Until just a couple of years ago, West Bengal wasn't exactly known as the best investment destination in the country. The state had seen little economic growth in 34 long years of Communist rule. To make things worse, the Tata Group's bitter experience on being driven out of the state nine years ago over the Nano plant was taken as a singular lesson by other investors, who dropped any ideas of investing in the state.
Of late, amazingly, the tide has turned. If records and statistics are to be believed, Bengal has climbed up the list of the top investment destinations of the country. To boost its pro-industry image, West Bengal Chief Minister Mamata Banerjee had organised global business summits in the state last year. During the "Bengal in Deutschland" interactions last year, she had urged the Tata group and BMW to return to the state, offering them surplus land for their units.
According to Bengal government officials, the state has a strong consumer base as well as a large talent pool. What's more, "Statutory permissions such as issuing of trade licenses to sanctioning building plans, conversion and mutation of land, environmental clearances, fire licenses, power connection, water permit are delivered within 15 to 60 days," an official said.
Data from the Niti Aayog also mentions that the state has much lower industrial tariffs compared to states like Uttar Pradesh or Rajasthan. A noteworthy achievement of the government also includes significant I-T reforms which have led to doubling of tax collection in four years from Rs 21,000 crore to Rs 42,000 crore. The state currently has over 3.7 million micro, small, and medium enterprises (MSME) and leads in bank credit flow to the MSME sector.
Of the investment proposals received during global business summits, Rs 25,924.66 crore is already under implementation. The state has received a total investment flow of Rs 88.761 crore between 2011 and 2016. In terms of infrastructure, government officials say 10,663 kilometres of new highways have been constructed and upgraded.
Power is another sector in which the state has made commendable progress. "About 99.80 per cent of electrification has been done in the state. Just a few areas in North 24 Parganas have been left which will be soon done," said state power minister Sovandeb Chattopadhyay.
Under the previous regime, a meagre 2 MW of power was generated through alternative sources of energy. "We are now producing 1700 MW of hydel power and 22 MW of solar energy. In Purulia district, a solar power project of 1000 MW is underway. A total of 1100 MW is in the pipeline," Chattopadhyay told DNA.
Referring to the impediments to growth in sector, he cited the example of the recent unrest in Bhangar in South 24 Parganas district, saying "These are the results of directionless politics. Some people and groups had misled the simple villagers to create hurdles he added.
The state has also performed well on other economic parameters. In FY2015-16, the state's GDP growth rate was 12.02 per cent, as compared to the national GDP growth rate of 7.3 per cent. The industrial, agricultural and services sector of the state had grown at 10.59, 5.55, and 13.99 per cent respectively, as against the national average of 7.3, 1.1, and 9.2 per cent respectively.
Analysis:
With Rs 25,924.66 crore of investment under implementation, investors are putting their money where their mouth is.
Ease of permissions, higher power output and new highway construction make the state biz-friendly.
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