West Bengal Industrial Development Corporation

an undertaking of Industry, Commerce and Enterprises Department
Government of West Bengal
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Background Information

In the pre-independence period, Kolkata, being the capital of the country and strategically located sharing international borders with Bangladesh on its East, Nepal and Bhutan to its North, and was the main gateway for exports to the North-Eastern part of India, as well as to other countries.

After independence, during the pre-liberalisation era the whole country suffered from BoP (Balance of Payments) crisis. While in the post-liberalisation period, adapting the Laissez-Faire Policy, Indian Government was mostly focused on privatisation - by lowering taxes, by withdrawing other economic as well as non-tariff barriers, etc. Since then the country has been more open to FDIs (Foreign Direct Investments). The liberalisation led to increase in growth rate, better BoP conditions with Floating Exchange Rate from the Fixed Exchange Rate regime.

A country's balance of trade is defined by its net exports (exports minus imports) and is thus influenced by all the factors affecting International Trade, which include – Factor Endowments and Productivity, Trade Policy, Demand, Inflation, Exchange Rates, and Foreign Currency Reserves (last three factors are not under the purview of State Government). Both goods and services (GDP) are counted for exports and imports, as a result of which a nation has a balance of trade for goods (also known as the Merchandise Trade Balance) and a balance of trade for services.



Key Points of State-related factors determining International Trade

Factor Endowments and Productivity

Macro-economic Indicators

  • West Bengal, India’s 6th largest economy, in 2017-18, had Gross State Domestic Product (GSDP) in Current Prices, Rs. 1020857.62 Crore with a growth rate of 16.12% over the previous year; almost 2-fold increase (196%) as compared to the values of 2011-12, and in Constant Prices was ₹718054.10 crore (9.15% YoY growth) in 2017-18(PE).
  • At the macroeconomic level, growth rate of West Bengal stands far above the growth rate of India

Annual Growth of Gross Domestic Product (GDP), Gross State Domestic Product (GSDP) and Gross Value Added (GVA), Gross State Value Added (GSVA) at Market Price of All India and West Bengal at Base, 2011-12

Indicators India
2016-2017
West Bengal
2016-2017
India
2017-2018 (PE)
West Bengal
2017-2018 (PE)
GDP or GSDP Growth (Per cent) Current Prices 10.82% 10.27% 10.00% 16.12%
Constant Prices 7.11% 7.93% 6.70% 9.15%
GSVA Growth (Per cent) Current Prices 10.15% 10.18% 9.70% 16.02%
Constant Prices 7.09% 8.46% 6.50% 9.59%

Source: Press note on 7 Jan, 2019, CSO, Government of India.

BAE&S, DoPS&PM, Government of West Bengal

PE: Provisional Estimate

Year-wise GDP and GSDP comparison for India and West Bengal

GPD India
GPD West Bengal

Per capita GDP (2011-12, base) & Growth (in %) of India and West Bengal at Constant and Current Prices

Indicators India
2016-2017
West Bengal
2016-2017
India
2017-2018 (PE)
West Bengal
2017-2018 (PE)
Per Capita GDP at Constant Prices (in Rs.) 93888 68181 98867 73680
Growth (in %) 5.8 6.9 5.3 8.1
Per Capita GDP at Current Prices (in Rs.) 117427 91114 127456 104751
Growth (in %) 9.5 9.2 8.5 15.0

Source: Press note on 7 Jan, 2019, CSO, Government of India.

PE: Provisional Estimate

Year-wise Per-capita GDP and GSDP comparison for India and West Bengal

GPD India
GPD West Bengal

Percentage Share of Gross Value Added - GVA and Gross State Value Added – GSVA Growth (%) of India and West Bengal at basic price by Economic activity at Current price at base, 2011-12

Sectors India
2016-2017
West Bengal
2016-2017
India
2017-2018 (PE)
West Bengal
2017-2018 (PE)
Agriculture, Forestry & Fishery 17.95% 23.53% 17.09% 23.41%
Industry 29.29% 22.04% 29.06% 22.58%
Services 52.76% 54.43% 53.85% 54.01%

Source: Press note on 5 Jan, 2019, CSO, Government of India.

BAE&S, DoPS&PM, Government of West Bengal

PE: Provisional Estimate



Percentage Share of Gross Value Added - GVA and Gross State Value Added – GSVA Growth (%) of India and West Bengal at basic price by Economic activity at Constant price at base, 2011-12

Sectors India
2016-2017
West Bengal
2016-2017
India
2017-2018 (PE)
West Bengal
2017-2018 (PE)
Agriculture, Forestry & Fishery 15.26% 20.74% 14.82% 19.26%
Industry 31.50% 26.88% 31.22% 28.52%
Services 53.24% 52.38% 53.96% 52.22%

Source: Press note on 5 Jan, 2019, CSO, Government of India.

BAE&S, DoPS&PM, Government of West Bengal

PE: Provisional Estimate



  • West Bengal's Index of Industrial Production (IIP) has jumped 259 per cent in the last seven years to 7.9 per cent (Rs 989 crore) in 2017-18, as against 2.2 per cent in 2011-12 with vibrant industrial promotion initiatives like “Come to Bengal”.
Tax


  • After implementation of GST (Goods and Service Tax), the total Revenue Receipts of the State in 2017-18 increased significantly from 2016-17 by 11.40% (YoY basis), while CAGR calculated for 2010-11 to 2017-18 is 15.71%. State's Own Tax Revenue increased by 26.91% in 2017-18 YoY basis, with SGST (State Goods and Service Tax) value of Rs. 14963.74 Crore.

Commodity Specific

  • In 2016-17, West Bengal was the 2nd largest producer of potato in India, accounting for about 25.06% of the country’s potato output. The state’s potato production stood at 12.93 million tonnes in 2016-17.
  • West Bengal is the largest producer of rice in India. In 2016-17, rice production in West Bengal totalled to 16.2 million tonnes.
  • West Bengal is the 9th largest state in India in term of mineral production, accounting for about 16 per cent of total mineral production. Coal accounts for 97% of extracted minerals.

Others

  • Transport & Logistics Infrastructure: The enabling transport & logistics infrastructure of the State also contributes the State’s betterment in Export performance over the years, especially helpful for the perishable commodities, which have a short shelf-life. The State offers state-wise Third Largest Road Network, India’s First Private Sector Greenfield Airport, Highest Navigable Inland Waterways, Largest Warehousing Capacity in Eastern India and Second Largest Cold-storage Facility in the country.
  • The total expenditure on physical infrastructure (which includes expenditure on Energy, Industry and Minerals, Transport, Science Technology & Environment, General Economic Service) in 2010-11 was ₹1758.92 crore which increased to ₹6767.20 crore in 2017-18, an increase of 21.23% in CAGR. The overall growth of expenditure on Physical Infrastructure increased about four times over the period 2010-11 through 2017-18.
  • EODB: In terms of Ease of Doing Business ranking of The Business Reforms Action Plan, conducted by DIPP (Department of Industrial Policy and Promotion), West Bengal has secured the 10th Position in 2017 with a combined score of 94.59%, jumping from 15th position in 2016.

Trade Policy

The State offers a number of policies and schemes, which directly or indirectly, focuses on improving the Trade scenario.



  • Export Promotion Policy in Government of West Bengal, 2018
  • Logistics Park Development and Promotion Policy of West Bengal, 2018
  • Design Policy, 2016
  • Start-Up Policy 2016-2021
  • West Bengal Incentive Scheme, 2015 for Tourism Units
  • West Bengal Fisheries Investment Policy 2015 for MSMLEs in Fisheries Sector
  • New Township Policy, 2015
  • MSME Policy 2013-18
  • Textile Policy 2013-18
  • West Bengal Investment & Industrial Policy, 2013
  • West Bengal State Support for Industries Scheme, 2013
  • Policy on Information & Communication Technology, 2012
  • ICT Incentive Scheme, 2012
  • State Policy on Public Private Partnership (PPP), 2012
  • Policy on Co-generation and Generation of Electricity from Renewable Sources of Energy, 2012

Demand

West Bengal has a consumer base of 91.3 million, with a population density of 1,028 Persons per Sq. Km.



Export Scenario of the State

According to World Bank, the Export of goods and services currently (2017) accounts for about 41% of India’s total GDP. Historically, it is proven that the growth in the Exports has led to betterment of the GDP figures of the country. From FY 2010-11 to FY 2017-18, there has been a significant increase (38%) in the merchandise exports from the State with CAGR 4.71%. During the same period, the State’s share in Indian merchandise exports has also increased (13%). In FY 2017-18, the total merchandise export value of the state of West Bengal was US$ 9290.32 Million. The Top Ten Commodities in terms of ITC HS Code exported from West Bengal during the same period, along with the top 3 export markets, are as follows:



HS Code Commodity Top 3 Export
Markets
April, 17 To March,
18 Value (Million US$)
% Share of Indian Exports
71131910 Jewellery of Gold Unset UAE, Singapore, UK 714.94 13.19%
03061790 Other Shrimps and Prawns Vietnam, Japan, USA 523.03 11.43%
10063090 Rice Except Parboiled
(Excluding Basmati Rice)
Bangladesh, Turkey, Madagascar 330.89 24.15%
27101930 High Speed Diesel (HSD) Indonesia, Bhutan,
Oman
281.00 1.84%
39076100 Poly (Ethylene Terephthalate): having a Viscosity Number of 7 Italy, Bangladesh,
Uruguay
257.12 30.51%
72023000 Ferro-Silico-Manganese Italy, Bangladesh,
Taiwan
227.43 26.84%
72071920 Mild Steel (M.S.) Billets Nepal, Philippines,
Sri Lanka
225.67 26.83%
42023120 Wallets and Purses of Leather Germany, USA, UK 204.87 54.79%
10063010 Rice Parboiled Bangladesh, Benin,
Sri Lanka
201.48 11.11%
42032910 Gloves for Use in Industry Germany, USA, Italy 196.75 96.57%

Source: DGCI&S



The Top Ten Principal Commodities (PC) exported from West Bengal during FY 2017-18, along with the top 3 export markets, are as follows:



PC Code Commodity Top 3 Export
Markets
April, 17 To March, 18
Value (Million US$)
% Share of Indian Exports
L3 Iron and Steel Nepal, Bangladesh,
UAE
1132.72 10.07%
G9 Gold and Other Precious Metal
Jewellery
UAE, Singapore, USA 780.91 6.10%
S6 Petroleum Products Singapore, Bhutan,
Indonesia
712.63 1.90%
F9 Leather Goods Germany, USA, UK 700.88 51.32%
E7 Marine Products Vietnam, Japan, USA 607.36 8.22%
L4 Products of Iron and Steel USA, Colombia,
Canada
601.79 8.89%
A4 Rice (Other than Basmoti) Bangladesh, Benin,
Turkey
547.45 15.05%
K8 Plastic Raw Materials Italy, Bangladesh,
China
380.60 11.76%
A1 Tea Iran, Russia,
Kazakhstan
220.41 26.32%
I3 Organic Chemicals Malaysia, Indonesia,
Korea RP
210.66 2.95%

Source: DGCI&S


Government Bodies working for the betterment of Exports

  • West Bengal State Export Promotion Society (WBSEPS), working with the Export Promotion Councils and Trade Promotion Organizations, identifies the units having export potential and helps them to attain international quality standards to compete in the international markets and provides direct marketing support to the micro/small enterprises, handloom and handicraft sectors by organising/participating in different State/National/International Fairs/Expos.
  • A dedicated “Export Promotion Cell” has been constituted by WBIDC within its premises in 2018.
  • List of State Government initiatives/ events/ promotions etc. focusing on the enhancement of Exports, during FY 2018-19 are as follows:

    • Accelerating Exports - Workshop on Promoting Exports from West Bengal – June, 2018
    • Investment Roadshow in Germany, France, Italy - July, 2018
    • State MSME Conclave – Aug, 2018
    • Investment Roadshow in Japan – Sep, 2018
    • MSME West Bengal – Synergising Exports – Sep, 2018
    • Innovation & Business Acceleration Center Workshop – Sep, 2018
    • Hon’ble Chief Ministerial Delegation to Germany & Italy – October, 2018
    • Investment Roadshow in Dubai – October, 2018
    • Investment Roadshow in Republic of Korea – October, 2018
    • IntPlas – Nov, 2018
    • Brainstorming Session on Driving Design Industry in West Bengal – Dec, 2018
    • Bengal Global Business Summit – Feb, 2019
    • Stakeholders’ Consultation on Trade in Goods' Commitments under RCEP – Feb, 2019
    • Innovation & Business Acceleration Center Workshop – Mar, 2019