**Executive Summary**
This document outlines the Indian government's response to parliamentary questions regarding the development of industries in Bihar, to be answered on February 3rd, 2026. It details various central government programs and initiatives aimed at promoting industrial development, investment, and employment generation in the state. It also describes the Bihar Industrial Investment Promotion Package (BIIPP), 2025, valid until March 31st, 2026.
**Key Points / Main Content**
* **Government's Role:** The primary responsibility for industrial development rests with State Governments, with the Union Government supplementing efforts through schemes, programs, and policy initiatives.
* **Central Government Initiatives:**
* Includes Scheme for Investment Promotion, Ease of Doing Business (EoDB), Industrial Infrastructure Upgradation Scheme, Production Linked Incentive (PLI) Scheme, Integrated Manufacturing Clusters (IMCs), Startup India, Make in India, PM Gati Shakti, National Infrastructure Pipeline (NIP), National Single Window System (NSWS), India Industrial Land Bank (IILB), reforms in Foreign Direct Investment (FDI), Project Monitoring Group (PMG).
* Specific initiatives for MSMEs include Prime Minister's Employment Generation Programme, Credit Guarantee Scheme for Micro and Small Enterprises, Micro and Small Enterprises-Cluster Development Programme, Raising and Accelerating MSME Performance, Self Reliant India Fund.
* **Bihar's MSME Ecosystem:**
* Bihar has witnessed significant expansion in its MSME ecosystem, hosting 35.84+ lakh MSMEs and ranking as the 6th best-performing state in MSME growth.
* Annexure A details the status of industries in Bihar.
* **Entrepreneurship and Startup Support:**
* The Government implements Entrepreneurship Development Programmes (EDP) and Entrepreneurship and Skill Development Programmes (ESDP).
* Initiatives include the Fund of Funds for Startups (FFS), Startup India Seed Fund Scheme (SISFS), and Credit Guarantee Scheme for Startups (CGSS).
* As of December 31st, 2025, supported AIFs have invested ₹196.06 crore in startups from Bihar.
* As of December 31st, 2025, SISFS has approved funds of ₹8.78 crore to startups from Bihar.
* As of December 31st, 2025, ₹28 lakhs has been guaranteed to startup borrower from the State of Bihar under CGSS.
* **Integrated Manufacturing Cluster (IMC):**
* An IMC in Gaya, spanning 1,670 acres, has been approved as part of the Amritsar Kolkata Industrial Corridor (AKIC).
* The total project cost is ₹1,339 crore, with a projected investment potential of ₹16,524 crore, expecting to create approximately 1 lakh jobs.
* **Bihar Industrial Investment Promotion Package (BIIPP), 2025:**
* Valid up to March 31st, 2026, aiming to attract fresh industrial investment and promote employment generation.
* Offers incentives such as capital subsidy, interest subvention, SGST reimbursement, employment generation incentive, export incentive, and allotment of industrial land at a token rate.
**Impact Analysis**
**Stakeholder: Government of Bihar**
* **Impact:** The State Government is responsible for industrial development, and this document informs them of the support and initiatives available from the Central Government.
* **Action Required:** To implement state-level policies that align with and leverage the central government schemes to promote industrial growth.
**Stakeholder: Entrepreneurs and Startups in Bihar**
* **Impact:** Potential beneficiaries of the various schemes and initiatives mentioned in the document.
* **Action Required:** To understand and apply for the relevant programs to access financial assistance, skill development, and infrastructure support.
**Stakeholder: Investors (Domestic and Foreign)**
* **Impact:** Informed about the investment climate and opportunities in Bihar's industrial sector, including incentives and infrastructure development.
* **Action Required:** Assess the viability of investing in Bihar based on the details of the incentives, infrastructure projects, and the overall industrial ecosystem.
**Stakeholder: MSMEs in Bihar**
* **Impact:** Directly affected by the schemes and initiatives specifically targeted at MSMEs, designed to improve their performance and access to credit.
* **Action Required:** Meeting the guidelines and the eligibility criteria for Micro, Small and Medium Enterprises (MSME) sector schemes such as Prime Minister's Employment Generation Programme, Credit Guarantee Scheme for Micro and Small Enterprises, Micro and Small Enterprises-Cluster Development Programme, Raising and Accelerating MSME Performance, Self Reliant India Fund, etc.
Key Entities Referenced
Bihar: The Indian state, which is the primary geographic focus of the question and related policy discussion concerning industrial development, investment, and employment generation.
Ministry of Commerce & Industry: The central ministry responsible for promoting industry and internal trade in India, answering parliamentary questions related to industrial development in Bihar.
Startup India: A Government of India initiative to build a strong ecosystem for nurturing innovation and Startups in the country that will drive sustainable economic growth and generate large scale employment opportunities.
Make in India: An initiative by the Government of India to encourage companies to manufacture their products in India and boost domestic production.
Bihar Industrial Investment Promotion Package (BIIPP), 2025: The industrial policy package notified by the Government of Bihar to attract industrial investment and promote employment generation in the state.
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE & INDUSTRY
DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE
LOK SABHA
UNSTARRED QUESTION NO. 565.
TO BE ANSWERED ON TUESDAY, THE 03RD FEBRUARY, 2026.
INDUSTRIES IN BIHAR
565. DR. ALOK KUMAR SUMAN:
Will the Minister of COMMERCE AND INDUSTRY be pleased to state:
वाणिज्य एवं उद्योग मंत्री
(a) the present status of development of small, medium and large industries in
Bihar;
(b) the Central Government programmes and initiatives being implemented to
attract new industries and investments in the State;
(c) the steps being taken to ensure availability of infrastructure facilities such as
industrial land, logistics, power supply and connectivity for industries;
(d) the status of financial assistance, credit support and skill training programmes
available for entrepreneurs and startups in Bihar; and
(e) the additional measures proposed by the Government to promote industrial
development, investment and employment generation in the State in the
coming year?
ANSWER
वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री (श्री णिणिन प्रसाद)
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY
(SHRI JITIN PRASADA)
(a) to (c): The primary responsibility for developing the industrial sector rests with the
State Governments, which adopt different policy measures to promote
industrial development. The Union Government supplements the efforts of the
State/UT Governments through various schemes, programmes, and policy
initiatives for the overall development and promotion of industry across the
country, including in Bihar. These initiatives include the Scheme for Investment
Promotion, Ease of Doing Business (EoDB) and initiatives aimed at reducing
compliance burden, the Industrial Infrastructure Upgradation Scheme, the
Production Linked Incentive (PLI) Scheme, Integrated Manufacturing Clusters
(IMCs) under the National Industrial Corridors, Startup India, Make in India, PM
Gati Shakti, National Infrastructure Pipeline (NIP), National Single Window
System (NSWS), India Industrial Land Bank (IILB), reforms in Foreign Direct
Investment (FDI), Project Monitoring Group (PMG). Some of the initiativesspecific to the Micro, Small and Medium Enterprises (MSME) sector are Prime
Minister's Employment Generation Programme, Credit Guarantee Scheme for
Micro and Small Enterprises, Micro and Small Enterprises–Cluster
Development Programme, Raising and Accelerating MSME Performance, Self
Reliant India Fund, etc. Benefits under these schemes are available to all
eligible MSMEs throughout the country, subject to meeting the guidelines and
the eligibility criteria.
Govt. of Bihar has informed that Bihar has witnessed a significant expansion in
its MSME ecosystem, driving industrial transformation across the state. Bihar
hosts 35.84+ lakh MSMEs, positioning it as the 6th best-performing state in the
country in MSME growth and performance under NSSO Round 73rd. Status of
Industries in Bihar is annexed at “Annexure A”.
(d) & (e): The Government has been implementing various initiatives to promote
entrepreneurship development in the country including Bihar which inter alia
includes Entrepreneurship Development Programmes (EDP) and
Entrepreneurship and Skill Development Programmes (ESDP). Further, the
Government is implementing three flagship Schemes, Fund of Funds for
Startups (FFS), Startup India Seed Fund Scheme (SISFS), and Credit
Guarantee Scheme for Startups (CGSS) to provide funding opportunities and
support startups across sectors at various stages of their business cycle. FFS
has been established to catalyze venture capital investments and is
operationalized by Small Industries Development Bank of India (SIDBI), which
provides capital to Securities and Exchange Board of India (SEBI)-registered
Alternative Investment Funds (AIFs) which in turn invest in startups.
Supported AIFs have invested around Rs. 25,547.98 crore in 1,371 startups
from across the country as on 31st December 2025. Of this, Rs. 196.06 crore
have been invested in startups from the State of Bihar as on 31st December
2025. SISFS provides financial assistance to seed stage startups through
incubators. SISFS is implemented from 1st April 2021. Supported incubators
under the Scheme have approved funds of around Rs. 590.93 crore to 3,271
Startups as on 31st December 2025. Of this, Rs. 8.78 crore have been
approved to startups from the State of Bihar as on 31st December 2025. CGSS
is implemented for enabling debt funding to startups through eligible financial
institutions. CGSS is operationalized by the National Credit Guarantee Trustee
Company (NCGTC) Limited and has been operationalized from 1st April 2023.
As on 31st December 2025, 334 loans amounting to around Rs 808.18 crore
have been guaranteed to startup borrowers under CGSS. Of this, Rs. 28 lakhs
have been guaranteed to startup borrower from the State of Bihar as on 31st
December, 2025.
Govt. of India has approved development of an Integrated Manufacturing
Cluster (IMC) in Gaya admeasuring 1,670 acres in state of Bihar as part of the
Amritsar Kolkata Industrial Corridor (AKIC) under National Industrial Corridor
Development Programme (NICDP). The total project cost approved by Govt. of
India for development of internal trunk infrastructure is Rs. 1,339 crore (incl.land cost) with a projected investment potential of INR 16,524 crore and is
expected to create approximately 1 lakh jobs.
Further, Govt. of Bihar has notified the Bihar Industrial Investment Promotion
Package (BIIPP), 2025, valid up to 31.03.2026, to attract fresh industrial
investment and promote employment generation. The package provides
incentives such as capital subsidy, interest subvention, SGST reimbursement,
employment generation incentive, export incentive and allotment of industrial
land at a token rate of ₹1 per acre for eligible High Priority and employment-
intensive projects, along with customized incentive packages for large and
mega projects.
*********ANNEXURE - A
ANNEXURE REFERRED TO IN REPLY TO PARTS (a) to (c) OF THE LOK SABHA
UNSTARRED QUESTION NO. 565 FOR ANSWER ON 03.02.2026.
Formal Micro Enterprises: 16,02,692 units, with investments increasing from
₹68 Cr to ₹250 Cr, reflecting nearly 3x growth between FY22 and FY23.
Small Enterprises: 11,646 units, with investment growth from ₹237 Cr to ₹684
Cr, marking a 130% increase.
Medium Enterprises: 560 units, with investments rising from ₹163 Cr to ₹470
Cr, registering nearly 3x growth.
Informal Micro Enterprises: 19,95,226 units, as per NSSO 73rd Round.
**********