Amit Mitra flags US tariff concerns, outlines Bengal's economic plan

At MCCI's annual general meeting in Kolkata, Amit Mitra voiced concern over US tariffs while highlighting Bengal's growth strategy and central tax devolution issues

Principal Chief Advisor to Chief Minister West Bengal Amit Mitra on Friday expressed concern about the uncertainty around the US-India tariff dispute.

  Speaking at the 124th annual general meeting of the Merchants’ Chamber of Commerce & Industry (MCCI), Mitra said there was constant uncertainty.

  “Where do we exactly sit with the 25 per cent additional tariff on account of buying Russian oil, we don’t know.... this is not a predictable tariff shock.” he said.

  In retaliation to purchasing Russian oil, the Donald Trump administration imposed an additional 25 per cent tariff on Indian goods effective August 27. This was over and above the 25 per cent reciprocal tariff that kicked in on August 7, putting India at a disadvantage compared to competing nations.

  Earlier in the week, chief negotiators of India and the US decided to step up efforts to quickly conclude a mutually beneficial trade deal.

  As far as Bengal is concerned, the major items of exports are engineering goods, leather and marine products (mainly shrimp). Mitra urged the chamber to create a cell that looks at options of dealing with the tariff shock.

 

Bengal government strategy

 

Addressing members of the MCCI, Mitra outlined the Bengal government’s strategy, dubbing it ‘walking on two feet’.

  He cited two models to demonstrate this: the balancing act between capital and social expenditure; and promoting labour-intensive MSMEs alongside technology-driven large industries. 

The capital expenditure, he said, has grown from Rs 2,633 crore in 2010-11 – the year Mamata Banerjee’s government came to power – to Rs 29,757 crore in 2023-24. “Social services sector expenditure when we came to office was almost Rs 7,000 crore. In 2023-24, it was at Rs 62,000 crore.”

  Mitra also spoke about the investments in the state – from steel to cement and information technology to labour intensive sectors like leather.

  At the event on Friday, MCCI members pledged an investment of Rs 49,561 crore over the next two years across steel, power, food processing and tourism sectors.

 

Mitra also highlighted how the GSDP had expanded. The GSDP then (2010-11) was at about Rs 4.6 trillion and last year (2024-25), the official figure after advance estimate was Rs 18.15 trillion, he said.  

  Tax collection, he noted, was at Rs 21,128 crore in 2010-11 and in 2023-24, it was at Rs 89,985 crore.

 

‘Constitutional right’

 

Mitra also responded to a document on “Efforts for West Bengal” distributed by the Union Finance Minister Nirmala Sitharaman to journalists at an event on GST reforms in Kolkata on Thursday.

The document highlights the increase in tax devolution, infrastructure projects during the Narendra Modi-led government and compares it with the previous 10 years of the UPA government.  

 

Finance Minister Sitharaman said that she just wanted to present the facts in the public domain – the details of devolution, projects coming to Bengal. “All rightfully, I am not in any way suggesting that we are doing an act of kindness. But I also want to confirm that there is nothing being denied.”

 

According to the document, Rs 1.07 trillion has been budgeted as tax devolution for FY 2025-26 (BE), of which Rs 47,526.63 crore has been released as of September 2025.

 

“That is our constitutional right,” Mitra said, adding that according to the Finance Commission decision, 41 per cent of central taxes have to come to states.

 

He also said that in the last eight years, the Centre has collected about Rs 8 trillion from West Bengal in taxes. Of this, direct tax was Rs 4 trillion, customs duty Rs 1.37 trillion and central GST Rs 1.17 trillion.

 

He reiterated that the central government owes West Bengal Rs 1.93 trillion on account of MGNREGA, rural housing, and others.