In a concerning revelation made recently by the central government, it has come to light that over the past 14 years, more than 6,600 companies have pulled out of West Bengal. What makes the situation even more alarming is that over 2,000 of these exits have occurred in just the last five years. These businesses did not shut down completely; rather, they chose to shift their operations and establish bases in other Indian states like Delhi, Uttar Pradesh, Maharashtra, and Gujarat.

This massive outflow of companies took place under the governance of the Trinamool Congress (TMC), which has been in power since 2011. On one side, industries are leaving West Bengal in large numbers, and on the other side, there are only a few token announcements of new investments being made. Such a contradiction is particularly troubling for a state like West Bengal, which holds the position of being the fourth most populous state in India.

While the numbers may seem astonishing, this industrial migration is not something new for Bengal. For years now, major business houses have chosen to relocate their headquarters, and even renowned brands have been shutting down their factories. A major reason often cited behind this exodus is the anti-industry mindset of the Mamata Banerjee government, further aggravated by the deteriorating law and order situation in the state.

Once upon a time, Kolkata was regarded as one of Asia’s most prominent industrial cities. But that status is now a distant memory. The initial downfall began during the long rule of the Left Front, but it was Mamata Banerjee who accelerated the process. Rather than attracting new industries or reviving the existing ones, she seems to have sealed their fate, pushing West Bengal even further away from industrial revival.

The Alarming Departure of Companies from West Bengal

During the Monsoon Session of the Rajya Sabha, a direct question was raised by BJP West Bengal president Samik Bhattacharya regarding the ongoing industrial decline in the state. Responding to his query, the Ministry of Corporate Affairs provided a clear picture of the crisis. They stated that between 2011-12 and 2024-25, a total of 6,688 companies have vacated West Bengal.

From this total, more than 2,200 companies exited the state since 2019 alone, which means a third of the total migration happened in just the last five years. This isn’t a sudden occurrence. The pattern began when the TMC assumed power in 2011, and it has continued ever since.

The Ministry’s data also shows that 110 of these migrating companies were listed on the stock market, making their exit even more noteworthy. The year-wise statistics show that 2017-18 recorded the highest exits, with 1,027 companies bidding goodbye to Bengal. The preceding years also reflected a similar trend with 869 companies exiting in 2015-16 and 918 in 2016-17.

Where Did These Companies Go? The New Destinations of Bengal’s Lost Industries

According to the detailed response from the Ministry of Corporate Affairs, the companies that left West Bengal didn’t vanish into thin air. They have simply relocated to other Indian states that provide a more conducive environment for doing business. These are states where industry-friendly policies are in place and businesses are actively encouraged through better governance.

From 2011 to 2025, the largest number of these companies have chosen Maharashtra as their new home. It’s not just Maharashtra; Delhi and Uttar Pradesh also rank high on the list of destinations that welcomed Bengal’s fleeing industries.

Over 1,300 companies migrated to Maharashtra, while 1,297 shifted their operations to Delhi. Uttar Pradesh attracted 879 companies that previously operated from West Bengal.

Interestingly, even states like Chhattisgarh, Gujarat, and Rajasthan have succeeded in drawing more than 1,000 companies combined from Bengal, reinforcing the point that other Indian states are rapidly evolving into industrial powerhouses—while West Bengal continues to falter.

Yet, none of this seems to have prompted any meaningful response from the ruling Trinamool Congress government. Instead of addressing the root causes and striving to rebuild investor confidence, the leadership appears indifferent—almost as if the mass industrial migration is a non-issue. The reality, however, is that the state’s economic backbone is being hollowed out, and the consequences of this neglect may take years to undo.

Mamata’s Policy U-Turn Pushes Industries Further Out of Bengal

While West Bengal has been witnessing an industrial exodus for decades, a drastic policy decision taken by the Mamata Banerjee-led government in April 2025 is expected to worsen the situation. As per official reports, the West Bengal government abruptly scrapped all state-backed schemes that were created to support and attract industries. These policies, which were in place from 1993 to 2021, had been instrumental in giving businesses concessions on essential components like land pricing and electricity tariffs.

By withdrawing these policies, the government has now eliminated every incentive that once encouraged industries to invest in the state. Companies will no longer receive any support or relief—be it infrastructure benefits, energy subsidies, or cost-effective land. As a result, starting or sustaining industrial operations in West Bengal has now become a costly affair.

A report revealed that the Mamata government made this move with the aim of saving money for 'social work', implying that the state now prioritizes welfare schemes over industrial development. “The Mamata government probably wants to make people more self-dependent by closing down industries,” the report critically noted.

This change in policy direction has already begun to impact major players. According to the same report, many cement companies—including some of the oldest business houses in India like Dalmia—are facing heavy losses, estimated to be around ₹500 crores.

This policy reversal couldn’t have come at a worse time. While other Indian states are actively offering industries land at nominal rates, even as low as ₹1, and launching dedicated industrial cities to attract business, West Bengal seems to be shutting its doors on economic opportunity. The sharp contrast in approach highlights the growing divide between West Bengal and India’s rising industrial states.

Tall Claims, Hollow Numbers: The Illusion of Investment in West Bengal

Even as established companies shut down or leave West Bengal, the Mamata Banerjee government continues to make grand investment announcements. In a public claim, Chief Minister Mamata Banerjee stated that West Bengal received investment proposals worth over ₹39,000 crores between January and November 2024, ranking it as the third-highest in the country.

However, the Department for Promotion of Industry and Internal Trade (DPIIT) under the Central Government quickly dismantled this claim with hard facts. According to DPIIT’s Industrial Entrepreneurs Memorandum (IEM) report, the reality is quite different: only ₹3,735 crores worth of investment was actually made in the state during that period.

This massive difference between what was promised and what materialized exposes the gap between rhetoric and reality in West Bengal’s investment environment. The state simply does not compare with others when it comes to real industrial growth. The DPIIT report also confirms that Uttar Pradesh received over ₹71,000 crores in investment between 2020 and 2024, while West Bengal could attract just ₹15,000 crores in the same time span.

Even Jharkhand, a state with far fewer resources and a smaller population, managed to outperform Bengal in drawing industrial investments. These figures not only expose the hollowness of public claims but also highlight how Bengal’s industrial development is lagging far behind its peers.

Exit of Big Brands Shows the Real Crisis

The exit of well-known brands from West Bengal is no longer a rare occurrence—it has become a pattern. In 2024, Britannia Industries shut down its decades-old biscuit factory near Kolkata, marking the end of yet another longstanding industrial legacy in the state. At the same time, numerous jute mills are either closing down or barely surviving, pointing to a larger trend of industrial decay.

But this trend is not recent—it goes back to the 2008 Singur controversy, which played a pivotal role in Mamata Banerjee’s political rise. Back then, Tata Motors was forced to dismantle its Nano car factory in Singur, even after construction was nearly complete. The reason? Mamata Banerjee’s fierce opposition to the project, which was publicly supported through the Singur agitation. Tata eventually moved the entire project to Gujarat.

Ironically, it was this very anti-industry campaign that propelled Mamata to a landslide victory in the state elections, toppling the Left Front that had ruled for over three decades. But critics argue that expecting a pro-industry stance from a leader who came to power by opposing industrial development is naïve.

Perhaps the most shocking example of anti-industry sentiment in Bengal’s past is the incident involving Aditya Birla, where he was allegedly dragged out of his car, stripped, beaten, and publicly humiliated. Following this, he decided to shut down his businesses in the state. Several other industrialists faced similar hostility, forcing them to abandon Bengal.

Why the Flight of Industries from Bengal Should Alarm the Nation

The ongoing migration of industries from West Bengal is not just a state-level issue—it has national consequences. Despite being India’s fourth most populous state, West Bengal contributes only 3.5% to the country’s total industrial output. This stark imbalance points to a serious economic failure and fuels an ever-growing unemployment crisis within the state.

To make matters worse, West Bengal is also facing a rise in illegal immigration, which puts additional pressure on already limited jobs and public resources. Furthermore, the state’s worsening law and order situation—marked by frequent riots and targeted attacks on the majority population—has led to a severe trust deficit among businesses and investors.

These factors have contributed to Bengal’s rapid economic decline. The state once contributed over 10% to India’s GDP in the 1960s, but today, its share has dropped to just 5%. If this trajectory continues, even smaller states will soon surpass West Bengal in economic performance.

This industrial decline is not an isolated event—it can have a cascading effect on the national economy. West Bengal’s slow growth rate, job crisis, and lack of industrial output could eventually become a drag on India’s overall development, unless immediate corrective measures are taken.