Bihar declines in Industrial growth still stays on Top

Industrial Area BiharManufacturing Sector has been the most neglected in Bihar since beginning. A recent data suggests fall in the growth of this sector past 3 years. While in 2008-09 it was 29.1 % and 15.2 last year;but  in 2010-11 it decreased to 15 %.

Inspite of this decline,  Bihar remained on the top in country in terms of net growth in Manufacturing.

The poor plight of manufacturing sector can be attributed to several factors, but this fall in growth is alarming. The sudden rise in the hope after Nitish  Government took charge (2nd term) kept booming the industries. But, no big manufacturing  unit could be established. Many proposals came and were approved, but nothing could be materialized.

What are the reasons for this? Why Manufacturing industry is facing decline?

There can be  several possible reasons but Corruption in the machinery   and Criminal activities are prominent.  One classic example can be found  in the comment section of this news report. Click  here to view .

Chattisgarh, Punjab, Haryana, Tamil Nadu, all saw a steep increase in manufacturing sector, while  Bihar and Uttarakhand saw a decline.

(Data based on a Report Published in Business Standard)