West Bengal's industrialists are expressing optimism following the BJP government's first budget, which they believe offers a clear direction for investment by aiming to abolish "syndicate raj" and intermediaries, signaling a more conducive political environment after decades of stalled industrial growth. Finance Minister Swapan Dasgupta's budget emphasizes infrastructure development, including a potential semiconductor hub, an AI Impact Mission, an IT park in Siliguri, and significant airport and road connectivity projects across the state, alongside reforms like re-examining the Urban Land Ceiling Act and digitizing land records to address key investor concerns. Prominent business leaders and economists have welcomed these initiatives, which also focus on sectors like agriculture, food processing, and deep-sea port development, though trade unions express reservations about privatization and the potential neglect of public sector undertakings, while the incumbent Trinamool party adopts a cautious wait-and-watch stance, acknowledging the positive steps but reserving judgment on their ultimate implementation.

West Bengal's industrialists are expressing optimism following the BJP government's first budget, which they believe offers a clear direction for investment by aiming to abolish "syndicate raj" and intermediaries, signaling a more conducive political environment after decades of stalled industrial growth. Finance Minister Swapan Dasgupta's budget emphasizes infrastructure development, including a potential semiconductor hub, an AI Impact Mission, an IT park in Siliguri, and significant airport and road connectivity projects across the state, alongside reforms like re-examining the Urban Land Ceiling Act and digitizing land records to address key investor concerns. Prominent business leaders and economists have welcomed these initiatives, which also focus on sectors like agriculture, food processing, and deep-sea port development, though trade unions express reservations about privatization and the potential neglect of public sector undertakings, while the incumbent Trinamool party adopts a cautious wait-and-watch stance, acknowledging the positive steps but reserving judgment on their ultimate implementation.

West Bengal's industrialists are expressing optimism following the BJP government's first budget, which they believe offers a clear direction for investment by aiming to abolish "syndicate raj" and intermediaries, signaling a more conducive political environment after decades of stalled industrial growth. Finance Minister Swapan Dasgupta's budget emphasizes infrastructure development, including a potential semiconductor hub, an AI Impact Mission, an IT park in Siliguri, and significant airport and road connectivity projects across the state, alongside reforms like re-examining the Urban Land Ceiling Act and digitizing land records to address key investor concerns. Prominent business leaders and economists have welcomed these initiatives, which also focus on sectors like agriculture, food processing, and deep-sea port development, though trade unions express reservations about privatization and the potential neglect of public sector undertakings, while the incumbent Trinamool party adopts a cautious wait-and-watch stance, acknowledging the positive steps but reserving judgment on their ultimate implementation.

The whispers of resurgence are growing louder among industrialists in West Bengal after the first budget of the BJP government. What they wanted to see was a clear, credible direction, and they seem to have been shown one by Finance Minister Swapan Dasgupta.

West Bengal has long lacked the assurance of a politically conducive environment for investors under the rule of the Left Front (34 years) and the Trinamool Congress (15 years). The Left Front government under Buddhadeb Bhattacharjee tried a few things, but its attempt to bring in a Tata Motors car factory in Singur in 2006 was derailed by land acquisition protests backed by the Trinamool. In 2007, Mamata Banerjee spearheaded a violent anti-land acquisition movement against the government's plan to build a chemical hub in Nandigram. The protests propelled her to power in 2011. But driving industries out of Bengal eventually proved too costly a political price. Tapas Roy, a new minister in the cabinet, noted that there are active attempts to bring the Tatas back, among other industry leaders.

Dasgupta’s budget spoke of abolishing the syndicate raj and extortion by intermediaries—a clear signal to investors that the state is open for business. The finance minister has reiterated a determination to bring back Bengal’s brains and manpower from other states.

Abhirup Sarkar, economics professor at the Indian Statistical Institute, has done the math. The good news, he said, was that the state’s laggardness could be turned around if the BJP government charted a course attractive enough for investors. “People are also expecting to have rule of law and the end of syndicate raj at the grassroots level,” he said.

The Suvendu Adhikari government projects considerable promise, buoyed by support from the Centre. Industrialists, MSME owners, and the unemployed of Bengal hope that the budget and the government’s efforts will reposition the state on the national map. “Its emphasis on infrastructure, industry, technology, connectivity and clean energy has the potential to create fresh opportunities for investment, enterprise and employment across the state,” said Sanjiv Goenka, chairman of the RP-Sanjiv Goenka Group.

The budget signals incentives and land policy reforms, including a re-examination of the draconian Urban Land Ceiling Act, 1976. It has been welcomed by industry insiders and economists alike. Rajiv Singh, chairman of the Indian Chamber of Commerce, said the digitisation of land records and review of the Urban Land Ceiling Act were important steps. It was a demand long pending from industry, with most states having already scrapped the act. “Land is one of the major pain points for investors,” said Singh.

He has also been pressing for deep-sea port development, including the Tajpur Port in East Midnapore district. It was on the agenda when Adani Ports managing director Karan Adani met Adhikari in the first week of June. Also, the Union home ministry declared Haldia Dock Complex in East Midnapore as an immigration checkpoint and seaport. A bridge connecting Nandigram, a stronghold of Adhikari, to Haldia is also expected to generate employment in rural Bengal.“We are particularly encouraged by the emphasis on agriculture and food processing, sectors that can create significant value for farmers and generate large-scale employment,” said Mayank Jalan, chairman of Keventer Group, an FMCG and food processing conglomerate.

The budget projects an AI Impact Mission and positions Bengal as a potential semiconductor hub. It announced a 50,000sqft IT park in Siliguri in north Bengal. The focus on north Bengal, said Dasgupta, was intentional, as the region had been long neglected. There are plans to establish premier institutions, including an IIT and an IIM, in the region. An infrastructure push encompasses the expansion of Cooch Behar airport and new regional airports in Purulia, Balurghat and Malda. A greenfield airport in Kalyani in Nadia district, modelled on the Navi Mumbai airport, has also been announced.

The budget prioritises road connectivity. The Dankuni-Ludhiana freight corridors signal the intent to make Hooghly an industrial corridor, the dream that once eluded Tata. A Rs900 crore allocation for the 7.4-km Chingrighata–New Town elevated corridor in Kolkata and expanded metro rail connectivity are also in the pipeline. “These have the potential to expand economic activity well beyond traditional growth centres of the state,” said Harsh Neotia, chairman of Ambuja Neotia Group. “If implemented effectively, these measures can help unlock new aspirations, attract investment and create a broader growth narrative for Bengal.”

The Centre of Indian Trade Unions (CITU), the trade union wing of the Communist Party of India (Marxist), has welcomed the government’s pro-industry focus, though with reservations. “If they keep the advantages of Bengal in mind, there is a lot of potential,” said CITU leader Anadi Sahu. “The Central government has no role to play in setting up industry. They are pro-privatisation. The public sector undertakings in our state are becoming detached from the government sector. Old industries in the state are not getting a boost.”

Sahu said Bengal received no significant industrial push during the 12 years of the Narendra Modi government at the Centre. “Even though it was the Trinamool government here, there was some role for the Central government, too,” he said.

The Trinamool views the budget announcements a positive step, but it is adopting a wait-and-watch approach. “If something is not in accordance with the budget, we will oppose it then,” said Trinamool legislator Kunal Ghosh.

The mood is cautiously upbeat. While the government's ambitious plans have set the stage, whether Bengal truly means business will be revealed in the days to come.

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