The State of Bihar is situated in the eastern part of India. It has a land area of 173877 Sq. Kms. with a population of around 86.4 million. The per capita income is approximately is Rs.3816 and the inflation rate is 8%. Bihar is enriched with mineral resources and agricultural products and is a strong center for production of engineering goods. But, still it is one of the poorest states in India, with poor infrastructure, law and order, quality of local administration, and government support for industry. However, the State Government has recently taken cognizance of these problems and is now trying to improve the situation to encourage investment.
Bihar is concentrating on strengthening its industrial sector in a bid to catch up with the rest of India in attracting investments. It aims to create an environment for optimal utilization of state's agro, climatic, mineral and human resources, provide quality infrastructure for accelerated industrialization of the state, attract investment to generate economic activities employment, income and growth etc. Agro-processing, Engineering, Forestry Minerals, Plastics, Power, Telecom, Textiles and Tourism are the priority sectors which have been identified by the government of Bihar under the Industrial Policy of Bihar.