The State of West Bengal has been experiencing rapid growth over a period of time which is around 1.1% higher than the national average. What are the reasons for this and which are the areas where this growth reflects?

In the post-reforms period, West Bengal has emerged as one of the fastest growing states, both in terms of GDP and per capita income.

The SDP of West Bengal (Rs. 2,06,881 crore) is the third highest in the country after that of Maharashtra (Rs. 3,71,677 crore) and Uttar Pradesh (Rs. 2,35,678.32 crore). It is growing at an average rate of 11% and is expected to be around Rs. 25,000 crore by the end of 2007-2008. Agriculture as the primary sector constitutes about 24% of the SDP and it has been growing at the rate of 3.2%. The secondary sector comprising of the industries constitute 21% of the SDP and it is growing at the rate of 12% - 12.5%. Within this sector the manufacturing sector has registered growth of more than 9%. The contribution of services sector to the SDP has been about 54% and has registered a growth of 12% within which consumer component has grown at the rate of nearly 20%. Based on these achievements, West Bengal is now on a steady and balanced integration mode between the vibrant agricultural economy and emerging sectors of modern industrial economy.

The accelerated growth could be primarily attributed to the investor-friendly approach adopted by the State Government in recent years. Many major domestic and foreign investors are targeting West Bengal as the investment destination.

The State Government took the proactive initiatives, supported by enabling policies for drawing industrial investment, in the thrust areas. These initiatives have yielded positive results and helped West Bengal emerge as a leader in the IT-enabled service sector. This has generated growth of employment. It has crafted its policies on the growth of industries in major sectors like Bio-technology, Mines & Minerals, IT & ITES sectors.

The State Government's initiatives for setting up cluster of sector specific industries like Food Parks, Poly Park, Plastosteel Park, Gem & Jewellery Park, Garment Park, Foundry Park, Rubber Park, Bio Technology Park etc depending on the availability of raw material and marketing facilities has already drawn huge investment. The State Government is also planning an auto component manufacturing industry.

The State Government lays emphasis on partnerships between the management and the workers as a step towards creating vibrant work culture and investment friendly ambience.

The current rapid growth trend reflects specifically in the Iron & Steel industry, Food Processing Industry, IT, Real Estate and plastics and synthetic sector etc. Service Sector including Hotels, Hospitals etc.

Since manufacturing industries act as a growth engine in the industrial and economic development, the State Government has focused on the growth of those industries where the state has comparative advantage in terms of the availability of raw material and marketing. The attraction of green field investments by large industrial groups in recent times like automobiles, such as Tata's small car project, Xenitis and Salim Group's two wheeler projects, investment in Heavy Duty High Performance Vehicle segment by URAL INDIA LIMITED as well as recent proposals of investment in the Iron & Steel sector and other heavy industries by major players like Jindal Group, Adhunik Group, Jai Balaji Group, Tata Motors etc is encouraging other big players to join the queue.

Haldia Petrochemicals Ltd, Mitsubishi Chemicals' MCC PTA project are a major source for downstream industries and are drawing huge investments.

The State Government also encourages foreign direct investment, both technical and financial, mutually appropriate and advantageous.

Of the 9000-crore projects that have been commissioned in the last four years which are the ones that are active and live?

During the last four years from 2003 to 2006 investments of more than Rs. 10500 crores have been made in various medium and large scale industries either by way of setting up new industries or through expansion in the existing industries. I have no knowledge of any major industry getting closed during this period.

West Bengal is second to Maharashtra in terms of companies wanting to set up their base there, who are the new entrants? What sets West Bengal apart from any other state, other than Maharashtra?

In recent times, West Bengal has seen huge investments in sectors like Food, Petrochemicals - plastics & synthetic segment, Steel Sector. Major players shown interest to make huge investments are Bhushan Steel, Jai Balalji, Adhunik Group, Jindal Steel & Power, Shyam Steel, Abhijeet Group, Videocon, Salim group. Fritolay India (Pepsico) has already started production in Food Park. There are others who have either started operation here or have shown interest. Some of them are Emami, Videocon, Unilever, Nestle, Jindals, Reliance, Future Group, GE, Adhunik Group, Bharti Airtel, WIPRO, Cognizant, IBM, Future Group, DLF Infrastructure etc. Some of the companies/Groups who already made initial investments are now expanding their base.

Some competitive advantages to attract investments here are:
• Social stability
• Political continuity
• Availability of Power at competitive rate
• Largest producer of fruits and vegetables
• Rich in mineral and natural resources
• Availability of Port facility - Kolkata and Haldia
• Large talent pool and low cost of operations as well as low rate of attrition
• One of the largest consumer market
• 2nd largest producer of tea and paper
• One of the few States to offer most attractive incentive schemes
• Fast developing infrastructure - both physical, social
• Investor - friendly ambience

With special mention about infrastructure, what is the current status in this area in West Bengal? What is the state doing to attract FDI flow into the State for infrastructure development?

The State Government is trying its best to improve the infrastructure facilities of the State as well as create new facility to attract investors - domestic and foreign. During the year 2006-07 approximately Rs. 7112 crore have been invested towards development of infrastructure, specifically in Roads & Bridges, Telecommunications, power, airport, port & jetty, surface transport etc. Rs. 525 crore in service sector, about Rs. 1543 crore in urban & social infrastructure.

One of the major steps taken by the State Government is developing the major cities like Durgapur (Burdwan), Kharagpur (West Midnapore), Malda, Bolepur (Birbhum), Siliguri (Jalpaiguri), Dankuni (Hooghly), Howrah, Baruipur (South 24-Parganas). We will try to transform these cities as major business hubs. This development will ensure balanced growth of infrastructure as well as economy.

Proposal to construct four-lane highway to connect North and South Bengal in collaboration with National Highway Authority and also proposal for construction of a freight corridor between Kolkata and Delhi, modernization and expansion of airport, construction of a Deep Seaport are some of the major infrastructure projects underway. Implementation of these projects may take another two/three years. With all this we expect a sea change in the entire infrastructure scenario in our State.

Foreign investment policy reforms and industry growth trends have found favour with foreign investors in the past two years. The State is looking for FDI investments not only in basic infrastructure but also in related social and service infrastructure.

What is the current state of medium to small-scale industries in West Bengal? What is the government doing to let them function at par with the large scale industries?

After the implementation of the MSME Act, 2006 by the Government of India, the State Government has also taken steps to promote micro, small and medium scale in the State simultaneously with drawing investment in the large scale.

The State Government has come up with a new attractive "Incentive Scheme 2007 for micro, macro and small industries" to maintain the competitiveness in this sector.

Some other major steps towards this goal are:-
• Organising Entrepreneurship Development Programme, Workshop and awareness programme on the Haldia Downstream industries, food processing, engineering, leather, bio-gas and other sectors;
• Various Training Centres have been set up to provide services for improvement of quality matching national and international standards. These trainings include training of workers, turnkey on construction and maintenance, handicrafts training, computer training, training on electrical and electronic devices, skill upgradation, weaving in modern power loom, computer designing, tailoring etc.
• In order to enhance productivity and competitiveness of micro, small and medium enterprises, nineteen (19) SSI clusters for ferrous and non ferrous metals parts, surgical instruments etc have been set up in various districts of West Bengal under the 'Small Industries Cluster Development Programme' under the Government of India. Many more proposals have been identified and under consideration.

What would be your message for the investing community across the globe wanting to invest in your state and how do you intend promoting it?