The Government of Bihar has taken multiple initiatives to foster inclusive economic growth in the state. To bring up new opportunities for investors across the country, the state government has formulated attractive policies.
Bihar has a large and affordable industrial labor force, making it an appealing choice for different industries. Moreover, the state government is investing heavily in building industrial zones and updating infrastructure to attract private companies.
A well-framed industry policy can significantly improve the state’s economic ecosystem and employment rate by promoting innovation and entrepreneurship, attracting investment, and creating new job opportunities. Government of Bihar is constantly working on boosting economic activities in the State by working on attractive policies.
Such policies often include incentives like tax breaks and grants, which make the state appealing to investors and entrepreneurs. This, in turn, leads to the growth of startups and small businesses, driving job creation and enhancing the local economy. Additionally, by supporting skill development and promoting regional development, startup policies contribute to a more resilient and diversified economy, ensuring a balanced and sustainable increase in employment and economic activity.
On June 8 2022, the government of Bihar introduced its Textile and Leather Policy 2022, featuring a range of incentives aimed at encouraging investment in these industries.
Bihar Textile and Leather Policy, 2022 has the following salient features:
- 100% reimbursement on SGST.
- Complete waiver on stamps duty/registration of land.
- Exemption on land conversion.
- A subsidy of 15% on plant & machinery upto₹10 Crore.
- Subsidy of ₹2/unit on electricity consumption.
- A subsidy of ₹10 lakhs on freight movement for 5 Years along with 30% transportation subsidy for exports.
- Employers can receive up to 300% of ESI and EPF paid against the employee. This is employment generation subsidy given to the employers for semi-skilled, skilled, and highly-skilled employees.
- Businesses will receive a skill development grant of ₹20,000 per year for each employee.
- The incentives attached to this scheme shall be disbursed over a period of 7 years from the date of operation.
Bihar industry department has setup a mechanism to support leather and textile industries in the state. The Bihar Industrial Area Development Authority (BIADA) was founded in 1974 and is tasked with allocating land for industrial development in Bihar. Land is a critical factor in establishing industries and hence BIADA aims to promote investment, ease of doing business and infrastructure development in Bihar. Under the Bihar Textile and Leather Policy 2022, BIADA assists investors by giving land approvals and other statutory clearances required for establishing industries in Bihar.
The future of Bihar has a lot to offer for industries across all the sectors. Investors interested in opportunities in Bihar and are seeking comprehensive business solutions can reach out to our experts at hfpsl_sg@yahoo.co.in.
