West Bengal Can Accelerate Industrialization Through Cluster-Based Manufacturing Strategy: Report

West Bengal should shift from an investment strategy based primarily on individual projects and existing industrial estates towards an integrated, cluster-based manufacturing strategy, said a PHDCCI report released on Wednesday.

The industry body's report identifies precision engineering, electronics, chemicals, renewable energy equipment, food processing, automotive and railway components, and maritime manufacturing among key investment opportunities in the state.

The report notes that around 50% of West Bengal's industrial exports go to Asian countries, with East Asia and ASEAN accounting for nearly 39% of total exports.

It therefore supports using West Bengal's geographic position as an eastern gateway for exports to Bangladesh, ASEAN, East Asia and the wider Indian Ocean region, particularly for engineering products, processed agricultural goods, textiles, chemicals, electronics and maritime products.

The report proposes a Mega Industrial Parcel Programme targeting 32–47 large parcels and a Land Readiness/IRIP Score covering title clarity, land size, land use, roads, power, water, logistics, environmental suitability and development cost.

It highlights significant ongoing Central Government infrastructure investment in West Bengal. As of April 2026, 82 ongoing central-sector infrastructure projects in the state had a revised cost of approximately ₹1.47 lakh crore.

These projects span railways, roads, power, ports and inland waterways, coal, oil and gas and related infrastructure. The report identifies an opportunity to integrate infrastructure development with industrial policy, particularly around the Kolkata–Haldia–Durgapur–Kharagpur–Howrah industrial belt and connectivity to eastern, northeastern and neighbouring markets.

The report identifies West Bengal’s ports, inland waterways and engineering capabilities as a basis for developing a larger maritime manufacturing ecosystem encompassing shipbuilding, ship repair, marine equipment, steel fabrication, engineering suppliers, logistics and maritime services.

It estimates an indicative investment requirement of ₹20,800-34,500 crore, with potential long-term annual shipbuilding output of ₹25,000-40,000 crore, 50,000-70,000 direct jobs and 150,000-250,000 indirect jobs.

"The report concludes that West Bengal has a substantial base for accelerating industrialization and investment. It identifies the key opportunity as converting the state's existing natural, human, industrial and logistical advantages into integrated, investment-ready manufacturing and export clusters," said Rajeev Juneja, President, PHDCCI.

However, the report also identifies a skills-industry mismatch. Unemployment among diploma holders and graduates remained relatively high, while employment growth in professional, scientific and technical activities was slower. It suggests that expansion in precision engineering, electronics, advanced manufacturing, R&D and technical services could strengthen employment absorption and labour productivity.

The report emphasises that the challenge is not simply the aggregate availability of industrial land, but the availability of large, contiguous, legally clear and infrastructure-ready parcels. It proposes a 5,000-10,000 acre rolling investment-ready industrial land pipeline, including 2,000-4,000 acres for anchor industries and 3,000-6,000 acres for MSMEs and supporting industries.