Bengal Global Business Summit

The Bengal Global Business Summit (BGBS) has emerged as event in 2025, reflecting a potential turnaround for West Bengal’s economy. The state, historically struggling under communist rule, is witnessing a shift in its economic landscape. This year’s summit has showcased new possibilities for growth, with both local and national companies investing in the region.

Historical Context of Economic Struggles

West Bengal’s economic challenges date back several decades. Under the prolonged communist rule, the state faced stagnation. Previous attempts to revive the economy, such as the Tata Nano project in Singur, failed due to political opposition and ground realities. The leadership of Mamata Banerjee since 2011 has aimed to change this narrative.

Key Players in the Current Economic Landscape

Several companies are now investing in West Bengal. Reliance, Infosys, and Jindal are among the prominent outsiders. Local enterprises like ITC, Emami Group, and Makaibari Tea are also expanding their operations. This collaboration between Marwari capitalists and local talent is crucial for the state’s economic revival.

Growth in Creative Industries and Tourism

The creative industries in West Bengal have shown economic potential. A 2019 British Council study valued the economic impact of Durga Puja at ₹32,377 crore (approximately $44.53 billion). The tourism sector is also thriving, with investments from top hotel chains like IHCL and ITC, enhancing the state’s appeal to affluent visitors.

Infrastructure and Employment Developments

Infrastructure improvements are evident in the hospitality sector and religious tourism. The renovation of Kalighat Temple and the upcoming Jagannath Mandir in Digha are expected to attract more visitors. Additionally, corporatisation is changing the work culture in Bengal, improving employment opportunities across various sectors.

Challenges and Criticism

Despite positive changes, challenges remain. The work culture in Bengal has been historically poor, but recent developments indicate a shift. Critics, including successful members of the Bengali diaspora, often express scepticism about the state’s progress. However, the influx of investment and improved employment practices suggest a potential for lasting change.

Future Potential for Wealth Creation

The idea of wealth creation is slowly gaining traction in West Bengal. The state’s large population, estimated at 10 crore, may finally start to exert its economic influence. As companies continue to invest and innovate, the region’s economic trajectory could be on the verge of transformation.

Questions for UPSC:

1. Critically analyse the impact of historical political decisions on the economic development of West Bengal.
2. What are the key factors contributing to the revival of West Bengal’s economy? Discuss with examples.
3. Estimate the role of tourism in the economic growth of states in India, using West Bengal as a case study.
4. Point out the significance of local entrepreneurship in the context of West Bengal’s economic resurgence and its implications.

Answer Hints:

1. Critically analyse the impact of historical political decisions on the economic development of West Bengal.

1. Decades of communist rule led to economic stagnation and disinvestment in industries.
2. Failed initiatives like the Tata Nano project in Singur brought into light the adverse effects of political opposition.
3. Mamata Banerjee’s governance since 2011 aimed to shift the narrative towards economic growth.
4. Political instability and trade unionism historically discouraged new investments.
5. Recent policy changes and a focus on infrastructure are slowly reversing past negative impacts.

2. What are the key factors contributing to the revival of West Bengal’s economy? Discuss with examples.

1. Increased investments from major companies like Reliance and Infosys signify renewed interest in the state.
2. Homegrown companies such as ITC and Emami are expanding, blending local talent with Marwari capitalism.
3. Growth in creative industries, especially around Durga Puja, has economic implications.
4. Infrastructure developments, particularly in tourism and hospitality, enhance the state’s appeal.
5. Corporate culture is improving, leading to better employment opportunities and work ethics.

3. Estimate the role of tourism in the economic growth of states in India, using West Bengal as a case study.

1. Tourism contributes to the state’s GDP, with a focus on festivals like Durga Puja driving local economies.
2. Investment from luxury hotel chains enhances the state’s tourism infrastructure and attracts affluent visitors.
3. Religious tourism, boosted by the renovation of temples, is emerging as a key revenue generator.
4. Tourism creates jobs and stimulates local businesses, from hospitality to handicrafts.
5. West Bengal’s diverse cultural heritage positions it as a prime destination for both domestic and international tourists.

4. Point out the significance of local entrepreneurship in the context of West Bengal’s economic resurgence and its implications.

1. Local entrepreneurs are driving innovation and creating jobs, contributing to economic diversification.
2. Collaboration between local businesses and national firms encourages a supportive ecosystem for growth.
3. Success stories like ITC and Emami inspire new ventures and attract further investments.
4. Local entrepreneurship helps retain talent within the state, countering brain drain.
5. The rise of local businesses enhances the state’s economic resilience against external shocks.