Bihar holds investor summit for first time since 2007 to lure investors

Considered one of the economically backward states of the country, Bihar held an investor summit here on Thursday to woo industrialists to the state with the promise of cutting red tape through measures like single window clearance and plug and play facilities along with cheap labour and land.
Bihar Deputy Chief Minister Tarkeshwar Prasad and Industry Minister Shahnawaz Hussain promised industry representatives attending the investor summit that the state will provide the same ease of doing business that is associated with the developed states. This was the first Bihar investor summit since 2007 and the state has lagged behind in industrialization over the years.

Addressing the summit, Hussain said, “Bihar will be among the top five states in providing single window clearance. Everything will be available online.” He emphasised that the need to run to bureaucrats will be minimized. Among the key supports being offered by Bihar are plug and play, single window clearance and financial linkages. The minister also assured that the state has ample land bank for industry and 1719 acres have already been allotted.

Land pools of 2900 acres have been created in the state for industry and 68 industrial areas and mega industrial parks have come up, the officials claimed.

Hussain said Bihar is aware that an investor friendly climate and incentives for profit are necessary for investors to come to the state.

“There have been some issues in the cement industries in the state. I will look into it,” Hussain said.

Among the industrial houses which have shown interest in the state are ITC, Adani, HUL, Coca Cola, Britannia, Pepsi, Godrej, General Electric, Alstom and Varun Beverages. UAE based LuLu group is also reportedly looking at avenues for investment in Bihar. Participants in the summit included Amazon, Flipkart, Samsung, Amul, Usha Martin, Honda, L&T, Arvind Mills, KEI industries and Tata Bluescope.

Bihar Deputy CM Tarkeshwar Singh said labour at cheaper rates is one of the strengths of the state that should help the industrialists. He and Hussain insisted that Bihar has suffered due to the wrong perception created over the years that it does not have much to offer and is not a good investment destination.

Reverse migration during the Covid pandemic and rising unemployment has forced thousands of skilled workers to stay in Bihar. Industrialisation can create jobs for them.

Bihar Chief Minister Nitish Kumar had inaugurated an ethanol plant a few days back. 17 ethanol plants- which will use the high maize yield in the Seemanchal belt of the state, sugarcane and broken rice to produce it- are to come up in Bihar in the coming months.




Textile, leather, food processing are some of the sectors in which Bihar has potential and this can entice investors to put in funds.

However, the challenge posed by annual floods in Kosi river, not enough electricity for industries, bad roads in some parts of the state and the economic backwardness are hurdles that the state will have to overcome to compete with states like Gujarat and Maharashtra.