The Department of Industries in Bihar has set up a bag cluster in Muzaffarpur, which is a unique and innovative model of cluster development. 

The traditional method of developing clusters in a particular geographic location with homogeneous micro small and medium enterprises has been replaced with a market-led/linked approach through a plug & play model, collaborating with an anchor unit and aspiring women entrepreneurs from the local community.

The Department has created a state-of-the-art plug & play facility to run the cluster and is developing a common facility centre through the "CM MSME Cluster Scheme."

The Department has also engaged with JEEViKA (Bihar Rural Livelihoods Promotion Society) to mobilise aspiring women entrepreneurs and provided them with financial and technical support to become key stakeholders of the bag cluster.

The Department has also provided training to women entrepreneurs and local workers for technical expertise, entrepreneurship, and managerial skills.

As a result, Muzaffarpur has emerged as a major bag cluster in the state, giving new hope for industrialisation. The cluster will be run mainly by women entrepreneurs and workers, and it is projected to manufacture around 6,40,000 bags per month with a production value of Rs 15 crore ($1.9 million).

This sustainable, scalable, and replicable model has set an example for inclusive growth in the state, and it is expected that it will be replicated in other regions.