West Bengal back on investment radar, says Assocham survey

Once shunned by industrialists on grounds of non-conducive work culture, West Bengal is once again on their investment radar.

Cheap and skilled manpower, along with low cost of living compared to other cities, is drawing entrepreneurs to the state.

According to the latest Business Confidence Index (BCI) by industry body Associated Chambers of Commerce and Industry of India (ASSOCHAM), West Bengal has scored 6.5 on a scale of 10.

The score, while indicative of the state government’s industry-friendliness, is at par with investment destination states such as Gujarat, Maharasthra, Karnataka, Andhra Pradesh, Rajasthan and Himachal Pradesh, according to the report. As per chamber estimates, West Bengal has received investments of up to Rs 5.3 lakh crore till September 2009 over a 12-year period which indicates the investors' confidence on the State, said D S Rawat, secretary general, ASSOCHAM while releasing the Survey.

“India Inc. still trusts the State government’s industry-friendly policies which are working on the right direction to make the state’s industrial prospects conducive,” according to the report.

In a Survey of over 280 chief executive officers and managing directors conducted by the chamber, over 70 per cent of respondents expressed their views that the BCI of 6.5 was based on the state’s Gross Domestic Product (GDP) growth rate of over 9 per cent during the past five-six years, coupled with the flow of investments for sectors such as infrastructure, real estate and construction, manufacturing and IT/ITeS. Nearly 52 per cent of CEOs felt, “Since the state offered cheap and skilled manpower coupled with low cost of living compared to other cities and states, setting up an industrial unit in the state will be highly beneficial for the investors.” Over 200 CEOs observed that apart from domestic investment, the state could attract investment from overseas players in the areas of clean energy, biotech and nanotech, healthcare, education and infrastructure.

Over 55 per cent respondents called for providing opportunities in agriculture, food processing, chemicals, petroleum and downstream industries, iron and steel, power, and asked the state government to analyse untapped opportunities for the investors.

The West Bengal state Budget for the year 2010-11 has provided for an additional Rs 2,000 crore for planned expenditure.

“By providing adequate thrust to IT, tourism, chemicals and petrochemicals and food processing, the government is working on the right direction,” said Rawat.

Over 64 per cent of the respondents expressed their happiness for the development

of IT and ITeS in the state with the presence of IT majors such as TCS, IBM and Google, and setting up of Software Research Centre in Kolkata by Intellisys Technologies and IIT Kharagpur to promote R&D.

Over 190 CEOs have called for setting up an Investment Promotion Cell in West Bengal, which can identify new potential areas for investment.