PATNA: Bihar has been implementing the Entrepreneurship and Skill Development Programme (ESDP) to promote entrepreneurship and develop skills among young people, but the state’s reach remained lower than the national level in 2025-26. According to the figures provided, 9,138 youth were trained in Bihar during the financial year, compared with 6,29,784 beneficiaries across India.
The ESDP is implemented by the Ministry of Micro, Small and Medium Enterprises (MSME) and is aimed at promoting new enterprises, building the capacity of existing MSMEs and encouraging an entrepreneurial culture. The MSME Ministry’s 2025-26 annual report states that the scheme is implemented across the country.
ESDP Aims to Turn Job Seekers Into Entrepreneurs
The core objective of ESDP is to provide young people with entrepreneurship and skill-development opportunities connected to the MSME sector.
The programme is designed to encourage participants to become job creators rather than only job seekers, helping them develop the skills and knowledge required to start or expand enterprises.
Under the current ESDP guidelines, the programme includes several components:
- Entrepreneurship Awareness Programme (EAP)
- Entrepreneurship-cum-Skill Development Programme (E-SDP)
- Advanced E-SDP
- Management Development Programme (MDP)
- Advanced MDP
The MSME Ministry says these components are designed for different levels of entrepreneurship, skill development and management training.
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Bihar’s ESDP Performance Over Five Years
The figures show that Bihar’s number of programmes and beneficiaries increased significantly between 2021-22 and 2024-25, before declining in 2025-26.
- 2021-22: Bihar — 49 programmes, 3,929 beneficiaries | India — 715 programmes, 59,702 beneficiaries
- 2022-23: Bihar — 132 programmes, 6,079 beneficiaries | India — 4,732 programmes, 2,18,692 beneficiaries
- 2023-24: Bihar — 232 programmes, 12,265 beneficiaries | India — 7,497 programmes, 3,47,042 beneficiaries
- 2024-25: Bihar — 288 programmes, 13,454 beneficiaries | India — 12,575 programmes, 5,69,961 beneficiaries
- 2025-26: Bihar — 204 programmes, 9,138 beneficiaries | India — 13,761 programmes, 6,29,784 beneficiaries
Bihar recorded its highest number of beneficiaries during the five-year period in 2024-25, when 13,454 youth were trained. The figure fell to 9,138 in 2025-26.
₹277.02 Crore Allocated, ₹266.67 Crore Utilised
During the five financial years from 2021-22 to 2025-26, ₹277.02 crore was allocated for the scheme, of which ₹266.674 crore had been spent, according to the figures provided.
This indicates that a substantial portion of the allocated funds was utilised despite the comparatively lower number of beneficiaries in Bihar.
ESDP Implementation in Bihar
In Bihar, the programme is being implemented through coordination among the MSME Ministry, the Directorate of Entrepreneurship and the Bihar Skill Development Mission.
Training programmes are being conducted in Patna and other districts for young people as well as traditional artisans, including Vishwakarma artisans.
The programmes include:
- Three-day entrepreneurship programmes
- Long-term entrepreneurship development programmes
- Skill-oriented training
- Entrepreneurship-focused programmes for traditional artisans
Institutions such as IIM Bodh Gaya, CIPET centres in Vaishali and Bhagalpur, and Chandragupt Institute of Management Patna have also been associated with training activities.
Industrial Ecosystem and Credit Access Remain Challenges
Several factors can affect the ability of trained youth to convert skills into enterprises and employment.
The challenges identified include:
- Limited availability of large industries and manufacturing hubs
- Difficulty in absorbing trained youth locally
- Delays and paperwork involved in obtaining bank loans for startups
- A gap between conventional technical training and emerging industry requirements
- Relatively limited interest in entrepreneurship among sections of the population
The growing demand for skills in areas such as artificial intelligence and digital marketing is also creating a need for training programmes to adapt to newer industry requirements.
States With Higher ESDP Participation
The states identified as making comparatively greater use of the ESDP include:
- Andhra Pradesh
- Assam
- Gujarat
- Karnataka
- Kerala
- Madhya Pradesh
- Maharashtra
- Odisha
- Punjab
- Rajasthan
- Tamil Nadu
- Telangana
- Uttar Pradesh
The differences across states are linked to varying industrial ecosystems, entrepreneurship activity, institutional capacity and local implementation conditions.
Skill India International Centre to Strengthen Bihar’s Skilling Ecosystem
Bihar is also set to receive a Skill India International Centre (SIIC) aimed at preparing young people for international employment opportunities.
In July 2026, the Ministry of Skill Development and Entrepreneurship and the Bihar government exchanged an MoU for establishing the centre in Bihar. The proposed centre will receive approximately ₹7 crore in capital investment from the Government of India.
The centre is expected to provide:
- Foreign-language training
- International employment counselling
- Certification guidance
- Pre-departure orientation
- Safe-migration support
- Industry-aligned training for high-demand sectors
The centre will offer training in languages including English, German, Japanese and French, while supporting pathways to international employment.
Scope for MSME and Entrepreneurship Growth in Bihar
With Bihar having a large young population, entrepreneurship and skill-development programmes have the potential to support the expansion of the MSME and unincorporated sectors.
The ESDP’s focus on entrepreneurship, skills and management can help bridge the gap between training and enterprise creation. However, improving access to finance, strengthening industrial infrastructure and aligning training with emerging industry requirements remain important factors in expanding the programme’s impact.
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