DESPITE the Singur imbroglio, political confidence index (PCI) of West Bengal has not seen a dent. Rather, it continues to measure 7 on a scale of 10.
This amply indicates that investors have not yet lost their confidence in the state’s industrial policies and its administration. This is the verdict of Assocham.
The leading industry body has figured out the state PCI on the basis of a random survey, which it conducted recently to assess the impact of the Singur ripple on the fate of industrialisation in the state. In the survey, it has incorporated views of some 400-odd CEOs from all over the country.
This has placed it as a front-ranker state along with Gujarat, Maharashtra, Andhra Pradesh, Uttarakhand and Himachal Pradesh in attracting investment, said 65% of CEOs interviewed by Assocham.
The view has been endorsed by the incumbent Assocham president Sajjan Jindal and the ex-president Venugopal Dhoot. JSW Steel is on its way to invest Rs 30,000 crore and Videocon Rs 35,000 crore for setting up steel and power plants.
According to Assocham, 320 CEOs, responding to the survey, said they are optimistic about the state’s growth with its GDP growing more than 9.5% over the past four to five years. In the first six months of 2008-09, investment in excess of Rs 1 lakh crore has been announced by different industry houses.
Nearly 70% of CEOs held that an impressive industrial performance has been registered driven by SMEs in the state in the past five to six years. If the Nano plant of the Tatas comes up, ancillary industries in the state will get a boost, noted Assocham.
According to latest estimates, the state has 3,50,000 small-scale units, providing employment to over 2.5 million people. There are 7 lakh tiny units in the unorganised sector providing employment to 5 million people.
Investments of about $60 billion are in the pipeline for the state, which have been lined up for the next five years, said Assocham.
Sectors which attract investment include steel, cement, textiles, consumer durables, pulp and paper and chemicals.
In addition, Rs 15,000 crore of investments have been committed by various investors in mining, electricity, irrigation and construction, according to Assocham.
Around 210 CEOs have projected that West Bengal will witness a huge surge in domestic and FDI investments in sectors like real estate, nano and biotechnology, besides industrial parks and SEZs.
Contributed By:
Prof. Amit Dey
(Globsyn Business School)
Source: The Economic Times
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