BGlobaEl BusNinessG SumAmit 2L015 Roadmap: Positioning Bengal as India's Leading Investment Destination The MAP depicted is only a pictorial representation of State of West Bengal and does not purport to be the political map of West Bengal and is not drawn to scale Bengal-Global Business Summit 2015 TITLE Roadmap: Positioning Bengal as India’s Leading Investment Destination YEAR January 2015 AUTHORS YES BANK COPYRIGHT No part of this publication may be reproduced in any form by photo, photoprint, microfilm or any other means without the written permission of YES BANK Ltd. This report is the publication of YES BANK Limited (“YES BANK”) and so YES BANK has editorial control over the content, including opinions, advice, statements, services, offers etc. that is represented in this report. However, YES BANK will not be liable for any loss or damage caused by the reader’s reliance on information obtained through this report. 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In no event shall YES BANK or its content providers be liable for any damages whatsoever, whether direct, indirect, special, consequential and/or incidental, including without limitation, damages arising from loss of data or information, loss of profits, business interruption, or arising from the access and/or use or inability to access and/or use content and/or any service available in this report, even if YES BANK is advised of the possibility of such loss. Maps depicted in the report are graphical representation for general representation only. YES BANK Limited Nikhil Sahni Senior President - Government Relationship Management & Strategic Government Advisory CONTACTS Northern Regional Office 48, Nyaya Marg, Chanakyapuri New Delhi – 110 021 Tel : +91 11 6656 9002 Email : [email protected] Website : www.yesbank.in Contents Section 1 6 - 12 1. West Bengal - State Profile 6 2. Advantage West Bengal 8 3. Proposed Industrial Corridor 11 4. Physical Infrastructure Overview 12 Section 2 13 - 37 1. Focus Regions 13 2. Focus Sectors 17 3. Way Forward 33 West Bengal – State Profile 14th largest in India; Area 88,752 sq.km 2.6% of India’s land area, 20 Districts Capital City Kolkata 9th most populous city in India Population (2011 census) 9.13 Crores 4th Largest in India 1,029 persons per Higher than the National Average - 382 Population Density sq.km persons per sq.km GSDP in 2013-14 (Constant Prices of 2004-05) INR 378, 687 Crores 6th in India Per capita Income in 2013-14 (Constant prices INR 37,511 Crores 21st in India of 2004-05) Urbanization (Census 2011) 31. 87% 19th in India Human Development Index 0.492 13th in India Literacy Rate (Census 2011) 76.26% 20th in India, All India 74.04% % of persons below Poverty (2011-12) 19.98% 15th in India, All India 21.92% Source: Planning Commission, Census 2011, United Nations Development Programme (UNDP), wbcmo.gov.in 6 BENGAL – Global Business Summit 2015 West Bengal – State Profile Comparison with Key States Parameters Maharas- Uttar Andhra Gujarat Tamil West Karnataka htra Pradesh Pradesh Nadu Bengal Area (sq.km) 307,713 240,928 160,205 196,024 130,058 88,752 44,212 Population (Census 2011) 11.2 19.9 4.9 6.0 7.2 9.1 2.5 No. of districts 35 71 13 26 32 20 21 Total GSDP in 2013-14 at constant prices of 897,786 468,271 250, 282 427,219 480, 618 378,687 198,858 2004-05 in Rs Crores Primary Sector Contribution 8% 21.9% 23% 11% 7% 22.2% 15% Secondary Sector Contribution 28% 21.5% 21% 39% 29% 17% 28% Tertiary Sector Contribution 64% 56.5% 56% 50% 64% 60.8% 57% Urbanization as per Census 2011 0.45 0.22 0.30 0.43 0.49 0.31 0.35 Human Development Index (HDI) as per # 0.572 0.380 0.473 0.527 0.570 0.492 0.552 HDI Report 2011 for 2007-08 Cumulative FDI Equity Inflows from April 329,552 1,979 45,650# 47,867 77,426 13,753 6,332 2000 - September 2014 (Share to India) (30%) (0. 2%) (4%) (4%) (6%) (1%) (0. 6%) West Bengal GSDP (2013-14) - INR 378,687 Crores (2004-05 Constant Prices). YoY - 7.71%; 10-Yr CAGR (2004-05) – 6.14% # Indicates the cumulative value of erstwhile Andhra Pradesh Source: Planning Commission, Census 2011, RBI, India Brand Equity Foundation (IBEF), UNDP, West Bengal State Economic Review, 2013 , wbcmo.go.in BENGAL – Global Business Summit 2015 7 Advantage West Bengal Strategic Location 9 The State has a strategic location due to proximity to the vast markets of Eastern, North- Eastern and Northern India, as well as access to the ASEAN and SAARC region Knowledge Hub of India 9 One of the largest school-age population in the country 9 Rich technical talent base of 225 ITIs and 140 Polytechnics 9 Presence of prestigious Institutions such as IIT, IIM, amongst others Abundant Natural Resources 9 Largest State in terms of Jute prodiduction 9 Largest producer of Rice 9 2nd largest producer of Potato 9 2nd largest Tea producing State 9 3rd largest State in terms of Mineral production MSME hub of India 9 Highest investments in the country consecutively for 2012-13 and 2013-14 9 One of the major Textile hubs of the country including Garment, Hosiery, Handloom, Khadi and Silk Source: IBEF, Industrial Policy of West Bengal , Report on 3 years of the West Bengal Government 8 BENGAL – Global Business Summit 2015 Advantage West Bengal Amongst top 6 States in India 9 Contributed nearly 7% to the economy of the country in 2012-13 Important Tourist Destination 9 Domestic tourist arrivals - 9th highest in the country (2013) 9 Foreign tourist arrivals - 6th highest in the country (2013) Well-developed Infrastructure 9 Good connectivity through Road, Rail, Air and Water modes of transport 9 3 Airports, 2 Sea ports and Chopper services are currently operational Part of proposed Industrial Corridors 9 Dedicated Eastern Freight Corridor 9 Kolkata - Amritsar Industrial Corridor Power 9 West Bengal is a power surplus State 9 99.99% of villages are electrified Source: Planning Commission, CARE Ratings, Ministry of Tourism, MoFPI BENGAL – Global Business Summit 2015 9 Amritsar-Delhi-Kolkata Industrial Corridor National Highway No. 2 Asansol-Durgapur Belt • Heavy Industries hub of WB • Export Promotion Industrial Park • Proximity to Iron & Steel, Coal and Power prodiducing zone • Bengal Aerotropolis Project • Durgapur to be developed as Smart City Proposed Key Projects • Multi Facility • INR 5,000 Crore Matrix Fertilizer Healthcare Plant of the Essar Group Infrastructure • Industrial Park spread over 1458 • Setting up a acres Knowledge City • Financial hub of Eastern India • Several SEZ regions and IT parks Upcoming Amritsar-Delhi- Kolkata Industrial Corridor Sources: YES BANK Analysis, WBIDC, GoWB Urban Development Department Image Sources: Google Map, January 4, 2015 The MAP depicted in the report is only a pictorial representation of State of West Bengal and does not purport to be the political map of West Bengal and is not drawn to scale. 10 BENGAL – Global Business Summit 2015 Proposed Industrial Corridors Eastern Dedicated Freight Corridor (EDFC) Amritsar-Delhi-Kolkata Industrial Corridor (AKIC) 9 Length of corridor – 1,839 kms 9 Area covered on the length of corridor: 150 -200 km on either side of EDFC 9 States Covered – • Haryana, Punjab, Uttar Pradesh, 9 The project to be developed on either side of Jharkhand and West Bengal Eastern Dedicated Freight Corridor • And al and Dan kun i in Wes t Benga l 9 States Covered – • Punjab, Haryana, Uttarakhand, Uttar 9 Projected to cater traffic for - Pradesh, Jharkhand, Bihar and West • Coal, Steel, Food Grains, Cement, Bengal Fer tilizers, Limes tone and Genera l goods • Asansol, Durgapur and Kolkata in West Bengal 9 Status of Project – • At least one Integrated Manufacturing • Under progress Cluster of 10 sq.km. to be set up in each of the 7 States 9 Status of Project – • Establishment of AKIC Development Corporation under progress with a equity base of INR 100 Crore Source: Dedicated Freight Corridor Corporation of India (DFCCIL), pib.nic.in BENGAL – Global Business Summit 2015 11 Physical Infrastructure Overview Roads & Rail 9 Extensive Road network: 299,209 km including - National Highways and State Highways 9 Road density (per 100 sq.