The Bihar cabinet has approved the Bihar MSME Policy 2026, which aims to create 10 million entrepreneurial families and 10 million direct and indirect jobs over the next five years, according to Construction World. The cabinet cleared the framework on Wednesday at a meeting chaired by Chief Minister Samrat Choudhary.
Key points
- The policy targets 10 million entrepreneurial families and 10 million direct and indirect jobs in five years.
- It seeks to raise Bihar's credit-deposit ratio to 75 per cent from slightly above 60 per cent.
- An MSME centre will be set up in each of the state's 38 districts.
- The cabinet also approved flood-mapping studies, land decisions for satellite townships and aviation funding.
What the MSME policy offers
The policy aims to strengthen the state's economic base by improving access to finance, markets, skills and technology for micro, small and medium enterprises. Cabinet Secretariat Department Additional Chief Secretary Arwind Kumar Choudhary said the policy is built around the goal of creating 10 million entrepreneurial families as the foundation for a stronger Bihar.
To improve access to money, the policy provides for an MSME corpus and growth fund. It also aims to lift the credit-deposit ratio, a measure of how much of the deposits collected in the state is given out as loans, to 75 per cent. The ratio is now slightly above 60 per cent.
The framework names 10 economic pillars. These include informal businesses, skill development, cluster-based growth, markets, emerging sectors, cooperatives, technology and environmental sustainability.
Other decisions: floods, townships and aviation
The cabinet approved an agreement with the National Institute of Hydrology, Roorkee, to mark floodplain zones along the major tributaries of the Ganga in Bihar. The study will cover the Kosi, Gandak and Sone rivers, with Rs. 19.9 million allocated. A separate emergency exercise costing Rs. 83.2 million is due to be completed within eight months. It will assess embankments, prepare inundation maps and emergency action plans, and set up coordination arrangements.
The Sonepur project area will be expanded to make room for national and state-level projects. These include a satellite township, an international airport, a film city and educational institutions. The cabinet also lifted restrictions on land transactions in 11 proposed satellite townships, subject to notified development plans.
On aviation, the cabinet approved a 30-year lease of 1,000 square metres at Saharsa airport to G R D Air Academy for flight training. It also sanctioned Rs. 435 million in viability gap funding for the UDAN regional connectivity programme.
Why it matters for businesses
For small business owners, the focus on credit, district-level MSME centres and cluster-based growth could make support easier to reach, if the plans are carried out as described. A higher credit-deposit ratio would mean more of the state's bank deposits going into local lending. The land decisions in satellite townships may also matter to those watching property and development activity in the state.
The source report does not give a detailed implementation timeline for the MSME policy beyond the five-year job target.
