Bihar: Industry and MSMEs

The Department of Industries, Government of Bihar is responsible for industrial and entrepreneurship development in the state, to generate employment and foster economic development. In July 2026 it published the Draft Bihar MSME Policy 2026 for comments, with targets for formalising MSMEs and creating jobs. The industrial framework rests on the Bihar Industrial Investment Promotion Policy, 2016.

Department of Industries

• Role: comprehensive industrial and entrepreneurship development in Bihar, generating employment and fostering economic development.
• Vision: to establish Bihar as the most preferred investment destination by using the state's comparative advantages.
• The vision also aims at balanced regional and sustainable development.

Draft Bihar MSME Policy 2026: Targets

• The policy is a draft issued by the Department of Industries inviting comments and suggestions.
• Formalisation: 1 crore MSMEs to be formalised, in both manufacturing and service sectors.
• Jobs: more than 1 crore direct and indirect employment.
• Global value chains: integration of 500+ MSME Champions into global value chains.
• Technology centres: 4 Technology Centre/Extension Centres at Koshi, Bhagalpur, Munger and Purnia, as per the 7-Nishay of the Government of Bihar.
• Training: 1 lakh MSMEs per year to be trained on Industry 4.0 and sector-specific industrial training.

Bihar Industrial Investment Promotion Policy, 2016

• Original policy: notified vide no. 1822 dated 01.09.2016.
• 1st amendment: no. 108 dated 20.01.2020.
• 2nd amendment: no. 883 dated 29.06.2020.
• 3rd amendment: no. 1296 dated 11.09.2020.
• SGST reimbursement process: notification no. 1229 dated 15.06.2021.

Schemes Listed by the Department

• Bihar Industrial Policy and Private Industrial Area.
• Food processing: Integrated Development Food Processing Sector Yojana, Food Park Yojana and Opportunities for Food Processing Industry.
• Storage: Establishment of Silo for Storage of Maize and Establishment of Cold Storage under Krishi Road Map.
• Clusters: CM Micro & Small Industries Cluster Development Scheme.
• Promotion events: International Business Fair, NRI Day, Bihar Utsav, and the Aao Bihar Scheme.
• Central schemes: Prime Minister's Employment Generation Programme and PMFME.
• Also listed: a sericulture scheme and an ethanol policy.

Industry in the Economy (Economic Survey 2025-26)

• Shares of GSVA in 2024-25 at constant (2011-12) prices: primary 18.3%, secondary 26.8%, tertiary 54.8%.
• Between 2020-21 and 2024-25, the secondary sector's share rose from 21.1% to 26.8%, mainly due to growth in construction and manufacturing.
• Over the same period the primary share fell from 21.9% to 18.3% and the tertiary share from 57.0% to 54.8%.
• Secondary sector growth, 2024-25 (quick estimates): 11.1% at constant prices and 15.5% at current prices.
• Tertiary sector growth: 8.9% (constant) and 13.5% (current); primary sector: 4.1% and 9.6%.
• Gross Fixed Capital Formation nearly doubled in five years to ₹34,905 crore in 2024-25, 3.5% of GSDP.