Microfinance: A boon for rural industrial growth in Bihar

Bihar is one of the least developed states of India. It has however, shown remarkable growth rate in the past few years and is moving on the path of development. This development has mainly been due to growth of tertiary sector in the state. But continuous growth can be sustained only by the development of industrial sector in Bihar. With a major population residing in rural areas it is imperative that industrial development in rural areas be strengthened. The micro-finance institutions have an important role to play in harnessing savings and providing funds for the growth of this industrial sector. The following article examines the potential of micro-finance in encouraging rural industrial growth in Bihar using various secondary sources of data such as reports of government and non- government bodies, Economic Surveys and other published papers.