‘ A lot is being done but the
potential is far higher ’
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What is your opinion about the
status of Industry in West Bengal?
The earlier decline of industry in the
State observed in 70's and 80's has definitely been reversed in the 90's.
However, it could be said that of the fruits of liberalization post 1991,
the State has yet to secure its rightful share of the investments.
A lot is being done, but the potential is far higher.
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What is your observation about
the Government support to industry specially in West Bengal?
The entire ethos of the Government towards
industrial development and employment creation has changed over the years.
Various agencies of the Government involved in this aspect of policy formulation
as well as
implementation have shown initiative
in creating a supportive climate for investment. However, it might not
be incorrect to say that the thought processes have been percolating down
the line a bit slowly. As a consequence, the dynamism shown at the higher
echelons tend to be diluted by the tardy pace of implementation at the
operating levels which tends to frustrate the industry.
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What are your observations on
the impact of liberalization on the West Bengal based industries?
The primary impact is two fold; first,
the industries have to improve their labour and capital productivity significantly
to survive in the long run because not only there is international competition
but the rest of India is also gearing up and so domestic competition is
becoming more intense; second, the industries have to invest and modernise
their operations in terms of process and product technology as well as
infrastructure technology (e.g. investment in Information technology).
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What do you think are the major
problems of Industry in West Bengal?
In our perspective, there are some critical
"impediments" rather than "problems". These are :-
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reliability of power supply as different
from availability
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sensitivity among the Government
functionaries at different levels that delays mean cost overruns and loss
of market opportunities
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the level of motivation of the average
person to excel and achieve on the economic front is perhaps lower than
that in other states
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infrastructure at the ports, including
operating costs and productivity
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Do you suggest any measures to
improve the status of Industry in West Bengal?
The current positive thrust and supportive
approach should be sustained.
Further,
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some key sectors should be identified
and pushed aggressively instead of spreading resources on a generalised
basis
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make nodal agencies more effective
which will obviate the need for the promoters to coordinate with several
Departments and Governments agencies, which delays matters
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actively pursue some key projects
with low gestation periods and make it a success, and then promote those
success stories
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Can you mention some measures which
are required to remove the difficulties faced by the Industry in West Bengal?
The impediments or difficulties have
been indicated above in response to an
earlier question. Steps to remove
them are apparent from the nature of
difficulties described.
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How do you rate West Bengal's
performance after the initiation of the industrial resurgence?
The performance of the State has certainly
improved compared to the pace of
industrial development earlier,
but in our view, it is not consistent with
the tremendous potential. Other
States, even without the advantages of an
industrial legacy as rich as that
of West Bengal, are moving ahead much
rapidly.
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Where does West Bengal stand compared
to other industrially advanced states?
While statistics may indicate a different
picture, but qualitatively, we
think West Bengal compares favourably
with most States excluding perhaps
Maharashtra, Gujarat and Tamil Nadu.
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What do you think should be West
Bengal's forte; large industry or small ones?
It is incorrect to visualize industrial
development in these terms as it is not an "either or" situation. Both
are required to ensure balanced and cost-efficient growth. Large industry
drives technological improvements, quality upgradation and supports major
investments; smaller/medium size
industry supports employment and
supplies key inputs to the large industry in a cost-effective manner building
up the industrial infrastructure which is crucial for the benefits of industrial
growth to be spread out among larger sections of the society. World over,
you can see that large industry can not
function in a cost-efficient manner
without this industrial infrastructure.
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Looking at the current growth
prospects of Industry in West Bengal, what do you suggest to the entrepreneurs?
Entrepreneurs should select their projects
carefully after evaluating the
benefits and costs of operating
in West Bengal, and assess the competitive
advantages of setting up a unit
in the State. The smaller entrepreneurs
should evaluate the market size
for their products within the State itself
while the larger project should
focus on the eastern region as the market.
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What advantages foreign companies
have in investing in West Bengal?
The State has a history of large foreign
companies having their base, located
there, particularly in Calcutta.
The State offers advantages like:-
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a well developed basic industrial
environment which can absorb new generation of industries and technologies
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skilled manpower at all levels
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an open cosmopolitan culture which
accepts an expatriate without any problem
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good quality educational [English
medium instruction in schools and colleges], medical and entertainment
facilities
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English is widely used as a language
for business and commerce and English speaking support staff are easily
available
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opportunity for investment in many
sectors attractive to foreign companies; petro-chemicals, infrastructure,
telecom, cousulting, financial services.
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