We Enable The Growth Of The ICT And Electronics Industry In West Bengal

There was a time when West Bengal was one of the leading commercial hubs in India and was extremely industrialised. But, industries started moving away. The electronics industry suffered major setbacks in the region. To counter this scenario, the state government formed the West Bengal Electronics Industry Development Corporation Limited (WEBEL) on February 4, 1974, to boost the electronics industry in the state. According to sources at WEBEL, over the past few years, there has been a gradual acknowledgment of the strategic advantages of Bengal, a maturing socio-political attitude, and an appreciation of the proactive efforts by the government and various other important stakeholders to nourish Bengal’s value proposition and consolidate its position as a destination of corporate choice.

Electronics Bazaar’s Nijhum Rudra spoke to Prodip Mukhopadhyay, MD, WEBEL, about the state’s major challenges in the concerned sector, the benefits of the recently approved NPE policy, and how WEBEL is taking major initiatives to strengthen of the electronics industry in West Bengal.

EB: Can you highlight the biggest challenges the West Bengal (WB) electronics manufacturing industry is facing currently. What do you think are the major impediments in this sector, across India?

The inflow of FDI is a major element for improving industrialisation in a country or a state. In the case of West Bengal, FDI has been quite insufficient for the past 20 to 30 years. Another major challenge is that most of the giant original equipment manufacturers (OEMs) have already established their hubs/units in other states. Without OEM units, it is difficult to build up a strong electronics manufacturing cluster. Then, there is inadequate ancillary support for the electronics industry in the state. Apart from West Bengal, inadequate FDI inflow is also a major concern across India. Due to the Free Trade Agreements (FTA), the cost of finished products imported from other countries is lower than the manufacturing cost of the same/similar product in India. Lastly, import duties and import-export processes need to be governed by a proper policy.

EB: WEBEL has been one of the major electronics associations in the state since many years. Can you highlight the steps taken by your association to improve the electronics industry?