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For updated information, please visit www.ibef.org June 2020

WEST BENGAL CULTURALLY ARTISTIC

JOR BANGLA TEMPLE IN BISHNUPUR, WEST BENGAL

Table of Contents

Executive Summary .…………….….…….....3

Economic Snapshot ….….…..…………..…...9

Introduction …….....…………………………..4

Physical Infrastructure ……………….……...15

Social Infrastructure ……………………….…24

Industrial Infrastructure ................................27

Key Sectors …………………..…………........29

Key Policies and Procedures …..…...……....38

Annexure ……………….….……….................46

For updated information, please visit www.ibef.orgWEST BENGAL3

EXECUTIVE SUMMARY

Source: Statistics of West Bengal, Government of West Bengal

West Bengal, India’s sixth largest state in terms of economic size, had a Gross State Domestic Product(GSDP) of Rs 14.44 trillion (US$ 206.64 billion) in 2020-21. The state’s GSDP grew at a CAGR of 12.62 percent from 2015-16 to 2020-21.

One of the largest state economies

In 2018-19, West Bengal remains second largest producer of potato in India, accounting for about 24.31 percent of the country’s potato output. The state’s potato production stood at 13.78 million tonnes in 2018-19**.

Major producer of potato

Thirteen IT parks have been established in the state while 13 others are in the process of being set up.Kolkata as the next IT hub

West Bengal is the third largest producer of rice in India.

Rice production in the state stood at 11.68 million tonnes in 2018-19**.

3rd Largest rice producer

West Bengal is the ninth largest state in India in term of mineral production, accounting for about 16 per centof total mineral production. Coal accounts for 97 per cent of extracted minerals.Coal rich state

Note: *As per second advance estimates, ** As per second advance estimates

WEST BENGAL

INTRODUCTION


ADVANTAGE: WEST BENGAL

Rich labour pool

There are 29 universities and sizeable research institutes in West Bengal. It is host to top-notch institutes like IIT Kharagpur and NIT-Durgapur.

Knowledge of English is an advantage for the workforce of West Bengal, especially in Kolkata.

Excellent connectivity

West Bengal offers excellent connectivity to the rest of India in terms of railways, roadways, ports and airports.

Major stretches of the golden quadrilateral project also pass through the northern districts of the state.

Scope for industrial Progress

West Bengal has abundant natural resources of minerals and suitable agro-climatic conditions for agriculture, horticulture and fisheries. It is in the vicinity of mineral rich states like Jharkhand, Bihar and Odisha.

The contribution of the textile industry to the state’s GSDP is targeted to rise to 10 per cent by 2022-23.

AdvantageWest Bengal

Geographic and cost advantage

Location advantage makes the state a traditional market for eastern India, the Northeast, Nepal and Bhutan. It is also a strategic entry point for markets in South-East Asia.

Cost of operating a business is lower in Kolkata than in other metropolitan cities.

Source: West Bengal Vision 2022-23, News articlesNote: T – Target


VISION – 2022

Source: Confederation of Indian Industry

Vision 2022

Agriculture

Sanitation & hygiene Governance

Power generation

Economicdevelopment

Transportation infrastructure

Health

Providing appropriate transportation, irrigation and storage facilities.

Training farmers to use scientific agri practices.

Use of innovative crop production methods, research, new seed technologies.

Red tapism to be minimised or removed and encouraging transparency in governance.

Encouraging technological innovation in providing services and governance.

Development of sanitation and hygiene infrastructure, supporting urban development.

Ensuring fresh water supply and clean drinking water in rural areas.

The state to act as an exporter of power.

Introducing reforms in sector to improve overall efficiency.

Encouraging renewable energy power plants.

Building niche for manufacturing and services sector in state.

Providing funding support, infrastructure, land and logistics to high importance sectors.

Facilitating road connectivity throughout the state, upgrading air transportation, transformation of the state’s port to world class facilities for container management and shipping.

Implementation of social security schemes and enforcing various health & food policies.

Improving medical infrastructure by improving quality of healthcare.

Education Ensuring primary education to all. Upgradation of capacity,

infrastructure and teaching methods of higher educational institutes.

Encouraging skill based education (vocational training).

Note: HYV: High Yielding Variety


WEST BENGAL FACT FILE

Source: West Bengal Industrial Development Corporation, Census 2011

West Bengal is situated in eastern India and shares its borders withJharkhand, Bihar, Odisha, Sikkim and Assam. The state also sharesinternational borders with Bangladesh, Bhutan and Nepal. The Bayof Bengal is in the south of the state.

Bengali is the official language of the state, though English and Hindiare also widely used. Nepali is spoken primarily in Darjeeling district.

Kolkata, Siliguri, Asansol, Durgapur, Raniganj, Kharagpur, Haldia,Darjeeling, Malda, Midnapore, Cooch Behar and Howrah are someof the key cities in the state.

West Bengal's climate varies from tropical savannah in the southernportions to humid sub-tropical in the north.

Source: Maps of India

Parameters West Bengal

Capital Kolkata

Geographical area (lakh sq. km) 88,752

Administrative districts (No) 23

Population density (persons per sq. km) 1,028

Total population (million) 91.3

Male population (million) 46.9

Female population (million) 44.4

Sex ratio (females per 1,000 males) 957

Literacy rate (%) 77.08


WEST BENGAL IN FIGURES

Parameter West Bengal IndiaGSDP as a percentage of all states’ GSDP 6.30 100.00

GSDP growth rate (%) 12.47 9.8

Per capita GSDP (US$) 1,681.49 1,975.05

West Bengal’s Contribution to Indian Economy (2017-18)

Parameter West Bengal India

Installed power capacity (MW) (as of March 2020) 11,026.50 370,106.46

Wireless subscribers (Mn)(as of January 2020)

55.29 1,156.44

Internet subscribers (Mn)(as of September 2019)

30.31 687.62

National highway length (km) (as of March 2019) 3,664 132,499

Major and minor ports (No) 2 13+187

Airports (No) 7 129

Physical Infrastructure in West Bengal


Literacy rate (%) 77.08 74.04

Birth rate (per 1,000 population) 15.4 20.4

Social Indicators


Number of PPP projects (No)(December 2019) 32 1824

Operational SEZs (No) (November 2019) 7 238

Industrial Infrastructure


Cumulative FDI equity inflows since April 2000 (US$ billion) 6.850 469.99

Investments (as of March 2020)

Note: GSDP, per capita GSDP figures are taken at current prices, exchange rates used is average of 2017-18 i.e. 64.45, For sources refer to Annexure, Including Sikkim and Andaman and Nicobar Islands

WEST BENGAL

ECONOMIC SNAPSHOT


ECONOMIC SNAPSHOT – GSDP

GSDP of West Bengal at current prices

At current prices, gross state domestic product (GSDP) of WestBengal is estimated at Rs 14.44 trillion (US$ 206.64 billion) in2020-21.

The average annual GSDP growth rate from 2015-16 to 2020-21was about 12.62 per cent.

121.

80

131.

04 158.

40

165.

26 188.

09 206.

64

7.97 8.

79 10.2

1 11.5

5 13.1

5 14.4

40

2

4

6

8

10

12

14

16

0

50

100

150

200

250

2015

-16

2016

-17

2017

-18

2018

-19

2019

-20A

E

2020

-21B

E

US$ billion Rs trillion

CAGR (in Rs) 12.62%

GSDP per capita of West Bengal at current prices

1,27

5

1,34

8 1,59

1

1,71

2

83,4

56

90,4

26

102,

568

119,

637

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2015

-16

2016

-17

2017

-18

2018

-19

US$ Rs

CAGR (in Rs) 12.75%

The state’s per capita GSDP in 2018-19 was Rs 119,637 (US$1,712).

The per capita GSDP increased at a CAGR of 12.75 per centbetween 2015-16 and 2018-19.

Note: AE- Advance Estimate, BE- Budget EstimateSource: MOSPI


ECONOMIC SNAPSHOT – NSDP

NSDP of West Bengal at current prices

110.

91

118.

35 141.

70

154.

20

7.26 7.

94

9.13

10.7

8

0

2

4

6

8

10

12

0

20

40

60

80

100

120

140

160

180

2015

-16

2016

-17

2017

-18

2018

-19

US$ billion Rs trillion

CAGR (in Rs) 14.08%

At current prices, Net State Domestic Product (NSDP) of WestBengal was estimated at Rs 10.78 trillion (US$ 154.20 billion) in2018-19.

The average annual NSDP grew at a CAGR of 14.08 per centbetween 2015-16 and 2018-19.

The state’s per capita NSDP in 2018-19 was Rs 109,491 (US$1,589).

The per capita NSDP increased at a CAGR of 12.95 per centbetween 2015-16 and 2018-19.

NSDP per capita of West Bengal at current prices

1,16

1

1,22

7 1,45

4 1,58

9

75,9

92

82,2

91 93,7

11 109,

491

0

20,000

40,000

60,000

80,000

100,000

120,000

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2015

-16

2016

-17

2017

-18

2018

-19

US$ Rs

CAGR (in Rs) 12.95%

Source: MOSPINote: Exchange rates used are average of each year - provided on page 48


ECONOMIC SNAPSHOT – PERCENTAGE DISTRIBUTION OF GSVA

In 2018-19, the tertiary sector contributed 57.48 per cent of the

state’s GSVA at basic prices, followed by the primary sector (21.77

per cent) and secondary sector (20.75 per cent).

At a CAGR of 14.43 per cent, the tertiary sector has been the fastest

growing among the three sectors from 2011-12 to 2018-19.

The primary sector grew at a CAGR of 9.98 per cent, followed by

secondary sector at a CAGR of 9.12 per cent, between 2011-12 and

2018-19.

GSVA composition by sector

24.95%21.77%

25.13%

20.75%

49.92% 57.48%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011-12 2018-19

Primary Secondary Tertiary

9.98%

14.43%

9.12%

CAGR*

Note: *in Rs termsSource: MOSPI


ECONOMIC SNAPSHOT – FDI INFLOW & INVESTMENTS

According to Department for Promotion of Industry and Internal

Trade (DPIIT), FDI inflow in West Bengal, along with Sikkim and

Andaman and Nicobar Islands, was around US$ 6,090 million during

April 2000 and March 2020.

West Bengal contributes around one per cent of the total FDI inflows

of the country.

The state has the potential to become a logistics hub and attract over

Rs 50 billion (US$ 0.71 billion) in investments in logistics by 2020.

The state, by organizing five Global Summits, has so far received

investment worth Rs 4.45 lakh crore (US$ 63.13 billion) in large

industries.

Source: Department for Promotion of Industry and Internal Trade (DPIIT)Note: 1Includes West Bengal, Sikkim and Andaman & Nicobar Islands

FDI Inflow in West Bengal in April 2000-March 20201

(US$ million)

394424

436239

955 50 218

1,229658 6,090

1,488

300800

1,3001,8002,3002,8003,3003,8004,3004,8005,3005,800

FY01

-FY1

1

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY01

-FY2

0


ECONOMIC SNAPSHOT – WEST BENGAL’S EXPORT TRENDS

Total export from the state stood at US$ 9,921.28 million during FY19. Export during April-December 2019 stood at US$ 7,252.33 million.

Major items exported from West Bengal are Iron and Steel and Gold and Other Precious Metals etc.

During FY19, total export of Iron and Steel from West Bengal stood at US$ 1,040.49 million, which was 10.49 per cent of the total export.

Source: Directorate General of Commercial Intelligence and Statistics

Export Trend (US$ million)7,

470.

30

8,23

6.25

9,14

8.22

9,92

1.28

7,25

2.33

0

2,000

4,000

6,000

8,000

10,000

12,000

FY16 FY17 FY18 FY19 FY20*

Composition of Major Item Exported (FY19)

10.49%

6.14%

5.60%

5.35%

5.21%

5.18%

3.98%

3.24%

54.81%

Iron and Steel Gold and Other Precious MetalsPetroleum Products Leather GoodsMarine Products Products of Iron and SteelPlastic Raw Materials AC, Refrigeration Machinery etc.Others

Note: *-till December 2019

WEST BENGAL

PHYSICAL INFRASTRUCTURE


PHYSICAL INFRASTRUCTURE – ROADS

Source: Ministry of Road Transport & Highways, Budget 2020-21

West Bengal has a total road length of around 316,730 km. The

national highways running through the state cover approximately

3,664 km, as of March 2019.

In the State Budget 2020-21, the Government of West Bengal has

allocated Rs 4,400 crore (US$ 624.20 million) to Public Works

(Roads) Department.

As of June 2019, 5,192 habitations were eligible under Pradhan

Mantri Gram Sadak Yojana (PMGSY), out of which 4,710 were

cleared and further 4,183 habitations were connected.

During 2019-20, 474 km of roads (182 kms brick paved, 242 kms

cement concrete and 50 kms bituminous road) were completed.

Target to construct around 690 km of roads has been set for 2020-

21.

Road type Length (in km)

Total road length 316,730

National highways 3,664

State highways 4,505

Road Network in West Bengal (as of March 2019)


PHYSICAL INFRASTRUCTURE – RAILWAYS

West Bengal is well connected through the railway network. The

length of railways was around 4,135 km as of March 2019.

Howrah, Asansol, Sealdah, Bandel, Bardhaman, Kharagpur and

New Jalpaiguri are the main junctions in West Bengal.

Indian Railways has an electric locomotive production unit,

Chittaranjan Locomotive Works (CLW), located on the West Bengal-

Jharkhand border, with a production capacity of 230 engines.

Rail Vikas Nigam Limited (RVNL) is going to undertake construction

of a 4.38 km stretch of metro rail from Noapara to Dakshineshwar.

The work is expected to be completed by March 2020. It is estimated

that nearly 55,000 people will be travelling on this section by 2030.

The Government is planning to introduce driverless metro trains by

2018, with GoA3 and GoA4 automation systems being used.

Source: Maps of India Ministry of Railways, Government of India


PHYSICAL INFRASTRUCTURE – AIRPORTS … (1/2)

West Bengal has five operational airports including Bagdogra,

Behala, Cooch-Behar, Durgapur and Kolkata in which three are

domestic airports, one is an international airport and one is a private

airport.

The Netaji Subhash Chandra Bose International Airport located in

Kolkata is the largest airport in the state. A domestic airport, located

at Bagdogra, is maintained as a civil enclave and is operated by

Indian Air Force.

The Kolkata airport was modernised at an estimated cost of US$ 360

million. The modernisation included modern taxiways, a new terminal

& extension of a runway. Passenger handling capacity of Kolkata

airport is around 26 million passengers per annum (mppa)*.

Source: Airports Authority of India

International airport

Domestic airport

Kolkata

Bagdogra

Behala

Durgapur

Behala

Source: Airports Authority of India, Ministry of Civil AviationNote: *as per AAI’s National Register 2017


PHYSICAL INFRASTRUCTURE – AIRPORTS … (2/2)

Source: Airports Authority of India

Kolkata Aircraft Movement (nos.)10

2,48

5 124,

154 14

8,80

2

162,

026

165,

761

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

FY16

FY17

FY18

FY19

FY20

Kolkata Passenger Traffic (million)

12.4

2

15.8

1

19.8

9 21.8

8

22.0

1

0.00

5.00

10.00

15.00

20.00

25.00

FY16

FY17

FY18

FY19

FY20

Note: MT - Metric Tonnes

Aircraft movement at Kolkata airport increased from 102,458 in FY16 to 165,761 in FY20.

Passenger traffic handled at Kolkata airport increased from 12.42 million in FY16 to 22.01 million in FY20.

Freight traffic at Kolkata airport stood at 153,468 in FY20.


PHYSICAL INFRASTRUCTURE – PORTS AND INLAND WATERWAYS

West Bengal has two major ports which are located in Kolkata and Haldia. In FY20, the combined volume of goods handled by both the ports was63.98 million tonnes.

In light of capacity expansion plans of existing industries near Haldia dock, Kolkata Port Trust has announced plans to upgrade Haldia dock’scargo handling capacity by constructing riverine jetties. Traffic at the riverine jetty at outer terminal -1 is forecasted to grow to 5.00 MTPA by 2025-26.

Government of India has declared the entire stretch of the Ganges between Haldia and Allahabad as National Waterway-1 (NW-1). NW-1 spansacross a distance of 1,620 km. The 560-km Haldia-Farakka stretch of NW-1 has been developed as part of the multi-modal system for cargo fromNepal, Bhutan, north Bengal and the northeastern states. In October 2018, PepsiCo transported the country’s first container movement on aninland vessel from Kolkata to Varanasi.

Source: Ministry of Shipping, Government of India, Indian Port Association

Traffic handled at major ports (‘000 tonnes)

16,1

73

17,3

90

18,5

02

17,3

03

34,1

41 40,5

01

45,2

11

46,6

80

05,000

10,00015,00020,00025,00030,00035,00040,00045,00050,000

FY17

FY18

FY19

FY20

T

Kolkata Dock System Haldia Dock Complex

Commodity Kolkata Dock System

Haldia Dock Complex

P.O.L 564 9,751

Other Liquids 701 4,732

Iron Ore (Incl pellets) 32 3,147

Fertilizers (finished + raw) 753 509

Coal 2,199 17,892

Containers 9,787 3,034

Others (Misc. Cargo) 3,267 7,615

Commodity-Wise traffic handled at major ports in 2019-20T (‘000 tonnes)

Note: T – Tentative


PHYSICAL INFRASTRUCTURE – POWER

As of March 2020, West Bengal had a total installed power

generation capacity of 11,026.50 MW, of which 6,497.95 MW was

under state utilities, 2,847.93 MW was under private sector, and

1,680.62 MW was under central utilities.

Of the total installed power capacity, 9,097.62 MW was contributed

by thermal power, 1,396.00 MW by hydropower, and 532.88 MW by

renewable power.

As of November 2018, the state Government has approved setting

up of a 1,000 MW power project at a total cost of Rs 6,922 crore

(US$ 986.32 million). The West Bengal State Electricity Distribution

Company is going to avail a Rs 5,000 crore (US$ 712.45 million)

loan from Japan Industrial Cooperation Agency (JICA) for the

project. The project is scheduled to be completed by 2027 with

issuance of letters for consultancy by January 2019.

In Budget 2019-20, Rs 2,474 crore (US$ 353.98 million) have been

allocated to power and NES department.

Source: Central Electricity Authority, West Bengal Economic Survey 2017-18

Installed power capacity (MW)

10,2

58.4

0

10,3

82.7

8

10,6

37.5

9

10,5

68.2

2

11,0

26.5

0

9,800

10,000

10,200

10,400

10,600

10,800

11,000

11,200

FY16

FY17

FY18

FY19

FY20

Note: MW- megawatt


PHYSICAL INFRASTRUCTURE – TELECOM

According to Telecom Regulatory Authority of India (TRAI), there were around 55.29 million wireless subscribers and 0.18 million wire-line

subscribers in West Bengal as of January 2020.

By end of January 2020, 23.27 million subscribers had submitted requests for mobile number portability in West Bengal.

Wireless subscribers 55,297,642

Wire-line subscribers 176,746

Internet subscribers (million) (as of September 2019) 30.31

Tele density (%) 83.02

Mobile Number Portability requests (million) 23.27

Source: TRAI

Telecom Infrastructure (as of January 2020)Performance status of Bharat Net project (as of December 2018)

Total GPs 3,354

GPs connected 2,639

Cable laid (kms) 7,602

GPs for which cable laid 2,248

Service ready GPs (as of November 2019) 2,220


PHYSICAL INFRASTRUCTURE – URBAN

Ten cities have been shortlisted in the state of West Bengal to be

developed as smart cities.

60 cities in the state were identified under Atal Mission for

Rejuvenation and Urban Transformation (AMRUT) as of April 2018.

194 projects have been completed in the state under Atal Mission for

Rejuvenation and Urban Transformation (AMRUT).

30,280 residential units were constructed for urban poor during 2019-

20. Another 69,880 units are expected to be completed soon.

Under State Budget 2020-21, Rs 8,430 crore (US$ 1.20 billion) has

been allocated to Urban Development and Municipal Affairs

Department.

Number of AMRUT cities with population less than 1 million 53

Number of AMRUT cities with population in the range of 1 – 10 million 2

Number of AMRUT cities with population greater than 10 million 0

Total number of AMRUT cities 55

Classification of AMRUT Cities in West Bengal on the basis of population

WEST BENGAL

SOCIAL INFRASTRUCTURE


SOCIAL INFRASTRUCTURE – EDUCATION

West Bengal has a literacy rate of 77.08 per cent; the male literacy rate is 82.67 per cent and the female literacy rate is 71.16 per cent.

As of 2018, West Bengal has 45 universities and 1,3471 colleges.

As per State Budget 2020-21, the Government of West Bengal has allocated Rs 8,750 crore (US$ 124 billion) for school education, Rs 700 crore

(US$ 99.30 million) for higher education, and Rs 900 crore (US$ 127.68 million) for technical education and training in the state.

Number of schools Primary only: 76,514

Upper primary with secondary/higher secondary: 6,850

Pupil-teacher ratio All schools: 26.8:1

Enrolment of students in schools (all schools)

Government schools: 12,972,344Private schools: 996,723

Number of teachers (all schools)

Government teachers: 512,714Private teachers: 65,589

Literacy rate 77.08

Male literacy 82.67

Female literacy 71.16

Literacy rates (%) (Census 2011)West Bengal’s education statistics

Source: National Rural Health Mission, Census 2011, Ministry of Human Resource Development, West Bengal Economic Survey 2017-18, State Report Card


SOCIAL INFRASTRUCTURE – HEALTH

The active health infrastructure of West Bengal comprises of 99 sub district hospitals, 78 district hospitals, 1,455 primary health centres, 515

community health centres and 10,426 sub-centres as of May 30, 2020.

The number of Government medical colleges in the state increased from 10 in 2010-11 to 18 in 2019-20.

As per State Budget 2020-21, Rs 4,608 crore (US$ 653.71 million) has been allocated to Health and Family Welfare department.

44 Critical Care Units (CCUs) and 25 High Dependency Units (HDUs) are functional in the state.

State has 117 Fair Price Medicine Shops up and running.

Sub-centres 10,426

Primary health centres 1,455

Community health centres 515

Sub-district hospitals 99

District hospitals 78

Health infrastructure (As of May 30, 2020)

Birth rate (Per thousand persons) 15.4

Death rate (Per thousand persons) 5.8

Infant mortality rate (Per thousand live birth) 24

Health indicators (2016)

Source: West Bengal Budget 2020-21, Department of Finance, Government of West Bengal

WEST BENGAL

INDUSTRIAL INFRASTRUCTURE


INDUSTRIAL INFRASTRUCTURE

West Bengal has 12 growth centres for medium and large-scale

industries, set up by the West Bengal Industrial Development

Corporation (WBIDC). There are exclusive growth centres for

electronics, software technology and export processing.

As of February 2020, West Bengal had 21 SEZs; of which, seven areoperational, five are notified, seven are formally approved and twohave in-principle approval.

West Bengal’s major industrial areas are Haldia, Kolkata, Asansol-

Durgapur region, and Kharagpur.

In State Budget 2020-21, an amount of Rs 1,158.40 crore (US$164.34 million) has been allocated to Industries, Commerce andEnterprises Department.

In February 2019, Bengal Global Business Summit 2019 wasorganised in state and attracted Rs 2,84,288 crore (US$ 40.33billion) worth proposals from various sectors.

Source: West Bengal Industrial Development Corporation, State Budget 2020-21

Some of the industrial parks in West Bengal

Project name Industry

Food Park (Phase-I & II ) Food processing

Poly Park Polymer products

Rubber Park Rubber footwear, hoses, tubes, automotive rubber products

Kolkata Biotech Park Biotechnology products

Plasto Steel Park (Phase-I & II) Iron and steel and plastic products

Vidyasagar Industrial Park Engineering and manufacturing

Shalboni Industrial Park Iron & steel

Panagarh Industrial Park Engineering and manufacturing

Raghunathpur Steel & Allied Industrial Park Iron & steel, cement and power

Foundry Park (Phase-I & II ) Castings, forge and foundry products

Rishi Bankim Industrial Park Multi-product

Garment Park Garments

Shilpangan (Light Engineer. Park) Light engineering products

WEST BENGAL

KEY SECTORS

Tea

Petroleum and Petrochemicals

Information Technology

Agriculture and Allied Industries

Tourism


KEY SECTORS – TEA … (1/2)

West Bengal is the second-largest tea growing state in India.

Total tea production in West Bengal stood at 394.22 million kgs in

FY19, accounting for 29.27 per cent share of India’s total production.

Tea gardens in the state are located in Darjeeling and Jalpaiguri, the

two northern districts of West Bengal.

Darjeeling tea has a geographical indication (GI) status that is

recognised globally. It is regarded by connoisseurs as the

Champagne of Teas.

Government introduced Tea Tourism and Allied Business Policy,

2019, to utilise unused tea garden and boost tourism in the state.

Source: Tea Board of India

Some of the key players

Tata Global Beverages

Goodricke Group Ltd

Mcleod Russel India Ltd

Duncans Industries Ltd

Production of tea (in million kg)

357.

39

387.

86

394.

22

395.

90

330.00340.00350.00360.00370.00380.00390.00400.00

FY17

FY18

FY19

FY20

(Till

Feb

2020

)


KEY SECTORS – TEA … (2/2)

GGL, a part of Camellia plc. UK, is engaged in the cultivation, manufacture, and sale of tea in India. The companylaunched cold tea and has entered the ready-to-drink products market in 2009.

It has 17 gardens, including three gardens in Darjeeling, two in Assam and 12 in Jalpaiguri.Goodricke Group Ltd (GGL)

Mcleod Russel India Ltd

Mcleod Russel is the largest tea producer in the world with over 100 million kg of tea every year from tea estatesin Assam, West Bengal, Vietnam, Uganda and Rwanda, employing 90,000 people. It is also India’s largest teaexporter.

The company has its registered office in Kolkata.

The five tea estates in Jalpaiguri district produce 6.27 million kg of tea annually. The total estimated cropproduction is 6,275 tonnes.

Duncans Industries Ltd

Duncans Industries Ltd, headquartered in Kolkata, is a part of the diversified Duncan-Goenka Group, establishedin 1859.

The company has 12 tea estates, located in the Doors, Terai and Darjeeling.

The company markets tea under the Runglee Rungliot, Double Diamond, Shakti, Sargam and No1 brands.

Tata Global Beverages

Tata Global Beverages, formerly known as Tata Tea, is the largest brand of tea in India. It acquired the EarthRules, an Australian company under the MAP brand, in 2014. Tata Global Beverages is the second largest teaplayer across the globe.

The company has six major brands in the Indian market: Tata Tea, Tetley, Kannan Devan, Chakra Gold, Agni andGemini. It has its headquarters and tea estates in West Bengal.

Source: Company Websites, News Articles


KEY SECTORS – PETROLEUM AND PETROCHEMICALS … (1/2)

West Bengal is a key producer of petroleum and petrochemicals. Production of natural gas in the state^ reached 710.46 million cubic metres in2018-19.

Indian Oil Corporation plans to double its base oil production from Haldia refinery by adding a new 270 thousand tonne per annum (TMTPA)Catalytic Dewaxing Unit (CDU) at a cost of Rs 1,085 crore (US$ 161.94 million).

Mitsubishi Chemicals and Corporation, a Japan based chemicals major, has invested US$ 780 million in a Purified Terepthalic Acid (PTA) plant atHaldia.

As of November 2018, Great Eastern Energy Corporation Limited (GEECL) is going to invest up to US$ 2 billion over the next decade forextracting shale gas from its Raniganj (South) block in West Bengal. It may raise up to Rs 50,000 crore (US$ 7.3 billion).

Source: Petroleum Planning and Analysis Cell, PNG Statistics 2016-17

Exports of select items from West Bengal (US$ million)

561.

58

310.

93

711.

92

555.

97

516.

04

178.

19

135.

66 210.

66

164.

46

34.0

0

0.00

100.00

200.00

300.00

400.00

500.00

600.00

700.00

800.00

2015

-16

2016

-17

2017

-18

2018

-19

2019

-20*

Petroleum Products Organic Chemicals

Note: ^Including Madhya Pradesh and Jharkhand, *- till December 2019

Production of natural gas in West Bengal (million cubic meters) 38

9.42

555.

07

531.

07

710.

46

597.

00

0.00

100.00

200.00

300.00

400.00

500.00

600.00

700.00

800.00

FY16

FY17

FY18

FY19

^

FY20

^ (ti

llFe

b 20

20)


KEY SECTORS – PETROLEUM AND PETROCHEMICALS … (2/2)

IOCL is India's largest company by sales and the twentieth largest petroleum company in the world.

It owns and operates 10 of India's 22 refineries with a combined refining capacity of 65.7 MMTPA (1.30 millionbarrels per day).

It has a refinery at Haldia, with an installed capacity of 7.5 MTPA, which has grown from 2.5 MTPA in 1975.Indian Oil Corp Ltd (IOCL)

Oil India Ltd (OIL)

OIL, established in 1959, is primarily engaged in exploration, development, production and transportation of crudeoil and natural gas in India. OIL owns 10 crude oil pumping stations and 17 repeater stations spread acrossAssam, West Bengal and Bihar.

The state-of-the-art pipeline has the capacity to transport 8 MTPA of crude and feed four public sector refineries innorth-east India. The company also owns and operates a 654-km petroleum product pipeline connectingNumaligarh Refinery Limited in Assam to Siliguri in West Bengal.

Haldia Petrochemicals Ltd (HPL)

HPL is a modern, naphtha-based petrochemical complex located at Haldia, 125 km from Kolkata.

It is a joint venture project of the Government of West Bengal, with the Chatterjee Group, the Tata Group andIOCL as major stakeholders.

It has the capacity to produce 700,000 tonnes of ethylene per annum and process over 3,50,000 tonnes perannum of polymers.



KEY SECTORS – INFORMATION TECHNOLOGY … (1/2)

As of February 2020, West Bengal had 5 operational IT/ITeS SEZs.

A number of towns such as Durgapur, Siliguri and Haldia are also

emerging as suitable IT destinations with appropriate infrastructure in

the form of software technology parks (STP).

West Bengal plans to raise its share in the country’s IT exports to 25

per cent by 2030. Total export from IT sector from the state was

estimated to have crossed Rs 22,897 crore (US$ 3.28 billion) in

2018-19.

As per State Budget 2020-21, the Government of West Bengal has

allocated Rs 260 crore (US$ 36.88 million) for the development of

the IT and Electronics department in West Bengal.

Source: State Budget 2019-20, State Economic Survey 2017-18

IT Exports from West Bengal (US$ billion)

2.29

2.83

3.10 3.

28

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

2015

-16

2016

-17

2017

-18

2018

-19

Note: SEZ- Special Economic Zone


KEY SECTORS – INFORMATION TECHNOLOGY … (2/2)

Genpact

Genpact is a global remote processing operations company that provides IT-enabled services to clients acrossthe world.

It has an 80,000 sq ft facility in Kolkata and inaugurated the second operations centre in the city. This 0.2 millionsq ft SEZ facility has the capacity to accommodate more than 3,000 employees when fully operational.

HCL

HCL Technologies is the largest hardware, system integration, networking solutions and distribution company inIndia. HCL’s operations span 31 countries. It has delivery facilities in US, UK, Finland, Poland, Puerto Rico,Brazil, China, Malaysia, Singapore and India.

In India, the company has offices in 170 cities and 505 service centres reaching 4,000 towns. In West Bengal,HCL has two offices in Salt Lake City, Kolkata and one in New Town Rajarhat.

A Tata Group company, TCS is a well recognised global services provider for a wide range of IT solutions,consulting, BPO, engineering services and IT infrastructure.

The company has offices in more than 46 countries and around 80 locations in India. It has ten offices in Kolkata.Tata Consultancy Services (TCS)

Cognizant Technology Solutions (CTS)

CTS is a global e-business and application development company.

CTS services several large clients from the banking, hospitality (restaurant), healthcare, financial and information-driven sectors of the global market.

The company has started work on the second phase of expansion at its Bantala campus, near Kolkata, at anestimated cost of US$ 41.7 million.



KEY SECTORS – AGRICULTURE AND ALLIED INDUSTRIES

Source: Department of Animal Husbandry, Dairying & Fisheries, Department of agriculture cooperation and farmers welfare, News Articles

West Bengal’s fish production (in million tonnes)

1.67 1.

70 1.74

1.85

1.501.551.601.651.701.751.801.851.901.952.00

2015

-16

2016

-17

2017

-18E

2018

-19A

West Bengal has six agro-climatic zones & offers a diverse variety of environments for agriculture and horticulture production.

The state has a long coastline (over 150 km) & innumerable water bodies, reflecting the huge potential for inland fishing and fish cultivation.

Also, the state is the third largest producer of rice in India. Rice is the principal food crop of West Bengal. In 2018-19*, rice production in the statereached 11.68 million tonnes. Further, the state is also the country’s second largest potato producer.

In 2018, State gave 100 per cent waiver for Khajna and mutation fee for agricultural land.

West Bengal’s rice production (in ’000 tonnes)

15,9

53.9

0

15,3

02.5

0

14,9

67.0

0

11,6

79.0

0

-

5,000.00

10,000.00

15,000.00

20,000.0020

15-1

6

2016

-17

2017

-18*

2018

-19*

*

Note: *As per second advance estimates, E – Estimate, A – Anticipated, ** As per Frist advance estimates


KEY SECTORS – TOURISM

West Bengal’s diversity in flora and fauna makes it an attractive

destination for tourism.

The state has good infrastructure for encouraging tourists. Netaji

Subhash Chandra Bose Airport in Kolkata is an international airport.

Tourist destinations are accessible due to a wide network of national

and state highways. Howrah, Sealdah & New Jalpaiguri are major

railway hubs.

In 2018 (P), domestic tourist arrivals in the state were 85.86 millionand foreign tourist arrivals had crossed over 1.61 million.

As per State Budget 2020-21, the Government of West Bengal has

allocated Rs 400 crore (US$ 56.75 million) for developing tourism

sector in the state.

In 2019-20, 22 new tourist projects were undertaken including

beautification of Jagannath Temple at Digha and Riverside

beautification of Ganga at Diamond Harbour in South 24 Parganas.

West Bengal’s tourist inflow (in millions)

71.7 76

.0 81.3 87

.3

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

100.00

2015

2016

2017

2018

P

Source: Ministry of Tourism, Government of IndiaNote: P – Provisional

WEST BENGAL

KEY PROCEDURES AND POLICIES


SINGLE-WINDOW APPROVAL MECHANISM

‘Shilpa Bandhu’ or the State Investment Facilitation Centre (SIFC) is the state-level nodal agency for single-window clearances in West Bengal.

The purpose of ‘Shilpa Bandhu’ is to provide guidance and information to investors about policies and programmes of the state. The agency is

monitored by an empowered committee.

SIFC offers assistance in the following areas:

• Approvals from the Secretariat for Industrial Assistance and Foreign Investment Promotional Board.

• Registration by Directorate of Industries.

• Clearance from the Pollution Control Board.

• All clearances related to power.

• Identification, allotment, mutation/conversion of land and other infrastructural facilities.

Guidance to entrepreneurs on investment prospects in over 200 ready projects developed by WBIDC.

District Industry Centre (DIC) is the district-level committee for single-window clearance that provides sanctions and clearances for setting up

small scale industrial units in the state.

The committee is convened by the General Manager, District Industries Centre and includes the Environmental Engineer of the West Bengal

Pollution Control Board, Superintendent Engineer/Executive Engineer of West Bengal State Electricity Board, District Officer of Housing and

Urban Development Authority and the Assistant Director of Factories.


KEY INVESTMENT PROMOTION OFFICES

Agency Description

West Bengal Industrial Development Corporation Limited (WBIDC)

WBIDC focuses on financing medium and large scale industries.

It provides assistance service and facilitates investment proposal through “Shilpa Bandhu”.

It promotes joint sector and assisted sector units in important industry segments.

West Bengal Industrial Infrastructure Development Corporation (WBIIDC)

WBIIDC is responsible for balanced and well-planned industrial development in the state.

West Bengal Small Industries Development Corporation Ltd (WBSIDC)

Set up in 1961, WBSIDC is the promotional agency for growth and development of industries andcommercial activities in the small and medium sector in the state.

WBSIDC has developed 38 industrial and commercial estates all over the state.

West Bengal Electronics Industry Development Corporation Limited (WEBEL)

WEBEL is responsible for development of the electronics and IT/ITeS industries in the state.

It assists investors in obtaining all necessary approvals for new projects and facilitates setting up of ITand electronics industry.

West Bengal Finance Corporation (WBFC)

WBFC is a state level financial institution to help the small, medium and tiny sector enterprises toimplement their new/expansion/modernisation or technological upgradation schemes.


CONTACT LIST

Agency Description

West Bengal Industrial Development Corporation Limited(WBIDC)

"Protiti", 23, Abanindranath Tagore Sarani, (Camac Street)Kolkata - 700017,

Phone: 91 33 2255 3700 - 705Fax: 91-33-2255 3737

Email: [email protected]: http://www.wbidc.com/

West Bengal Industrial Infrastructure Development Corporation (WBIIDC)5-Council House Street, Third floor, Kolkata – 700011

Phone: 22305804-08Email: [email protected]

West Bengal Small Industries Development Corporation Limited (WBSIDC)Shilpa Bhawan, 31 Black Burn Lane, Kolkata-700 012,

Phone: 91-033-2237 3895Email: [email protected]

West Bengal Electronics Industry Development Corporation Limited (WEBEL)

Webel Bhavan, Block-EP & GP, Sector-V, Salt LakeKolkata-700 091

Phone: 91- 33- 2357 1704/06Fax: 91-33-2357 1708 /2357 1739Email: [email protected]

West Bengal Finance Corporation (WBFC)

12A, Netaji Subhas Road, 3rd and 4th floor,Kolkata-700 001

Phone: 91-33-2230 0055/3259/4954/3083Fax: 91-33-2230 1250, 2230 3259

E-mail: [email protected]: www.wbfconline.org


KEY APPROVALS REQUIRED

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration, Industrial Entrepreneurs Memorandum (IEM), industrial licenses Department of Industries, West Bengal State GovernmentPermission for land use

Allotment of landWest Bengal Industrial Development Corporation (WBIDC), West Bengal Industrial

Infrastructure Development Corporation, West Bengal Small Scale Industries Development Corporation

Site environmental approvalWest Bengal Pollution Control Board (WBPCB)No-Objection Certificate and consent under Water and

Pollution Control Act

Registration under States Sales Tax Act and Central and State Excise Act Excise Department, Government of West BengalCommercial taxes

Sanction of powerWest Bengal State Electricity Distribution Company Limited (WBSEDCL), Kolkata

Electric Supply Corporation, Damodar Valley Corporation, Durgapur Projects Limited, Dishegarh Power Supply Company Limited, according to area demarcated

Power feasibility

Power connection

Approval for construction activity and building planPublic Works Department, Government of West Bengal, State Water Investigation Department, Public Health Engineering Department, Government of West BengalWater and sewerage clearance

Water connection


COST OF DOING BUSINESS IN WEST BENGAL

Cost parameter Cost estimate Source

Cost of land (per sq ft) US$ 4 to US$ 100 Industry sources

Hotel room cost (per night) 2015-16 US$ 80 Indian hotel survey

Office space (rent per sq ft per month) US$ 1.0 to US$ 3.0 Industry sources

Residential space (rent per sq ft per month) US$ 0.3 to US$ 1.2 Industry sources

Labour cost (minimum wages per day) US$ 2.5 to US$ 4.4 Ministry of Labour and Employment, Government of India


STATE ACTS & POLICIES … (1/2)

Objectives

West Bengal Start Up Policy, 2016-21

The policy was drafted aiming to brace up the culture of start-ups in West Bengal by acknowledging variousauspicious start-ups and promoting them socially.

To boost the establishment of various business incubators in association with the private sector across the state.Read more

To create a sustainable ecosystem in the MSME sector, which can maximise the utilisation of resources and widenthe area of operation to make the state emerge as the MSME leader in the country in the next ten years.

Micro, Small and Medium Enterprises Policy 2013 Read more

To eliminate systemic bottlenecks in the process of Industrialisation in the state.

To improve the ease of doing business.

Investment Industrial Policy West Bengal 2013 Read more

West Bengal Information Technology and

Electronics Policy 2018

To become one of the leading states in India in the IT, ITeS, ICT and ESDM sectors

To transform into a knowledge-driven, technologically-enabled welfare society with extensive use of IT/ITeS,thereby increasing employment opportunities and promoting the state as a preferred investment destination.

Read more

West Bengal Logistics Park Development and Promotion Policy 2018

To create an enabling environment in the state to mobilise investments in the development of logistics parkinfrastructure directly by Government or by private participation/ Public Private Partnership (PPP) andsubsequently from Logistics Service Providers (LSPs) of both forms

Read more

West Bengal Tourism Policy 2016

To achieve growth in excess of 10 per cent in tourist arrivals over the next five years.

To increase availability of branded hotel accommodation rooms in the state to 100,000 by 2020.

To make tourism more sustainable and abide by the basic tenets of environment, social and economicsustainability. Read more

http://bengalglobalsummit.com/pdf/policies/Start-up-Policy-2016-2021.pdf

http://bharatchamber.com/MSME-policy-2013-18.pdf

http://www.wbidc.com/images/pdf/Investment_Industrial_Policy_West_Bengal_2013.pdf

https://www.webel.in/assets/notice/IT_Policy_2018.pdf

https://www.wbidc.com/images/pdf/Logistics_Park_Development_Promotion_Policy_West_Bengal_2018.pdf

https://wbtourismgov.in/tourism_policy/tourism_policy_2016.pdf


STATE ACTS & POLICIES … (2/2)

Objectives

To promote IT/ITeS projects of large, medium, small, and micro units to be set up in the state.West Bengal ICT

Incentive Scheme 2012 Read more

To bring in related industries and services of this growth industry, geared to revenue streams and payback, andappropriate business model.

To map, conserve and sustainably use bio-resources, particularly those which are unique to the state.

West Bengal Biotechnology Policy

2013 Read more

http://bengalglobalsummit.com/pdf/policies/West-Bengal-ICT-Incentive-Scheme-2012.pdf

http://www.indiaenvironmentportal.org.in/files/file/Biotechnology%20Policy%20-%20west%20bengal.pdf

WEST BENGAL

ANNEXURE


ANNEXURE…(1/2) - SOURCES

Data Sources

GSDP (state) MOSPI

Per capita GSDP figures MOSPI

GSDP (India) MOSPI

Installed power capacity (MW) Central Electricity Authority

Wireless subscribers (No) Telecom Regulatory Authority of India

Internet subscribers (Mn) Telecom Regulatory Authority of India

National highway length (km) NHAI, Roads and Building Department - Government of India

Airports (No) Airports Authority of India

Literacy rate (%) Census 2011

Birth rate (per 1,000 population) SRS Bulletin September 2017

Cumulative FDI equity inflows (US$ billion) Department for Promotion of Industry and Internal Trade

Operational PPP projects (No) DEA , Ministry of Finance, Government of India

Operational SEZs (No) Ministry of Commerce & Industry, Department of Commerce


ANNEXURE…(2/2) - EXCHANGE RATES

Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)

Year INR INR Equivalent of one US$

2004–05 44.95

2005–06 44.28

2006–07 45.29

2007–08 40.24

2008–09 45.91

2009–10 47.42

2010–11 45.58

2011–12 47.95

2012–13 54.45

2013–14 60.50

2014-15 61.15

2015-16 65.46

2016-17 67.09

2017-18 64.45

2018-19 69.89

2019-20 70.49

Year INR Equivalent of one US$

2005 44.11

2006 45.33

2007 41.29

2008 43.42

2009 48.35

2010 45.74

2011 46.67

2012 53.49

2013 58.63

2014 61.03

2015 64.15

2016 67.21

2017 65.12

2018 68.36

2019 69.89

Source: Reserve Bank of India, Average for the year


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