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Home › Bihar › Bihar Industry

Bihar Industry

Bihar's large industries include the Barauni oil refinery and fertiliser plant and big thermal power stations at Barh and Kahalgaon. Food processing (rice, maize, makhana, litchi), dairy, leather and textiles are growing, and an industrial cluster is planned at Gaya on the Amritsar-Kolkata industrial corridor.

The Bihar Industrial Area Development Authority (BIADA) manages the state's industrial areas.

Key industries

  • Food processing
  • Makhana (fox nuts)
  • Petroleum refining
  • Power
  • Dairy
  • Textiles and leather

Makhana (fox nuts)

Bihar is India's main source of makhana, the fox nut or gorgon nut (Euryale ferox). It grows nearly three-fourths of the country's crop, about 60,000 tonnes of the 80,590 tonnes estimated for 2025-26, and some 80 to 85 per cent of the world's supply. The crop is grown in the ponds and wetlands of north Bihar: most of all in the Kosi basin districts of Supaul, Saharsa and Madhepura, and in the nearby Mithila and Seemanchal regions, around Darbhanga, Madhubani, Sitamarhi, Purnia, Katihar, Kishanganj and Araria. Makhana is the One District One Product of Araria, Darbhanga, Katihar, Madhubani, Purnia, Saharsa and Supaul, and "Mithila Makhana" has a Geographical Indication (GI) tag.

In the traditional pond system the seed is sown around November, the young plants are set out in spring, and the seeds are harvested from the pond bed from about July to October, through the monsoon. Harvesting is done by hand, under water, mostly by the Mallah fishing community, who sweep the bottom with special sieves. The seeds are then cleaned, dried, roasted and popped, often in homes and villages, and the popped makhana is graded by size: the larger the grain, the higher the price. Growing makhana in shallow water in fields shortens the crop from eight to ten months to four or five, and improved varieties such as Swarna Vaidehi and Sabour Makhana-1 give higher yields.

The National Makhana Board was launched in Bihar on 15 September 2025, and the Government of India's Central Sector Scheme for the Development of Makhana (Rs 476 crore for 2025-26 to 2030-31) supports seed, farmer training, harvesting and processing, branding and exports. The National Research Centre for Makhana in Darbhanga breeds new varieties, develops washing, grading, roasting and popping machines, and trains farmers. India exported 7,265 tonnes of makhana products in 2025-26, mostly to the United States, Canada and the United Arab Emirates.

Makhana is also grown in West Bengal and Assam, and on a smaller scale in parts of Manipur, Tripura, Odisha, Uttar Pradesh and Chhattisgarh.

Specialties of Bihar

Makhana (fox nuts)

Bihar grows nearly three-fourths of India's makhana: see makhana (fox nuts) above.

Shahi litchi

Muzaffarpur and the nearby districts of north Bihar grow the Shahi litchi, a large, juicy and fragrant variety that ripens in May and June. Bihar is India's largest litchi-growing state, and the ICAR National Research Centre on Litchi is at Muzaffarpur. The fruit lasts only a few days after picking, so it is sent quickly by road, rail and air, and also made into juice and pulp.

Help for entrepreneurs and local industries

Every district has a District Industries Centre (DIC), run by the state's industries department. It is the first place to go to register a unit, to apply for the state's incentives and subsidies, and for help with central schemes such as PMEGP.

From the Bihar government

From the Government of India

  • Udyam Registration: free online registration for micro, small and medium enterprises, with an Aadhaar number; the Udyam certificate is needed for most MSME schemes and for priority-sector bank loans
  • Prime Minister's Employment Generation Programme (PMEGP): loans to start a new micro enterprise, with a government subsidy of 15 to 35 per cent of the project cost (higher in rural areas and for women, SC/ST and other special categories); apply through the District Industries Centre or the Khadi and Village Industries Commission
  • Pradhan Mantri MUDRA Yojana: loans without collateral from banks, small finance banks and microfinance institutions: Shishu up to Rs 50,000, Kishor up to Rs 5 lakh, Tarun up to Rs 10 lakh, and Tarun Plus up to Rs 20 lakh for those who have repaid a Tarun loan
  • Stand-Up India: bank loans of Rs 10 lakh to Rs 1 crore to set up a new enterprise, for women and for Scheduled Caste and Scheduled Tribe entrepreneurs
  • Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE): guarantees bank loans to micro and small enterprises, so they can borrow without collateral or a third-party guarantee
  • Startup India: recognition by the Department for Promotion of Industry and Internal Trade, which brings tax and patent benefits, the Startup India Seed Fund and mentoring
  • PM Vishwakarma: for artisans and craftspeople in 18 traditional trades: recognition, skill training with a stipend, a toolkit grant and low-interest loans without collateral
  • PM Formalisation of Micro Food Processing Enterprises (PMFME): for small food-processing units: a 35 per cent credit-linked subsidy (up to Rs 10 lakh a unit), seed capital for self-help groups, and help with branding and marketing
  • Government e-Marketplace (GeM): sell goods and services online to government departments and public sector companies
  • MSME Samadhaan: file a case when a buyer has not paid a micro or small enterprise within 45 days
  • MSME Champions: the Ministry of MSME's help desk for complaints and problems with finance, approvals and markets
  • MSME Development and Facilitation Offices: the Ministry of MSME's offices in every state: advice, training, testing and the ministry's schemes
  • Small Industries Development Bank of India (SIDBI): the bank for small industries: loans, and refinance through other lenders
  • National Single Window System: one place to apply for central approvals and licences, and for many states' approvals
  • One District One Product: promotes a chosen product of each district, with help to find buyers and export
  • NIESBUD: the national institute for entrepreneurship training, under the Ministry of Skill Development and Entrepreneurship
  • myScheme: search central and state government schemes by state, occupation and other details

Schemes, limits and subsidies change with each budget: check the official site before applying.

Sources

Summarised from the state's industrial policy and the official profiles linked below. Makhana: the Press Information Bureau's note "India's Makhana Sector" (August 2026), APEDA's study of makhana exports, and the One District One Product list. Specialties: Makhana (fox nuts) (Geographical Indication: Mithila Makhana); Shahi litchi (Geographical Indication: Shahi Litchi of Bihar).

Reference links