Bihar's growing textile industry

Bihar's growing textile industry
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Bihar encapsulates a rich cultural legacy and a burgeoning textile industry that's gaining prominence. Bihar stands as a testament to the country's rich culture and economic resurgence. Beyond its historical significance and political landscape, Bihar is a treasure trove of diverse traditions, prominently reflected in its vibrant culture and thriving textile industry.  Lets see how the textile industry of the state is rising and what makes Bihar an increasingly attractive destination for setting up manufacturing units.

Bihar: Culture

The artistic state of India, Bihar, boasts a rich cultural tapestry and traditions. The indigenous art forms were heavily influenced by the Mughal Empire and the British Raj. The people of Bihar follow its ancient traditions till date and the cultural heritage of the place is still very much alive. The festivals, songs and the costumes worn by the people of Bihar is an ode to its culture and traditions.
Interestingly, Bihar is a place where people traditionally refrain from wearing polyester, underscoring the deep-seated cultural values that prioritise natural fibres. This cultural commitment extends to various aspects of daily life, fostering a sense of community and shared identity among the people of Bihar. Bihar is the largest producer of tussar silk in India. There are three varieties of silk produced and woven in the state: tussar, mulberry and eri silk.

Did you know?

Bhagalpuri silk is made from Antheraea paphia silkworm cocoons. The rearing of this silkworm is done naturally on trees in the wild forests, that is why it is also known as wild silk.

The queen of all fabrics: Bhagalpuri silk

Bhagalpuri silk which is also known as tussar silk, is produced in the Bhagalpur district of Bihar, which is also the silk city of the country. Bhagalpur is the paradise for tussar weaving. This fine silk material is also considered the queen of all fabrics and has gained popularity through it. Each silk fibre is filled to the brim with India's cultural diversity, making it an elegant representation of its history and culture. Globally, the tussar silk has made its way into people's hearts with its cultural diversity and superior quality that sets it aside from other kinds of fabric.
Bhagalpur has a history of skilled craftsmen who excelled at weaving this unique type of silk. What sets Bhagalpuri silk apart from other varieties of silk is the fact that it is environment-friendly; a limited number of silk worms are used during the production of this silk. Due to this very reason, Bhagalpuri silk is also sometimes referred to as peace silk.
In Bhagalpuri silk, silk is obtained without harming the silkworm. After the moth naturally emerges from the cocoon, after that the fibers from the cocoon are used to make the silk. This process ensures that the silkworm is not harmed during the silk extraction.
It is known for  its lustrous texture and durability and is often adorned with intricate madhubani designs.
Garments made of this material were previously limited to Bhagalpuri silk sarees, but have now expanded towards bedspreads, curtains, Kurtis, tops, shawls, etc. This development has contributed exponentially to the growth of Bhagalpuri silk's prevalence. This craft receives global spotlight from fashion capitals of the world.

Bihar as the emerging textile hub

Bihar recently became the point of attraction for the textile and apparel industry following the launch of its first-ever textile and leather policy.
The Bihar govt. Launched Bihar Textile and Leather Policy, 2022 which provides a wide range of incentives to promote the textile industry of Bihar. Under this policy, there are various provisions and incentives including: capital grant, employment grant, power grant, freight grant, patent grant, skill development grant. There are provisions like interest subvention on loan, reimbursement on SGST, waiver of stamp duty, registration, exemption on land conversions.
The textile and leather industry is a labour intensive industry, so the provision of employment generation subsidy, of up to rs 5000 per month per worker has also been made in it, which will prove to be very helpful for the industrial units. Apart from this, interest subsidy of up to 10% on loan, 100% reimbursement on sgst, skill development subsidy of rs 20,000 per employee per year to all eligible units, 100% reimbursement on stamp duty or registration, and land conversion which will encourage the establishment of industrial units in Bihar.
There is provision of freight subsidy up to 10 lakhs per year and patent subsidy up to 10 lakh patent for the industrial units to be set up under the next textile and leather policy.
Bihar is the best destination for textile and leather industries. An estimated 53% of the population of Bihar is below 35 yrs of age and the state has enough youth and trained labour force for the success of the industries.
With the help of Bihar textile and leather policy 2022, we will also participate in the country’s mission, by making Bihar a hub of textile and leather production and fulfilling the resolution of industrialisation of the state and generate large- scale employment.

What makes Bihar better in terms of setting up your manufacturing unit?


Bihar benefits from its strategic geographical location, being in close proximity to extensive markets in Eastern, Northern, and North-eastern India, as well as neighbouring Nepal. The state is well-connected to the rest of the country through a dense network of National Highways and railways. Additionally, Bihar boasts an international airport in Bodh Gaya (GAY) and domestic airports in Patna (PAT) and Darbhanga (DBR), along with other Indian airports near its borders in West Bengal, Jharkhand, and Uttar Pradesh. The state is intersected by the National Waterway-1 (NW-1).
With the Eastern Dedicated Freight Corridor passing through Bihar, new business opportunities abound. This corridor facilitates access to ports in East India, such as Kolkata and Haldia, along with raw material sources and mineral reserves in neighbouring states. Bihar has invested in civil infrastructure, providing land at competitive rates for both long and short-term leases, equipped with all necessary amenities for prompt commencement of operations, making it an attractive prospect for business investors. The proximity to markets can also reduce transportation costs for businesses.

Government support

The government of Bihar may offer incentives, subsidies, and support to businesses willing to invest in the state, making it more attractive for potential investors such as Bihar Textile and Leather Policy, 2022 as discussed above.


Textile is a labor-intensive industry and the state has enough youth and trained labour force for the success of the industries. Additionally, Bihar is known for having a relatively lower cost of labor compared to some other Indian states. This can be advantageous for labor-intensive manufacturing processes. There is a good availability of natural resources like water, land, and raw materials required for manufacturing.

MSME support

The government has recently implemented a policy to grant price preference to local units in all government procurement processes. In every government tender, a 2% price preference will be extended to large industries, while MSMEs will receive a higher preference of 7%. This initiative aims to boost manufacturing within the state, offering both purchase and price preferences to businesses establishing units within our borders.