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Bihar's Entrepreneurial Revolution

Is PM Modi's G20Makhana Gift Proofof a New Bihar?

From UPSC Capital to Startup Hub: How Bihar is transforming from producing civil servants to creating entrepreneurs. With 3,766 DPIIT startups, 1.35 crore women in JEEViKA, and the National Makhana Board, Bihar is rewriting India's entrepreneurial story.

November 14, 202512 min readBihar, India
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Bihar's Startup Ecosystem 2025

3,766
DPIIT Recognized Startups
Record growth from 2020-2025
+3,049 in last 5 years
900+
Registered Startups
Including 139 women-led ventures
₹52.67 Cr disbursed
10,000
Startup Mission
Across all 38 districts
Bihar Idea Festival 2025
₹10 Lakh
Interest-Free Loans
10-year repayment period
+5% extra for women

Key Insight: Bihar is transforming from exam takers to job creators

When PM Modi Gifted Makhana at the G20 Summit...

For decades, Bihar has been celebrated as the land of intellect, producing some of India's brightest minds in civil services and academia. But beyond UPSC halls and coaching centers, a quiet revolution is underway.

The gift of Bihar's famous Makhana at the G20 Summit by Prime Minister Narendra Modi was more than a diplomatic gesture it symbolized Bihar's growing economic and entrepreneurial potential. From youth-led startups to women-driven enterprises, Bihar is emerging as a hub for skilling, innovation, and enterprise, signaling that the state is no longer just about producing administrators it's creating changemakers and innovators.

From Civil Services to Startups — Bihar's Changing Identity

Bihar's long-standing reputation in civil services nearly every 10th IAS officer hailing from the state is now evolving. Today, the youth are channeling their energy from exam preparation to enterprise creation. With access to digital tools, government schemes, and startup mentorship programs, Bihar is transforming from an aspirant-driven ecosystem to a creator-driven economy.

Before 2014

UPSC Capital

Bihar known for producing 1 in 10 IAS officers, youth migration to metros for exams and jobs

Focus: Exam preparation & Civil services
Impact: Brain drain and talent migration
2014-2020

Infrastructure Push

Ganga Expressway, Patna Metro, industrial corridors laying foundation for growth

Focus: Roads, Connectivity & Logistics
Impact: Foundation for economic transformation
2020-2025

Startup Awakening

Bihar Startup Policy, ₹10 lakh interest-free loans, 3,766 DPIIT-recognized startups

Focus: Digital entrepreneurship & MSMEs
Impact: Youth choosing creation over migration
2025-Present

New Bihar 2.0

National Makhana Board, 10,000 startup mission, women-led enterprises powering rural economy

Focus: Innovation & Global recognition
Impact: From exam takers to job creators

Key Transformation: According to DPIIT data, Bihar recorded 3,766 recognized startups as of June 2025, with 3,049 recognized in just the last five years (2020–2025), showcasing exponential growth in entrepreneurial activity.

Makhana & Agri-Based Innovation — Bihar on the Global Stage

The G20 Makhana Moment

The gift of Bihar's Makhana at the G20 Summit was a statement: Bihar has products and talent ready for the global market. Prime Minister Modi stated, "Whenever I travel abroad, I gift a box of makhana to world leaders and tell them this is the livelihood of my farmers from Bihar". This wasn't just about a snack it was about showcasing Bihar's agricultural excellence to the world.

Following this global recognition, the government announced the National Makhana Board in Purnia, Bihar, to coordinate exports, research, and market development. PM Modi himself mentioned consuming Makhana "at least 300 out of 365 days," emphasizing its superfood status.

₹3.5 Lakh Cr
Global Recognition

Agricultural exports in FY25, Makhana becoming superfood

PM Modi gifts Makhana at G20, Mauritius state visits

Mithila Makhana GI Tag 2022National Makhana Board 2025Modi Makhana brand success
90%
Production Dominance

Of world's Makhana produced in Bihar

Darbhanga, Madhubani, Sitamarhi leading production

National Research Centre Darbhanga10+ processing districtsExport-grade facilities
Lakhs Monthly
Entrepreneur Success

Young entrepreneurs like Gulfraz earning through Makhana

Modi Makhana brand generating employment

23-yr-old engineer Gulfraz10 product varietiesMulti-state operations
₹11,000 Cr
Government Support

Investment in Bihar agriculture and flood management

Kisan Credit Card for farmers, export promotion

Makhana Vikas YojanaPMKSY irrigation supportOperation Greens value chain

Mithila Makhana GI Tag: In 2022, Mithila Makhana was granted Geographical Indication (GI) tag status, enhancing international market recognition. Read more about Makhana's nutritional and economic significance.

Other Agri-Export Success Stories from Bihar

Muzaffarpur Shahi Litchi

Earning GI tag status, exported globally

Premium Fruit Category

Maize Processing

Used in processed foods and biofuel industries

Industrial Application

Dairy Cooperatives

Creating rural employment and improving nutrition

17,250+ Producers Linked

Women Entrepreneurs — The Backbone of Rural Enterprise

Women are driving Bihar's entrepreneurial growth through an unprecedented economic movement. The JEEViKA (Bihar Rural Livelihoods Promotion Society) program has created India's largest women-led economic ecosystem, proving that trust-based lending and community support can transform rural economies.

JEEViKA Revolution

1.35 Crore Women
Members
₹1 Lakh Cr economic transactions
Achievement
99.5% repayment rate
Success Rate

Key Impacts:

  • 10.6 lakh Self-Help Groups
  • ₹78,000 Cr credit flows
  • Trust-based lending without collateral

Success Story: Parvati Devi: From ₹3,000 to ₹30,000 monthly income through livestock and food processing

Women Entrepreneur Scheme

₹10,000 Direct Transfer
Members
1.2 Crore beneficiaries
Achievement
Up to ₹2 lakh additional support
Success Rate

Key Impacts:

  • Champa Devi: Pottery business expansion
  • Mamta Kumari: Sewing machine purchase
  • Anita Devi: Beauty parlour growth

Success Story: Anita Devi (mushroom farming): Empowered 100+ women, now exploring Makhana production

Solar Mart Entrepreneurs

372 Women-Run Marts
Members
50,000 improved cookstoves sold
Achievement
15 districts operational
Success Rate

Key Impacts:

  • J-WIRES women assemblers
  • Clean energy product sales
  • After-sales support network

Success Story: Annu: Confident entrepreneur earning steady income, gained social status in patriarchal society

World Bank Recognition: The JEEViKA model has been recognized globally for unleashing the power of women's collectives. Read the World Bank's case study on Bihar's women empowerment success. Also see YourStory's deep dive into JEEViKA's ₹1 lakh crore economic impact.

The Strength of Youth — India's Skilled Workforce

Bihar's youthful population is a major advantage transforming the state's economic trajectory. With strategic skill development initiatives and entrepreneurship support, this demographic dividend is being converted into a powerful economic engine.

58%
Population Under 25
  • Affordable, trainable manpower attracting startups
  • High digital literacy and mobile penetration
  • Hunger for entrepreneurship over traditional jobs
Skill Programs
Transforming Youth
  • Digital skilling and mentorship initiatives
  • Entrepreneurship Development Centers
  • CIMP-BIIF, TiE Patna, B-HUB incubation support

Demographic Advantage: This combination of low-cost labor and high ambition is powering Bihar's economic transformation. Investors are recognizing Bihar as a talent hub with affordable operational costs and untapped market potential.

Infrastructure Rising — Laying the Foundation for Growth

Bihar's infrastructure is improving rapidly with over ₹40,000 crore in development projects launched in 2025 alone. These mega-projects are positioning Bihar as a strategic hub for MSMEs, startups, and manufacturing.

Purnia Airport

Inaugurated 2025

Impact: Domestic flights connecting Seemanchal

Investment: Part of ₹40,000 Cr+ projects

Benefit: Boosting trade and tourism

Ganga Expressway

Under Construction

Impact: Enhancing trade and logistics

Investment: Multi-billion dollar project

Benefit: Connecting Bihar to UP and beyond

Patna Metro

Operational

Impact: Urban mobility revolution

Investment: Boosting real estate

Benefit: Reducing travel time by 60%

Pirpainti Thermal Power

Foundation Laid 2025

Impact: 2,400 MW capacity

Investment: ₹25,000 Cr largest private investment

Benefit: Ultra-supercritical low-emission tech

Kosi-Mechi River Link

Phase 1 Started

Impact: Irrigation + flood control

Investment: ₹2,680 Cr Phase 1

Benefit: Expanding from 15,000 to 20,000 cusecs

Araria-Galgalia Rail Line

Inaugurated 2025

Impact: Connecting Seemanchal districts

Investment: ₹4,410 Cr

Benefit: Vande Bharat & Amrit Bharat trains

Infrastructure Impact: Improved roads, industrial clusters, and logistics parks are connecting Bihar to Eastern India trade networks. Read about PM Modi's ₹40,000+ crore infrastructure launch in Purnia.

Bihar's Innovation Ecosystem — From Local to Global

Bihar is no longer just an agricultural state it is transforming into a startup-friendly innovation hub. The Bihar Idea Festival and 10,000 Startup Mission represent India's most inclusive entrepreneurial initiatives, reaching every corner of the state's 38 districts.

25,000 Startup Ideas

Collected from all 38 districts through Bus Yatra

Expected to uncover 1 lakh+ early-stage ideas

BIIPP 2025 Policy

Bihar Industrial & Investment Promotion Policy - Most liberal in India

Free land, 300% SGST, capital subsidies, interest subvention

OBOP Initiative

One Block One Product across 534 blocks

Bhagalpur silk, Muzaffarpur litchi, Darbhanga makhana, Madhubani art

Union Support

Piyush Goyal: 4 new industrial parks + 3,000-acre Gaya township

Eastern India's development vital for developed India

Sector Transformation: Traditional to Tech-Enabled

Agriculture to Agri-Processing

Before:

Raw crop production

After:

Value-added exports

Makhana processing unitsMuzaffarpur Shahi Litchi GI tagDarbhanga Makhana exports

Impact: ₹3.5 lakh Cr agricultural exports

Handicrafts to Global Brands

Before:

Local artisan work

After:

E-commerce ready products

Madhubani paintings onlineBhagalpur silk brandingOne Block One Product (534 blocks)

Impact: ODOP extended to OBOP across Bihar

Dairy to Organized Cooperatives

Before:

Unorganized milk selling

After:

Rural employment & nutrition

Dairy cooperativesMilk producer companies17,250 linked producers

Impact: Creating rural employment hubs

Youth from Job Seekers to Job Creators

Before:

Migration for UPSC coaching

After:

Startup ecosystem builders

58% population under 25Digital skilling programsEntrepreneurship Development Centers

Impact: Affordable skilled workforce attracting investors

Bihar's Entrepreneurial Heroes: Inspiring Success Stories

Gulfraz - Modi Makhana Founder

23 years

Achievement:

Engineer turned entrepreneur, lakhs in monthly revenue

Journey:

Started in 500 sq ft unit, now operates across UP, Gujarat, West Bengal

Impact:

Employing locals from minority community in Katihar

Quote: "Everyone was chasing jobs, but I wanted to build something that would create jobs"

Inspiration: Named brand after PM Modi's vision on his birthday 2020

Future: Setting up high-tech machinery for 10 Makhana products

Read Full Story

Anita Devi - Mushroom Farming Queen

Anantpur village, Nalanda

Achievement:

Empowered 100+ women through Madhopur Farmers Producer Company

Journey:

Trained under JEEViKA and NRLM, now runs company providing seeds, fertilizers

Impact:

Hundreds of women gaining livelihood and dignity

Quote: "Economic independence strengthens women's respect and social standing"

Inspiration: Took over PM Modi's X account on Women's Day 2025

Future: Expanding into Makhana production after Board announcement

Read Full Story

Parvati Devi - JEEViKA Success

Gaya district

Achievement:

Family income increased from ₹3,000 to ₹30,000 per month

Journey:

Joined JEEViKA in 2014, didn't know how to talk to people initially

Impact:

Now runs livestock rearing and food processing business confidently

Quote: "Before this, I didn't even know how to talk to people. Now I run a business"

Inspiration: JEEViKA's trust-based lending without collateral

Future: Inspiring other women in village to join SHGs

Read Full Story

Government Schemes Powering Bihar's Entrepreneurship

Bihar entrepreneurs have access to India's most generous startup incentives. Union Minister Piyush Goyal stated that "perhaps in the country no other state has such a liberal package available today." Here's how you can benefit:

Bihar Startup Policy 2025

2024

Benefit: ₹10 lakh interest-free for 10 years

Impact: 5% extra for women, ₹3 lakh training grant

Eligibility: Youth, students, first-time entrepreneurs

Learn More

PMEGP Scheme

2008

Benefit: 15-35% subsidy for new businesses

Impact: Manufacturing & service ventures

Eligibility: Above 18 years, MSMEs

Learn More

Stand-Up India

2016

Benefit: ₹10 lakhs - 1 crore funding

Impact: 80% loans to women entrepreneurs

Eligibility: SC/ST and women entrepreneurs

Learn More

CGTMSE

2000

Benefit: Collateral-free loans up to ₹5 crore

Impact: Credit guarantee for MSMEs

Eligibility: New and existing MSMEs

Learn More

Mudra Yojana

2015

Benefit: ₹50,000 to ₹10 lakh loans

Impact: Shishu, Kishore, Tarun categories

Eligibility: Non-corporate small businesses

Learn More

CM Entrepreneur Scheme

2024

Benefit: State-backed branding & market access

Impact: 43,500+ entrepreneurs supported

Eligibility: Bihar-based entrepreneurs

Learn More

Application Support: At Setubridge Solutions, we help Bihar entrepreneurs navigate these schemes and maximize benefits. From documentation to application submission, we provide end-to-end support.

Bihar's Competitive Advantage: Standing Out Nationally

Startup Policy

Bihar Offering:₹10 lakh interest-free, 10 years
National Comparison:Most generous in India - Union Minister Piyush Goyal
Unique Advantage:+5% for women, ₹3 lakh training

Land Incentive

Bihar Offering:Free land up to 25 acres for job-creating industries
National Comparison:50% concession on BIADA land for others
Unique Advantage:300% SGST reimbursement

Women Empowerment

Bihar Offering:1.35 Cr JEEViKA members, ₹1 lakh Cr economy
National Comparison:Largest women-led SHG network in India
Unique Advantage:99.5% loan repayment rate

Agriculture Export

Bihar Offering:90% of world's Makhana from Bihar
National Comparison:Mithila Makhana GI Tag, PM's diplomatic gift
Unique Advantage:National Makhana Board headquarters

Union Minister's Endorsement: Piyush Goyal at the Bihar Idea Festival stated: "Perhaps in the country no other state has such a liberal package available today. With incentives like free land, 300% SGST reimbursement, and support for startups, Bihar is not just ready for growth but ready for transformational change."

The Way Forward: Building the New Bihar

Bihar is no longer just preparing students for exams it is passing the test of economic transformation. From fields of Mithila to the metros of Patna, and from women-led cooperatives to youth-driven startups, Bihar is producing innovators, entrepreneurs, and changemakers.

01

Support Bihar's Swadeshi Products

Choose Bihar-made products - Makhana, Madhubani art, Bhagalpur silk, Muzaffarpur litchi

How to Take Action:

  • Buy Modi Makhana and support young entrepreneurs
  • Purchase GI-tagged products online
  • Promote Bihar handicrafts
Impact: Direct economic support to Bihar's rural economy
Consumers & Citizens
02

Apply for Bihar Startup Schemes

Take advantage of interest-free loans and generous incentives for starting businesses

How to Take Action:

  • Bihar Startup Policy ₹10 lakh
  • PMEGP 35% subsidy
  • Stand-Up India ₹10L-1Cr
Impact: Transform from job seeker to job creator
Aspiring Entrepreneurs
03

Join Women Empowerment Programs

Women entrepreneurs should leverage JEEViKA, Mahila Rojgar Yojana for financial independence

How to Take Action:

  • Form/Join Self-Help Groups
  • Access ₹10,000 direct transfer
  • Get up to ₹2 lakh additional support
Impact: Economic independence and social empowerment
Women Entrepreneurs
04

Invest in Bihar's Growth Story

Investors and corporates should explore Bihar's transformed business environment

How to Take Action:

  • Free land up to 25 acres
  • 300% SGST reimbursement
  • Low-cost skilled workforce
Impact: Participate in India's fastest-growing state economy
Investors & Corporates

For Entrepreneurs

For Women Entrepreneurs

  • Join JEEViKA Self-Help Groups (1.35 Cr members)
  • Access ₹10,000 direct transfer + up to ₹2 lakh additional
  • Get 5% extra benefits under startup schemes

Frequently Asked Questions

Why is PM Modi's G20 Makhana gift significant for Bihar?

PM Modi's gift of Bihar's Makhana at the G20 Summit and to Mauritius President was more than diplomatic courtesy - it symbolized Bihar's agricultural excellence and global recognition. With Bihar producing 90% of the world's Makhana, this gesture brought international attention to the state's entrepreneurial potential. Following this, the government announced the National Makhana Board in Purnia, transforming Makhana from a local crop to a globally recognized superfood brand.

How is Bihar transforming from UPSC capital to startup hub?

Bihar has traditionally been known for producing 1 in 10 IAS officers in India. Now, with the Bihar Startup Policy 2025 offering ₹10 lakh interest-free loans for 10 years, 3,766 DPIIT-recognized startups, and the ambitious 10,000 startup mission across 38 districts, Bihar's youth are choosing to create businesses rather than migrate for jobs. The transformation is visible in success stories like 23-year-old Gulfraz's Modi Makhana brand earning lakhs monthly.

What is JEEViKA and how is it empowering Bihar's women?

JEEViKA (Bihar Rural Livelihoods Promotion Society) is India's largest women-led economic movement with 1.35 crore members across 10.6 lakh Self-Help Groups. The program has enabled ₹1 lakh crore in economic transactions with a remarkable 99.5% loan repayment rate - all without collateral or paperwork. Women like Parvati Devi increased family income from ₹3,000 to ₹30,000 monthly through livestock and food processing. JEEViKA proves that trust-based lending and community support can create sustainable rural entrepreneurship.

What makes Bihar's startup policy better than other states?

According to Union Commerce Minister Piyush Goyal, Bihar's BIIPP 2025 is 'perhaps the most liberal package in the country.' Key benefits include: ₹10 lakh interest-free loans for 10 years (additional 5% for women), free land up to 25 acres for job-creating industries, 300% SGST reimbursement, capital subsidies up to ₹40 crore, 50% concession on BIADA land rates, and comprehensive export promotion support. Combined with 58% population under 25 years, Bihar offers affordable skilled workforce and untapped market potential.

How can someone start a Makhana-related business in Bihar?

With the National Makhana Board operational and Makhana Vikas Yojana providing training and equipment grants across 10 districts, aspiring entrepreneurs can: (1) Apply for Bihar Startup Policy's ₹10 lakh interest-free loan, (2) Get training through the National Makhana Research Centre in Darbhanga, (3) Access Kisan Credit Card loans and NABARD FPO assistance, (4) Utilize GI tag branding for Mithila Makhana, (5) Connect with existing producer companies for supply chain support. Success stories like Gulfraz's Modi Makhana show the sector's potential.

What government schemes support Bihar entrepreneurs?

Bihar entrepreneurs have access to multiple schemes: Bihar Startup Policy 2025 (₹10 lakh interest-free), PMEGP (15-35% subsidy), Stand-Up India (₹10L-1Cr for women/SC-ST), CGTMSE (collateral-free loans up to ₹5 crore), Mudra Yojana (₹50K-10L), CM Entrepreneur Scheme (43,500+ supported), JEEViKA for women (₹10,000 direct transfer with up to ₹2 lakh additional support). Women entrepreneurs get extra 5% benefits and dedicated support through these programs.

What infrastructure projects are transforming Bihar?

Bihar is witnessing unprecedented infrastructure development: Purnia Airport inaugurated (2025) connecting Seemanchal, Ganga Expressway enhancing trade logistics, Patna Metro operational reducing travel time, Pirpainti Thermal Power (2,400 MW, ₹25,000 Cr - Bihar's largest private investment), Kosi-Mechi River Link (₹2,680 Cr Phase 1) for irrigation and flood control, Araria-Galgalia Rail Line (₹4,410 Cr) with Vande Bharat and Amrit Bharat trains. These projects are creating an ecosystem for MSME and startup growth.

How is Bihar's youth demographic an advantage?

Bihar has 58% population under 25 years - one of India's youngest states. This demographic dividend provides: affordable trainable workforce, high digital literacy penetration, hunger for entrepreneurship over traditional jobs, and lower operational costs for startups. With digital skilling programs, mentorship initiatives through CIMP-BIIF, TiE Patna, and B-HUB, and government schemes targeting youth, Bihar is converting this demographic advantage into an entrepreneurial revolution attracting investors nationwide.

Related Resources & Articles

Conclusion: Building the New Bihar

Bihar is no longer just preparing students for exams it is passing the test of economic transformation. From fields of Mithila to the metros of Patna, and from women-led cooperatives to youth-driven startups, Bihar is producing innovators, entrepreneurs, and changemakers.

The state's young workforce (58% under 25), rich agricultural resources (90% of world's Makhana), cultural heritage (Madhubani art, Bhagalpur silk), and resilient spirit are converging to break barriers and build a future of enterprise, skilling, and innovation.

The G20 Makhana gift is just the beginning a symbol that Bihar's growth story is moving from tradition to global recognition. The New Bihar is here. 🚀

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Popular Bihar Schemes: Bihar Startup Policy PMEGP Stand-Up India CGTMSE Mudra Yojana

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