March 3, 2011 in Investment Destinations by admin
West Bengal
West Bengal, with a total geographical area of 88,752 sq km, is located at the centre of the eastern region of India. It is bordered by Bihar and Jharkhand on the west; Orissa on the south; and Sikkim on the north. It is strategically positioned with three international frontiers, such as, Bangladesh in the east; Nepal in the west; and Bhutan in the north-east side. The land frontier of West Bengal stretches for about 700 Km, from the Bay of Bengal in the south to the mighty Himalayas in the north.
West Bengal is one of the most culturally and ethnically diverse States of India. It has a large pool of talented and skilled human resources, with forward-looking academic and technology learning centres. West Bengal, being an agrarian State, offers tremendous potential for agri-business, with fertile soil, excellent agro-climatic zones and aggressive land reform programmes. The substantial growth in the agricultural sector provides the necessary base for accelerated industrial development in the State. Besides, advantages like stable political situation, dedicated cooperation of the investors, establishment of world class financial institutions and harmonious labour relations, provide the necessary climate, strength and confidence in the process of promoting industrial development in the State.
Being the fourth largest growing State in India, West Bengal is the second largest recipient of investment in the country. It has been receiving a number of investments in the iron and steel, chemicals, plastic, information technology and biotechnology sector. Of these, the tremendous potential for investment opportunities exists in the information technology and tourism sectors, which have huge employment and export avenues. Besides, the State has achieved significant improvements in the urban infrastructure scenario with reference to water supply, sanitation, education, health, restructuring connectivity, real estate, etc. It has proper transportation system; efficient and high quality power at competitive rates; and sound telecom network.
Hence, West Bengal has emerged as a prime investment destination in India, with a large number of foreign investments at Howrah and Kolkata. Haldia is set to be the next petrochemical hub. The steel city of Durgapur and the belts of Asansol are gaining popularity as a ferro alloy hub
Investment Policies and Incentives
The Government of West Bengal has always endeavoured to set up the right kind of business climate to motivate investments in the State. In this regard, it has made several policy announcements, from time to time. These policy documents envisage the incentives and schemes for the investors. They seek to remove various road blocks in the industrial development of the State.
The major policy of the State is the Agricultural Policy, which has been formulated with a view to raise agricultural production and productivity vertically through wider adoption of appropriate eco-system-specific and cost effective technology. The other objectives of the policy are to:-
?Bring more area under high yielding variety (HYV), hybrid and improved varieties of crops;
?Strengthen the seed certification and seed testing functionaries, and increase the timely supply of certified seed;
?Emphasize increased production of pulses and oilseeds in non-traditional areas and non- conventional seasons, by utilizing residual moisture and improving productivity with right application of available technology;
?Encourage small and marginal farmers so as to maintain the increased production tempo by providing different inputs on subsidy reasonable price;
?Intensify agricultural programme in the low productive and inaccessible areas with special reference to coastal saline zone, undulating red and lateritic zone, Tista Tera alluvial zone, etc;
?Encourage the farmers for mechanization through the use of agricultural implements and machines for timely farm operation, and reducing cost of cultivation;
?Emphasize maintenance of soil health, more use of bio-fertilizers, green manure and farm yard manure, balanced nutrition, consumptive use of irrigation water and conservation of surface water;
?Extend soil testing facilities upto district level for proper use of fertilizer;
? Strengthen and activate Agricultural Extension Service, including training and visit system, to intensify linkage between research and extension workers;
?Manage crisis in the event of natural calamities;
?Create employment opportunities to improve the socio-economic status of the farmers and remove sub-regional disparity;
?Fully exploit the surface water potential and reduce indiscriminate use of ground water, as far as practicable;
?Promote post-harvest technology for reducing loss and better marketability;
?Maintain nutrient reserve pool of the soil by properly maintaining soil humus;
?Bring cultivable waste land and fallow land under cultivation;
?Emphasize the concept of zero tillage/minimum tillage in vulnerable areas; etc.
Investment Opportunities
West Bengal has been recognised as one of the important investment destinations in the country. It has major locational advantages with ports at Kolkata and Haldia, efficient network of railways, roadways and airways; stable power situation; as well as improved telecommunication system. It also has a very large number of skilled and qualified technical persons at different levels. Due to favourable agro-climatic conditions of the State, innumerable opportunities exists in the areas of agriculture, horticulture, sericulture, tissue culture and floriculture. The major industrial units in the State include tea, petrochemicals, electronics, leather, information technology, automobiles, etc. In addition, magnificent landscapes makes the State a tourist hotspot.
Agriculture
Agriculture plays a pivotal role in the State’s economy and nearly three out of every four persons are involved in it. West Bengal is richly endowed with fertile soil, abundant water and favourable agro-climatic conditions. West Bengal is the largest rice producing State in the country, producing over 16% of rice. The other major agricultural commodities are wheat, pulses, oilseeds, potato, jute, pineapple, bananas, etc. With such abundant availability of agro produce in the State, the agriculture and horticulture sector naturally becomes a focus of attention. Also, the State enjoys national leadership position in terms of its output. Apart from this, its estuarine area is suitable for cultivation of variety of aquacultural products like shrimps and tiger prawns.
With extremely low levels of processing and scientific handling and storage, the entire sector provides gainful opportunity for investors in a host of areas, be it in grain handling and storage or in creating food processing facilities or building up cold chain infrastructure. The easy availability of power and water provides great scope for activity in the rice processing sector. Floriculture, tissue culture, dairy processing and fisheries are other important areas which are being highly encouraged.
Tea Industry
West Bengal is the second largest tea growing State in India. It contributes about 21 percent of the total production of tea in India. Darjeeling and Jalpaiguri are two northern districts of West Bengal, where most of the tea gardens are located. Darjeeling tea is the finest tea in the world. Tea industry plays an important role in the economy of West Bengal. It generates employment in several ways like in production, processing, distribution, packaging etc. Tea is also an important source of income through exports. Kolkata port is the biggest tea-handling port in India as well as Kolkata is the biggest tea auction market in India. Many new small tea gardens have been set-up in Coochbehar, North Dinajpur, etc.
Information Technology (IT)
West Bengal continues to be the major base for information technology (IT) and software companies. The IT industry in the State has achieved significant growth over the years. At present, total export earning of IT companies located in Software technology Park (STP) is Rs. 2000 crore. Presently, 180 IT and 55 ITes companies are operating in Kolkata providing employment to 35,000 professionals.
West Bengal is on a fast track IT highway and is poised to become one of the top three States in India by 2010 to contribute 15 to 20 per cent of the country’s total IT revenue. In order to capture this significant share of the growth and to provide full support to the investor community, the State Government has crafted comprehensive policies for the development of information technology in the State. The thrust areas in information technology include software development, hardware manufacture, IT real estate, IT enabled services, IT-security etc.
The West Bengal Government is also encouraging proposals for setting up large complexes in the ‘information technology’ segments of the private sector, joint sector and public sector. Further, it is looking at developing Tier II cities like Haldia, Durgapur and Siliguri and also suburban areas around Kolkata as the next IT hubs.
Leather Industry
The leather industry has a very high potential for growth due to easy availability of raw materials like hides and skins. Availability of skilled manpower for such activities has been the strength of this area. West Bengal is one of the country’s top State for export of finished leather goods. 70% of the country’s leather goods are exported from West Bengal. Export oriented units will be benefited through the setting up of the integrated leather complex near Kolkata. Kolkata Leather Complex is being set up in Bantala, primarily to relocate the existing tanneries from Kolkata (Tiljala, Topsia and Tangra). The complex is spread over 1100 acres of land and is 15 minutes away from Park Circus connector of EM Bypass. The basic idea of relocating these tanneries is to save Kolkata from pollution. The leather complex will be an ideal place for leather processing and furnishing units.
Tourism
West Bengal is endowed with destinations like Darjeeling with a magnificent view of the Himalayas, dense forests and wild life sanctuaries in the Dooars of North Bengal, sea beaches and Sunderbans of South Bengal, rolling rivers, monuments, temples and other places of heritage in Calcutta and the Mufussil districts of the State. In order to realize the full potential of such locations and places of tourists’ interest from the heritage point of view as well as to develop the seaside resorts in coastal areas, the State Government has formulated a separate policy for development of tourism.
Infrastructure
West Bengal has a well-developed network of railways, roadways, airports and seaports. It has latest and modern telecom network as well as reliable power supply system. In order to upgrade and fully develop such infrastructural facilities, the Government of West Bengal has undertaken several infrastructure projects. It is making all efforts to attract greater investments into the State economy.
