Bengal Inc, time to land on its feet

West Bengal has signalled its intent for reindustrialisation by leasing land in existing industrial parks to 33 companies. On Wednesday, the Suvendu Adhikari-led government officially handed over industrial land allotment letters, showing that it's been so far spiffy about a key electoral promise. Yet, reindustrialising the state requires a larger strategy involving land acquisition and industrial policy. Presumably, the state government is applying itself to both aspects with dispatch. Bengal must identify the kind of industry it wants to attract, and create the physical infrastructure to establish its credentials. Land acquisition is a necessary condition, and a difficult one because of Bengal's population density being double the national average. The state will also have to work on deficits in energy, connectivity and logistics infra. This won't be easy for the heavily indebted state government with high welfare commitments and low revenue generation relative to national averages.

Improvements in physical infra at the national level have whittled away at the localisation advantage for industry. Where such advantages exist, like along freight corridors, infra requirements are of a considerably higher order. Bengal's neighbouring states have also pushed their resource endowment advantages to become industrial centres. The state will have to craft its industrial policy creatively to emerge from the economic boondocks. Sunrise sectors and emerging technologies offer clearer growth pathways.

The government's initial moves are aimed at addressing perceptions. Land acquisition and militant trade unionism figure among the top reasons industry has given Bengal a cold shoulder. The Centre has created templates for labour reforms and land acquisition that the state can draw upon. It must share its vision with investors with the assurance of continuity. Land and inexpensive labour are key attractions for industry. But these need to be supplemented by governance and infrastructure - convert baby steps into industrial strides.