Bihar Rural Transformation Project

2026-07-22

Bihar’s rural economy is characterized by fragmented value chains, low capital intensity, and weak integration with organized markets. The Annual Survey of Unincorporated Sector Enterprises (ASUSE) reveals that the Bihar is far below the national average in (i) enterprise intensity; (ii) value addition per enterprise; and (iii) workers employed per enterprise. To mitigate this challenge and create new and better jobs in Bihar’s rural economy, the proposed project will invest in enabling infrastructure and a supportive entrepreneurial ecosystem, with a special emphasis on “missing middle” by facilitating the growth of small and medium-sized enterprises. This objective will be pursued through a two-pronged approach that combines:a) Targeted investments in priority sectors (Vertical Investments): Providing technical and financial assistance in areas such as food processing, aquaculture, and service sector enterprises to generate jobs and drive rural economic growth.b) Community-level ecosystem strengthening (Horizontal Enablers): Re-engineering community institutional processes to support entrepreneurship, strengthening the agribusiness ecosystem, and developing a digital and financial services architecture to boost incomes, improve diets and build resilience.

India

2025-12-17