Patna: The Bihar Government has initiated a major overhaul of its Micro, Small and Medium Enterprises (MSME) ecosystem by preparing the Draft Bihar MSME Policy 2026, a comprehensive roadmap aimed at transforming the state into a vibrant hub for entrepreneurship, manufacturing, investment and employment generation.
Prepared by the Directorate of MSME under the Department of Industries, the draft policy envisions building a competitive, future-ready and innovation-driven MSME sector capable of driving sustainable industrial growth across Bihar. As part of the policy formulation process, the state government has invited policy experts, academicians, entrepreneurs, industry leaders, development professionals and other stakeholders to review the draft and submit their suggestions before the policy is finalised.
The initiative forms part of a broader industrial transformation strategy under the economic vision of Chief Minister Samrat Choudhary, with the government simultaneously restructuring the MSME Directorate, strengthening institutional partnerships and engaging the global Bihari diaspora to attract fresh investments into the state.
Government Seeks Stakeholder Feedback
The Department of Industries has opened the draft policy for public consultation to ensure that it reflects the aspirations and practical needs of Bihar’s MSME sector.
Sharing the announcement on social media, Ashish Prakash, Monitoring and Evaluation Manager at the Department of Industries, Government of Bihar, said the government is keen to receive inputs from a wide range of stakeholders.
He noted that the perspectives of policy experts, academicians, entrepreneurs and industry professionals would play an important role in strengthening the policy framework and ensuring it effectively addresses the opportunities and challenges facing Bihar’s MSMEs.
According to him, the proposed policy aims to promote:
- Entrepreneurship
- Private investment
- Innovation
- Employment generation
- Ease of Doing Business
- Sustainable industrial growth
He also invited interested stakeholders to review the draft policy by contacting him through LinkedIn and encouraged constructive feedback to help build a stronger MSME ecosystem in Bihar.
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Major Restructuring of MSME Directorate Underway
Alongside the policy consultation process, the Bihar Government has also begun a comprehensive restructuring of its MSME Directorate to improve institutional efficiency and strengthen implementation capacity.
The move is expected to modernise the state’s industrial support framework and enable faster delivery of services to entrepreneurs, startups and MSMEs.
Officials believe that institutional reforms will complement the proposed policy by creating a more responsive and investment-friendly governance structure.
High-Level Meetings in Hyderabad Shape New Policy
The drafting of Bihar’s new MSME policy follows a series of high-level consultations led by Kundan Kumar, Secretary, Department of Industries, Government of Bihar, and Managing Director of both the Bihar Industrial Area Development Authority (BIADA) and the Infrastructure Development Authority (IDA).
During his official visit to Hyderabad, Kumar held extensive discussions with senior officials and industry experts to study successful industrial development models and adopt national best practices.
Among those he met were:
- Vivek Kumar, Programme Director, National Institute for Micro, Small and Medium Enterprises (ni-MSME)
- Surya Prakash, SED Director, MSME Telangana
The discussions focused on strengthening institutional capacity, developing a sustainable industrial ecosystem, promoting grassroots entrepreneurship and creating a more investor-friendly policy framework.
Focus on Entrepreneurship and Employment Generation
The proposed Bihar MSME Policy 2026 is expected to become a key pillar of the state’s industrial strategy by encouraging both domestic and external investment.
The government aims to create an ecosystem that supports:
Promotion of Entrepreneurship
The policy seeks to encourage first-generation entrepreneurs and strengthen startup culture across urban and rural Bihar through improved institutional support and easier access to opportunities.
Investment Promotion
By simplifying procedures and offering a more conducive business environment, the government hopes to attract private investment into manufacturing and service sectors.
Employment Generation
The MSME sector is expected to emerge as a major source of employment, particularly for the state’s large youth population.
Innovation and Competitiveness
The draft policy also places emphasis on innovation, technology adoption and improving the competitiveness of Bihar’s MSMEs in national and global markets.
Ease of Doing Business
Improving regulatory processes and creating a business-friendly environment remain central objectives of the proposed reforms.
Bihar Looks to Diaspora for Industrial Investment
As part of its investment outreach, the Industries Department also held an important interaction with members of the Hyderabad Chapter of the Bihar Foundation, seeking to mobilise the Non-Resident Bihari (NRB) community for industrial development in the state.
The meeting was attended by:
- Manvendra Mishra, Chairman, Bihar Foundation Hyderabad Chapter
- Uttam Yadav, Secretary
- Hareram Singh, President, Bihar Association
Discussions focused on creating industrial partnerships, encouraging diaspora investments and increasing the participation of Non-Resident Biharis in Bihar’s manufacturing and industrial growth.
The government believes that leveraging the expertise, capital and professional networks of the global Bihari community can significantly accelerate industrialisation in the state.
Government Committed to Building Modern Industrial Ecosystem
Highlighting the government’s long-term vision, Industries Secretary Kundan Kumar reaffirmed Bihar’s commitment to creating an agile, transparent and investment-friendly industrial environment.
He said that institutional collaborations established during the Hyderabad visit, along with greater engagement with the global Bihari diaspora, represent important steps toward positioning Bihar as a preferred destination for modern industries and manufacturing investments.
According to Kumar, the state’s focus remains on building a conducive ecosystem that promotes entrepreneurship, attracts investment and creates large-scale employment opportunities.
Towards a Future-Ready MSME Ecosystem
With the Draft Bihar MSME Policy 2026 now open for stakeholder consultation, the state government hopes to develop a comprehensive policy that balances industrial growth with inclusive development.
Combined with institutional reforms, industry partnerships and investment outreach, the new policy is expected to play a significant role in strengthening Bihar’s manufacturing base, enhancing ease of doing business and positioning the state as an emerging industrial hub in eastern India.
