The election in West Bengal evoked a theory of relation between anti- incumbency and development. Anti-incumbency can be defeated by development, besides ideology. In West Bengal, GDP growth accelerated to 12 percent in 2015-16 – much above the national average. Rural growth was the prime driver for the growth. West Bengal was the largest producer of rice and vegetables. Rural development expenditure grew five times during the period. In 2006-11, it was Rs 7,628 crore. In 2011-16, it increased to Rs 38,214 crore. Mamata was assertive in enlarging electricity facility to the poor. Over 90 percent households of below poverty line were extended electricity facility in January 2016, compared to just 18.8 percent in 2011. Her social spending tripled from Rs 7,000 crore in 2010-11 to Rs 20, 000 crore in 2014-15. That led her to win a massive victory in the election by the rural and poor voters.

In 2011, West Bengal faced a lukewarm response from the big investors. This was despite the fact that West Bengal has an edge over other states in terms of abundant natural resources, surplus electricity, enough land and skilled manpower (owing to three big technical institutions and academic institutions in Kolkata).

Why were the investors reticent to respond to Mamata’s model of growth in her first term? Is that Singur hangover still? Investor’s hopes faded after the Mamata government failed to announce any concrete industrial policy and industrial map of the State. No special fiscal incentive was announced to reinvigorate the sagging investment climate. It is a prudent practice for any new government to draw an well articulated road map for the economic development, where the roles of public and private are identified. In case of West Bengal, prudency of industrial policy demanded more since the State shifted to a new era of different ideology – from a public oriented investment growth to private investment for growth. The policy underlined for building up new Andhra Pradesh by the Chief Minister N. Chandrababu Naidu is a case in point.

West Bengal peoples’ big mandate for the second term should be a wakeup call for Mamata to overturn her languished image of business friendly leader and restore investors’ confidence. Investors’ summit and MOUs do not represent the real boost in investors’ confidence unless actual investment flows. The mandate unleashes opportunity to Mamata to refurbish the image of West Bengal with a new look, that is , West Bengal means business with a Paribartan in economic development by the active role of private investment . Given the lackluster participation by Central Public sector, investment by private sector in manufacturing and service sectors will widen the scope for more employment opportunities in the State.

In these perspectives, taking a leaf out of former Chief Minister Buddhadev Bhattacharjee’ reform should be an ideal lesson for her. Mamata should chant ‘reform or perish’. Initially, it will be a difficult task to attract investment in manufacturing sector. But, it can surely make it big in service sector. Mr Buddhadev Bhattacharjee ‘s new ‘Look South East Asia Policy ’and drive to develop infrastructure for a strong platform for IT service , a health city and a modern industrial town can be taken up with more earnestness.

West Bengal has distinct advantages to become a trading hub of India, because of its geographical placement. Its potential is strengthened by its proximity to four foreign countries. It is flanked by Bangladesh, Nepal, Bhutan and with near proximity to Myanmar. West Bengal can act a gateway of India’s Silk Road, embracing road connectivity between India, Bangladesh and Myanmar in the east and Nepal and Bhutan in the north. Myanmar has emerged as a prospective trade destination after the returns of democracy. The connectivity provides enough potential for border trade with these countries.

With the cost cutting opportunity in logistics, a competitive tool for buoyancy in trade, border trade unleashes greater opportunities to augment trade with neighbouring countries. India’s total annualized trade with Bangladesh, Nepal, Bhutan and Myanmar was US $ 14.7 billion in 2014-15. A larger part of this trade is through border trade. This is because West Bengal is the main entry route for border trade with these countries. Besides, huge volume of unofficial trade flows through West Bengal borders.

With the back up support of Assam and Mizoram, Kolkata can serve as the main hub for trading and Siliguri in North as the satellite for trade expansion with these countries. Kolkata and Siliguri can serve as big inventories for border trade. Kolkata can serve as big inventory for supply of component and raw materials to joint ventures in Bangladesh and Myanmar.

West Bengal can be projected as an ideal place for warehousing facilities and distribution centre for MNCs to trade with four neighbours. It can serve as India’s Rotterdam, which is the gateway for European Union. The State government should develop infrastructures for MNCs warehousing facilities, especially to attract Japanese Sogo Sosha and Korean Chaebol , whose global marketing expertise was strengthened by strong information network and distribution channel. These warehousing facilities can provide effective distribution channel with timely supply of goods and low cost logistic support.

In sum, the people of West Bengal’s verdict for the second term for TMC is a signal for Mamata’s new life to perk up the State‘s economic health, alongside bolstering social welfare. Economic development will bring a balanced growth in the State, which can be run by its own generation of revenue, instead of outcrying for a begging bowel from the Centre. (IPA Service)