Is Bengal Lagging in FDI and New Company Registrations?
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Synopsis
West Bengal is struggling to attract foreign direct investment and new company registrations, ranking among India's least developed states. With only 4.76% of national company registrations and a mere $663 million in FDI, the state's policies pose significant obstacles to economic growth. Explore the implications of these statistics and what they mean for the future.
Key Takeaways
- West Bengal holds a mere 4.76% of national new company registrations.
- Only $663 million in FDI has been attracted over the past six years.
- 2,227 companies relocated from West Bengal to other states recently.
- Land procurement policies hinder the growth of large industries.
- SEZ policy restrictions discourage investments in the services sector.
Kolkata, July 29 (NationPress) West Bengal is positioned among the least developed states in India, particularly in the realms of new company registrations and foreign direct investment (FDI) attracted in recent years, as per data gathered by two significant Union Ministries.
The Union Ministry of Commerce & Industry and the Union Ministry of Statistics & Programme Implementation have compiled statistics indicating West Bengal's lackluster performance concerning new company registrations over the past three years.
Nationally, approximately 5.25 lakh new companies were registered during this period, with West Bengal contributing a mere 25,008 registrations, amounting to just 4.76 percent of the national total.
States such as Maharashtra, Uttar Pradesh, Karnataka, and Telangana have significantly outperformed West Bengal in this regard.
Moreover, data reveals that 2,227 companies relocated their headquarters or registered offices from West Bengal to other states in the five-year span from 2019 to 2024.
Among these, 39 are listed on the Mumbai Stock Exchange. The Companies Act, 2013, under Section 13(4), permits corporate entities to change their registration locations, often for reasons like operational flexibility, efficient management, reduced administrative costs, and improved infrastructure.
Additionally, statistics reflect West Bengal's dismal status in attracting foreign direct investment.
Over the last six years, from 2019 to 2025, West Bengal ranked ninth among major Indian states in terms of FDI, securing only $663 million, compared to Maharashtra’s impressive sum of $26,204 million, which stands as the highest in India.
Economic and industry analysts have frequently criticized two policies they believe obstruct substantial investments in both manufacturing and services sectors.
The first issue is the state government's land policy that severely restricts intervention in land procurement for industries, posing challenges for large-scale industries needing extensive land, particularly in West Bengal's fragmented land landscape.
The second hurdle is the state government's declared policy of denying Special Economic Zone (SEZ) status to new entrants, which discourages significant investments in services, especially in the IT and ITeS fields.
Point of View
It is essential to recognize the ongoing challenges faced by West Bengal in attracting investments. The statistics highlight significant hurdles that need addressing to improve the state’s economic landscape. While the potential exists, policy changes are crucial to foster an environment conducive to growth, ensuring that West Bengal can compete with other states effectively.
NationPress
30/07/2025
Frequently Asked Questions
What is the current FDI status in West Bengal?
West Bengal has attracted only $663 million in foreign direct investment from 2019 to 2025, ranking ninth among major Indian states.
How many new companies were registered in West Bengal?
In the last three years, West Bengal registered only 25,008 new companies, which is just 4.76% of the national total.
What are the reasons for companies relocating from West Bengal?
Companies often relocate due to operational flexibility, better infrastructure, reduced administrative costs, and smoother management.
What challenges does West Bengal face in attracting investments?
The state government’s land policy and the denial of Special Economic Zone (SEZ) status to new entrants are significant hurdles.
Which states are performing better than West Bengal in FDI and registrations?
Maharashtra, Uttar Pradesh, Karnataka, and Telangana are leading in both FDI and new company registrations.
