From engineering to electronics, PHDCCI maps West Bengal's next industrial growth engines

The PHD Chamber of Commerce and Industry’s (PHDCCI) Research Bureau has released its report, "West Bengal: Mapping Agriculture and Industrial Investment Opportunities", outlining the State’s economic structure, factor endowments, agriculture, infrastructure, industrial ecosystem, export potential and sector-specific investment opportunities. 

"The report concludes that West Bengal has a substantial base for accelerating industrialisation and investment. The key opportunity lies in converting the State’s natural, human, industrial and logistical advantages into integrated, investment-ready manufacturing and export clusters," said Rajeev Juneja, President, PHDCCI. 

Economic base offers scope for deeper manufacturing 

According to the report, West Bengal’s GSDP increased from ₹6.10 lakh crore in FY15-16 to ₹9.42 lakh crore in FY24-25, registering a CAGR of about 4.95% while GSVA grew at approximately 5.26%. 

Services accounted for an average of about 42% of GSVA, while industry contributed around 23% during the period. The report therefore sees significant scope for deepening manufacturing while leveraging the State’s expanding services, knowledge and human-capital base. 

Human capital offers a comparative advantage 

West Bengal has a strong educational and technical ecosystem, including IIT Kharagpur, ISI Kolkata, IIM Calcutta, IIEST Shibpur, and Jadavpur University, alongside a wide network of higher-education institutions. Literacy stood at about 85% in 2024-25. 

However, the report flags a skills–industry mismatch, noting relatively high unemployment among diploma holders and graduates and slower employment growth in professional, scientific and technical activities. It recommends greater focus on precision engineering, electronics, advanced manufacturing, R&D, and technical services to improve employment absorption and labour productivity. 

Investment-ready industrial land a key priority 

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

It also 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 costs. 

Infrastructure can support industrial expansion 

The report highlights substantial ongoing central government infrastructure investment in the state. As of April 2026, 82 ongoing central-sector infrastructure projects in West Bengal had a revised cost of approximately ₹1.47 lakh crore. 

Covering railways, roads, power, ports and inland waterways, coal, oil and gas and related infrastructure, these investments provide an opportunity to align infrastructure development with industrial policy, particularly across the Kolkata–Haldia–Durgapur–Kharagpur–Howrah industrial belt and connections to eastern, northeastern, and neighbouring markets. 

Value-chain deepening central to industrial strategy 

The report identifies opportunities across automotive and components, chemicals, engineering, foundry, leather, power and energy, mining, maritime, rubber, solar, tea and textiles, as well as PLI-linked ecosystems in electronics, pharmaceuticals, specialty steel, PV modules/ACCs, food processing, and textiles. 

Its central strategic theme is value-chain deepening rather than simply expanding production capacity. It proposes a West Bengal Precision Manufacturing Mission focused on technology upgrading, common facilities, international certification, OEM–MSME supplier development, machinery finance, and export development. 

Engineering, electronics and renewable energy offer major opportunities 

The Howrah–Durgapur–Kharagpur–Kalyani belt is identified as a potential advanced engineering corridor, building on Howrah’s foundry ecosystem and complementary capabilities in heavy engineering, machinery, research and precision manufacturing. The report recommends prioritising precision, railway and automotive components, industrial machinery, and aerospace and defence components. 

It also proposes positioning West Bengal as “Eastern India’s Integrated Electronics & ESDM Hub”, leveraging Kolkata’s knowledge ecosystem, electronics clusters at Naihati and Falta, technical institutions, ports, and access to eastern and northeastern markets. 

Renewable energy presents another opportunity. Solar capacity increased from about 180 MW in 2023 to 321 MW in 2025, while estimated wind potential at a 150-metre hub height is about 1,281 MW. The report links renewable-energy development with manufacturing of solar PV modules, battery materials and cells, storage systems, mounting structures and electrical equipment, with potential clusters at Haldia, Kharagpur, Durgapur, and Howrah. 

Maritime, agriculture, and exports can widen the industrial base 

The report sees potential for a broader 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 annual shipbuilding output of ₹25,000–40,000 crore, 50,000–70,000 direct jobs and 1.5–2.5 lakh indirect jobs over the long term. 

In agriculture, the report calls for stronger integration of production with food processing, cold chains, warehousing, packaging and export-oriented agro-processing. It also highlights rice-fallow utilisation for pulses such as lentil, chickpea, field pea, lathyrus and green gram, creating opportunities in seed production, dal milling, processing, contract farming, warehousing, and export logistics. 

Around 50% of West Bengal’s industrial exports go to Asian markets, with East Asia and ASEAN accounting for approximately 39% of total exports. The report therefore advocates an eastern gateway strategy targeting Bangladesh, ASEAN, East Asia and the wider Indian Ocean region. "The immediate priority is to convert West Bengal’s endowments into investment-ready land, common industrial infrastructure, globally compliant suppliers, skilled manpower, technology-upgraded MSMEs and export-oriented value chains," said Dr. Ranjeet Mehta, SG & CEO, PHDCCI.