Industries Minister Shreyasi Singh markets Bihar as a new hub for investment

With only three months remaining before the November deadline to reach Bihar’s ambitious investment goal of Rs 5 lakh crore, Industries Minister Shreyasi Singh has expressed confidence that the state is on track to not only meet but potentially surpass the target. In an interview, Singh outlined a multifaceted strategy aimed at attracting capital, streamlining bureaucratic hurdles, and building up industrial infrastructure across sectors such as steel, leather, garments, and ethanol.

Singh highlighted a shift in governance from control to facilitation, a grassroots push for entrepreneurship at the family level, and a commitment to establishing an industrial area in every district. Significant investments are being funneled through not only industry, but also sectors like renewable energy, food processing, health, education, and tourism. According to Singh, while collecting data across different departments is complex, the response from investors has been robust, with investments flowing into both the public and private sectors ahead of the scheduled Bihar Business Connect event expected in November.

Investors, Singh said, have historically viewed Bihar with caution due to its “badlands” reputation in the 1990s. However, she emphasized that this perception has shifted, especially since the tenure of former Chief Minister Nitish Kumar. Singh insists that bureaucratic red tape has been cut back significantly, and she cites Bihar’s untapped opportunities in food processing, tourism, and hospitality as major selling points in discussions with potential partners in Delhi, Mumbai, Bengaluru, and other cities.

Regarding the preparation of land banks, a traditional barrier to investment, Singh explained that farmers are generally compensated at four times the prevailing circle rate, funded through central tax allocations and a new Rs 25,000 crore infrastructure loan. The state is currently acquiring roughly 14,600 acres for industry and is utilizing 2,247 acres of Bettiah Raj forest land under state control. This push to improve land availability is paired with a new plug-and-play policy that offers ready-to-use facilities to investors and a single-window system for obtaining approvals, which are either processed within 30 days or automatically cleared.

The investment profile in Bihar has changed significantly over the last decade. Sectors such as renewable energy, steel, food processing, garments, and leather have all seen major inflows. According to the State Investment Promotion Board, by September 2025 Bihar had secured proposed investments totaling Rs 1.11 lakh crore, led by renewable energy (Rs 38,644 crore), ethanol (Rs 30,748 crore), and food processing (Rs 20,153 crore). These numbers are considerably higher than the Rs 2,500 crore in investments achieved from 2016 to 2022.

A symbol of Bihar’s industrial turnaround is the launch of Asia’s largest ethanol plant by Ankur Biochem in Jamui, a region previously affected by Maoist violence. Spanning 3,000 acres, this facility is slated to produce 7.5 lakh liters of ethanol daily and is one of about a dozen ethanol plants at various stages of completion in the state.

Major business groups such as the Ambani and Adani conglomerates, Shyam Steel, UltraTech Cement, and Haldiram’s are among those entering Bihar, according to Singh. Meanwhile, the state has seen the ongoing operation of India’s largest bag manufacturing unit in Muzaffarpur and 1,653 registered start-ups, including 241 led by women. Bihar stands out as the only state offering direct funding for start-ups from the ideation stage, in a bid to foster local innovation and entrepreneurship.

With these initiatives underway, officials are optimistic that Bihar’s shifting industrial landscape will continue to attract investors and position the state as an emerging manufacturing hub. The final investment tally is expected to be announced at the Bihar Business Connect summit later this year.