In a significant milestone for economic development, the National Statistical Office (NSO) has reported that Bihar’s industrial sector contributed 21.5% to the state’s Gross State Domestic Product (GSDP) in the financial year 2023-24. This impressive rise is largely driven by the rapid expansion of small and micro industries, along with robust performance from the construction sector.
According to the report, small industries grew by 135%, while large industries registered 131% growth compared to the previous financial year, showcasing a balanced industrial expansion across scales.
Existing Industries Attract Major Investment
The year also witnessed a strategic shift in industrial investment trends. More capital flowed into the expansion of existing industries than into setting up new ones.
- A total of Rs. 8,464.5 crore was invested in 769 operational industries, generating 31,749 new jobs.
- Simultaneously, the Industry Department received fresh investment proposals worth Rs. 5,642.57 crore for setting up new industrial units.
This balanced investment approach has not only created employment but also strengthened Bihar’s industrial foundation.
Industrial Establishments Increase by Over 58%
Reflecting Bihar’s expanding industrial base, the number of industrial establishments rose significantly:
- In 2022-23, there were 37.01 lakh industrial units.
- By 2023-24, the figure jumped to 58.51 lakh, registering a growth of over 58% in just one year.
This growth demonstrates increasing entrepreneurial activity and the state’s supportive environment for industrial development.
Construction Sector Leads Industry Contribution
The construction sector alone contributed 50% of the total 21.5% industrial share in Bihar’s GSDP. This highlights the government’s infrastructure push, which includes housing, roads, and public works, as a key growth driver.
Such large-scale construction activities not only support the economy directly but also stimulate demand in cement, steel, labor, logistics, and equipment manufacturing, creating ripple effects across multiple sectors.
Agriculture Equipment, Textile, and Food Processing Sectors Emerge Strong
The NSO report also highlights the role of small-scale, agriculture-linked manufacturing units in Bihar’s industrial growth. These include:
- Units manufacturing agriculture equipment like pumps and threshers.
- Textile and handloom enterprises producing shoes, bags, and ready-made garments.
- Food processing units involved in grain, milk, fruit, and vegetable processing across various districts.
Notably, many large firms have also entered these sectors, reflecting growing investor confidence in Bihar’s industrial potential.
A Promising Industrial Future for Bihar
With strategic investments, increased employment, and robust growth across both micro and large-scale sectors, Bihar is transitioning from an agrarian economy to an emerging industrial hub. The data from 2023-24 underscores a promising future for inclusive and diversified industrial development under a focused policy regime.
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