Impact of FDI on West Bengal Economy
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Abstract:
West Bengal has been one of the fore-runners among Indian states in attracting FDI in recent years. 3134.66 crores of FDI inflows have taken place in Kolkata, the capital of West Bengal between April 2000 and October 2007. FDI in West Bengal has led to development of infrastructure in this state.Incentives given by the state government to attract FDI in West Bengal:
- The labor laws of the state have been simplified so that foreign companies can function smoothly in the state.
- The IT companies in the state have been given special status so that they can improve the infrastructure.
- Regulatory measures that are conductive to foreign investments have been undertaken in the state.
- Facility of single window clearance has been provided in the state.
Industries in West Bengal attracting FDI are:
- Information technology
- Chemicals
- Iron and steel
- Plastic
- Biotechnology
Amount of FDI inflows to West Bengal:
The state of West Bengal has become an important destination for investment in the whole of India for large amounts of foreign direct investment are coming in the state. The places in West Bengal that have attracted foreign direct investment are Kolkata, Asansol, Howrah, Siliguri, Durgapur, Haldia, and Jalpaiguri. Special Information Technology zones have been set up in Salt Lake and Rajarhat - two developing townships adjoining Kolkata. Total volume of FDI to Kolkata between April 2000 and October 2007 stood at 3134.66 crores accounting for 1.69% of total FDI inflows to India during this period.Advantages of FDI inflows to West Bengal:
The advantages of FDI inflows to West Bengal has been that it has led to the development of the infrastructure in the state for the flyovers, roads, power, and telecommunications has developed very rapidly. FDI has boosted the real estate industry in West Bengal. Unemployment had been a major area of concern for West Bengal. With the inflow of FDI, vast opportunities of employment have opened up in this state.Last Updated on 3/15/2011
