Financial & Business Status of North Bihar

Importance of Financial Business in a state of Bihar

Finance helps businesses to achieve their goals by providing the adequate fund they need to achieve them. Without funding, businesses cannot be able to move forward. Money helps businesses hire staff, produce product and rent facilities for office space. Most companies will seek financial support for an investor or equity partner. Without a financial backing, a business cannot exist. It's important that the leadership within an organization has a good understanding of finance. This will ensure that the business can effectively manage the money that they have to ensure that they hit budgetary targets and goals. Thus they have a better chance of succeeding at their mission and goals as an organization. In case of a state’s economy, the increasing financial business can lead to more revenue to the state- account, as well as more employability to the people of the state.

Financial Business at Araria, katihar, Araria and Purnia:

The economy of Bihar is largely service-oriented, but it also has a significant agricultural base. The state also has a small industrial sector. As of 2012, agriculture accounts for 22%, industry 5% and service 73% of the economy of the state. Manufacturing has performed very poorly in the state between 2002 and 2007, with an average growth rate of 0.38% compared to India's 7.8%. To fetch the industrialists for enhancing the scope of financial business at Araria, katihar, Araria and Purnia like the other districts of Bihar, the government has taken several business friendly policies. Industries are also showing their interest to invest in these districts.

The government of Bihar has introduced several laws, which will provide a positive contribution to the future development of the state's industries.

• Bihar Single Window Clearance Act
• Bihar Infrastructure Development Enabling Act.
• New Industrial and Price Preference Policy
• New Policy Initiatives for Entertainment, Tea Processing and Sugar Sectors
• Policy for establishing higher Technical Institutions in Private Sector
• Simplification of VAT Regime
• Reimbursement of 50% of the amount spent on plant & machinery for captive power generation.
• 25% of the VAT reimbursement for the existing units.
• Exemption from electricity duty for new units.
• Exemption from Stamp Duty and registration fee on land transfer. Incentive granted on land/shed in Industrial Area/ Industrial Park etc.
• Incentive granted on land/shed in Industrial Area/ Industrial Park etc.
• Corpus fund creation for sick & closed units.
• Exemption from annual minimum guarantee/ monthly minimum guarantee. CST reduced to only 1% for small & medium industries.