West Bengal unveils new investment policy offering up to 120 per cent assistance
Chief Minister Suvendu Adhikari launched the West Bengal Investment Promotion Policy, 2026, to boost job creation and industrialisation.
The West Bengal government on Thursday introduced the West Bengal Investment Promotion Policy, 2026, to encourage industrial growth and employment. According to Business Standard, the policy offers financial aid of up to 120 per cent for investments in plant and machinery for units operating in both thrust sectors and priority areas. This assistance is distributed over a 10-year period starting from when production begins.
The identified thrust sectors include semiconductors and electronics, electric vehicles and batteries, green hydrogen, defence, shipbuilding, and pharmaceuticals, among others. For standard units, the assistance is limited to 100 per cent of eligible fixed capital investment. Service-sector units can receive incentives over five years, while strategic and mega projects may receive custom benefits.
Chief Minister Suvendu Adhikari stated that the government has reintroduced incentives and made a provision of ₹5,000 crore for them. He noted that the state is studying land policies from states like Uttar Pradesh and Maharashtra to address previous industrial failures. Adhikari also mentioned that the government is looking at options for the Singur area.
The policy applies to investments made on or after May 9, when the Bharatiya Janata Party (BJP) government took office. However, a backlog of industrial incentives from the previous administration, estimated at ₹50,000 crore, is not included in this new policy. Adhikari said the state may address this backlog when its fiscal position improves.
Industry representatives, including Harshvardhan Neotia of the Ambuja Neotia Group, welcomed the move. The Bengal Chamber of Commerce & Industry noted that the creation of a Dedicated Assured Incentive Fund provides significant relief to the industry.