The Nearest Port Form Bihar Is About 700Kms Away In Haldia, West Bengal. According To Cm Nitish Kumar, This Distance Of Around 700 Km  Is The Reason Behind Bihar Not Attracting Industries During His Last Term.


There are 4 major reasons :

1. Availability Of Land in Bihar

The acquisition of land is very difficult for the private companies in Bihar. No matter who they have to acquire the land from the zamindars or the government. The companies are fed up with the process. This problem is occurring because in Bihar houses are small and if you want 20 hectares of land you need to ask 20 different families. And people of Bihar are mostly dependent on their land for agriculture so they think if they giup ve their land where they will live and how will they earn.


The next reason is something that economists Abhijit Banerjee and Esther Duflo call the” spillover effect”. According to the spillover effect, If you put skilled people together in one place, then it creates an economy that attracts many companies. Like, take the example of IT industries in India. Bangalore has become a hub of IT industries in India. And it is not like labor or land is cheap there instead land and labor are cheaper in Bihar but finding skilled people in Bangalore is easy.


The next problem was even when the Bihar government decided to create a policy, it failed to implement it well. For example, in 2006, CM Nitish Kumar proposed a new industrial policy that was supposed to incentivize industries to set up factories or offices in Bihar. Many business owners who did set up their Operations in Bihar, didn’t get the subsidies that were promised. In 2020, the Patna high court finally directed the authorities to provide the promised subsidiary. Duer to such things business owners still believes that it’s hard for them to get incentives until they go to court. And all of us know how easy it is to go to Indian courts and fight against the government.


One last reason can also be attributed to how politics has developed in Bihar. Bihar had seen no significant caste-based leader till the 1980s. But this changed with the entry of these two people two obc leaders, who were looking to disrupt Bihar’s politics, which was dominated by upper castes till then. Lalu Prasad was the first person to disrupt these politics. He called his politics,the politics of social justice. Wherein he promised representation to those communities who remained shadowed by upper castes until then. Due to this the overall economic development of Bihar was not a prime issue. Instead, inequality became the prime issue. You can understand that, through the political slogans like these “Vikas Nahin,Samman chahiye” (We do not want progress, we want respect).

But three things happened due to this politics:

1 social development over economic development

Social development became the central theme and economic development became secondary.
2 migration of upper caste individuals in Bihar

The upper castes, who overtly help access to resources like land and capital got discouraged and moved out of the state.
3 weakening of the State government of Bihar

The government of Bihar began to become weak itself. Lalu Prasad Yadav chose not to strengthen the state by hiring bureaucrats because that only upper castes would have qualified for those positions.
So to achieve equality, the state government did not hire people.
Two researchers even said that a lot of the central government funds meant for Bihar’s development couldn’t be processed. As  Bihar couldn’t complete relevant bureaucratic procedures. INDUSTRIES IN BIHAR

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