Newz Desk, Durgapur: The exodus of companies from West Bengal has once again come under the spotlight, with fresh data from the Union Ministry of Corporate Affairs revealing that an additional 207 companies exited the state between July and September this year. Earlier, in a July reply in the Rajya Sabha, the Centre had informed that 5,688 companies—of which 448 were listed firms—had shifted out of Bengal since 2011.
Industry experts say the new figures are worrying and point to deeper structural issues that demand immediate attention from the state government. According to sections of the business community, the reasons span political interference, unclear land policies, the absence of industrial incentives, high land and electricity costs, labour-related complexities, and an overall perception of a non-conducive business environment.
Several senior industrialists allege that while companies are leaving, the state has shared little information about new investments coming in. “All we see is firms shifting out. If new companies are coming in, let the state government publish the details,” said an official of a prominent trade body. Attempts to reach state officials for comment went unanswered.
Trinamool counters: ‘Data unclear, Centre creating hurdles’
Trinamool Congress leader and Vice-Chairman of the West Bengal Small Industries Development Corporation, Joyprakash Majumdar, dismissed the Centre’s numbers, calling them “unclear and misleading”.
“Businesses cannot be shut down or shifted so easily. What happened to the workers, the land, or the assets? The Centre must clarify what these figures actually represent,” he said. He further argued that the same Centre has praised West Bengal for leading the country in several categories of micro and women-led enterprises.
Opposition demands answers: ‘Show us how many new industries have come’
Economist and BJP MLA Ashok Lahiri questioned the state’s industrial claims, saying, “If the Trinamool government talks so much about development, then they should tell us how many new industries have come to Bengal during this period.”
A senior businessman, who recently opened a manufacturing unit outside the state, added, “Why should we invest in Bengal? Gujarat’s GIFT City or states like Maharashtra offer far better incentives. Here we face political interference, steep land prices and power tariffs that are not industry-friendly.”
‘Why Invest in Bengal?’: Political Interference, High Costs Drive Firms Out
Experts point to missing industrial ecosystem
According to Arpita Mukherjee, Professor at the Indian Council for Research on International Economic Relations (ICRIER), companies leaving Bengal point to a lack of an industry-friendly ecosystem, poor Centre–state coordination, and rapid industrial infrastructure development in competing states like Odisha, Chhattisgarh and Assam.
However, Lahiri cautioned that the numbers must be dissected carefully. “We need clarity on how many companies shifted their registered offices and how many moved their actual units. The state government must provide a transparent breakdown.”
Concerns over shell companies and silent exits
Trade body leader Manish Jhajharia, Senior Vice President of the Merchants’ Chamber, noted another layer of complexity: “We must also know how many of these were shell companies. The state needs to present clear, verified data.”
Sources indicate that in recent months, at least one leading hosiery brand and a major FMCG manufacturer have quietly opened production centres outside Bengal—moves that have not been publicly acknowledged.
‘Lost first-mover advantage’
Ashok Lahiri said that Bengal is paying the price for missing the early wave of industrial expansion. “States like Maharashtra, Delhi and Uttar Pradesh captured that momentum. Naturally, more companies are moving there.”
He added that time lost is opportunity lost, and the state’s delayed response speaks for itself. “If the government had strong counter-data, they would have spoken up much earlier.”
State on the defensive
Despite the criticism, Majumdar insisted that the state is performing well. “Even with the Centre’s constant obstructions, Bengal ranks among the top states in the micro-industries sector. That itself shows the direction in which Bengal is moving,” he argued.
For now, the widening gap between the Centre’s data and the state’s defence has intensified the debate on Bengal’s investment climate—one that industry watchers say the government can no longer afford to ignore.
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