Chandan Raj, founder and CEO of semiconductor firm Schipsemi, on Wednesday shared his harsh experience of doing business in Bihar, calling it “the worst decision” of his life. “Bihar – the land of frustration. There are lots of problems and struggles to survive here as a semiconductor/VLSI company,” Raj said in a post on X. 

Raj set up Schipsemi, the first semiconductor company in Bihar, in 2020, according to the company’s LinkedIn profile. However, he said, his repeated efforts to secure basic infrastructure such as roads and street lighting were met with indifference. Despite sending numerous emails, handwritten applications, and visiting both bureaucratic and political offices, his requests went unanswered. “It’s useless to discuss the truth about Bihar. Nothing will change here,” he lamented.

Ashutosh Nandan, an IIT alumnus, shared a photo of Schipsemi’s headquarters on social media, stating that Raj had been trying for two years to get basic infrastructure improvements made, without success. “Has the Bihar government become so incompetent that it cannot even get a road and street light installed?” Nandan asked.
  
This sentiment is not isolated. Bihar has consistently lagged in national rankings for ease of doing business, placing 26th in 2022 among states. The state’s per capita income also ranks among the lowest in the country. While India has made significant strides in industrial development, Bihar’s industrial ranking remains dismally low, hampered by infrastructural deficits, and bureaucratic inefficiencies. 

Mrityunjay Sharma, author of ‘Broken Promises – Caste, Crime, And Politics in Bihar’, recently mentioned poor infrastructure and governance as key factors deterring industries from entering the state. Speaking to Business Today, he said that for industries to come to Bihar, the state needs a certain environment that gives comfort to them. “For example, the first thing is law and order. The industries need basic assurance of ease of doing business – that when I submit applications in certain departments, it will not be held and I will not be asked for bribes.”

“They (industries) ask for basic administration support besides infrastructure, roads, and power. They also want that there would be the chief minister’s office or any other department that will be there for them if anything untoward happens. Until these things happen, big industries will not come to Bihar…because they have got options – they can set it up in Chhattisgarh, Tamil Nadu, and Gujarat.”

“So when you call them to Bihar, you need to give them something. What is their incentive to come here? They can set up anywhere. That way, Bihar has a long way to go in terms of industrialisation. Even the service industry is not coming to Bihar,” Sharma said.