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WEST BENGAL November 2010 WEST BENGAL November 2010 WEST BENGAL November 2010 WEST BENGAL November 2010 Investment climate of a state is determined by a mix of factors • Skilled and cost-effective labour • Procedures for entry and exit of firms • Labour market flexibility • Industrial regulation, labour regulation, other • Labour relations government regulations • Availability of raw materials and natural • Certainty about rules and regulations resources • Security, law and order situation Regulatory framework Resources/Inputs Investment climate of a state Incentives to industry Physical and social infrastructure • Condition of physical infrastructure such as • Tax incentives and exemptions power, water, roads, etc. • Investment subsidies and other incentives • Information infrastructure such as telecom, IT, • Availability of finance at cost-effective terms etc. • Incentives for foreign direct investment (FDI) • Social infrastructure such as educational and • Profitability of the industry medical facilities 2 WEST BENGAL November 2010 Contents Advantage West Bengal State economy and socio-economic profile Infrastructure status State policies and incentives Business opportunities Doing business in West Bengal 3 ADVANTAGE WEST BENGAL West Bengal November 2010 West Bengal – State profile • Covering an area of 88,752 sq km, West Bengal is situated in Eastern India. The state shares international borders with Bangladesh, Bhutan and Nepal. • West Bengal has 19 administrative districts. Kolkata is the state capital. Siliguri, Asansol, Durgapur, Raniganj, Haldia, Kharaghpur, Darjeeling, Malda, Midnapore, Cooch Behar and Howrah are the other key cities in the state. • The Ganges (and its main distributary, Hoogly) is the main river flowing through the state. The other important rivers in the state include Damodar, Ajay, Kangsabati, Teesta, Torsa, Jaldhaka and Mahananda. • West Bengal's climate varies from tropical savannah in the Southern portions to humid sub-tropical in the North. • Bengali is the official language of the state, though English and Hindi are also widely used. Nepali is spoken primarily in the Darjeeling district. • West Bengal has a rich culture and literature. The festivals celebrated in the state are Durga Puja, Saraswati Puja and Kali Puja. Source: Maps of India 4 ADVANTAGE WEST BENGAL West Bengal November 2010 Advantage West Bengal … (1/2) Geographical advantage Because of its location, West Bengal offers definite advantage as the traditional domestic market in Eastern India, the Northeast and the land-locked countries of Nepal and Bhutan, which are easily accessible. The state is also an entry point to markets in Southeast Asia, via the Northeastern states. Competitive cost of operation Kolkata, which is a metropolitan city, has a comparatively lower cost of operating a business as compared to the other cities such as New Delhi, Bangalore, Chennai, Hyderabad and Mumbai. Endowed with natural resources West Bengal has abundant natural resources of minerals and suitable agro-climatic conditions for agriculture, horticulture and fisheries. West Bengal also has a prosperous hinterland of some mineral rich states like Jharkhand, Bihar and Orissa. Source: Maps of India 5 ADVANTAGE WEST BENGAL West Bengal November 2010 Advantage West Bengal … (2/2) Educational infrastructure The state is home to a number of renowned educational institutions and higher learning centres. There are 18 universities in the state along with sizeable research institutes. Excellent connectivity West Bengal offers excellent connectivity to the rest of India in terms of railways, roadways, ports and airports. Major stretches of the golden quadrilateral project also pass through the Northern districts of the state. Large English speaking population Knowledge of English is an advantage of the workforce of West Bengal, especially in Kolkata, which is one of the four metropolitan cities of India. Source: Maps of India 6 ADVANTAGE WEST BENGAL West Bengal November 2010 West Bengal in figures … (1/2) Parameter West Bengal All-states Source Economy GSDP as a percentage of all states‟ 7.8 100.0 CMIE, as of 2007-08, current prices GSDP Average GSDP growth rate (%)* 11.5 11.8 CMIE, 2000-01 to 2007-08, current prices Per capita GSDP (US$) 883.8 992.5 CMIE, as of 2007-08, current prices Physical infrastructure Central Electricity Authority, as of March Installed power capacity (MW) 8,149.5 159,398.5 2010 Cellular Operators Association of India, as of GSM cellular subscribers (No)# 22,226,828 456,586,162 June 2010 Broadband subscribers (No) 246,896 4,981,976 As of October 2008 Ministry of Road Transport & Highways, National highway length (km) 2,578 70,548 Annual Report 2008-09 Major and minor ports (No) 1 + 1 12 + 187 Ministry of Shipping Airports (No) 2 133 Airport Authority of India Social indicators Literacy rate (%) 68.6 64.8 Census of India, 2001 Ministry of Health and Family Welfare, RHS Birth rate (per 1,000 population) 17.5 22.8 Bulletin, March 2008 *Calculated in Indian rupee terms #Includes Andaman & Nicobar Islands 7 ADVANTAGE WEST BENGAL West Bengal November 2010 West Bengal in figures … (2/2) Parameter West Bengal All-states Source Ease of doing business Department of Industrial Policy and FDI inflows (US$ billion) 1.4** 120.2 Promotion, April 2000 to May 2010 Outstanding investments 120.0 1,972.6 CMIE, as of March 2010 (US$ billion) Industrial infrastructure PPP projects (No) 8 515 www.pppindiadatabase.com Notified as of July 2010, SEZ (No) 11 363 www.sezindia.nic.in ** FDI inflows for Reserve Bank of India „s (RBI‟s) Kolkata region, which includes West Bengal, Sikkim, Andaman & Nicobar Islands PPP: public private partnership, SEZ: special economic zone Parameter West Bengal Government Policy support Sectors with specific policies Industry, IT, SEZ, exports, biotechnology Availability of labour Adequate skilled labour available 8 ADVANTAGE WEST BENGAL West Bengal November 2010 Key industries with policy thrust and factor advantages Industry attractiveness matrix High Biotechnology Medium IT Iron and steel Policy thrust Policy Jute products Leather and Agriculture and Tea leather products horticulture Pisciculture and Livestock and Locomotives aquaculture dairy products Low Medium High Factor advantage *Factor advantages include benefits due to geographical location and availability of factors such as talent pool, natural resources and capital 9 WEST BENGAL November 2010 Contents Advantage West Bengal State economy and socio-economic profile Infrastructure status State policies and incentives Business opportunities Doing business in West Bengal 10 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE West Bengal November 2010 Socio-economic snapshot of West Bengal Parameters West Bengal Capital Kolkata Geographical area (sq km) 88,752 Administrative districts (No) 19 Population density (persons per sq km) 904 Total population (million)* 80.2 Male population (million) 41.5 Female population (million) 38.7 Population growth rate 1991-2001 (%) 17.8 Sex ratio (females per 1,000 males)* 934 Literacy rate (%)* 68.6 Male (%) 77.0 Female (%) 59.6 *Census 2001 Source: Economic Survey of West Bengal, 2007-08, Directorate of Economics and Statistics 11 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE West Bengal November 2010 West Bengal‟s GSDP • At current prices, the Gross State Domestic West Bengal‟s GSDP Product (GSDP) of West Bengal was about US$ 76.9 billion in 2008-09. 2008-09 76.9 2007-08 76.6 2006-07 63.0 • The average annual GSDP growth rate from 2005-06 51.0 1999-2000 to 2008-09, was about 11.4 per cent. 2004-05 46.3 CAGR 2003-04 43.3 11.4% 2002-03 36.8 2001-02 32.7 2000-01 29.8 1999-00 29.1 0.0 20.0 40.0 60.0 80.0 100.0 US$ billion Source: CMIE 12 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE West Bengal November 2010 West Bengal‟s NSDP • At current prices, the Net State Domestic West Bengal‟s NSDP Product (NSDP) of West Bengal was about US$ 2008-09 69.1 69.1 billion in 2008-09. 2007-08 69.1 2006-07 57.0 • The average annual NSDP growth rate from 2005-06 46.1 1999-2000 to 2008-09, was about 11.1 per cent. 2004-05 42.1 CAGR 2003-04 39.6 11.1% 2002-03 33.7 2001-02 30.0 2000-01 27.4 1999-00 26.9 0.0 20.0 40.0 60.0 80.0 US$ billion Source: CMIE 13 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE West Bengal November 2010 The tertiary sector has an increasing share in West Bengal‟s economy • In 2008-09, the tertiary sector contributed 54.9 Percentage distribution of GSDP per cent to the state‟s GSDP at current prices, followed by primary sector (21.9 per cent). CAGR 52.1 54.9 • The share of the secondary sector in GSDP was 11.9% 23.3 per cent in 2008-09 vis-à-vis 16.5 per cent 16.5 in 1999-2000, its growth being driven by 15.6% registered and un-registered manufacturing. 23.3 31.5 21.9 6.9% • Manufacturing registered the highest growth of 9.9 per cent between 1999-2000 and 2008-09. 1999-2000 2008-09 It was followed by the mining and quarrying at Primary Sector Secondary Sector Tertiary Sector 7.1 per cent. Source: CMIE 14 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE West Bengal November 2010 Per capita GSDP • The state‟s per capita GSDP in 2008-09 was US$ 879.4. • The per capita GSDP increased at a CAGR of 10.2 per cent between 1999-2000 and 2008-09. • West Bengal has registered an increase in the per capita income owing to investments in sectors such as steel, real estate, power, retail and IT. Per capita GSDP 1,000.0 883.8 879.4 900.0 800.0 734.4 700.0 600.7 600.0 522.2 552.3 500.0 449.7 US$ 405.2 368.4 372.7 400.0 300.0 200.0 100.0 0.0 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 Source: CMIE 15 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE West Bengal November 2010 Consumer expenditure on household goods and services • West Bengal is ahead compared to all-India in share of per capita expenditure on food and medical.
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