How much is West Bengal ready for business?

Souvik Karmakar

24th March 2025

West Bengal has made significant strides in recent years to position itself as a business-friendly state. The state government has implemented several policies and initiatives to attract investments, improve infrastructure, and foster industrial growth. Here’s a detailed analysis of how ready West Bengal is for business:

1. Ease of Doing Business (EoDB) Ranking

West Bengal has improved its ranking in the Ease of Doing Business (EoDB) index, which is a key indicator of a state's readiness for business.

2020 EoDB Ranking: West Bengal ranked 10th among Indian states, a significant improvement from previous years.
Key Reforms:
- Single-window clearance for business approvals.
- Online portals for land allotment and industrial permits.
- Simplified labor laws and compliance procedures.

2. Infrastructure Development

Infrastructure is a critical factor for business readiness. West Bengal has made notable progress in this area:

Transport and Connectivity:

Roads: Expansion of highways like the Kolkata-Durgapur Expressway and NH-19.
Ports: Modernization of Kolkata Port and Haldia Port, which are key trade gateways.
Airports: Netaji Subhas Chandra Bose International Airport in Kolkata is a major aviation hub.
Railways: An extensive railway network connecting industrial hubs like Asansol, Durgapur, and Kharagpur.

Industrial Parks and SEZs:

Haldia Industrial Park: Focus on petrochemicals and manufacturing.
New Town Rajarhat IT Hub: A growing IT/ITeS cluster.
Special Economic Zones (SEZs): SEZs in Falta and Kulpi attract foreign and domestic investments.

3. Policy Initiatives for Business Growth

The West Bengal government has launched several initiatives to promote business and investment:

Bengal Leads:

A flagship initiative to attract investments across sectors like IT, manufacturing, and healthcare.
Offers incentives such as tax breaks, subsidies, and land allotment.

Startup Bengal:

A dedicated platform to support startups with funding, mentorship, and infrastructure.
Over 5,000 startups registered as of 2023.

MSME Support:

Policies to promote Micro, Small, and Medium Enterprises (MSMEs), which are the backbone of the state’s economy.
Financial assistance and skill development programs for MSMEs.

4. Key Sectors Driving Business Readiness

West Bengal has a diversified economy with several sectors contributing to its business readiness:

IT/ITeS:

Kolkata is emerging as an IT hub, with companies like TCS, Infosys, and Wipro operating in the city.
New Town Rajarhat and Salt Lake Sector V are prominent IT clusters.

Manufacturing:

Strong presence in sectors like textiles, chemicals, and steel.
Industrial hubs in Asansol-Durgapur and Haldia.

Agriculture and Food Processing:

West Bengal is a leading producer of rice, jute, and tea.
Food processing parks in Jalpaiguri and Malda boost agro-based industries.

Healthcare and Pharmaceuticals:

Kolkata is a major healthcare hub with hospitals like Apollo and Fortis.
Growing pharmaceutical industry in Kolkata and Durgapur.

5. List of 42 large corporates and startups in Kolkata/West Bengal

Below is a mix of large enterprises and startups across various sectors:

Large Corporates:

ITC Limited—FMCG, Hospitality, Agri-business
Coal India Limited – Mining
Tata Steel (Merchandise Division) – Steel Manufacturing
Britannia Industries – FMCG
Exide Industries—Battery Manufacturing
CESC Limited – Power Utility
Emami Group—FMCG, Healthcare
SBI Life Insurance—Insurance
Bandhan Bank—Banking and Financial Services
Peerless Group – Financial Services
Andrew Yule & Co. – Engineering, Tea, and Electricals
Hindustan Copper Limited – Mining
Birla Corporation – Cement and Manufacturing
Duncan Goenka Group—Tea, Healthcare, and Engineering
Shrachi Group—Real Estate, Automotive, and Finance
Lux Industries – Textiles and Apparel
Mcleod Russel – Tea Plantations
Eveready Industries—Batteries and Flashlights
Hindustan Motors—Automotive (Historical presence)
RPG Group—Retail, IT, and Energy
Ambuja Neotia Group – Real Estate and Hospitality
Purabi Dairy—Dairy Products
Balmer Lawrie & Co. – Logistics and Industrial Services
Garden Reach Shipbuilders & Engineers (GRSE) – Shipbuilding
Hooghly Dock & Port Engineers—Shipbuilding
Berger Paints—Paints and Coatings
IFB Industries – Home Appliances
Tega Industries—Mining Equipment
Haldia Petrochemicals – Petrochemicals
Titagarh Wagons—Railway Equipment

Startups:

Wow! Momo—Food Tech (Quick Service Restaurant)
Turain Software—IT Services and Software Development
CueMath—EdTech (Math Learning Platform)
Flickstree—AdTech (Personalized Content Platform)
Taskmo—Gig Economy Platform
GoBumpr—Auto Tech (Car Servicing Platform)
Genie—Home Services Platform
MedikaBazaar—Healthcare Supply Chain Platform
Agnikul Cosmos—Space Tech (Satellite Launch Vehicles)
EzeRx—MedTech (Healthcare Devices)
PickMyWork—Gig Economy and Fintech
Fasal—AgriTech (Farm-to-Business Platform)

6. West Bengal's Business Growth Over the Last 10 Years

West Bengal has shown steady economic growth, driven by industrialization, infrastructure development, and a focus on MSMEs. Key statistics and evidence:

GDP Growth:

West Bengal's GDP grew at an average rate of 6-7% annually over the last decade.
The state’s GDP in 2022-23 was approximately ₹17.5 lakh crore (USD 230 billion).

Industrial Growth:

The state attracted investments in sectors like textiles, chemicals, IT/ITeS, and food processing.
Major industrial hubs include Haldia, Asansol-Durgapur, and Kolkata.

Infrastructure Development:

Projects like the Kolkata Metro expansion, Durgapur Expressway, and New Town Rajarhat IT Hub have boosted economic activity.
The Haldia Port and Kolkata Port have facilitated trade and logistics.

Ease of Doing Business:

West Bengal improved its ranking in the Ease of Doing Business Index, moving into the top 10 states in India.
The state government launched initiatives like Bengal Leads to attract investments.

7. GST Collections in West Bengal

GST collections reflect the state's economic activity and formalization of the economy. Key statistics:

FY 2022-23: West Bengal collected ₹1.2 lakh crore in GST, a 10-12% YoY growth.
FY 2021-22: GST collections stood at ₹1.08 lakh crore.
FY 2017-18 (GST Introduction Year): Collections were around ₹60,000 crore.

Evidence:

Data from the Ministry of Finance, Government of India, and West Bengal State GST Department.

8. Startup Ecosystem in West Bengal

West Bengal has emerged as a hub for startups, with Kolkata leading the way. Key statistics and evidence:

Number of Startups: Over 5,000 registered startups as of 2023.
Key Sectors: IT/ITeS, fintech, edtech, agritech, and healthcare.
Government Initiatives:
- Startup Bengal: Provides funding, mentorship, and infrastructure support.
- Webel IT Hub: Incubation centers for tech startups.
Funding: Startups in the state have raised significant funding. For example:
- Wow! Momo raised ₹350 crore in 2022.
- CueMath raised $57 million in 2022.

Evidence:

Reports from Startup India, Tracxn, and Inc42.

9. Challenges and Areas for Improvement

While West Bengal has made progress, some challenges remain:

Infrastructure Gaps:

Rural areas still lack robust infrastructure, which can hinder industrial growth.
Power supply and logistics need further improvement.

Political Stability:

Perceived political instability can deter some investors.

Skill Development:

Need for a more skilled workforce to meet industry demands.

10. Unemployment Rate in West Bengal and India

Unemployment rates indicate the state's job creation and economic health. Key statistics:

West Bengal:

2023: The unemployment rate is around 5.5-6%, lower than the national average.
2020 (COVID-19 Impact): Unemployment peaked at 7-8%.
2013-2019: The unemployment rate hovered around 4-5%.

India:

2023: The unemployment rate is approximately 7-8%.
2020 (COVID-19 Impact): Unemployment surged to 23-24%.
2013-2019: The unemployment rate ranged between 5-7%.

Evidence:

Data from the Centre for Monitoring Indian Economy (CMIE) and the Periodic Labour Force Survey (PLFS).

11. Key Takeaways

West Bengal has shown consistent economic growth, with a focus on industrialization and infrastructure.
GST collections have doubled since 2017, reflecting increased economic activity.
The startup ecosystem is thriving, with significant government support and private investments.
Unemployment rates in West Bengal are lower than the national average, indicating better job creation.

12. Statistics Supporting Business Readiness

GDP Growth: West Bengal’s GDP grew at 6-7% annually over the last decade.
GST Collections: ₹1.2 lakh crore in FY 2022-23, reflecting economic activity.
FDI Inflows: Significant FDI in sectors like IT, manufacturing, and healthcare.
Startup Ecosystem: Over 5,000 startups and growing.

13. Comparison with Other States

West Bengal ranks 8th in GST collections and 10th in Ease of Doing Business.
While it lags behind states like Maharashtra, Karnataka, and Gujarat, it is ahead of many others in terms of industrial growth and infrastructure development.

As of February 2025, the top 10 Indian states by Goods and Services Tax (GST) collections are as follows:

Maharashtra: ₹30,637 crore (13% increase)
Karnataka: ₹14,117 crore (10% increase)
Gujarat: ₹11,402 crore (3% increase)
Tamil Nadu: ₹10,694 crore (10% increase)
Haryana: ₹9,925 crore (20% increase)
Uttar Pradesh: ₹9,155 crore (14% increase)
Delhi: ₹6,074 crore (10% increase)
West Bengal: ₹5,797 crore (8% increase)
Odisha: ₹5,344 crore (4% increase)
Telangana: ₹5,280 crore (1% increase)

These figures indicate the total GST revenue collected by each state during February 2025, along with their respective year-on-year growth percentages.

14. Key Observations in GST Collection

1. Top Performers: Maharashtra, Karnataka, and Tamil Nadu consistently rank at the top due to their industrial and IT hubs.

2. West Bengal’s Position: West Bengal ranks 8th in GST collections, contributing significantly to the national revenue.

3. North-South Divide: Southern states (Karnataka, Tamil Nadu, Telangana) contribute more to GST revenue compared to northern states (except Delhi and Haryana).

4. Industrial Correlation: States with strong industrial bases (e.g., Gujarat, Maharashtra) and IT hubs (e.g., Karnataka, Telangana) lead in GST collections.

Conclusion

West Bengal is moderately ready for business, with significant improvements in infrastructure, policy reforms, and sectoral growth. However, addressing challenges like infrastructure gaps, political stability, and skill development will further enhance its business readiness.

The state has the potential to become a top investment destination in India, provided it continues to focus on creating a conducive environment for businesses.

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