Bihar needs private investment to sustain growth, says Nitish Mishra

Bihar Industry Minister Nitish Mishra outlines new land, policy, and startup initiatives to drive investment, job creation, and transform the state's economic landscape

Bihar’s Industry Minister Nitish Mishra, in a telephonic interview with Shikha Shalini, discusses the aggressive strategy the state has undertaken to transform its economy, such as translating investment proposals into reality to improve the business environment and tackling unemployment issue. Edited excerpts: 

How many proposals from the Bihar Business Connect event and investor meets over the years have translated into operational industries and actual investments? 

We have made significant progress. Of the ₹50,300 crore worth of proposals from the 2023 Bihar Business Connect, projects worth ₹38,000 crore have been grounded, which means they have moved from the proposal stage to becoming operational. For the larger pool of ₹1.81 trillion worth of proposals, we have cleared projects worth ₹92,000 crore. A significant portion of the pending clearances, particularly among the larger projects, relates to renewable energy. Nearly half of all proposed investments are in this sector. 

Since renewable energy projects take longer to get started, how is the government handling this? 

These projects do have a longer gestation period. We are focusing on two areas. First, we are expanding our land bank to ensure that investors have access to the large tracts of land they require. Second, we are preparing a new incentive package, which is expected to get the Cabinet approval soon. This policy will focus on job creation and aims to overcome challenges linked to the long timelines of renewable energy projects. 

Bihar is ranked 26th in the Ease of Doing Business index and is known for land disputes and bureaucracy. What is your ministry doing to improve the business environment? 

Land has historically been a major challenge. To address this, we are growing our land bank. The Bihar Industrial Area Development Authority (BIADA) has added 7,000 acres, with another 7,000 in the pipeline, and is aiming for a total of 15,000 acres across all 38 districts. We are also developing industrial areas in seven districts that previously had none and planning 17 new industrial parks, some of which will be specialised for sectors such as pharmaceuticals and information and technology (IT). A new investment package, which the chief minister recently announced, is awaiting Cabinet approval. This policy is expected to be the most attractive in the country, with incentives like “free land” for investors. To resolve long-standing disputes, BIADA has launched the Amnesty Policy 2025 that is designed to address cases, such as cancelled land allotments of closed industrial units. It also makes it easier for units to change what they produce, for example, shifting from making one product to another. This will help resolve more than 600 pending litigation cases. 

The Bihar Economic Survey 2024-25 shows a Gross State Domestic Product (GSDP) growth of 14.5 per cent at 

current prices, but with a 12.34 per cent rise in state liabilities. How will the government sustain high growth while managing debt? 

Our recent growth has been driven largely by government spending on schools, hospitals, and welfare schemes. To keep this growth going and to manage our debt, we absolutely need private investment. Without it, the current growth cannot be sustained. After the state’s bifurcation in 2000, we had a lot of catching up to do, like building basic infrastructure such as roads and electricity. Now that this foundation is much better, and with new, attractive policies in place, we are confident that we can bring in private investment to boost the industrial sector’s contribution to GSDP and help ease the debt burden. 

With low employment, the lowest per capita income, and a workforce still heavily dependent on agriculture, how will you justify your position in the upcoming election?

 

I think it’s better to work for the future than to debate the past. Our Cabinet has set a clear goal: to create 10 million jobs. The Industry Department is at the forefront of this. We are offering concessional — in some cases, nearly free — land to investors who promise to create jobs.

We also have two flagship schemes to promote entrepreneurship. The Mukhyamantri Udyami Yojana provides grants and loans to women, youth, and minority entrepreneurs to help them start businesses. The Bihar Laghu Udyami Yojana provides a ₹2 lakh grant to the poorest families to establish small businesses. We are working to fast-track this scheme for nearly 9.4 million families. We are focused on improving our industrial ranking and shedding our “backward” image. 

The new investment policy, once approved, will strongly support both small and large industries, with a primary focus on job creation. We have identified key sectors, such as IT, food processing, and biofuels, with textiles being a major priority because it can create large-scale jobs with less land and investment. These are designed to move our economy away from relying on agriculture and public spending towards a more balanced, industrially-driven model, which will help increase per capita income for everyone. 

What progress has Bihar made in supporting the startup ecosystem? 

Bihar’s startup ecosystem has seen significant growth. Last year, we added 1,000 startups under the Bihar Startup Policy, bringing the total number of registered startups to 1,598 as of July 2025. The total includes 230 startups led by women.We also hosted the Bihar Idea Festival, which received around 25,000 ideas from across the state. These ideas are being scrutinised for eligibility under the Startup Policy 2022 for funding support. These startups are diverse, from agri-based to technology-driven initiatives.