Although West Bengal is increasingly becoming a preferred investment destination for the American investors, frequent disruptions like "bandhs" are sending a negative message.
"There has been a distinct transformation of the business and the commercial climate with greater local government effort in promoting investment and economic development, but there are too many bandhs. This matter should be looked into as it is sending negative message to the potential investors," said Henry V Jardine, consul general of USA in Kolkata. Some of the US IT companies based in the state have even expressed frustration due to the frequency of the strikes, he said.
"When you are trying to compete, it does not help," he adds. On being asked about the things which the state needs to develop in a bid to become an attractive investment destination, the consul general pointed out at the infrastructure development.
"West Bengal needs to think big for growth. There is a need of investment in the infrastructure, large multi-lane highways, over passes, bridges, additional ports and airports-the whole range of network that a modern states needs. I believe that the West Bengal government recognises this and they have been seeking foreign investment in these areas. However, the projects need to be large and visionary in scope to create the potential for investment and development. Adding a few two-lane roads is not sufficient to create real economic growth," he said after speaking at a meeting organised by the Indian Chamber of Commerce.
Speaking about the possible sectors for US investments, Jardine said that retail investment, if allowed would help largely to improve the economies of scale.
"Nearly 30 per cent of the agricultural produce in the state do not reach the market on the account of inefficiency and lack of storage. Allowing FDI in retail would help to increase the efficiency and there by bringing down the cost," he explained.
This apart with investment for building cold storages and developing distribution and transportation would also be of help for attaining greater economies of scope and scale. According to Jardine, the bilateral trade between India and USA, which is around $40 billion at present, is slated to touch $60 billion by the end of this year.
