West Bengal experienced a significant decline in factories and spur in migration for outbound employment opportunities. According to a report, 6,688 companies left and 18,450 MSMEs shut down In the State between 2011 and 2025. According to 2021 Census, nearly 5.8 lakh people migrated for employment opportunities. By 2026, report suggested that between 36 lakh to 50 lakh Bengal’s migrants left for work.

Unemployment peaked and State came under the grip of social problems. Unemployment escalated political corruption and antagonized investors with rising red tape and Tola Baji (a forceful extraction of commission from small businessmen), instead of invoking ease of doing business and providing incentives for investment.

Given the political transition, West Bengal pins new hope for an era for economic empowerment and industrialization with the induction of pro-industrialized and growth oriented political leadership, BJP (Bharatiya Janata Party). It outsmarted TMC, the ruling government, in 2026 state assembly election. Besides, it paves the way for Act east policy, which was stuck due to global geo-political turmoil.

Till now, industrial honchos and MNCs are crowding investment in Gujarat, Karnataka, Tamil Nadu, Andhra Pradesh, while leaving West Bengal hungry for investment. Political upheaval downplayed the merit of West Bengal, even though it edges these states in view of geographical advantages. For instance, Gujarat is investment risky. It is near to Pakistan and engulfed by 52 percent of the land as desert. Bangalore is landlocked state, without having port facilities.

West Bengal has unique advantages by its geographical location and abundant natural resources. It edge other states. One, it is bestowed with ample natural resources under the soil of Sonar Bangla (fertile land) and second its geographical location in the east, which harbor for border trade with four nations and North East.

Geographical proximity and surface connectivity produce ample opportunities to export to Bangladesh, Nepal, Bhutan and Myanmar. Polarizing on these two strong parameters, which no other state embraces, West Bengal can usher connectivity – the paradigm shift of Modi’s dynamism to rein in South East Asia under Act East policy.

West Bengal has unique advantage to become window for ASEAN connectivity. It can catalyze Bengal land for economic and business opportunities between India and ASEAN. In the event of China losing cost competitiveness and Trump’s high tariff woes, West Bengal can be propitious to establish alternative Supply Chain.

Given the poor connectivity between North East Region (NCR) and South East Asia, West Bengal has emerged pivot to the connectivity through proposed Bangladesh –China-India-Myanmar Economic Corridor project (BCIMS) and Kalodan Multimodel Transit Transport project (KMTTP). Both these corridors pass through West Bengal.

For example, Myanmar is the gateway to ASEAN. It is the only nation in ASEAN which shares both sea and surface transports with India through West Bengal. Analysts observed that victory in West Bengal election lent a new challenge to Centre for its Act East policy.

For example Bengal can act as a Indian Silk Road to Myanmar, and then to ASEAN. Kalodan Multi-Model Transit Transport project under BIMSTEC connects Hoogly in West Bengal and Sittwe Port in Myanmar. The sea route will reduce the distance approximately 1328 km. At present, the narrow road through Siliguri in West Bengal is the connectivity between India and Myanmar.

West Bengal is the second largest place for micro, small and medium enterprises. Given this, industries with low and middle level investment and of labor intensive industries are appropriate for industrialization. To this end, the experiences of Vietnam and Bangladesh would be a lesson for the growth of industries in West Bengal. Success stories of ‘Supporting industry” model for automobile in Vietnam and the surge in garment industry in Bangladesh are the cases in point.

Since there is a double engine government now, the centre is likely to assist more in the development of the state. That should encourage the investors both Indian and foreign to make fresh investments in the state. Bengal has all the necessary fundamentals for industrial development. So, there should be a rush of industrialists this time as the state BJP government has to show that it has a more positive investment and industrial policy. (IPA Service)