Bengal scores despite land issues: ICC survey

West Bengal has emerged as a favourable destination for businessmen and investors due to stable political environment, cheap and skilled labour, lower cost of living, and proximity to South-East Asian markets.

According to a survey of 150 CEOs carried out by the Indian Chamber of Commerce (ICC) on 'investment climate' in West Bengal, an overwhelming 70.4 per cent of the respondents felt that their operating operating profit for 2007-08 over 2006-07 would increase, while 70.2 per cent expected to increase their production levels or go for expansion and capacity enhancement in 2007-08.

As for land acquisition turmoils hampering the image of West Bengal, 52.3 per cent of the respondents agreed that it has hampered the industrialisation process and the image of Bengal though only in the short-term.

Among the respondents who also export their products/services, 51.4 per cent felt the share of exports in their total production would increase in 2007-08.

Of the 150 surveyed, 57.5 per cent said that their companies would go for new recruitment this financial year.

The survey covered industry sectors like iron and steel, jute, chemicals and petrochemicals, energy and power transmission and distribution, agro and food processing, IT & ITeS, rubber, manufacturing, tea, retail and real estate, healthcare, banking and finance, leather, plastic, construction and infrastructure, cement, pulp and paper, sugar, tourism and hospitality, media and entertainment, tourism and hospitality, etc.

The survey covered responses from small, medium and large enterprises in West Bengal and thus provides a wide macro overview of the state economy.

Many of the respondents were who have their primary bases in Bengal and also operate in several other states, which helped the ICC research team to compare industrial scenarios of West Bengal vis a vis other Indian states.

"We carried out such an extensive survey for the first time and would do this once every year from now on," said Rajeev Singh, secretary general of ICC.

As for constraints faced, 27.7 per cent felt infrastructure and connectivity is the greatest constraint that still hampers industrial growth in West Bengal.

Around 24 per cent felt labour and work culture is the most serious constraint limiting growth in the state, while around 22 per cent have identified bureaucracy or red tapism as the greatest obstacle to industrial growth.

Though Bengal's image has improved and the state is being looked upon as a favourable investment destination according to the survey, 16.2 per cent of the respondents have identified state's image or perception as the most serious constraint hindering growth.

While 6.2 per cent said they thought law and order is the most serious constraint, 4 per cent felt easy access to credit or finance was a greater constraint.

When measured among 17 states, West Bengal emerged 5th in the 'most attractive for investments' category. Maharashtra topped the chart, followed by Tamil Nadu, Gujarat and Karnataka.