What is industrialization?
Industrialization means the process of transformation of the economy
from an agro-based economy[ agriculture and allied activities] to an
industries-based [manufacturing of goods and services].
Status of industrialization in Bihar :
As per various estimates, the following facts indicate the low level of
industrialization or industrial backwardness of Bihar:
75 to 77 percent of the total workforce of Bihar is still involved in
agricultural activities. It is the highest in India.
The share of agriculture sectors in GDP is also high, it is about 25 %.
Which is higher than the national average( 16.38 % at a constant price of
2011-12).
the contribution of the Industry sector to the state GDP is about 20 %
at the constant price 2011-12 which is far below the national average [ it is
about 29.5 % at the constant price 2011-12].
The above two facts indicate that Bihar is an Industrial backward state.
Causes of the Industrial backwardness of Bihar:
The following are the causes of the Industrial backwardness of Bihar:
Lack of mineral resources
Weak infrastructures system
Lack of skilled laborers
Lack of capital and investment
Unfavourable governance environment
Lack of mineral resources:
Bihar neither has large mineral resources such as coal, iron ore,
bauxite, etc nor has ports to import the mineral resources from abroad for
the establishment of heavy industries. For this reason, large industries in
Bihar are not present.
Weak infrastructures system:
Basic infrastructure such as electricity, highways, large urban
agglomeration center, etc are lacking in Bihar; as a result, other industries
such as IT, agro-based industries, footloose industries, etc are also not
attracted to the state.
Lack of skilled laborers:
The literacy rate in Bihar was 61.80 in 2011 which is the lowest in the
country. The quality of education is very poor in Bihar. There are not many
skilled people available in Bihar to attract service-based industries such as
IT.
Lack of capital and investment
As about 52 % of the state population is living below the poverty line,
they do not have much money for saving. Low saving leads to low capital
formation and investment which leads to low urbanization and
industrialization.
Unfavorable governance environment:
Rape tapes, rampant corruption, and demands for extortion by
powerful criminals kept draining skills, and capital from the state and
created a bad image for investors as well.
Consequences of Industrial backwardness of Bihar:
The following are the consequences of the Industrial backwardness of Bihar:
High migration
Brain drain
Low urbanization
High level of poverty
Lack of revenue source for the government
Low-level socio-economic development.
Low capital formation
High migrations from the state:
Due to the industrial backwardness in Bihar, there are low livelihood opportunities
in the state as a result people go to other states such as Maharashtra, Punjab,
Haryana, Tamil Nadu, and others the search of employment.
Migration from state leads to:
Brain drain
Demographic changes[ generally young male migrates and females,
children, and old people remains in the village]
Low urbanization:
Industries help to speed up urbanization.
Urbanization [ people living in urban areas] in Bihar is about 11.3 %
and it is far below India's average[ 32 %].
High Level of Poverty
There is an inverse relationship between the level of industrialization
and poverty. There is low poverty in highly industrialized areas.
because of low industrialization in the state, around 52 % of the Bihar
population is living below the poverty line and it is the highest in the
country. The per capita income of the people is also the lowest in the
country.
Low-level socio-economic development:
There is an inverse relationship between the level of industrialization of
socioeconomic development of the area.
Bihar is bottom in all the socio-economic parameters of the country. The following
are some indicators:
HDI values in 2018: 0.576.
Life expectancy at birth(2014-18): 69.1 years
Infant mortality rate: 32/1000
Maternal mortality ratio: 149/1 lakh births
Per capita income( 2017-18): Rs. 38631 per annum.
The above indicator shows that there is low socio-economic development in Bihar
and it is largely because of the low level of industrialization in the state.
Economic survey Facts
Abstract
The corner stone of Industrial development in the state has been the Bihar Industrial
Investment Promotion Policy 2016
During recent years, Bihar state Milk Co-operative Federation Ltd.COMFED has been in an
expansionary mode except during the Pandemic.
The sugar industry also enlarged the production base by incorporating the production of
ethanol and electricity from by-products of sugar.
Ethanol Production Promotion Policy 2021.
Oxygen Production Promotion Policy 2021
Mukhya Mantri Mahila Udyami Yojna
Mukhya Mantri Yuva udyami Yojna
Mukhya Mantri Mahila Sc/ST/EBC Udyami yojna
To promote entrepreneurship among disadvantaged social groups in the state.
Minerals revenue collection increased.
Tourist decreases so government trying to increases the tourism.
The data suggests that between 2015-2016 and 2019-20, the contribution of the industrial
sector in GSVA has declined for both Bihar and India.
In Bihar, the decrease was marginal from 20.3 to 20.1, but in India, the decreases was
substantial from 31.6 to 29.6 %
The growth rate of fixed capital and net value added were 21.0 and 19.2 % respectively
and it was much higher than that at the all-India level
Net value added – Bihar 19.2 in Bihar and 6.9 in India
Agro Based industry- Sugar and Diary
11 sugar mills in bIhar , 10 were functional in 202-21.
The distilled capacity to produce ethanol was the highest in Harinagar sugar Mill,
producing kilo litre per day ethanol in 202-21.
In case of electricity generation , Lauriya and Sagauli mills together contributed 45 percent
of the total electricity generated by sugar mills in 2020-21
