The Hindu Business Line : Old perception still haunts domestic, foreign investors, says Survey

Kolkata April 11 Giving an overview of the CII-Ernst & Young "Entrepreneurs' Perception - a West Bengal Survey Report", released here, Mr R.K. Agrawal, Director, E&Y India (P) Ltd, said West Bengal offered probably the highest potential for growth in the country.

He said despite having the most stable government of the country, the State's biggest achievement has not been industry, but a complete change of a regressive mindset that had plagued the ruling party. He said despite the makeover in perception, the State was still grappling to improve the financial position. Quality of education, he felt, was a major problem, and "political insurgency and infiltration problems still prevail".

Tough task ahead

Suggesting that the present government had a daunting task on its hand by managing 8 per cent of the population with only 3 per cent of the land in India, the report is of the view that it would be quite an accomplishment to apportion land between agriculture and industrial needs.

It is felt that with demand for land increasing and real estate prices booming, it will be difficult to maintain cost effectiveness, said to be the State's traditional strength.

Old perception

The survey has concluded that the old perception of West Bengal was still haunting a section of domestic as well as foreign investors. However, it is felt that political stability, more comfortable and favourable law and order situation, availability of steady, stable and comfortable power, stable and dependable connectivity, and lower cost of operations have made West Bengal stand out today among other States in the country.

According to a prominent businessman in Kolkata, "After having conquered Kolkata, it is time to explore other tier II cities like Siliguri, Durgapur, Haldia etc". Another put it, says the survey, thus: "If the State government continues in the same vein, Kolkata will definitely be one of the top cities on the country's industrial map."

According to the survey, some 85 per cent of the respondents had plans for expansion and diversification in West Bengal, which boded well for the future of the State. More than half felt that an investor-friendly government and good law and order were a boon for West Bengal, considered by far the most peaceful State in the country.

While 15 per cent of the first generation entrepreneurs felt officials working in various government departments were efficient, nearly 75 per cent felt that the infrastructure and bandhs and strikes were the major areas of concern.

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