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West Bengal Industries and Commerce Minister Shashi Panja on Saturday said that the perception of the State needs to turn to be a safe investment ecosystem backed by a strong three-term political mandate.
According to Panja, the story of economy weaves around political narratives and therefore the concept of “cooperative federalism” becomes vital in such circumstances though it just tends to take a backseat due to differing political ideologies.
The State government focusses on social development, building of social infrastructure, and social inclusion and the State is “global and welcoming” though the “bird’s eye” for the State Chief Minister has always been industrial growth, Panja said while addressing the conference on ‘West Bengal: Poised to Lead’ organised by CII on the occasion of West Bengal State Annual Day on Saturday.
‘Over four-decade history’
The “legacy of perception of the State has a history of more than four decades” with significant “flights of capital and industry” and this perception will take a long time to change, said Dr HK Dwivedi, Chief Secretary of West Bengal. Though there are numerous champions of the State in terms of investors, the perception is perpetrated by those who do not invest here, he added.
In the financial year 2022-23, the capex to GSDP ratio is more than two per cent but below the national average of three per cent and the State revenue earnings now stand at ₹90,000 crore which was earlier ₹30,000 crore, he said.
He also spoke at length about the increased social expenditure of the government which is more than 45 per cent of the State budget and emphasised that the gross debt of a State is not a parameter but the GSDP volume which actually decides how the State is servicing the debt.
In 2011, the debt to GSDP ratio was greater than 45 per cent and in 2023, the ratio is 32 per cent, and now the GSDP has increased to ₹90,000 crore which in 2011 was the lowest in India which indicates a significant increase in capex.
The State, he said, is channelling resources to create infrastructure. Apart from MSMEs which are the largest in India at 90,00,000 units with targeted credit growth of ₹1,10,000 crore in 2023-24, some of the other focus areas are agriculture and allied products which have a huge potential.
The pandemic notwithstanding, West Bengal’s tax revenue collections increased to ₹48,000 crore in FY22 with a 20 per cent growth and also a simultaneous 30 per cent and 89 per cent growth in CGST and electricity duty collection, respectively.
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