West Bengal must strengthen incentives to reverse investment decline: Experts

Experts across India's eastern region are warning that West Bengal risks falling further behind in attracting capital investment without significant policy reforms. During recent industry forums, business leaders and economists emphasised the need for state-level incentive structures that can compete with rival regions for manufacturing and service sector investments.

Key recommendations include simplifying the land acquisition process, which currently presents obstacles to industrial development. Participants noted that lengthy procedures and bureaucratic delays have deterred potential investors from establishing operations in the state. Streamlining these processes could remove a major barrier to economic expansion, experts suggested.

The discussion also highlighted the importance of developing robust industrial ecosystems that support business growth. This includes improving infrastructure, connectivity, and the availability of skilled labour. A competitive industrial ecosystem, experts argued, would create conditions for both large corporations and micro, small and medium enterprises (MSMEs) to thrive.

The state's ability to attract major businesses remains crucial, as anchor investors typically create supply chains and employment opportunities that benefit smaller enterprises. Without concerted efforts to improve the investment climate, West Bengal risks seeing businesses and capital migrate to more business-friendly states, industry observers cautioned.