Mamata’s love-hate with industry
Asansol (West Bengal): In the runup to the assembly elections in April 2026, both the ruling and opposition parties seem to be arm-twisting with economic contradictions. The BJP has doled out the promise of “bringing jobs back.” Its leaders, including the central ones, rebuke Chief Minister Mamata Banerjee of giving doles to assuage the feelings of the people afflicted with massive industrial decline in the state. Yet, Niti Aayog’s analysis, “Macro and Fiscal Landscape of the State of West Bengal (2025),” shows that the state’s annual unemployment decelerated to 2.2 per cent in 2022-23, and remained below the national average (3.2 per cent) since 2017-18.
Mamata Banerjee, whose rise to power was based on her opposition to large industrial projects, Tata and Salim Group, and related massive land acquisitions plans, is known for welfare policies, and sops for the poor, women, and other sections. Her vision is that of welfare-led growth. Yet, she claims that the business houses promised to invest a huge Rs 1.33 lakh crore in 2025, with projects in steel, petrochemicals, and logistics. The state’s industrial growth in 2024–25 was 7.3 per cent, or above the national average (6.2 per cent).
Ground realities may seem positive or negative depending on whose supporter one is. “I agree that MSMEs have come to the region, but it will not provide as many jobs as we need today. We need at least one large industry in the Paschim Bardhaman district,” says Sambhunath Jha, Hon. Secretary, Asansol Chamber of Commerce. His pleas are based on how a large factory has spillover and multiplier effects due to indirect jobs, and chain of logistic ventures. Moreover, there was a time when Asansol was a part of an industrial hub; today, most of the private factories, which were nationalised, are closed.
Jha cites several political, social, and economic reasons for the so-called industrial decline in the region. Since the 1970s, when the Left Front regime took over, and ruled for 34 years, followed by Mamata’s reign since 2011, the state governments were opposed to the central regimes. Hence, "there was a lack of coordination,” he adds. Towards the fag end of its tenure, the Left Front wooed private investments, with promises from leading business houses, but the plans did not fructify. Mamata’s political ascendance was based on a rhetoric, or logic that was anti-industry, or rather anti-prime land acquisitions for private factories.
At the economic policy level, Jha is angered by a policy reversal in March last year. Decades ago, the former Left chief minister, Buddhadeb Bhattacharjee, introduced an industry-specific incentive scheme to encourage investments. This was withdrawn by Mamata Banerjee’s government. “While other states invite industries, and offer subsidies, in West Bengal, not only was the incentive stopped but the industrialists were told to return what they received since 1993. This is not feasible,” contends Jha. Many experts feel that these are regressive measures that will further distance the business community.
“We made representations, and urged the local MP (Shatrughan Sinha of Trinamool Congress) to highlight the problems in Parliament, and before the central government. We have not heard anything,” he laments. “Unlike other states, where the regimes acquire land for industries, West Bengal offers land to only SMES, and not the larger industries. The latter are expected to acquire land themselves. There is land available, some of it belonging to the erstwhile closed-down central units, which can be handed over for the larger factories,” suggests Jha.
What has happened to the industries is reflected in the state of employment. Despite the low unemployment rates, jobs are difficult to get. Hence, complains a local restaurant manager, a state that attracted workforce from the other states like Assam, Bihar, and Bangladesh, exports labour. “Residents prefer to leave the state for better options,” he adds. “The only way to stop this exodus, and even contain (reduce) regional violence is to industrialise, and create jobs. Once there is scope for income, other things will cease,” feels Jha.
Most experts are unanimous that except for the presence of the IISCO steel plant, there are no major industries in the region. Even the size and influence of the Eastern Coalfields is down over the years. “The mainstay for the Asansol region is the Indian Railways,” says Jha. But there was a time, not too long ago, when steel, engineering, and allied industries grew around the major coal and rail links. Large plants and ancillary units created dense industrial townships. But most of them were nationalised, and went out of business, leaving barren land.
Technological obsolescence, and ownership changes undermined their competitiveness. Many of the older mills and factories could not modernise, and aggressive trade unions, and policy issues led to several strikes and lockouts. Nationalisation and restructuring altered the industrial map. With the state takeovers of non-coking coal, and major steel firms, and their mergers with larger public sector units, there was a complete change in the local employment patterns. Mining patterns shifted, mainly from underground to open-cast operations, and the abandonment of less-viable mines reduced local employment.
Hence, the entire industrial ecosystem ruptured, and decimated. As the bigger units fell by the wayside, the smaller ancillary units, and engineering units that depended on the larger supply and value chains closed shop, or downsized. There was urban decay, loss of jobs, difficult social lives, as societal structures broke down. Since land is an emotive, politically-sensitive issue, especially farmlands and productive ones, as Mamata Banerjee’s rise shows, industry took a back seat. Even the vacant land either lay vacant, or was occupied by outsiders, who turned voters. Legal disputes over the ownership between state-owned entities ensured that they were neither used for new units nor reused.
So, when the BJP talks about bringing growth back, rising on double-engine (Centre-State) growth, it insists that there will be no acquisitions of farmlands to blunt Mamata’s barbs. When Trinamool Congress talks about welfare-led growth, and its positive efforts to woo private money, there is little talk of land. In effect, the revival of industry depends on the ability to do so with either minimal purchase of land from the farmers, or use of existing barren land. But even in those cases, corruption-related controversies will be inevitable.
In West Bengal, land is a political-economic landmine. No politician can confidently tread the dangerous path. If one does it, it will be at their own peril, and can lead to dangerous outcomes. While industry is an election issue, it needs to be handled with a lot of care.
(The author has more than three decades of experience across print, TV, and digital media); views are personal
