The Union Budget 2026 has placed special emphasis on the Purvodaya states and the North-Eastern region, aiming to accelerate development, investment, and employment generation. For Bihar, this targeted focus presents a significant opportunity to strengthen its economic foundation and unlock its long-term growth potential.
Bihar stands to benefit through enhanced industrial investment, improved infrastructure, and expanded opportunities for its youth. By recognising MSMEs as the engine of growth, the Budget introduces a three-tier strategy to transform MSMEs into ‘Champions’. Increased access to working capital, simplified regulatory provisions, and targeted support mechanisms will empower enterprises to expand, improve competitiveness, and generate local employment.
With over 30 lakh MSMEs registered under the Udyam portal, these measures directly strengthen Bihar’s non-farm employment backbone, particularly in agro-processing, textiles, handicrafts, and services. Strengthening MSMEs will play a crucial role in reducing migration and creating sustainable livelihoods within the state.
The Budget’s provisions for Tier-1 and Tier-2 city development will inject fresh momentum into Bihar’s urbanisation process. Improved urban infrastructure will help attract private investment, support industrial clusters, and open new avenues for employment. Announcements related to skill development and business expansion for weavers are especially significant, as they provide traditional artisans and textile workers with modern market access, financial support, and national recognition.
With nearly 58% of Bihar’s population below the age of 25, the state’s demographic strength aligns well with the Budget’s emphasis on education-to-employment pathways, skill-linked training, and startup ecosystems. These initiatives collectively create a strong foundation for Bihar’s transition from a labour-supply state to an enterprise-driven, investment-ready economy.
Overall, Bihar is well-positioned to translate these Budget initiatives into sustained growth, competitiveness, and prosperity. With effective coordination between the State Government, industry bodies, and institutions, Bihar can emerge as a key growth engine in eastern India and realise its full economic potential.
— Kumod Kumar
Chair, PHD Chamber of Commerce & Industry
