WEST BENGAL April 2010 WEST BENGAL April 2010
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WEST BENGAL April 2010 WEST BENGAL April 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 April 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 April 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 city. 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, To r s a , Jaldhaka and Mahananda. • West Bengal's climate varies from tropical savannah in the southern portions to humid subtropical 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 April 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 April 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 April 2010 West Bengal in figures … (1/2) Parameter West Bengal All-states Source Economy GSDP as a percentage of all states’ 8.0 100.0 CMIE, 2006-07, current prices GSDP Average GSDP growth rate (%) 12.7 7.5 CMIE, 1999-2000 to 2007-08, current prices Per capita GSDP (US$) 871.8 998.1 CMIE, 2007-08 Physical infrastructure Central Electricity Authority, as of March Installed power capacity (MW) 6,890.1 98,996.4 2009 Cellular Operators Association of India, GSM cellular subscribers (No) 17,415,303* 367,328,179 as of November 2009 Broadband subscribers (No) 246,896 4,981,976 As of October 2008 Ministry of Road Transport & Highways, National highway length (km) 2,578 70,548 2007-08 Major and minor ports (No) 1 + 1 12 + 187 Ministry of Shipping Airports (No) 2 133 Industry sources Social indicators Literacy rate (%) 68.6 64.8 Census of India, 2001 Birth rate (per 1,000 population) 17.9 23.3 Central Bureau of Health Intelligence, 2007 *Includes Andaman & Nicobar Islands 7 ADVANTAGE WEST BENGAL West Bengal April 2010 West Bengal in figures … (2/2) Parameter West Bengal All-states Source Ease of doing business Department of Industrial Policy and FDI inflows (US$ billion) 1.3** 102.1 Promotion, April 2000 to October 2009 Outstanding investments 142 1,709.7 CMIE, as of December 2008 (US$ billion) PPP projects (No) 5 460 www.pppindiadatabase.com Functional as of August, 2009, SEZ (No) 11 98 www.sezindia.com ** FDI inflows for RBIs 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 April 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 April 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 April 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 April 2010 West Bengal’s GSDP • At current prices, the Gross State Domestic West Bengal’s GSDP Product (GSDP) of West Bengal was about US$ (US$ billion) 75.5 billion in 2007-08. 2007-08 75.5 2006-07 63.4 • The average annual GSDP growth rate from 1999-2000 to 2007-08, was about 12.7 per cent. 2005-06 51.1 2004-05 46.3 2003-04 43.3 CAGR: 2002-03 36.8 12.7% 2001-02 32.7 2000-01 29.8 1999-00 29.1 0.0 20.0 40.0 60.0 80.0 Source: CMIE 12 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE West Bengal April 2010 West Bengal’s NSDP • At current prices, the Net State Domestic West Bengal’s NSDP Product (NSDP) of West Bengal was about US$ (US$ billion) 68.4 billion in 2007-08. 2007-08 68.4 2006-07 57.3 • The average annual NSDP growth rate from 1999-2000 to 2007-08, was about 12.4 per cent. 2005-06 46.3 2004-05 42.1 2003-04 39.6 CAGR: 2002-03 33.7 12.4% 2001-02 30.0 2000-01 27.4 1999-00 26.9 0 20 40 60 80 Source: CMIE 13 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE West Bengal April 2010 The tertiary sector has an increasing share in West Bengal’s economy • In 2007-08, the tertiary sector contributed 61.2 Percentage distribution of GSDP per cent to the state’s GSDP at current prices, followed by primary sector (26.8 per 100 cent). CAGR 80 • 55.7 The share of the secondary sector in GSDP was 61.2 11.3% 12.0 per cent in 2007-08 vis-à-vis 10.7 per cent 60 in 1999-2000, its growth being driven by registered and un-registered manufacturing. 40 10.7 12.0 11.5% 20 • Manufacturing registered the highest growth of 33.6 26.8 11.5 per cent between 1999-2000 and 2007-08. 6.9% It was followed by the mining and quarrying at 0 11.3 per cent. 1999-00 2007-08 Primary Sector Secondary Sector Tertiary Sector Source: CMIE 14 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE West Bengal April 2010 Per capita GSDP • The state’s per capita GSDP in 2007-08 Per capita GSDP was US$ 871.8. 1,000.0 871.8 900.0 • The per capita GSDP increased at a CAGR 800.0 739.4 of 11.4 per cent between 1999-2000 and 700.0 602.2 2007-08. 600.0 522.2 552.3 500.0 449.7 368.4 372.7 405.2 400.0 • West Bengal has registered an increase in US$ 300.0 the per capita income owing to 200.0 investments in sectors such as steel, real 100.0 estate, power, retail and IT. 0.0 01 02 03 04 05 06 07 08 - - - - - - - - 2000 - 2000 2001 2002 2003 2004 2005 2006 2007 1999 Source: CMIE 15 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE West Bengal April 2010 Socio-economic profile of key cities • Kolkata, Siliguri, Asansol, Durgapur, Raniganj, Haldia, Kharaghpur, Darjeeling, Malda, Midnapore, Cooch Behar and Howrah are the key cities and towns in the state.