The Department of Industries, under the Government of Bihar, plays a crucial role in driving industrial growth and promoting entrepreneurship within the state. Their core focus is on creating job opportunities and supporting economic progress. The vision is to position Bihar as the top choice for investments, utilising its unique strengths and creating a platform for balanced and sustainable growth.
Recently, the TVC Media Team had an insightful discussion with Mr Uttam Kumar from the Investment Promotion Cell within the Department of Industries, Government of Bihar. The exchange shed light on key aspects of industrial development and investment promotion in the state.
What advantages does Bihar offer and why should people consider investing in Bihar?
Thank you for your question. We are the Department of Industries, Government of Bihar, and we are participating in the Bharat Tex event to attract investments, particularly in the textile sector in Bihar. The state has been experiencing a consistent GSDP growth rate of over 10% for several years, and there have been significant improvements in infrastructure, power availability, and industry-friendly policies. A year ago, we introduced a dedicated investment promotion policy for the textile and leather sector, making Bihar an attractive investment destination. To strengthen our business relationships and draw in more investments, both the Invest Bihar team and the Department of Industries are actively engaged in this important event.
Currently, what products do you have?
It is important to note that in the textile clusters across India, 40 to 50% of the workforce comes from Bihar. These skilled workers have been dedicated to the industry for over 2-3 decades, making Bihar an attractive destination for setting up textile units. With a rich pool of human resources, particularly in the apparel and garment sectors, businesses find it advantageous to establish their operations in Bihar. The state government’s proactive outreach has encouraged units from Mumbai to relocate due to the familiarity and heightened productivity of the Bihar-based workforce, resulting in better bottom-line performance. The investor-friendly industrial promotion policies offer lucrative incentives such as up to 150% return on investment, SGSE reimbursement, capital and power subsidies, training support, and plug-and-play industrial sheds, streamlining the setup process and expediting business commencement in Bihar.
What is the market like?
We aim to promote exports, however, we also recognise the significant untapped potential in the domestic sector. Therefore, we welcome units that cater to both the domestic and export markets in Bihar, offering equal support and assistance to help them thrive.
Are there any special projects going on?
Several significant projects are underway in Bihar, with Shahi Exports and High Spirit Ventures establishing large factories in the state, and V2 Retail manufacturing garments in Muzaffarpur district. These prominent industry players attest to the state’s potential and its welcoming environment. Therefore, I extend a cordial invitation to all enterprises in this sector to consider Bihar as a lucrative investment destination, given its inherent opportunities and supportive industrial policies implemented by the state government.
What piece of advice would you offer to the numerous startups and new entrepreneurs entering the market when they decide to invest their capital in the industry?
The start-up buzzword is in effect, with the Bihar state government actively supporting start-ups through a comprehensive policy. This initiative offers numerous incentives to budding entrepreneurs and fosters innovative solutions. Over 550 start-ups have already received recognition and seed funding of 10 lakhs each, as a 0% interest soft loan for 10 years. This funding empowers entrepreneurs to explore and develop their ideas, leading them to the prototyping stage. Additionally, post-seed funding of up to 15 lakhs, a matching grant of 50 lakhs, and a success fee of 2% can be availed, enabling start-ups to access benefits totalling up to 1 crore. The state government aims to inspire and support the youth and innovative individuals in advancing their solutions and ideas.
