Bihar is located in the Eastern part of India. The state is surrounded by Nepal in the North, West Bengal in the East, Uttar Pradesh in the West and Jharkhand in the South. The state enjoys a unique location-specific advantage because of its proximity to the vast markets of eastern and northern India, access to the ports such as Kolkata and Haldia, raw material sources and mineral reserves from the neighbouring states.
The economy of the state has grown at around 17.8 per cent between 2004-05 to 2011-12. The four agro-climatic seasons and fertile soil of Bihar support cultivation of a wide range of crops. The state provides investment opportunities in sectors such as agro-based industry, food processing, sugar, power, leather, manufacturing and tourism.
Besides, Bihar is one of the leading producer of fruit and vegetable in the country. Food processing is a priority sector for the State Government. Up to 40 per cent of the project cost for setting up food processing units is subsidised by the State Government.
The per capita GSDP of the state increased at a compound annual growth rate (CAGR) of 16.1 per cent between 2004-05 and 2011-12.
The Bihar Industrial Area Development Authority (BIADA) is responsible for promoting and assisting the rapid development of industries in the industrial areas and estates. Moreover, the state offers a wide range of policy incentives for businesses under the Industrial Policy, 2006. The state also provides incentives for the sugar, renewable energy, food processing and tourism sectors. Additionally, the state has a large base of industrial labour, making it an ideal destination for a wide range of industries. The state has institutes of national importance such as National Institute of Technology (NIT) and Indian Institute of Technology (IIT), which provide skilled manpower to the industries.