New industrial policy puts West Bengal in the menu of possible options which

With the unveiling of the West Bengal Investment Promotion Policy, the BJP government in the State seeks to establish a “level playing field” with other States in terms of attracting fresh investment, as the State had been at a disadvantage position due to an uneven playing field, says Finance Minister Swapan Dasgupta. In an interview with businessline, Dasgupta says there is enough land available at present in the State to take care of the initial demand for the next two to three years. Edited Eexcerpts: West Bengal has unveiled its new industrial policy to offer dedicated support for companies making large investments, employment-linked incentives for investors, and higher assistance to units in thrust sectors and priority areas. What makes this policy unique in attracting fresh investment, especially as Bengal is competing with other States to woo investors? We are trying to establish a level playing field with other States. What we bank upon are certain locational advantages which West Bengal offers as a gateway to Eastern India and as a State which has always had a record of sustained industrializsation, which was broken in the past 50 years. So, what we try to do is basically signal that Bengal offers more or less the same advantages and incentives as anyone else. The only difference being that this is basically by way of reassurance to people that the hostile attitude towards business, which was a feature of the State at one time, is over. Then, we are welcoming industries with open arms, just as other sStates are doing. So, we have now got ourselves into what we wanted to establish. There was an uneven playing field where we were disadvantaged. We have tried to make it into a level playing field. After this we will depend on the various businesses to take an informed business decision. At least West Bengal will be on the menu. Earlier we were not even on the menu. In the policies of the previous governments in West Bengal, the emphasis was on the growth of MSME sector due to scarcity of available land. This new industrial policy seems to address this issue by also focusing on attracting investment in large manufacturing. Is it a policy shift? Both the bigger players as well as the MSMEs are important for West Bengal. Land has always been a scarce commodity in our State, but we believe that there is enough available land at present to take care of the initial demand for the next two to three years. After the two to three years, if the industry expands at a very rapid rate, we will need to re-examine certain legislation and, certain land laws which exist in the State, but till then, I think a combination of existing land banks, existing industrial estates, and a certain degree of land pooling will be sufficient to do this. But as I said, this is to take care of it for the short term and medium term. In the longer term, there will be a need for more sustained action to ensure that there is greater land available for industrialisation. The problem lies with the particular tenancy laws which are there in this sState. What has been the initial reaction from different industries and sectors after the announcement of the policy? In which sectors do you see fresh investment coming in within this fiscal itself? Investments are not made on the basis of just casual decisions. We put Bengal in the menu of possible options which people can exercise. We feel the initial attraction will come from those who want a presence in Eastern India, and those who feel that there is a certain locational advantages of West Bengal. Like the iron and steel sector because of coal and power, etc. Now, as we move into other things like power reforms and other land reforms, there will be other sectors. The moment the uUrban lLand cCeiling aAct goes, we will see a boom in real estate and certain services sectors. This is the initial period, obviously things would not happen instantly. This is not a magic wand. Investors will also look at the overall environment, political stability, and infrastructure. All these factors will also be ion their calculations. On creating an industry-friendly atmosphere, the government has reassured industries of a zero-tolerance policy against extortion (tolabaji) and corruption. This overall environment is very important. West Bengal is moving from a position where, in the past, industry and investments were looked upon with suspicion and sometimes with hostility to a position where we now welcome them positively. That is the shift. Now people will actually see the shift. Investments are not casual decisions. A lot of money is involved. Investors will assess the situation, and the investment policy adds a degree of certainty to the whole thing. It is in black and white, and it is a formal government commitment. Going forward, is the government planning to come up with sector-specific policies, like a data centre policy and a tourism policy? A Global Capability Centres (GCCs) policy is a separate thing which will come about. The existing investment policy is the broad structure. Now, for the broad scaffolding of specific details on certain sectors like tourism, there will be a need for Ffloor Aarea Rratio (FAR) and other things for hospitality businesses. There will be corresponding measures which will attract all of them. There will be a policy on start-ups. So, those will come. That is why there will be industry-specific, sector-specific policies. Those will come out later, and when I say later, hopefully, within the next two months or so. The West Bengal Investment Promotion Policy, 2026 is a flexible document. In the coming days, if we feel that there are certain things which need to be added or modified, we will do that, keeping in mind what the reaction is. West Bengal has unveiled its new industrial policy to offer dedicated support for companies making large investments, employment-linked incentives for investors, and higher assistance to units in thrust sectors and priority areas. What makes this policy unique in attracting fresh investment, especially as Bengal is competing with other States to woo investors? We are trying to establish a level playing field with other States. What we bank upon are certain locational advantages which West Bengal offers as a gateway to Eastern India and as a State which has always had a record of sustained industrializsation, which was broken in the past 50 years. So, what we try to do is basically signal that Bengal offers more or less the same advantages and incentives as anyone else. The only difference being that this is basically by way of reassurance to people that the hostile attitude towards business, which was a feature of the State at one time, is over. Then, we are welcoming industries with open arms, just as other sStates are doing. So, we have now got ourselves into what we wanted to establish. There was an uneven playing field where we were disadvantaged. We have tried to make it into a level playing field. After this we will depend on the various businesses to take an informed business decision. At least West Bengal will be on the menu. Earlier we were not even on the menu. In the policies of the previous governments in West Bengal, the emphasis was on the growth of MSME sector due to scarcity of available land. This new industrial policy seems to address this issue by also focusing on attracting investment in large manufacturing. Is it a policy shift? Both the bigger players as well as the MSMEs are important for West Bengal. Land has always been a scarce commodity in our State, but we believe that there is enough available land at present to take care of the initial demand for the next two to three years. After the two to three years, if the industry expands at a very rapid rate, we will need to re-examine certain legislation and, certain land laws which exist in the State, but till then, I think a combination of existing land banks, existing industrial estates, and a certain degree of land pooling will be sufficient to do this. But as I said, this is to take care of it for the short term and medium term. In the longer term, there will be a need for more sustained action to ensure that there is greater land available for industrialisation. The problem lies with the particular tenancy laws which are there in this sState. What has been the initial reaction from different industries and sectors after the announcement of the policy? In which sectors do you see fresh investment coming in within this fiscal itself? Investments are not made on the basis of just casual decisions. We put Bengal in the menu of possible options which people can exercise. We feel the initial attraction will come from those who want a presence in Eastern India, and those who feel that there is a certain locational advantages of West Bengal. Like the iron and steel sector because of coal and power, etc. Now, as we move into other things like power reforms and other land reforms, there will be other sectors. The moment the uUrban lLand cCeiling aAct goes, we will see a boom in real estate and certain services sectors. This is the initial period, obviously things would not happen instantly. This is not a magic wand. Investors will also look at the overall environment, political stability, and infrastructure. All these factors will also be ion their calculations. On creating an industry-friendly atmosphere, the government has reassured industries of a zero-tolerance policy against extortion (tolabaji) and corruption. This overall environment is very important. West Bengal is moving from a position where, in the past, industry and investments were looked upon with suspicion and sometimes with hostility to a position where we now welcome them positively. That is the shift. Now people will actually see the shift. Investments are not casual decisions. A lot of money is involved. Investors will assess the situation, and the investment policy adds a degree of certainty to the whole thing. It is in black and white, and it is a formal government commitment. Going forward, is the government planning to come up with sector-specific policies, like a data centre policy and a tourism policy? A Global Capability Centres (GCCs) policy is a separate thing which will come about. The existing investment policy is the broad structure. Now, for the broad scaffolding of specific details on certain sectors like tourism, there will be a need for Ffloor Aarea Rratio (FAR) and other things for hospitality businesses. There will be corresponding measures which will attract all of them. There will be a policy on start-ups. So, those will come. That is why there will be industry-specific, sector-specific policies. Those will come out later, and when I say later, hopefully, within the next two months or so. The West Bengal Investment Promotion Policy, 2026 is a flexible document. In the coming days, if we feel that there are certain things which need to be added or modified, we will do that, keeping in mind what the reaction is.