development of agricultural and service sectors leading to a rise in employment, output and income.

• Employment Generation: Underdeveloped countries like India are characterized by surplus labour and a rapidly growing population. To absorb all the surplus labour it is essential to industrialise the country rapidly. It is the establishment of industries alone that can generate employment opportunities at an accelerated rate.

• Raising Income: The first important role is that industrial development provides a secure basis for the rapid growth of income. The empirical evidence suggests a close correspondence between the high level of income and industrial development.
• Strengthening the Economy: 
  • The only way to provide the system flexibility and get out of the historical position of being a country that produces primary goods is by establishing industries. By changing the country’s comparative advantage in this way, we can better utilise its resources and human capital.
  • Industrialization enables the manufacture of goods like railways, dams, and other things that cannot be imported. For the economy to continue to thrive in the future, these infrastructures are vital.
  • The rapid expansion and diverse economic structure that come from industrial development provide an economy with a dynamic feature that makes it a progressive economy.

Read in detail about the Industrial Policy of India, in the linked article.

Important Industrial Towns Of Bihar

Following is a list of important industrial towns of Bihar, which can be asked as multiple choice questions in the exam.

Learn about Small scale and cottage industries, in the linked article.

Important Industries Of Bihar 

List of important industries along with their locations are given below in the table. This list is very helpful for candidates who are targeting the BPSC or state exams. 

All aspirants of the civil services or state PCS must go through the following links:

Industrialisation In Bihar

• In Bihar, the agriculture sector employs more than 80% of the population. 
• This figure significantly shows the state of industrialisation in the state. 
• According to data from the Central Statistical Organization (CSO), the market value of industries’ contributions to the GSDP of Bihar was just 20%. 
• Though it employs more than 80% of the population, the agricultural sector is 25% and the service sector contributes 55%. 
• As a result, Bihar’s contribution to India’s industrial output is a dismal 0.5%.
• The little industrial development of the state resulted in high unemployment, migration and low urbanisation. 
• All of these contributed to the state’s population’s socioeconomic deprivation, illiteracy, and low standard of living.

Aspirants can refer to the links below for UPSC/ PCS preparation:

Causes Of Weak Industrial Sector In Bihar

There are many bottlenecks in the industrial policies of the state of Bihar. Some of them are listed below:

• Weak infrastructure, including insufficient and inadequately maintained state and national highways, a lack of significant urban agglomerations, and a weak electrical supply, are some of the reasons for the weak industrial growth in the state.
• Lack of appropriate mineral resources prohibits the state from establishing several industries that use minerals.
• Radical inefficiency and widespread corruption in government agencies limit the ability of new businesses to start up in the state.
• Lack of financial resources to provide a support system to budding entrepreneurs.

Related Links:

Conclusion

The Government of Bihar introduced a well-articulated Industrial Investment Promotion Policy in 2016, which resulted in numerous institutional and strategic changes to industrial policies in the state. As a result, the industrial sector experienced an annual growth rate of about 10.5% in both the 2017–18 and 2018–19 fiscal years.

Some of the industries in the state that are expanding rapidly include food processing, dairy, sugar, manufacturing, and healthcare. The state also offers incentives for information technology and renewable energy projects, and it has planned measures for the growth of other industries including education and tourism.

Candidates can keep themselves updated with the Latest Current Affairs on Industrial policy and other important national and international events by visiting the linked article.

For any further exam updates or study material, candidates can turn to BYJU’S for assistance.