The central government has recently revealed that in the last one and a half decades, more than 6 thousand companies left West Bengal. Out of these, more than 2 thousand companies left the state in the last 5 years. Many of these companies moved to states like Delhi, Uttar Pradesh, Maharashtra and Gujarat.
This migration of industries from West Bengal happened during the rule of the Trinamool Congress (TMC). On one hand, companies are leaving West Bengal, and on the other hand, a few nominal investments are also being announced in the state. This situation is serious and worrying for the fourth most populous state of the country.
These statistics may be shocking, but West Bengal has a long-standing relationship with the migration of industries. From the country’s big business houses shifting their headquarters to big brands shutting down their factories, this has been the case for the past several years. Part of the reason for this is the anti-industry attitude of the Mamata Banerjee government topped by poor law and order situation in the state.
The script for the fall of Kolkata, which was once considered one of Asia’s biggest industrial powers, was written by the leftists before Mamata Banerjee came to power. But Mamata Banerjee gave the final touches to this script, and instead of increasing the number of industries, she put the last nail in their coffin.
How many companies bid adieu to West Bengal
During the monsoon session in the Rajya Sabha, BJP West Bengal president Samik Bhattacharya asked a question about the state. In its reply, the Ministry of Corporate Affairs of the Central Government informed that between the year 2011-12 and the year 2024-25, 6688 companies have left West Bengal.
According to the ministry’s reply, one-third of these, i.e. more than 2200 companies, left the state since 2019. This trend has continued since the TMC came to power in 2011. According to the ministry, out of the 6688 companies that left West Bengal, 110 companies were listed on the stock market.
Ministry data shows that the highest number of companies, around 1027, left West Bengal during 2017-18. During 2015-16 and 2016-17, 869 and 918 companies, respectively, withdrew from West Bengal
Where did these companies go?
According to the reply of the Corporate Ministry, the companies leaving West Bengal are shifting to other states. They are migrating to the states where policies relating to industries are simple and they are encouraged. Between 2011 and 25, the maximum number of companies leaving West Bengal moved to Maharashtra.
Delhi and Uttar Pradesh are also on the list of these industries’ preferred locations. As per the reply of the Corporate Ministry, more than 1300 companies leaving West Bengal have gone to Maharashtra between 2011 and 25. Whereas 1297 have chosen Delhi. Apart from this, 879 companies have left West Bengal and gone to Uttar Pradesh.
Chhattisgarh, Gujarat and Rajasthan have also been successful in snatching 1000+ companies from West Bengal. However, all this does not seem to have any effect on the Trinamool government. Instead of bringing industries to the state, it seems bent on further driving them out of the state.
The policy on industries also changed
While the companies have already been moving out of West Bengal for decades, the Mamata government’s recent decision may accelerate their migration. In April 2025, the Mamata government stopped all state government schemes benefiting industries.
The state government had abolished all the policies implemented from 1993 to 2021 to attract industries. As a result of this abolition, businesses will not get any concession on setting up industries in the state, whether in the form of land or electricity prices.
According to a report, the Mamata government abolished these schemes to save money, which could be used for ‘social work’. The Mamata government probably wants to make people more self-dependent by closing down industries.
According to the report, many cement companies will suffer a big blow due to the decision of the West Bengal government. These include the country’s oldest and biggest business houses, like Dalmia. The total losses are said to have amounted to ₹500 crores.
The decision of the West Bengal government to roll back the schemes benefitting industries has come at a time when other states are welcoming the industries with open arms. Some states are offering land at a nominal price of ₹1, while others are establishing new cities to attract industries.
Big announcements, no investments
While established companies are leaving West Bengal, announcements of new investments, which exist only on paper, are also being made simultaneously. State Chief Minister Mamata Banerjee has claimed that investment proposals worth more than ₹39 thousand crores came to West Bengal in January-November 2024. She also claimed that this is the third-highest in the country.
A report by the Central government’s Department for Promotion of Industry and Internal Trade (DPIIT) exposed the truth of this claim. Even though huge investments have been promised in the state, the reality does not match the promises. According to the Industrial Entrepreneurs Memorandum (IEM) report of DPIIT, only ₹3735 crores of investment was made in West Bengal till November 2024, while the promised amount was much more.
West Bengal stands nowhere in comparison with other states in terms of industrial investment. The same report shows that while more than ₹ 71 thousand crores were invested in Uttar Pradesh between 2020-24, West Bengal managed to attract an investment of only ₹ 15 thousand crores during the same period. It even lags behind Jharkhand in terms of attracting investment.
Big brands are leaving Bengal
The process of industries leaving West Bengal continues. In 2024, Britannia shut down its decades-old biscuit factory in the state. This factory was located near Kolkata. Similarly, many jute mills have also been closed in the state, or are on their last legs.
The trend of brands leaving Bengal is not new. In fact, this has been the biggest turning point in Mamata Banerjee’s political career. In 2008, Tata Motors left the state, as it was setting up a Nano factory in Singur. But due to Mamata Banerjee’s constant opposition, it had to dismantle an already set-up factory and flee to Gujarat.
It was only after the Singur movement that Mamata Banerjee got a landslide victory in the state and replaced the Communists, who had been in power for more than three decades. However, it is dishonest to expect a pro-industry policy from a leader who came to power by opposing an industry.
It is said that in West Bengal, Aditya Birla was once dragged out of his car, beaten on the road, stripped naked and humiliated. After this, he shut down his business. The same happened with other industrial houses.
Why the migration of industry from Bengal is a matter of concern
The migration of industries from West Bengal should be a matter of concern not only for the state but for the entire country. West Bengal is the fourth most populous state in the country, but it has a mere 3.5% share in the country’s industrial output. Due to a lack of industries, there is a huge unemployment problem in the state.
The influx of illegal immigrants in West Bengal makes this problem even more severe. The frequent riots and attacks on the majority population in the state have also become a reason for the decreasing trust of brands. Due to the pathetic law and order situation in the state, no big company wants to invest.
This is the reason that West Bengal, which contributed more than 10% to the country’s GDP in the 1960s, has now come down to just 5%. Smaller states will soon surpass it. If this attitude of the Mamata government towards industries continues, then the rest of the country will also be affected. Its slow economic growth rate will hold the country back.