Small industries to boost employment in Bihar; special fund likely in the next budget.
Patna. To create new employment opportunities in Bihar and increase the income of the people, the government can now pay special attention to the expansion of small industries. The three-member committee formed to achieve the goal of ‘doubling employment-doubling income’ has submitted its report to the Emperor’s government on Saturday. The report recommends making small industries the main basis of employment and economic development. For this, there is also a possibility of provision of a special fund in the budget of the next financial year.
This three-member committee was formed during the tenure of former Chief Minister Nitish Kumar. The committee was given the responsibility to suggest measures to increase employment opportunities in the state, increase people’s income and accelerate the pace of economic development. After detailed study, the committee has submitted its report to the government.
In the report, special emphasis has been laid on the expansion of small and local industries. The committee believes that by promoting small industries along with big industries, employment opportunities can be created on a large scale in different districts and rural areas of the state. Small scale industries have the potential to generate employment at the local level with relatively low investment.
If the government accepts the recommendations of the committee, then separate financial provisions for small industries may be seen in the next budget. This fund can be used to promote new enterprises, expansion of existing small industrial units and develop necessary infrastructure. However, the amount of the fund and the detailed outline of its use will be clear only after the budget and government decisions.
The report emphasizes not only on increasing employment but also on maintaining the state’s economic growth rate at a consistently high level. The committee has suggested the target of maintaining the growth rate of Gross State Domestic Product (GSDP) of Bihar at at least 16 percent for the next five years. This will require rapid expansion in investment, industry, agriculture and service sectors.
Bihar has been facing the challenge of dependence on other states for employment for a long time. A large number of people move to Delhi, Maharashtra, Gujarat, Punjab, Haryana and other states in search of employment and better income. With the expansion of small industries, employment options can increase at the local level and people going out for work can get opportunities in their district or surrounding areas.
In the committee’s report, special emphasis has also been laid on reducing regional inequality. The situation of industrial and economic development is not the same in all the areas of Bihar. Business activities and infrastructure are relatively better in some districts, while industries and employment opportunities are limited in many areas. The report recommends adopting a strategy of balanced development.
Its objective will be to ensure that industrial development is not limited to only a few big cities or select districts. Industries should also be established in small cities, towns and rural areas. If small industries are developed on the basis of locally available raw materials, agricultural products and traditional skills, then the local economy can be strengthened along with employment.
There is a huge potential for expansion of small industries based on agriculture and related products in Bihar. Expansion of enterprises related to food processing, dairy, makhana, maize, fruit-vegetable processing, handicrafts and other local products can help in increasing the income of farmers and small businessmen. With this, new employment opportunities can be created from production to packaging, transportation and marketing.
Financial assistance alone will not be sufficient to promote small industries. For this, facilities like electricity, roads, transport, land, market and technical support will also be required. It will also be important to simplify the processes related to training new entrepreneurs and starting their businesses. If improvements are made in these areas then the number of small industries can increase rapidly.
In the report, emphasis has been laid on increasing both employment and income together. Instead of merely increasing the number of employment, there is a need to develop such economic opportunities which will lead to real increase in people’s income. This is why the committee has recommended maintaining the fast pace of economic development with the goal of ‘doubling employment-doubling income’.
Now the government will be faced with the challenge of giving policy form to the recommendations of the committee. If a special fund is created for small industries in the next budget, it may indicate a significant change in the employment strategy of the government. After this, it has to be seen on what basis the funds will be distributed and which sectors and industries will be given priority.
The suggestion to maintain the growth rate of GSDP at at least 16 percent for the next five years is also ambitious. Achieving this target will require attracting private investment, setting up new industries, expanding existing businesses and strengthening infrastructure.
After the report of the three-member committee, now the eyes are on the next budget and the upcoming industrial policies of the government. If the key recommendations of the report are implemented, small industries can come to the center of Bihar’s employment policy. The goal before the government is clear – more employment at the local level, increase in people’s income and balanced economic development in all areas of the state.