West Bengal Needs Big Corporate Investment to Revive Industry: Swapan Dasgupta
West Bengal needs at least one major corporate investment to demonstrate that the state is serious about rebuilding its industrial base and restoring investor confidence, Finance Minister Swapan Dasgupta said at Business Standard’s Round Table West Bengal 2026 on Monday.
Dasgupta said the investment could come in manufacturing, deep technology or another high-growth sector, but argued that a significant corporate commitment could act as a catalyst for wider industrial activity.
“I think this breakthrough is very important, and we will do all that's possible to ensure that it happens,” Dasgupta said.
He said West Bengal’s challenge was different from that of states that are building their industrial economies for the first time. The state, he noted, had previously enjoyed a strong industrial phase but subsequently lost much of that momentum.
“Ultimately, we are trying to catch up, revive an enterprise in a state which, unlike various other parts of India, actually experienced the good days in the past, and then lost it,” he said.
Public debt not the main obstacle
Addressing concerns over West Bengal’s finances, Dasgupta said the state’s estimated ₹8 trillion public debt should not automatically discourage investors.
He compared the figure with Maharashtra, which he said has public debt of around ₹9 trillion, arguing that the more important issue is the underlying health and functioning of the economy rather than the absolute level of debt.
“Maharashtra is a going concern. West Bengal is yet to demonstrate that it's a fully going concern, and that's really what the difference is. It's not the debt per se which is going to be a deterrent. It's how the economy operates in the coming days,” he said.
The state has also been able to bring several central government schemes into its development plans. Dasgupta estimated that these could bring around ₹70,000 crore in central resources to West Bengal over the next eight months.
However, he said sustained private investment would depend on whether businesses are convinced that improvements in the state’s business environment are permanent.
Government seeks to change business culture
Dasgupta acknowledged that changing the perception of West Bengal’s business environment would require more than policy announcements.
He said a bureaucratic culture that had discouraged business activity over several decades would need to change, arguing that the government must demonstrate that its pro-business approach is genuine.
“The idea that you must be pro-business is something which is an alien commodity as far as a lot of things,” he said.
Given the state’s legacy, Dasgupta said the government would have to “walk the extra mile” to convince companies that the environment for doing business has changed.
Land remains a major hurdle
Land availability is another significant challenge for industrial investment, according to the finance minister.
Dasgupta said the lack of a functioning land market and difficulties associated with securing clear freehold titles make it harder for companies to acquire land for projects.
He also highlighted the Urban Land Ceiling Act, saying that while most other states have moved away from the legislation, it continues to pose an issue in West Bengal.
Resolving such structural constraints, he suggested, would be critical if the state wants to compete successfully with other industrial destinations.
Manufacturing and services in focus
Dasgupta said West Bengal would continue to support agriculture but needs to place greater emphasis on manufacturing and services to generate broader economic growth.
“West Bengal has seen better days as far as manufacturing is concerned, and we need to get it going. Services is really still going to be a task,” he said.
The government also wants to attract skilled professionals who originally came from the state but now work elsewhere.
“We have a pool of skilled, talented people from the state, but they are not in the state. So, we need to get them back,” Dasgupta said.
He also called for stronger research capabilities at the state’s public universities, suggesting that better links between talent, research and industry could support the state’s economic revival.
Power access could support data centres
Improving access to affordable electricity is another area under consideration.
Dasgupta said the government was exploring ways to give industries greater access to power, including allowing companies to source electricity from outside West Bengal.
Such arrangements could be particularly useful for power-intensive sectors such as data centres, which require large amounts of reliable and competitively priced electricity.
The finance minister acknowledged that reviving West Bengal’s industrial economy would require balancing speed with caution.
“Ultimately, I think West Bengal will have to tread fast, but cautiously at the same time. It's an act of brinkmanship. It's not an easy one,” he said.
Reiterating the government’s commitment to investors, Dasgupta said the state intends to make it easier for businesses to operate and invest.
“All I wish to assure people is that our intention is very clear. That when we say we are pro-business, we mean it, and we are going to do everything in our power to facilitate and make life easy for them, and do a catch-up exercise,” he said.
Comments