Last updated: Jan, 2024
Introduction
West Bengal is situated in eastern India and shares its borders with Jharkhand, Bihar, Odisha, Sikkim, and Assam. The state also shares international borders with Bangladesh, Bhutan, and Nepal. The Bay of Bengal is in the south of West Bengal.
West Bengal, India’s sixth largest state in terms of economic size, has a projected Gross State Domestic Product (GSDP) of 17.19 trillion (US$ 208.24 billion) in 2023-24. The average annual GSDP is estimated to increase at 9.29% from 2018-19 to 2023-24BE.
In FY23, the total exports from the state stood at US$ 12.74 billion. West Bengal exported key items such as iron & steel and marine products. During 2018-19, the state produced a total of 1.85 million tonnes of fish.
West Bengal is the second largest tea-producing state in India and is home to the globally acclaimed Darjeeling tea variety. West Bengal is the largest producer of rice in India. Rice production for the state totalled 13.32 million tonnes in 2021-22.
Its 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 Southeast Asia. The cost of operating a business is lower in Kolkata than in other metropolitan cities.
West Bengal has abundant natural resources of minerals and suitable agro-climatic conditions for agriculture, horticulture, and fisheries. It is in vicinity to mineral rich states like Jharkhand, Bihar, and Odisha. It offers excellent connectivity to the rest of India in terms of railways, roadways, ports, and airports.
As of September 2023, West Bengal had a total installed power generation capacity of 10,762.36 MW, of which 5,997.95 MW was under state utilities, 2,951.07 MW under private sector and 1,813.34 MW under central utilities.
Of the total installed power capacity, 8,730.34 MW was contributed by thermal power, 1,396 MW by hydropower and 636.02 MW by renewable power.
Between October 2019-June 2023, FDI inflows in West Bengal stood at US$ 1,481.50 million.
West Bengal ranked eleventh among Indian states on ease of doing business and reforms implementation according to a study by the World Bank and KPMG.
Key Sectors
- In June 2022, various Indian Railways projects to the tune of Rs. 254 crore (US$ 30.83 million) were launched in West Bengal’s Hooghly district.
- HDC Bulk Terminal Ltd (HBTL), a wholly owned subsidiary of Adani Ports and Special Economic Zone Limited (APSEZ), has signed the Concession Agreement with Syama Prasad Mookerjee Port, Kolkata (SMPK) for mechanization of Berth no. 2 at Haldia Port.
- In August 2022, a Special Food Processing Fund of Rs. 2,000 crore (US$ 242.72 million) was set up with National Bank for Agriculture and Rural Development (NABARD) to provide affordable credit for investments in setting up Mega Food Parks (MFP) as well as processing units in the MFPs.
- Tea production in West Bengal stood at 52.1 million kg in August 2022.
- In 2021, domestic tourist arrivals in the state were 243.25 million and foreign tourist arrivals had crossed over 0.34 million.
- In FY22, total exports of iron and steel from West Bengal stood at US$ 1,851.38 million, which was 13.32% of the total exports.
- In FY23 total exports of iron and steel from West Bengal stood at US$ 1,579.03 million, which was 12.39% of the total exports.
- The State Budget 2022-23 seeks to provide relief to the tea industry by exempting rural employment cess and waiving agricultural income tax in FY 2022-23.
- GAIL, its JV company Bengal Gas Co and Hindustan Petroleum Corporation Ltd's will invest Rs. 17000 crore (US$ 2.2 billion) in various CNG projects in West Bengal over the next five years.
- ONGC will invest Rs. 1,500 crore (US$ 193.85 million) over the next 3-4 years for gas exploration at Ashoknager in North 24 Parganas district of West Bengal.
- West Bengal has allocated 16.8% of its total expenditure for education in 2022-23. This is higher than the average allocation (15.2%) for education by all states (as per 2021-22 Budget Estimates.
- In State Budget 2023-24:
- Rs. 2,684 crore (US$ 324.37 million) has been allocated for food grain crops.
- Crop insurance has been allocated Rs. 1,125 crore (US$ 135.96 million).
- As per State Budget 2023-24:
- Rs. 17,522 crore (US$ 2.12 billion) has been allocated for assistance to non-government secondary schools.
- Rs. 1,765 crore (US$ 213.3 million) has been allocated to Samagra Shiksha Abhiyan.
- In 2018-19, West Bengal remained the second largest producer of potato in India, accounting for about 24.31% of the country’s potato output. The state’s potato production stood at 13.78 million tonnes in 2018-19.
- As of October 2020, West Bengal had 21 SEZs; of this, seven were operational, five were notified, seven were formally approved and two had in-principle approval.
- As per State Budget 2021-22, the government has allocated Rs. 183.51 crore (US$ 25.35 million) for development of the IT and Electronics Department in West Bengal.
- Moreover, the state is also a key producer of petroleum and petrochemicals. Production of natural gas in the state^ reached 534 million cubic metres in 2020-21*.
- Total export from IT sector from the state was estimated at Rs 22,897 crore (US$ 3.28 billion) in 2018-19. The State Government introduced West Bengal Information Technology and Electronics Policy 2018 which envisages West Bengal as one of the leading states in India in the IT, ITeS, ICT and ESDM sectors. In August 2021, the State IT Minister Mr. Partha Chatterjee, as part of the state’s plan to position West Bengal as an IT hub, earmarked another 100 acres of land for its Silicon Valley Tech Hub.
