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Business and Economy of Muzaffarpur

Muzaffarpur’s economy is completely driven by agriculture and also receives pretty sustainable support from industrial and service sector. Although industrial and service sector play second fiddle role in district’s economy, but in coming decades they are expected to play much bigger role in district’s economic growth. Below is more detailed information about all these sectors and their influence on Muzaffarpur economy.

Agrarian Economy in Muzaffarpur

Agriculture sector is economic lifeline of Muzaffarpur District. More than 70% of district’s labor force gets its livelihood from this sector. Agriculture sector receives much needed help from good annual rainfall, fertile soil and various state funded irrigation projects.

Agrarian Economy in Muzaffarpur

Here are the names of all agricultural and horticulture products that are today Muzaffarpur’s major exportable items. Rice, wheat, pulses, jute, maize, oil seeds, cauliflower, cabbage, onion and tomato. But above all these products, ‘Litchi’ firmly stands as no: 1 exportable item of Muzaffarpur. Litchi – a fruity juice - is one of the major specialties of Muzaffarpur. It is mainly cultivated from May to June, i.e. Summer season. It is estimated that every year Muzaffarpur produces nearly 300,000 tonnes of Lychee every year, making it highest producer of Lychee in entire India.

Industrial Sector in Muzaffarpur

Industrial sector is second most important sector for Muzaffarpur district. Since after agriculture it is highest generator of employment for entire district. The bulk of industries constitutes of small scale factories and industrial clusters. There are very few large scale and medium scale industries in the entire district as of today. Agro based industries dominate small scale sector, whereas industrial cluster is dominated by Litchi and Leather clusters. Lahathi Clusters are mainly based in Rampur Bakhari and Chainpur Bangra, whereas Leather clusters are mainly based in the main city of Muzaffarpur and its adjoining towns.

Industrial Sector in Muzaffarpur

As for large scale and medium scale industries are concerned, then as of today there are only two large scale industries and two medium scale industries. IDPL Pvt Ltd., M/s. Raj agro food products limited, M/s.Mangalam Biscuits are major industries of the region. It is also pertinent to mention that Bihar State Government is also trying to exploit Muzaffarpur’s potential in producing litchi-flavoured wine. In fact many spirit companies including United Breweries Group (one of the leading spirit companies of India) has already expressed interest in setting up plants and factories in Muzaffarpur.

Service Sector in Muzaffarpur

Although a very minuscule part of Muzaffarpur’s economy, service sector’s importance is imminent for employment and revenue generation for the district. Banking sector make up the bulk in Muzaffarpur’s service sector, with as many as 200 banks in entire Muzaffarpur District. Hospitality industry and Health industry also make genuine contribution to service sector. Retail sector, although largely unregulated, is also another important player in service sector. Another very important part of Muzaffarpur’s service sector is coaching industry. Muzaffarpur city being one of the important educational hubs of Bihar, coaching industry over the years has emerged as one of the important player in Muzaffarpur’s minuscule service sector.

Overall, it can be summed up that Muzaffarpur economy pretty much revolves around agriculture. But as Bihar’s economic performance is continuously improving, Muzaffarpur economic landscape and characteristic is destined to change for better in coming decades. The change will defiantly result in more industries and more service sector oriented jobs in the district.


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