West Bengal under Chief Minister Mamata Banerjee has witnessed an alarming exodus of businesses, with a staggering 2,227 companies relocating their registered offices from the state between 2019 and 2024. Among these, 39 were listed companies spanning sectors such as manufacturing, financing, trading, and commission agency work. This grim revelation, provided by the Union Ministry of Corporate Affairs in response to a Rajya Sabha query by MP Shamik Bhattacharya, underscores the deteriorating business climate in the state.
The corporate flight raises serious questions about the state government’s policies, which critics argue have stifled industrial growth, deterred investment, and worsened the employment crisis. Experts point to the absence of a conducive environment for businesses, marked by administrative inefficiencies and lack of infrastructure development, as significant factors contributing to this exodus.
“Companies are citing reasons like administrative and operational challenges, cost-effectiveness, and the need for better control as their motivations for relocating,“ the Ministry noted in its response. These reasons reflect broader systemic issues, including poor governance and policy paralysis, which have created a hostile environment for businesses in West Bengal.
The Banerjee government has repeatedly touted its industrial outreach and employment initiatives, yet the data paints a starkly contrasting picture. Opposition leaders have seized on this trend to highlight the state’s declining attractiveness for investment. “This corporate exodus is a direct result of the Trinamool Congress government’s failure to provide a stable and business-friendly environment. Industries are fleeing due to inefficiency and corruption,“ said BJP leader Shamik Bhattacharya.
The mass relocation of companies has also exacerbated concerns about job losses and economic stagnation in the state. Despite promises of revival, West Bengal has failed to compete with industrial hubs like Gujarat, Maharashtra, and Karnataka, which have actively attracted businesses with better policies and infrastructure.
Here is Mamata Banerjee’s report card on corporate exodus from West Bengal and what a massive disaster she is, as a Chief Minister.
Between 2019 and 2024, a period of just five years, a staggering 2,227 companies relocated their registered offices from West Bengal to other… pic.twitter.com/V7PK63ZiGp
— Amit Malviya (@amitmalviya) December 4, 2024
With the state’s industrial future hanging in the balance, the Banerjee administration faces mounting pressure to address the concerns driving this exodus. Critics argue that without concrete measures to improve governance and foster a business-friendly climate, West Bengal risks further economic decline.
The corporate exodus is not just a statistic—it is a reflection of the lost opportunities and livelihoods for the people of West Bengal, leaving many to question the effectiveness of the Mamata Banerjee government in steering the state toward growth and prosperity.
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