Can BJP's Bengal win be a turning point for industry? Experts weigh in

Now, with the BJP in power at both the Centre and the state - a convergence not seen in over 50 years - the question is whether it can unlock a wave of investment to match the scale of the mandate

In 2015, at the Burnpur ceremony to dedicate the modernised IISCO plant, West Bengal Chief Minister Mamata Banerjee, in the presence of Prime Minister Narendra Modi, had drawn a clear line: politics and development should not be mixed.

 

That line did not hold. It blurred over time, as fraught Centre-state relations, along with the Trinamool Congress’ (TMC’s) policy choices, kept big-ticket investments at bay.

 

Now, with the Bharatiya Janata Party (BJP) in power at both the Centre and the state — a convergence not seen in over 50 years — the question is whether it can unlock a wave of investment to match the scale of the mandate.

 

The promise pitch

 

The BJP manifesto is packed with promises. It pledges to create an investment-friendly climate by improving “ease of doing business” and dismantling the entrenched “syndicate culture” through a single-window clearance system.

 

The blueprint also outlines a major push for port-led development and the blue economy, including coastal economic zones focused on fisheries, aquaculture, and seafood processing. Developing modern steel plants is also on the agenda.

 

No industry road map in Bengal is complete without a reference to Singur — the site of the erstwhile Nano project, emblematic of the state’s political churn. The BJP has proposed an industrial park there, alongside four major industrial zones across the state aimed at generating employment.

 

And the list goes on — from industrial expansion to targeted support for reviving the tea sector.

 

But what industry is keenly watching for, however, is a reversal of some of the TMC government’s policies — particularly on land acquisition, an area the state has largely steered clear of since the agitations in Singur and Nandigram.

 

Land: Where it gets tricky

 

Rajeev Singh, director general, Indian Chamber of Commerce (ICC), said that land remains a structural constraint. “With high population density and limited availability, acquisition is likely to remain sensitive,” he said.

 

However, he said industry and the government will need to work in tandem, prioritising clearer rules, smoother processes, and a facilitative approach, rather than any form of forced acquisition.

 

Land in Bengal is divided into small, fragmented holdings — shaped by the success of the Left Front government’s land reform initiatives that entailed redistribution of land to three million farmers over 34 years.

 

The result: about 71.23 lakh farm families, of which 96 per cent are small and marginal farmers, with an average landholding at just 0.77 hectares — a bottleneck for large-scale projects. Yet, getting 50-100 acres in Bengal is not a problem, pointed out Singh.

 

Inflection point for industry?

 

The mandate could mark a turning point for industry in Bengal, business leaders, including Harsh Goenka, Sanjiv Goenka, Harsh Neotia, and Raghupati Singhania, have said. The mandate is a big relief for industry, ICC’s Singh said. “With policy alignment between the Centre and state, investor confidence will rise and expansion will shift back to Bengal. Many were expanding outside the state — to Gujarat, Madhya Pradesh, and Maharashtra,” he added.

 

The Bengal Chamber of Commerce and Industry said it looks forward to an environment that strengthens investor confidence, improves ease of doing business, and drives industrial growth, employment generation and policy stability in the state.

 

“Constructive governance and collaborative development remain critical to unlocking West Bengal’s full economic potential,” it added.

 

Describing the verdict as a “game-changing” moment, a Motilal Oswal report pointed out that for the first time, a right-wing political party (with credentials of development and business orientation) will form the government.

 

Bengal had been lagging national averages in growth, investments, and several other vital economic parameters. “Now, with the benefits of a ‘double-engine’ government, the economic strengths of the state will emerge and should attract greater investments over the next five years,” it said.

 

While West Bengal last had the same party in power at both the state and the Centre between 1972 and 1977 — Siddhartha Shankar Ray was chief minister and the Congress ruled at the Centre — there was a degree of alignment when the Left supported the United Progressive Alliance (UPA). And it reaped dividends.

 

In May 2011 — when the change of guard happened — Bengal had topped the charts as the leading state with a proposed investment of ₹2.78 trillion, ahead of Odisha (₹1.68 trillion) and Tamil Nadu (₹26,992 crore), according to the Department of Promotion of Indu-stry and Internal Trade (DPIIT). The numbers reflect a phase when industry, under Buddhadeb Bhattacharjee, took centre stage.

 

The numbers over the past five years stack up like this: In 2021, 27 industrial entrepreneur memoranda (IEMs) accounted for proposed investments of ₹5,535 crore; in 2022, 26 IEMs totalled ₹4,532 crore; and in 2023, 37 IEMs added up to ₹6,486 crore. In 2024, West Bengal ranked fifth with 31 IEMs, and proposed investments saw a spike to ₹39,306 crore. But till December 2025, investment intentions stood at ₹4,199 crore.