With a rich resource base, affordable labour & expansive market, Bihar presents a compelling case for industrial growth Bihar is on the move. Once considered less favourable for industry, the state is now witnessing an influx of investments. Prominent companies like the Sun Pharmaceuticals, Adani Group, NHPC and Coca-Cola lined up at the recently held Business Connect meet in the state capital and unveiled Rs 1.8 lakh crore investment proposals for the state. This transformation is driven by the state's strategic use of its extensive resources and progressive policies aimed at attracting investors.
These investments in multiple sectors have potential to create direct and indirect employment in the state, which has a dismal unemployment rate – it was 17.5% in March 2023. Sadly, it is the highest in the country. Bihar has had the highest unemployment rate for the last two years. Lack of employment opportunities had pushed Bihar migrants to leave their native state and relocate to more industrialised states, which had an adverse effect on the unemployment rate.
One of the primary reasons for unemployment in Bihar has been the lack of industrialisation and economic development in the state. There are a few large-scale industries and job opportunities, and the agricultural sector, which employs a significant portion of the population, has limited scope for growth, as per the Economic Survey of the state.  
The economy of Bihar is largely service oriented, but it also has a significant agricultural base. The state also has an industrial sector. Agriculture accounts for 35%, industry 9% and service 55% of the economy of the state. There is virtually no manufacturing sector in Bihar, but its share is increasing.
Big-ticket Investments
The Adani Group plans to invest around ₹ 28,000 crore to set up thermal power plant and cement manufacturing capacity, and expand logistics and city gas distribution businesses in Bihar with the potential of creating 53,500 jobs in the state. "We are exploring investments in Bihar's energy sector. Our plan is to invest around ₹ 23,000 crore to set up an ultra-super critical thermal power plant. We expect such a massive project to open at least 12,000 job vacancies in the pre-commissioning phase and lead to 1,500 skilled jobs during the operational stage," said Adani Enterprises Director Pranav Adani at Bihar Business Connect meet in Patna in December 2024.
The conglomerate has already invested ₹8,50 crore in Bihar in logistics, gas distribution and agri logistics sectors, creating about 2,5000 direct and indirect employment opportunities.
Sun Petrochemicals will invest Rs 36,700 crore in renewable energy, including pump hydro and solar plants whereas SLMG Beverages (a bottler for Coca-Cola) committed Rs 3,000 crore. NHPC, India's largest hydroelectric producer, committed an investment of Rs 5,500 crore in setting up 1,000 MW solar project while Shree Cements Rs 800 crore and Haldiram Snacks Pvt Ltd Rs 300 crore.

What it means for Bihar?
"Bihar presents a compelling case for industrial growth, particularly in large industries, which not only provide employment but also create an ecosystem of ancillary manufacturing, service sectors, and allied units, thereby propelling growth in the MSME sector," said former IIM-A Professor Piyush Kumar Sinha. A native of Bihar, he added that the state has a rich resource base, affordable labour, and an expansive market.
Bihar is making up for lost time. According to state industries and tourism minister Nitish Mishra, “Bihar has been a victim of perception but that is changing now with new policies and substantial investments in infrastructure, such as roads, highways, and power plants.”
“The readiness of the industry to invest in Bihar signals that the state has shed its reputation for law-and-order problems, corruption, and incompetence,” said a senior journalist in Bihar. “This shift helps attract more investment and build a business-friendly environment. It is a win-win for all stakeholders: industries receive red carpet treatment and earn profits, people gain employment, which curbs internal migration, and the state progresses in rebuilding its economy, reputation, and future,” she added.