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Stream/Area:
-
Subject:
-
Paper ID:
IJSREM63444
Volume:
10 |
5 |
May 2026
Pages:
1-5
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.

Economics Department
Veer Kunwar Singh university
This article examines the historical trajectory of industrial development in Bihar, tracing its evolution from a mineral-rich region to its current state as an agrarian economy grappling with the challenges of fostering Micro, Small and Medium Enterprises (MSMEs). The study analyzes how historical policies including the Permanent Settlement of 1793, the Freight Equalization Policy of 1948, and the bifurcation of the state in 2000 systematically disadvantaged Bihar's industrial potential. Drawing upon secondary data from government reports, existing literature, and the "From Minerals to MSMEs" dataset (2000–2015), the article evaluates growth patterns, employment generation, and investment trends. The findings reveal that while medium enterprises have shown promising growth, the micro enterprise segment has experienced structural imbalances. The article further compares Bihar's policy framework with Gujarat, identifying critical gaps. The study concludes with policy recommendations for revitalizing Bihar's MSME ecosystem.
KEYWORDS
The updated data analysis (2000-2015) shows consistent growth in MSME units (CAGR 14%), employment (16%), and investment (27%) in Bihar. However, the sector lags far behind Gujarat due to historical disadvantages and structural constraints. The post-2005 period brought acceleration, but micro enterprises continue to face challenges. By learning from Gujarat's cluster-based, technology-driven model and implementing targeted interventions, Bihar can transform its MSME sector into an engine of inclusive growth and employment.
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Publication Date
5/18/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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