Bengal Means Business # Shines Bright

Doing business in West Bengal looks workable today

The West Bengal Industrial Development Corporation (WBIDC) organized the 6th Bengal Global Business Summit (BGBS) on 20th and 21st April ’22 with the motto ‘Bengal Means Business’. The summit concluded successfully with a promise of exponential growth opportunities and progress. Reportedly, the investment proposal received at the summit aggregated to ₹3,42,375 crore with potential new employment to the tune of 40 lakhs. The original slogan #Bengal Means Business is now incited with a prefix “Bengal Shines Bright” for “Bengal Means Business”. This motto has an aim to entice investors asking them to do business in Bengal and attempts to whitewash the holdup of the past industrial glitch. Bengal now contemplates the current socio-political situations as more conducive to doing business in West Bengal. The latest political win-win situation of Trinamool Congress has made them think.

After independence, the industrial growth of west Bengal was very poor due to the non-conducive socio-political situation prevailing there. The Naxal movement of the seventies followed by a long rule of the left front has been most unfavorable for industrial growth. The union-minded Bengali culture was never friendly for industries to operate the business in West Bengal. In fact, thousands of thriving small and medium-scale industries were forced to close or shift outside West Bengal during this period. Many well-known large industries of national stature like Hindustan Motors were also victims of the situation. The setback story of Tata Motors to set up the Nano plant at Haldia for the unfriendly political situation existing then was another example of deindustrialization.

Under the current rule of the Trinamool Congress, the situation seems to improve for conducting business. In fact, Trinamool’s conducive and pragmatic business policies and emphasis on developing industries have thrust Bengal into the top of India’s global investment ladder.” This transformation in West Bengal has occurred in the last decade over a wide range, allowing for the emergence of new areas of growth and opportunity.

Why invest in West Bengal: To quote various reports, the economy of West Bengal is the fourth-largest state economy in India with a gross state domestic product (GSDP) of ₹13.01 lakh crore (US$170 billion) and has the country’s 20th-highest GSDP per capita of ₹121,267 (US$1,600). The current state government debt of ₹4.0 lakh crore (US$52 billion) has dropped from 40.65% since 2010–11 to 32.6% of GSDP. There is moderate unemployment. However, over the years due to effective changes in the stance towards industrialization, ease of doing business has improved in West Bengal. Steps are being taken to remedy this situation by promoting West Bengal as an investment destination.

What is there to offer:

Online Single Window Portal: A Single Window System called Silpa Sathi enacted under the Single Window Act, will provide single window service under the various applicable Acts, Rules, Policies, and Schemes.

Ease of Doing Business in Bengal: State Government departments and agencies have implemented several reforms for Ease of Doing Business (EoDB) in the State. These reforms are as per Business Reforms Action Plan (BRAP) 2017.

Incentive Scheme for MSMEs in the Power loom Sector:  The objective of the Scheme is to extend fiscal incentives for the installation of new age shuttle-less Power looms by MSMEs in textile sector with a view to generate new employment and widen the area of operation to make the State emerge as the leader in Power loom sector in the country.

Online Banglashree: A “SINGLE APPLICATION FORM” in lieu of item-wise applications forms have been introduced. This will simplify the procedure for applications to be made by an entrepreneur.

Karmasathi Prakalpa: To facilitate young entrepreneurs of the state and to create gainful self-employment in both rural and urban areas of the state, 82 schemes have been formulated, to be implemented in clusters.

State Approved Industrial Park (SAIP) Scheme: West Bengal Incentive Scheme 2020 for Approved Industrial Park for Micro, Small & Medium Enterprises (MSMEs) to provide state support in the form of fiscal and nonfiscal incentives to encourage the private sector to set up industrial parks on their own land.

Rural Entrepreneurship Hub:  Scheme for revitalizing the rural economy through Industrial Co-operatives. Empowering the Youth for Work: – Promoting entrepreneurship in the rural and semiurban areas of Bengal is one of the top priorities of the Government.

Jangal Sundari Karmnagari: An integrated manufacturing cluster (IMC) on an industrial township model at Raghunathpur in Purulia district is being developed by WBIDC. The project has been conceptualized as part of the Amritsar Kolkata Industrial Corridor (AKIC) project which is aimed at for development of Integrated Manufacturing clusters at certain identified key nodes along the alignment of the Eastern Dedicated Rail Freight Corridor (EDFC).

West Bengal State Export Promotion Society provides direct marketing support to the micro/small enterprises, handloom, and handicraft sector by organizing/ participating in different State/National/International Level Fairs/Expos.

The uncanny thought: All these attractive schemes are not very distinct as for as other Indian states are concerned. Every state going for Industrialization offer these incentives in one kind or, other. Industries and Businesses are attracted to set up in areas allowing them to maximize profit, a smooth transition, setting- up operational conditions. Land, the prime factor of production, is in Government’s hands. How cheapest suitable land could be provided along with infrastructure and support services, is in question. Availability of Labour is inclusive of the working conditions. Are skilled workers readily available locally, if not, whether the state will allow skilled labour from outside the state in desired quantity? Are the local labour laws being friendly to Industries? What is the actual status of Ease of Doing Business on the ground?

Capital may not be a constraint with various financial schemes made available, however, return over Investment (ROI) may be a matter of concern depending upon the feasibility of supporting services especially, transportation. Being in far east the supply of raw material and finished goods to and from other corners of India becomes non-feasible sometimes. Available local raw materials have an important role to play. The last factor is how to organize, which implies how an inbound entrepreneur is welcome and able to organize and settle in the State in a new socio-political environment.  

Plus, point: A stable Government is the main advantage in West Bengal. Focused development in physical and social infrastructure, improved work culture, forward-looking industrial policies, competitive fiscal incentives for industries, and fast track clearances of industrial proposals make West Bengal a highly business-friendly State. Bengal means business with a vision to recognize the collective strength of Bengal’s industry and bring all together on the journey to make Bengal an economic powerhouse of India.

Bengal will shine once more.