Introduction
West Bengal is situated in eastern India and shares its borders with Jharkhand, Bihar, Odisha, Sikkim, and Assam. The state also shares international borders with Bangladesh, Bhutan, and Nepal. The Bay of Bengal is in the south of West Bengal.
West Bengal, India’s sixth largest state in terms of economic size, at current prices, gross state domestic product (GSDP) is estimated at Rs. 199.09 trillion (US$ 2.25 trillion) in 2025-26. The average annual GSDP is estimated to increase at 9.70% from FY25 to FY26.
In FY26 the total exports from the state stood at Rs. 113876.26 crore (US$ 12.88 billion). West Bengal exported key items such as Engineering Goods and Gems and Jewellery.
West Bengal is the second largest tea-producing state in India and is home to the globally acclaimed Darjeeling tea variety. West Bengal ranks first in rice and vegetable production, second in fish production, and among the top producers of milk, potato, and jute. In 2025-26, rice production in the state reached 171.36 Lakh tonnes.
Its location advantage makes the state a traditional market for eastern India, the Northeast, Nepal, and Bhutan.
It is also a strategic entry point for markets in Southeast Asia. The cost of operating a business is lower in Kolkata than in other metropolitan cities.
West Bengal has abundant natural resources of minerals and suitable agro-climatic conditions for agriculture, horticulture, and fisheries. It is in vicinity to mineral rich states like Jharkhand, Bihar, and Odisha. It offers excellent connectivity to the rest of India in terms of railways, roadways, ports, ands.
As of March 2026, West Bengal had a total installed power generation capacity of 11,453.62 MW, of which 6,798.84 MW was under state utilities, 2,589.04 MW under private sector and 2,065.74 MW under central utilities.
Of the total installed power capacity 9,199.34 MW was contributed by thermal power, 1,483.30 MW by hydropower and 770.98 MW by renewable power.
According to Telecom Regulatory Authority of India (TRAI), the state had 58.11 million wireless subscribers and 67.47 million internet subscribers, as of March 2026.
Between October 2019-March 2026, FDI inflows in West Bengal stood at Rs. 16,949.75 crore (US$ 2,137.03 million).
West Bengal ranked eleventh among Indian states on ease of doing business and reforms implementation according to a study by the World Bank and KPMG.
key sectors
- In January 2026, Prime Minister Mr. Narendra Modi inaugurated, laid the foundation stone and flagged off development projects worth over Rs. 830 crore (US$ 93.92 million) in West Bengal. The projects included rail infrastructure initiatives and the launch of three new Amrit Bharat Express trains, aimed at strengthening connectivity and transportation infrastructure in the state.
- In October 2025, Jindal India Limited commissioned a downstream steel facility in West Bengal with an investment of Rs. 1,500 crore (US$ 171.84 million), adding 0.6 million-tonne capacity and lifting its total annual output by about 60 % to 1.6 million tonnes.
- In July 2025, the West Bengal Government announced that the state has attracted Rs. 1,33,000 crore (US$ 15.38 billion) in private investment and generated 1.8 lakh jobs across sectors such as iron & steel, oil & gas/energy and logistics.
- The industrial sector in West Bengal grew by 7.3% in 2024-25, exceeding the national average of 6.2%.
- In March 2025, Haldia Petrochemicals Ltd (HPL) is exploring an investment of about Rs. 8,500 crore (US$ 973.77 million) in West Bengal for a new polycarbonate production plant.
- The state, by organizing eighth Global Summits, has so far received investment worth Rs. 23,94,595 crore (US$ 278.44 billion) in large industries.
- As per State Budget 2026-27:
- As per State Budget 2026-27 Rs 4.06 lakh crore (US$ 45.12 billion) has been allocated for Education, Sports, Arts, and Culture.
- The government proposed an allocation of Rs. 13,595.55 crore (US$ 1.51 billion) to the Urban Development and Municipal Affairs Department in 2026-27.
- The government proposed an allocation of Rs. 22,338.08 crore (US$ 2.48 billion) to the Health & Family Welfare Department in 2026-27.
- The government proposed an allocation of Rs. 217.16 crore (US$ 24.13 million) to the Information Technology & Electronics Department in 2026-27.
- The government proposed an allocation of Rs. 1,483.97 crore (US$ 164.89 million) to the Industry, Commerce & Enterprises Department in 2026-27.
- In January 2026, Prime Minister Mr. Narendra Modi inaugurated, laid the foundation stone and flagged off development projects worth over Rs. 830 crore (US$ 93.92 million) in West Bengal. The projects included rail infrastructure initiatives and the launch of three new Amrit Bharat Express trains, aimed at strengthening connectivity and transportation infrastructure in the state.
- More than 2.45 crore families have been covered and more than 1 crore beneficiaries have availed services under Swasthya Sathi Scheme.
- The government proposed an allocation of Rs. 525.92 crore (US$ 58.44 million) to the Tourism Department in budget 2026-27, driven by luxury hotels, homestays and festival-tourism growth.
- As of FY26, 13,076 PM SHRI schools had been established across 33 States and Union Territories under the PM SHRI Scheme, aimed at transforming over 14,500 schools into model institutions aligned with the National Education Policy (NEP) 2020.
- The West Bengal cabinet has approved a policy allowing conversion of under-utilised non-residential plots under the Urban Development and Municipal Affairs Department into real estate or housing use, subject to a government-determined fee.
- In 2026, West Bengal announced a maritime infrastructure pipeline worth Rs. 22,700 crore (US$ 2.52 billion), covering ports, coastal infrastructure, inland waterways and logistics projects across the state.
- West Bengal is strengthening its position as a railway and rolling stock manufacturing hub, supported by rail infrastructure projects worth Rs. 92,000 crore (US$ 10.41 billion) under implementation and new railway projects worth Rs. 4,474 crore (US$ 506.24 million) approved in FY26.
- As of FY26, 41,038.58 km of roads and 61 bridges had been sanctioned under the Pradhan Mantri Gram Sadak Yojana (PMGSY) since 2001, with cumulative funding of Rs. 21,433.48 crore (US$ 2.38 billion).
- 473 projects have been completed in the state under Atal Mission for Rejuvenation and Urban Transformation (AMRUT) as of December 2024.
- West Bengal ranked 2nd in foreign tourist footfall and 7th in domestic tourist footfall in 2024.
- HDC Bulk Terminal Ltd (HBTL), a wholly owned subsidiary of Adani Ports and Special Economic Zone Limited (APSEZ), has signed the Concession Agreement with Syama Prasad Mookerjee Port, Kolkata (SMPK) for mechanization of Berth no. 2 at Haldia Port.
- Total tea production in West Bengal stood at 347.59 million kgs in FY25 (April-December), accounting for 25.15% of India’s total production.
- In State Budget 2026-27 Rs. 10,463.12 crore (US$ 1.16 billion) has been allocated to Agriculture and Allied Activities of which Rs. 27,016 crore (US$ 3.00 billion) has been allocated for financial support to Krishak Bandhu and Rs. 3,938 crore (US$ 437.56 million) has been allocated for crop insurance.
West Bengal is a major economic gateway to eastern India, the Northeast and Southeast Asia, supported by strong connectivity, rich natural resources and a large consumer base. With a projected GSDP of US$ 236.56 billion in 2025–26 and robust export performance led by engineering goods, gems and jewellery, tea and rice, the state combines industrial depth with agricultural strength. Competitive operating costs, expanding power capacity, rising digital penetration and steady FDI inflows underpin its investment appeal. Ongoing investments across steel, petrochemicals, logistics, tourism, urban development, healthcare and education, along with sustained infrastructure spending, are reinforcing West Bengal’s position as a diversified and fast-growing economic hub.
