After the division of state, most of the industries went off with mineral-rich Jharkhand.
Rest of the industries that the Bihar inherited from its earlier incarnation is mostly agro based.
North Bihar has many sugar factories relying on the traditionally good production of sugarcane in the state. Barauni is the only major industrial centre in the state where one can find an oil refinery and many allied industries. Munger has a large cigarette factory of ITC group. Bhagalpur is known for its silk production while Patna is home to many small-scale industries, many of them dealing in scrap iron.
Agriculture
Agriculture is the main occupation the people of the State. Principal food grain crops are paddy, wheat, maize, and pulses. Main cash crops are sugarcane, potato, tobacco, oilseeds, onion, chilies, and jute.
Incentives
Subsidy of upto 15% of capital investment for new, small, and ancillary industries
Additional subsidy of 10%, upto Rs 10 lakh, for purchasing energy conservation equipment
Sales-Tax deferment and exemption for finished goods
Power subsidy of 18 paise per unit for units with capital investments of upto Rs 75 lakh
Power subsidy of 15 paise per unit for units with investment of between Rs 75 lakh and Rs 15 Crore
Subsidy of upto Rs 10,000 for modernization and productivity improvement by Small Scale Industries (SSI) units
Special facilities for SC/ST and technically qualified entrepreneurs on priority basis
Feasibility study subsidy of upto 1% of fixed capital, or upto Rs 20,000 for SSI units
Feasibility study subsidy of upto 1% of fixed capital, or upto Rs 50,000 for projects under 1 crore
Feasibility study subsidy of upto 5% of fixed capital, or upto Rs 3 lakh for projects of more than Rs 1 crore
Special facilities for 100% export-oriented units on priority basis
Additional subsidy of upto 5% of capital investment for 100% export-oriented units
