"The word is about, there's something evolving, whatever may come, the world keeps revolving They say the next big thing is here, that the revolution's near, but to me it seems quite clear that it's all just a little bit of history repeating "
—Propellerheads
Walking down Shakespeare Sarani the irony is unmistakable. On the one hand is the obvious bustle of the city of joy. A new excitement is palpable — there is more traffic on the road then ever, pubs are busy, at the addas the bard’s old question is the topic of discussion — its all about the stark ‘to be or not to be’. West Bengal, unlike the $1-trillion Economy that is India, is still grappling with this one.
In his simple office off Park Road former SBI and Peerless chairman DN Ghosh who is a veteran watcher of the West Bengal Economy has this to say: “Look it’s quite simple — industrialisation is needed but how do the communists commutate it to the cadre? How do you change track? These things are difficult. Everywhere in West Bengal it is a Herculean U-turn.”
Cut for a minute to the trade fair in Delhi where the Tata Nano car is being showcased. A total of 3,50,000 of these little beauties will roll out of the plant that the Tatas have controversially acquired in Singur. There are a bunch of English-speaking protestors crying for blood. The reason is an old one. An agrarian Economy is industrialising and pain is likely. According to government estimates, 70% of the state’s population depends on agriculture while the all- India average is 56%. They have never seen any other way of life. Agriculture is now, industrialisation is in the future. But will a successful industrial hub change all that? Says auto analyst Murad Ali Baig, “A thriving plant will likely change the mindset. It is not rocket science. When Escorts came with their plant in the late 80’s in Faridbabd there was opposition. Soon ancillaries came in and so did property development. The same thing happened with Maruti in Gurgaon. When Maruti came, Gurgaon was drab and underdeveloped. Maruti’s success was the forebearer of the MNC boom that followed. I am totally convinced that many of the fence sitters will come around with progress. West Bengal needs the plant to show what industrialisation can do.”
In Bengal however, the difference is Politics. The Left Front’s coalition partners as well as Mamata Banerjee have served notice and even issued ultimatums against this flagship project. It is a dangerous time and there is tension in the air. The site of the factory is picketed by police and private security. Says a labour contractor on the site, “We have 3,500 unskilled labourers working here and 80% of them are from Bengal itself. However, we are afraid that things could spiral out of control. Daily the agitators are instigating people and I fear that any thing can happen.” At the site itself, work is on at a furious pace and two large factory yards have already been constructed. No official is available for comments but clearly the locals are polarised. At a nearby school a teacher says on the condition of anonymity, “When students ask me if this plant is good I am at a loss to give an answer. Some of those who have lost land will suffer but the bigger impact will certainly be positive and allow Singur to move away from the land. We have to wait and watch, I tell my students.”
A lot hangs in the balance beyond the Tata car investment. If the Singur project produces results, a lot many others could follow suit. According to the finance ministry estimates, West Bengal received 12% of total investment proposal in India in 2007. The West Bengal government figures indicate that during January-June 2007, some 127 letters of intent were issued for setting up projects in the state involving an investment of Rs 49,128 crore, and also ensuring additional employment to 77,071 persons.
This is a significant development since in Bengal as much as 80% of industry is in the small-scale sector. Big ticket investment is likely to lead to greater employment mobilisation. Over the last 10 years only 2,00,000 people were added by industry in the state.
Says Sujit Poddar, a senior Peerless official, “Singur is a litmus test but even beyond Singur, after long years there is a revival of interest. However the state needs to articulate a clear policy to sustain this interest. On the ground level too there needs to be a change in the attitude of the cadre. Till then it will be a difficult investment destination. Chief Minister Buddhadeb Bhattacharya’s assertions are a welcome step. He needs to hold on to them and guide the state through the current period.”
Besides the industrial development proposals which are obviously set for the big league, the state’s strength in information technology cannot be ignored. A visit to the Sector-5 area of Salt Lake City is an eye-opener. For one thing all majors are already here. Says Amit Data Ray, a Salt Lake City-based IT workforce consultant, “Bengal has three advantages — firstly the English-educated workforce is large and young. Secondly, they work on 20% lower salaries and the cost of doing business is also less in the state and finally the instability and turnover of jobs you see elsewhere is also comparatively less here, there is the culture of sticking to a job.” Add to that the falling dollar and cost pressures and the sector is likely to see sustained infotech investments.
Though West Bengal is finely poised, like elsewhere in India it has to sort out critical issues of governance to make its promise into a reality.
Samiran Gupta, managing director of investment advisory Access India, sums it up: “Over the last decade, the services sector has grown in West Bengal to offer more opportunities to the youth. Re-industrialisation or bringing West Bengal back to the industrial mainstream in the country got a boost when the Tatas chose Singur as their home for the Nano. So a transformation has already begun. But questions remain as to the speed of the transformation process. The answer to this lies squarely in the hands of the people of the state. The people of West Bengal need to be the change for it to happen.” Like the teacher in Singur said, it’s wait and watch time. And time is running out.
—Propellerheads
Walking down Shakespeare Sarani the irony is unmistakable. On the one hand is the obvious bustle of the city of joy. A new excitement is palpable — there is more traffic on the road then ever, pubs are busy, at the addas the bard’s old question is the topic of discussion — its all about the stark ‘to be or not to be’. West Bengal, unlike the $1-trillion Economy that is India, is still grappling with this one.
In his simple office off Park Road former SBI and Peerless chairman DN Ghosh who is a veteran watcher of the West Bengal Economy has this to say: “Look it’s quite simple — industrialisation is needed but how do the communists commutate it to the cadre? How do you change track? These things are difficult. Everywhere in West Bengal it is a Herculean U-turn.”
Cut for a minute to the trade fair in Delhi where the Tata Nano car is being showcased. A total of 3,50,000 of these little beauties will roll out of the plant that the Tatas have controversially acquired in Singur. There are a bunch of English-speaking protestors crying for blood. The reason is an old one. An agrarian Economy is industrialising and pain is likely. According to government estimates, 70% of the state’s population depends on agriculture while the all- India average is 56%. They have never seen any other way of life. Agriculture is now, industrialisation is in the future. But will a successful industrial hub change all that? Says auto analyst Murad Ali Baig, “A thriving plant will likely change the mindset. It is not rocket science. When Escorts came with their plant in the late 80’s in Faridbabd there was opposition. Soon ancillaries came in and so did property development. The same thing happened with Maruti in Gurgaon. When Maruti came, Gurgaon was drab and underdeveloped. Maruti’s success was the forebearer of the MNC boom that followed. I am totally convinced that many of the fence sitters will come around with progress. West Bengal needs the plant to show what industrialisation can do.”
In Bengal however, the difference is Politics. The Left Front’s coalition partners as well as Mamata Banerjee have served notice and even issued ultimatums against this flagship project. It is a dangerous time and there is tension in the air. The site of the factory is picketed by police and private security. Says a labour contractor on the site, “We have 3,500 unskilled labourers working here and 80% of them are from Bengal itself. However, we are afraid that things could spiral out of control. Daily the agitators are instigating people and I fear that any thing can happen.” At the site itself, work is on at a furious pace and two large factory yards have already been constructed. No official is available for comments but clearly the locals are polarised. At a nearby school a teacher says on the condition of anonymity, “When students ask me if this plant is good I am at a loss to give an answer. Some of those who have lost land will suffer but the bigger impact will certainly be positive and allow Singur to move away from the land. We have to wait and watch, I tell my students.”
A lot hangs in the balance beyond the Tata car investment. If the Singur project produces results, a lot many others could follow suit. According to the finance ministry estimates, West Bengal received 12% of total investment proposal in India in 2007. The West Bengal government figures indicate that during January-June 2007, some 127 letters of intent were issued for setting up projects in the state involving an investment of Rs 49,128 crore, and also ensuring additional employment to 77,071 persons.
This is a significant development since in Bengal as much as 80% of industry is in the small-scale sector. Big ticket investment is likely to lead to greater employment mobilisation. Over the last 10 years only 2,00,000 people were added by industry in the state.
Says Sujit Poddar, a senior Peerless official, “Singur is a litmus test but even beyond Singur, after long years there is a revival of interest. However the state needs to articulate a clear policy to sustain this interest. On the ground level too there needs to be a change in the attitude of the cadre. Till then it will be a difficult investment destination. Chief Minister Buddhadeb Bhattacharya’s assertions are a welcome step. He needs to hold on to them and guide the state through the current period.”
Besides the industrial development proposals which are obviously set for the big league, the state’s strength in information technology cannot be ignored. A visit to the Sector-5 area of Salt Lake City is an eye-opener. For one thing all majors are already here. Says Amit Data Ray, a Salt Lake City-based IT workforce consultant, “Bengal has three advantages — firstly the English-educated workforce is large and young. Secondly, they work on 20% lower salaries and the cost of doing business is also less in the state and finally the instability and turnover of jobs you see elsewhere is also comparatively less here, there is the culture of sticking to a job.” Add to that the falling dollar and cost pressures and the sector is likely to see sustained infotech investments.
Though West Bengal is finely poised, like elsewhere in India it has to sort out critical issues of governance to make its promise into a reality.
Samiran Gupta, managing director of investment advisory Access India, sums it up: “Over the last decade, the services sector has grown in West Bengal to offer more opportunities to the youth. Re-industrialisation or bringing West Bengal back to the industrial mainstream in the country got a boost when the Tatas chose Singur as their home for the Nano. So a transformation has already begun. But questions remain as to the speed of the transformation process. The answer to this lies squarely in the hands of the people of the state. The people of West Bengal need to be the change for it to happen.” Like the teacher in Singur said, it’s wait and watch time. And time is running out.
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