West Bengal pitches ports, MSMEs and logistics as pillars of investment-led growth
Dr Rupa Dutta
New Delhi, Sep 30 (UNI) In recent years, the state of West Bengal has stepped up efforts to position itself as an investment destination, backed by port modernization, policy reforms and an active industrial development agenda.
The stated objective is to make the state not only the logistics and warehousing hub of Eastern India but also a trade gateway to East Asia - in consonance with the Government of India's "Look East" policy. Its economic geography in itself a major economic advantage, giving West Bengal a gateway role for the Northeast and linking it to the markets of Bangladesh, Nepal and Bhutan.
At the same time, the state's economy remains firmly anchored by its informal sector and MSMEs, which continue to be the largest source of livelihoods for its workforce. The scale of this base is substantial: the West Bengal Budget 2026-27 reports 48.80 lakh registered MSMEs, including around 4 lakh micro enterprises newly registered on the Udyam Portal and 1.33 lakh on the Udyam Assist Platform. Bank credit to MSMEs was estimated at Rs. 1,45,372 crore in the first two quarters of FY 2025-26, up 27.83 per cent over the corresponding period of the previous financial year.
One of the key factors needing immediate attention would be the availability of Land. Being a fertile state, where land is a precious resource, fragmentation of land ownership and succession rights, panning across generations, has resulted in average farm size being uneconomic and unfit for cultivation.
For Bengal, the policy response should focus on transparent land records, clear ownership rights, local consultation and community participation to make larger and viable parcels available for productive use.
A first step in this direction would be a complete computerization of the land records in a transparent and accountable manner, for clear enunciation of the ownership rights. Couple this with clear dialogue between local authorities, voluntary benefit sharing and community participation can play a critical role in enabling land availability of large and viable parcels, allowing industrial development. We can start with setting up of ancillary industries, with local involvement and participation and move up the value chain for larger industries with focus on manufacturing, capital goods and skill, employment generation.
The next critical initiative that requires focused attention is connectivity and logistics. Bengal has immense potential in terms of maritime connectivity and highway development for the North East, as well as, linkage to South and South Asian Countries. This location is particularly valuable because it provides access to Bangladesh, Nepal and Bhutan while serving as a practical gateway to the Northeast, where reliable multimodal links can reduce the cost and time of moving goods between eastern India and these neighbouring markets.
This needs to focus on two fronts: waterway development and improving logistics and creating warehousing facilities. The riverine network strengthens this advantage. National Waterway 1 follows the Ganga-Bhagirathi-Hooghly system to Haldia, while National Waterway 2 on the Brahmaputra is a major waterway for the Northeast. The Indo-Bangladesh Protocol routes also connect Kolkata and Haldia with the Northeast through Bangladesh, offering an additional corridor that can ease pressure on the Siliguri route.
The proposed investments, planned under the Maritime Amrit Kaal Vision 2047, include the development of the Balagarh Multimodal Logistics Hub, expansion and mechanisation of Kolkata and Haldia docks, strengthening of inland waterways, development of world-class shipbuilding and ship repair facilities, cruise tourism infrastructure, riverfront redevelopment and port-led industrial clusters.
Such investments also need private sector investment to establish West Bengal as a preferred destination for maritime and logistics investments.
Existing riverine facilities around Kolkata and Haldia face navigational and draft limitations, which can increase trans-shipment dependence and logistics costs. A modern deep-water facility could improve access for larger vessels and support the maritime development priorities identified in West Bengal's investment and infrastructure planning
Similar projects with expedited development, adequate funding, and ensuring timely completion with clearly delineated and monitored milestones and timelines are necessary.
This also requires timely dredging to enable appropriate water levels, encouraging the private sector to operate in these routes for trade and tourism purposes, and even promote cruise tourism from Varanasi to Kolkata and more. Work towards revival of the old trade routes, improve exports, allow easy availability and access along the water path, ensuring connectivity in a sustainable, eco-friendly, and inexpensive manner, benefiting all and sundry.
The next component of this project would be improvement in logistics for reduction in turnaround time on ports, faster online and offline connectivity and communications, and creation of interoperable systems (where the systems can talk to each other) for making customs faceless and trade paperless.
The third angle would be to make Bengal a warehousing hub. Cultivating aquaculture, in consonance with the Southern model, can help ensure quality, consistency, and adherence to internationally accepted standards.
Utilizing the services of agencies like APEDA and MPEDA for counselling, hand-holding, brand building, packaging, and making inroads in international markets. Besides, marine products, agricultural products such as potatoes, other vegetables, and other horticultural products, have a tremendous potential for exports. Here already exists a cold chain infrastructure; invest in this further, supplement the same, and utilize it for domestic and international marketing. Such efforts would have an immediate multiplier effect, in terms of skill development, income and employment generation.
The fourth component would be investment and brand building for labour-oriented sectors such as textiles, handlooms and handicrafts, and design and creation light weight jewelry, including imitation jewelry. All these sectors exhibit the following characteristics: There is huge potential and talent available amongst the Bengal craftsmen, where there is a possibility of producing high-quality products, capable of generating international interest. This requires sustained efforts by the government, by acting as facilitators, encouraging craftsmen to form cooperatives, handholding them by acquainting them to modern packaging and branding methods, tying up with e-commerce companies for providing an insurance cover and ensuring quick cargo movement.
Combining the same with the usage of direct marketing methods, including social media and international exhibitions for publicity of such niche and high-quality products, is essential.
The next frontier would be the revival of the engineering sector, including setting up steel mills for producing ancillary products. The final frontier would be focus on the higher end of the value chain, including semiconductor chips, Electronic vehicles, etc.
The state of West Bengal today is at an important stage in its efforts to achieve sustained growth and investment and exhibits a tremendous potential for the same. Bengal needs major investments in critical sectors ranging from semiconductors and electric vehicles to textiles, handlooms and handicrafts. Combine this with efficient financing instruments, an active industrial outreach agenda, an appropriate policy action and adequate emphasis on timely and cost-effective implementation.
(The author is a Distinguished Fellow with Chintan Research Foundation. The views are personal.)
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