Industrial production runs out of steam in Bihar
TNN | Updated: Feb 12, 2019, 09:27 IST
The survey stated that Bihar has relatively lower productive capacity, which translates into low capital and labour returns. PATNA: Bihar continues to suffer from low industrial production though the growth rate of industries in the state is higher than the national average. Of the total number of industrial units in operation in the country, the share of Bihar was only 1.5% in 2015-16.
According to the Economic Survey report tabled in the state assembly on Monday, agro-based industries continue to dominate the industry sector in Bihar. As per annual survey of industries, the growth in agro-based industries was almost five times the growth rate achieved by all states between 2006-07 and 2015-16.
Though the overall contribution of industry sector is very low, the growth in non-agro-based industries in Bihar has been higher than the growth rate achieved at all-India level.
Though Bihar contributed only 1.5% of the total industries in the country in 2015-16, the growth rate of such industries in the state was 10%, much higher than the national average of 4%.
The survey stated that Bihar has relatively lower productive capacity, which translates into low capital and labour returns. For instance, the average size of fixed capital per factory in Bihar was only Rs 3.39 crore compared to Rs 14.70 crore at national level in 2015-16.
Labour absorption capacity has also been very low in Bihar vis-à-vis other states. In 2015-16, the total employment in industries in Bihar was 1.19 lakh, mere 0.8% of the national average.
Similarly, the number of workers per factory was only 41 against 75 at all-India level. Interestingly, wages, salaries (including bonus) per person annually in factories in Bihar has not been particularly low. In Bihar, wages, salaries (including bonus) was Rs 1,19,305 per person annually in 2015-16, increasing from Rs 97,790 in the previous year.
The economic survey has concluded that the industrial sector in Bihar has played a limited role in the economic growth process, though Bihar has the potential to develop as a major industrial hub, particularly in agro-based industries.
According to the Economic Survey report tabled in the state assembly on Monday, agro-based industries continue to dominate the industry sector in Bihar. As per annual survey of industries, the growth in agro-based industries was almost five times the growth rate achieved by all states between 2006-07 and 2015-16.
Though the overall contribution of industry sector is very low, the growth in non-agro-based industries in Bihar has been higher than the growth rate achieved at all-India level.
Though Bihar contributed only 1.5% of the total industries in the country in 2015-16, the growth rate of such industries in the state was 10%, much higher than the national average of 4%.
The survey stated that Bihar has relatively lower productive capacity, which translates into low capital and labour returns. For instance, the average size of fixed capital per factory in Bihar was only Rs 3.39 crore compared to Rs 14.70 crore at national level in 2015-16.
Labour absorption capacity has also been very low in Bihar vis-à-vis other states. In 2015-16, the total employment in industries in Bihar was 1.19 lakh, mere 0.8% of the national average.
Similarly, the number of workers per factory was only 41 against 75 at all-India level. Interestingly, wages, salaries (including bonus) per person annually in factories in Bihar has not been particularly low. In Bihar, wages, salaries (including bonus) was Rs 1,19,305 per person annually in 2015-16, increasing from Rs 97,790 in the previous year.
The economic survey has concluded that the industrial sector in Bihar has played a limited role in the economic growth process, though Bihar has the potential to develop as a major industrial hub, particularly in agro-based industries.
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