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ArticlePeer ReviewedOpen AccessPlagiarism Passed
Paper ID:IJSREM63444

From Minerals to MSMEs: The Historical Evolution and Economic Impact of Small-Scale Industrialization in Post-Bifurcation Bihar

Stream/Area:

-

Subject:

-

Paper ID:

IJSREM63444

Volume:

10 |

5 |

May 2026

Pages:

1-5

Publication Frequency:

Monthly (12 issues per year)

DOI
Digital Object Identifier
10.55041/IJSREM63444

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.

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Authors

Dr Kumar Desh Deepak

Dr Kumar Desh Deepak

Economics Department

Veer Kunwar Singh university

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Abstract

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

Keywords: MSMEs Bihar Industrial Policy Bifurcation Freight Equalization Policy Economic Growth Employment Generation

Cite This Article

Dr Kumar Desh Deepak, "From Minerals to MSMEs: The Historical Evolution and Economic Impact of Small-Scale Industrialization in Post-Bifurcation Bihar," International Journal of Scientific Research in Engineering and Management, vol. 10, no. 5, pp. 1-5, May 2026. https://doi.org/10.55041/IJSREM63444

Full Article/Conclusion

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.

References

·        Ali, A., & Husain, F. (2014). MSMEs in India: Problems, solutions and prospectus. International Journal of Engineering and Management Sciences, 5(2), 109-115. ·        Awasthi, D. N. (2016). Recent changes in Gujarat industry: Issues and evidence. Economic and Political Weekly, 3183-3192. ·        Banerjee, A. V., & Iyer, L. (2005). History, Institutions, and Economic Performance. American Economic Review, 95(4), 1190-1213. ·        Bishwajeet, P., & Verma, J. K. (2019). Barriers faced by entrepreneurs Micro, Small and Medium Enterprises in Bihar. Biennial Conference on Entrepreneurship, New Delhi. ·        Caleb, M. F. (2021). Effects of revising the definition of MSME on Indian economy. Asian Journal of Management, 12(1), 28-34. ·        Das Gupta, C. (2010). Unraveling Bihar's "Growth Miracle". Economic and Political Weekly, XLV(52), 50-62. ·        Dholakia, R. H. (2007). Sources of economic growth and acceleration in Gujarat. Economic and Political Weekly, 770-778. ·        Golla, S. K. (2018). Growth and performance of micro, small and medium enterprises in India after MSMED act 2006. International Journal of Research in Management, Economics and Commerce, 8(1), 52-59. ·        Gonzales, E., Hommes, M., & Mirmulstein, M. L. (2014). MSME country indicators 2014. IFC, World Bank. ·        Khanna, R., & Singh, S. P. (2018). Status of MSMEs in India: a detailed study. Journal of Applied Management, 1-14. ·        Lokhande, M. A. (2011). Evolution of the MSMEs in India. Journal of Social and Development Sciences, 1(2), 79-90. ·        Manna, I. (2009). Trends in select Micro and Small Scale Production items during phases of Industrial Slowdown. RBI, Department of Economic Analysis and Policy. ·        Mukherji, A., & Mukherji, A. (2012). Bihar: What Went Wrong? And What Changed? Working Paper No. 2012-107, NIPFP, New Delhi. ·        Nagaraj, R., & Pandey, S. (2013). Have Gujarat and Bihar outperformed the rest of India? A statistical note. Economic and Political Weekly, 39-41. ·        Prakash, B. (2020). Industrial Sickness in Micro, Small and Medium Enterprises in Bihar, India (Doctoral dissertation, Central University of Punjab). ·        Prakash, B., Kumar, I., & Verma, J. K. (2021). Barriers and potential solutions for MSMEs in developing economies: Evidence from India. Problems and Perspectives in Management, 19(4), 325-337. ·        Rossow, R. M. (2022). A Model Comprehensive MSME Policy for Indian States. Center for Strategic and International Studies, Wadhwani Foundation. ·        Sathish, A., & Rajamohan, S. (2018). MSME in India- what went before? ZENITH International Journal of Business Economics & Management Research, 8(9), 23-37.  

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Publication Date

5/18/2026

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Review Rounds: 2

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