Can the new government change the perception of West Bengal—from a state long seen as unfriendly to business to one that attracts fresh investments and offers better opportunities for entrepreneurs and job seekers?
From large corporates to MSMEs, businesses expect the new BJP government to improve the ease of doing business, curb alleged “extortionist” practices, and reduce bureaucratic hurdles.
“This alignment between the state and the Centre will not only accelerate overall growth but also create significant opportunities for industrial expansion, especially in the railway manufacturing sector, which has long been core to West Bengal. We look forward to the new government taking up urgent policy reforms such as repealing urban land ceiling regulations and introducing industrial incentives to create jobs,” said Umesh Chowdhary, vice chairman and managing director, Titagarh Rail.
Business chambers are seeking targeted incentives, power sector reforms, better infrastructure, and a world-class plug-and-play ecosystem backed by skilled talent, robust policies, and deeper industry–government collaboration.
“Introducing targeted incentives such as capital subsidies, interest subvention, electricity duty waivers, and stamp duty reimbursements will help attract fresh investments,” said S Roy, deputy director general, Merchant’s Chamber of Commerce & Industry (MCCI), Kolkata.
Infra, investment, jobs
Several businesses flagged the persistent negative sentiment among investors, with the state often perceived as grappling with extortion and labour issues. Industrialists also pointed to brain drain and a shortage of skilled workers as key challenges.
“As industry grows within the state, demand for skilled labour will rise, and current capacity is insufficient. Investment in skill development will be key to meeting this demand. Large enterprises not only create direct employment but also drive demand for engineers, researchers, and other skilled professionals,” Chowdhary added.
Industry stakeholders also highlighted the need for more decentralised infrastructure development. With most infrastructure concentrated around Kolkata, businesses in other regions face connectivity and logistics constraints.
“Bengal is one of India’s largest producers of rice and vegetables, but there is a huge shortage of cold storage networks outside the city. Building robust small-scale cold storage and warehousing infrastructure will reduce post-harvest losses and lower logistics costs for farmers,” said Ruth Chattopadhyay, founder of Paushtik Life, a social initiative in the organic farming sector.
According to Commerce Ministry data, West Bengal accounted for less than 0.65% of the $330.6 billion FDI equity inflows into India between October 2019 and December 2025, with total inflows of just $2.1 billion.
Startup founders say they have often been compelled to set up operations outside the state to access funding and scale. “Startups in Bengal have suffered immensely in recent years due to the extortion culture. Many failed to reap the benefits of the Startup India scheme. We now hope investor sentiment will revive,” said Sayan Chakraborty, entrepreneur and founder of restaurant chain Where’s the Food.
A word of caution
Even as businesses express optimism, economists caution that both policymakers and industry must ensure the momentum translates into sustained structural change.
“Business sentiment usually improves after an anti-incumbency verdict, and expectations around policy efficiency and reforms rise. West Bengal has a vital role in revitalising Purvodaya, and time is limited. This initial euphoria must translate into structural change through good governance,” said an economist with a leading corporate house.
The BJP had made significant cash transfer promises ahead of the polls. If implemented, these could strain the state’s finances. According to Emkay Global, such measures could cost an additional 3.4% of GDP. Crisil noted that while cash transfers can provide a short-term cushion, improving income prospects is critical for sustaining organic growth in domestic demand.