State Overview / Bihar Commentary

Eastern Indian State of Bihar Sees Glimmer of Hope for Textiles and Leather

Since Independence a land-that-was, the eastern Indian state of Bihar is going all out to reclaim its glory and the recent Bihar Business Connect 2023 was just the catalyst it needed, drawing more than 5,000 investors, entrepreneurs, designers, exporters, buyers and exhibitors from all over the country and abroad.

Abrar Ahmad

23 December 2023

4 minutes

Long Story, Cut Short

Traditional textiles of Bihar hardly figure in national discussions on the subject, and Bihar does not even have a dedicated ministry for textiles.
The state, now being seen as a land of limitless opportunities for the textiles and leather sectors, is offering policy support to facilitate investments, generate employment and work for the welfare of people.
Bihar offers low cost of land, labour, power and raw materials compared to other states.

Bihar has abundant availability of raw materials for the textiles and leather sectors such as cotton, jute, silk, wool, hides and skins. The state is the third largest producer of raw silk and the fourth largest producer of jute in the country. The state also has a rich tradition and heritage of handloom, handicraft and khadi.

Rising Magadha Bihar has abundant availability of raw materials for the textiles and leather sectors such as cotton, jute, silk, wool, hides and skins. The state is the third largest producer of raw silk and the fourth largest producer of jute in the country. The state also has a rich tradition and heritage of handloom, handicraft and khadi. PSD Gang / Pixabay

Few tracts of land have a legacy as rich as that of the eastern Indian state of Bihar. Fewer probably have been relegated to the bins of history.

Two of the world's most pacifist religions—Buddhism and Jainism—have their roots in Bihar. The Magadha region was the centre of Indian power, learning and culture for about a thousand years. One of the subcontinent's greatest empires, the Maurya Empire, ruled from this land. The state also gave India its first President.

Since Independence, however, it has been a land-that-was. Decades of corruption, maladministration, sectarian violence and environmental degradation have rendered Bihar into a pitiable state of affairs. The last blow came when the resource-rich southern half of the state was carved out as the separate entity of Jharkhand.

Traditional textiles of Bihar hardly figure in national discussions on the subject, and Bihar does not even have a dedicated ministry for textiles. Those from the state who have made it big have done so by ploughing one's own furrow elsewhere.

But many of those who have made it big industry now want to do their mite for their homeland. This was what made the recent Bihar Business Connect 2023, organised by the Department of Industries, a phenomenal success. The two-day event event on December 13-14, in state capital Patna attracted more than 5,000 investors, entrepreneurs, designers, exporters, buyers and exhibitors from India and abroad. Business meetings, seminars, workshops, industrial visits and exhibitions marked the event.

One of the highlights was the participation of a large number of investors who hail originally from Bihar and have made their mark in the textiles industry in other states or countries. They expressed their keen interest and enthusiasm to invest in Bihar and contribute to its industrial development.

Abrar Ahmad

The Founder of Ballia-based Syaahi Uniforms, Abrar Ahmed is a self-taught fashion design professional and accomplished social entrepreneur with a passion for sustainability and a keen eye for design.

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Bihar has a large pool of skilled and semi-skilled workers in the textiles and leather sectors, who have migrated to other areas. The state is now keen to bring them back and provide them with better opportunities.

Wooing 'em back Bihar has a large pool of skilled and semi-skilled workers in the textiles and leather sectors, who have migrated to other areas. The state is now keen to bring them back and provide them with better opportunities. Abrar Ahmad

What's going for the state

Bihar has several factors that make it an attractive destination for the textiles and leather sectors. A few:

Competitive manufacturing cost: Bihar offers low cost of land, labour, power and raw materials compared to other states. The state government has also announced various subsidies and incentives for textiles and leather units under the Bihar Industrial Investment Promotion.
Skilled and semi-skilled young human resources: Bihar has a large pool of skilled and semi-skilled workers in the textiles and leather sectors, who have migrated to other areas. The state is now keen to bring them back and provide them with better opportunities. The state also has a young population, with 58% of the people under the age of 25. The state is investing in skill development and vocational training programmes to enhance the employability and productivity of the youth in the these sectors.
Large and growing market: Bihar has a huge domestic market for textiles and leather products, with a population of over 120 million and a per capita income of Rs 47,541. The state also has a strategic location, with access to major markets in eastern and northern India, as well as adjoining Nepal and not-so-distant Bangladesh. The state has improved its road, rail and air connectivity, and has also developed several industrial parks, clusters and corridors to facilitate the movement of goods and services.
Availability of raw materials: Bihar has abundant availability of raw materials for the textiles and leather sectors such as cotton, jute, silk, wool, hides and skins. The state is the third largest producer of raw silk and the fourth largest producer of jute in the country. The state also has a rich tradition and heritage of handloom, handicraft and khadi.

Positioning Bihar

Bihar is being seen as a land of limitless opportunities for the textiles and leather sectors. The state is offering policy support and has adopted best practices for making a conducive environment to facilitate investments, generate employment and work for the welfare of people. Sustainability is among the priorities. The textiles and leather hubs have not only pulled in female entrepreneurs but created many new ones too. The Muzaffarpur cluster is a success story where many big names are operating on a large scale, such as V2, Zeel, High Spirits, Savi Leather, Shahi and many more.

Bihar has been making remarkable strides in promoting sustainable industrialisation and environmental protection. Through its innovative policies and programmes, the state is trying to demonstrate how to balance economic growth and social development with ecological conservation and climate action.

The state's achievements include the establishment of the Bihar Renewable Energy Development Agency, which aims to harness the potential of solar, wind, biomass, and other renewable sources of energy. It has also launched the Bihar Industrial Area Development Authority, which facilitates the creation of green industrial parks and clusters that adhere to the highest standards of environmental management and resource efficiency. The state has also invested in improving the quality and accessibility of education, especially for girls and women.

Getting the big names

Some of the prominent investors who attended the event included:

Kamal Oswal, Chairman-cum-Managing Director of the Nahar Group of Industries, said that his group is building a logistics park in Bihar at a cost of Rs 3 billion.
Rajesh Kumar, the Founder and CEO of RK Fashions, a leading garment manufacturing and exporting company based in Mumbai, announced his plans to set up a state-of-the-art garment unit in Bihar with an investment of Rs 1 billion which would generate employment for 2,000 people.
Shweta Singh, the Owner and Creative Director of Shweta Singh Couture, a renowned fashion label that caters to the elite clientele in India and abroad, revealed her intention to launch a fashion academy and a design studio in Bihar with an investment of Rs 500 million and provide training and mentorship to aspiring fashion designers of the state.
Ravi Prasad, the Chairman and Managing Director of RP Footwear, a leading footwear manufacturing and retailing company based in Chennai, declared his proposal to establish a footwear cluster in Bihar with an investment of Rs 2 billion and create employment for 5,000 people.

The investors praised the quality and variety of the products displayed by the local manufacturers and artisans of the state. They appreciated the craftsmanship and innovation of the traditional and contemporary textiles, fashion, footwear and accessories items such as Madhubani paintings, Bhagalpuri silk, Mithila art, jute products, leather goods, and terracotta jewellery, among others.