Union Budget’s Purvodaya push opens new window for Bihar: PHDCCI’s Kumod Kumar

Patna/New Delhi: The Union Budget 2026-27’s renewed thrust on the “Purvodaya” (Rise of the East) initiative and the North-East can translate into stronger infrastructure, higher industrial investment and wider employment opportunities for Bihar’s youth, PHD Chamber of Commerce and Industry (PHDCCI) chair Kumod Kumar said on Sunday.

In a statement, Kumar said the Budget’s emphasis on Micro, Small and Medium Enterprises (MSMEs) will be particularly relevant for Bihar, where formalised MSMEs and informal micro enterprises together are estimated at about 41.4 lakh, including nearly 19.4 lakh enterprises registered on the Udyam portal.

Calling MSMEs the “engine of growth”, he said easier access to working capital and simplified provisions can help Bihar-based enterprises expand capacity, improve competitiveness and create local jobs—especially in sectors such as agro-processing, textiles, handicrafts and services.

The Budget has also signalled a continued infrastructure-led growth strategy, with capital expenditure rising to Rs 12.2 lakh crore for FY 2026-27, alongside a focus on development of smaller cities to support inclusive urbanisation, he noted.

Kumar said the planned push for Tier-2 and Tier-3 city development could provide fresh momentum to urban infrastructure in Bihar, improving investment climate and opening new employment avenues.

On livelihoods and traditional industries, he pointed to Budget announcements around handloom and the wider textile value chain, which, he said, can help modernise skills and enable business expansion for weavers and artisans—giving Bihar’s craft clusters better market access and recognition.

With Bihar’s relatively young demographic profile—state data indicates almost 58% of the population is below 25 years—Kumar said the education-to-employment focus and skill-linked initiatives can help the state shift from being primarily a labour-supply economy to an enterprise-driven growth hub.

He said the “real dividend” will depend on coordinated execution by the state government, industry bodies and institutions to convert Budget provisions into investments, jobs and long-term competitiveness for Bihar.

(India CSR)