On August 26, 2025, Chief Minister Nitish Kumar announced Bihar’s new industrial policy in Patna. The policy promises free land allocation and interest subvention of up to ₹40 crore for investors. The move is aimed at accelerating Bihar’s industrial growth and generating employment opportunities.
Key Announcement by Nitish Kumar
Speaking at a press briefing, CM Nitish Kumar emphasized that Bihar is committed to providing an investor-friendly environment. He stated that the government would not only provide land at no cost but also offer financial support through interest subsidies to ensure ease of business for new and existing enterprises.
Free Land for Industrial Development
Under the new framework, investors will receive land parcels free of cost in designated industrial zones across Bihar. The government has identified priority sectors such as textiles, food processing, renewable energy, IT, and manufacturing to benefit from this scheme.
Interest Subvention up to ₹40 Crore
A major highlight of the policy is the interest subvention of up to ₹40 crore. This incentive will help industries access credit at reduced costs, improving their long-term financial viability and competitiveness.
Boost to Bihar’s Economy
The Chief Minister noted that Bihar has made remarkable progress in infrastructure, including roads, electricity, and digital connectivity. With these improvements, the state is ready to welcome large-scale investments, reducing migration and creating local job opportunities.
Targeting Employment Generation
The new industrial policy is expected to generate lakhs of direct and indirect jobs across multiple sectors. Nitish Kumar stressed that empowering youth with employment opportunities remains one of the government’s top priorities.
Support for MSMEs and Startups
In addition to large industries, the policy has special provisions for MSMEs and startups. Financial assistance, technology support, and simplified approvals have been included to encourage entrepreneurship and innovation within the state.
Competitive Edge for Bihar
With these incentives, Bihar aims to compete with other industrial hubs such as Gujarat, Maharashtra, and Tamil Nadu. The government believes that the combination of free land, strong infrastructure, and interest relief will significantly improve Bihar’s industrial ranking at the national level.
Private Sector Response
Industry experts and trade bodies welcomed the announcement. Business leaders said the combination of cost-free land and financial assistance could make Bihar a preferred destination for industries, provided implementation remains smooth and transparent.
Long-Term Development Vision
CM Nitish Kumar reaffirmed that the new policy is aligned with Bihar’s long-term vision of becoming an industrial powerhouse while ensuring sustainable and inclusive growth. The government plans to monitor progress closely and make adjustments as required to attract global investors.
