ECONOMY AND FINANCE : BENGAL: ON THE FRINGE OF AN EXPORT LED INDUSTRIAL REVOLUTION

BY ROBIN GHOSH
(ECONOMIST)

KOLKATA, 17 JULY 2023:

Bengal’s economy – a laggard economy – could turn into a roaring economy in the near future.

Why do I think so?

One single stroke of policy innovation – rupee trade with Bangladesh is going to open a large territory of business.

Bangladesh economy has developed into a bouncing market for consumer and industrial goods, turnkey projects and engineering services.
A quick reach from Kolkata and West Bengal, and having a language advantage – West Bengal has differential advantages over other States of India.

West Bengal’s economy has certain comparative advantages with regard to carrying business with Bangladesh.

Connectivity is excellent. Riverine connectivity, road connectivity, Dhaka – Kolkata, Kolkata – Dhaka rail network and a less than hour air connectivity – are exporters’ delight.

Currently, from West Bengal the export product bundle consists of engineering, steel, gems and jewellery, marine products, leather products, rice, wheats, petroleum products, tea, readymade garments, jute and handicrafts.

At present, the percentage of exports from West Bengal to total exports is only 2.85%. It can easily be doubled within a short time.
The graph of exports from West Bengal indicates an upward trend.

During the period 2018 – 2019, West Bengal exported goods worth Rs.82000 crores which logged a substantial rise in 2022- 23 to Rs.1,04,652 crores.

To take advantage of this rupee trade – this momentous opportunity – most important is the change in the mindset of the Government of West Bengal.

From a slow response bureaucracy, it has to take a rebirth and turn itself as a challenger bureaucracy.

But who will take the responsibility?

The hard truth is : it is the Chief Minister and the Chief Secretary.

A crack team has to be involved, having vision, talent to invent practical policy initiatives, and completing tasks within a given time frame.

Action Area:

Short Term –

1. Quickly improve road connectivity
2. Fast-track improvement in warehousing and logistic facilities.
3. Expand and improve air cargo infrastructure.

Long Term-

1. Develop a deep sea port.
2. Set up in every district Export Identification and Facilitation Support Desk.