Mod 2: Industrial Scenario in Bihar

The relative size of the industrial sector in the major states is measured by its contribution to the Gross State Value Added (GSVA). According to the latest Bihar Economic Survey (2024-25), the secondary sector (industrial sector) contribution to GSVA in Bihar is 21.5 percent in 2023-24 (up from 20.7 percent in 2022-23). Within this secondary sector, manufacturing contributes 7.6 percent and construction contributes 11.3 percent to the state's GSVA.

The Annual Survey of Industries (ASI) has been the sole continuous source of industrial statistics in India. The survey is being conducted annually under the recently amended Collection of Statistics (Amendment) Act 2017, that extends to the entire country.

The survey covers all factories registered under Sections 2(m)(i) and 2(m)(ii) of the Factories Act, 1948. The survey also covers Bidi and Cigar manufacturing establishments, registered under the Bidi and Cigar Workers (Conditions of Employment) Act 1966. All electricity undertakings engaged in generation, transmission and distribution of electricity, not registered with the Central Electricity Authority (CEA) are also covered under ASI. However, defence establishments, oil storage and distribution depots, departmental units such as railway workshops, RTC workshops, Government Mints, sanitary, water supply, gas storage etc. are excluded from the purview of the survey.

According to the latest available data from the Annual Survey of Industries (ASI) for 2023, the daily average number of workers in Bihar reached 114,949, continuing an upward trend. The growth of the number of agro-based factories suggests that a large proportion of agricultural production of Bihar is now actually processed within the state. This phenomenon, through forward and backward linkages, certainly impacts the employment and income of Bihar's working population.