The West Bengal government has introduced its new Industrial Policy 2026, aimed at attracting investments, promoting employment generation and strengthening the state’s industrial ecosystem through a package of fiscal incentives, simplified clearances and sector-specific support.
A key feature of the policy is investment assistance of up to 120% of eligible investments in plant and machinery. Moving away from conventional capital subsidies, the policy adopts an incentive structure linked to State Goods and Services Tax (SGST) reimbursements and electricity duty benefits.
The policy places strong emphasis on employment generation, with enhanced incentives for enterprises employing women and transgender workers. Under the MSME provisions, businesses will receive 100% reimbursement of the employer’s Employees’ Provident Fund (EPF) contributions for female and transgender employees for a period of 10 years.
To improve the ease of doing business, the government has committed to issuing a Certificate of Intent within 30 days and a Certificate of Eligibility within 45 days through a single-window clearance mechanism.
The policy also provides significant fiscal support to micro, small and medium enterprises (MSMEs). Eligible businesses can avail 100% reimbursement of SGST for the first 10 years, full reimbursement of stamp duty paid on land purchases and electricity tariff exemptions for up to five years.
Several sectors have been identified as priority areas for investment, including information technology, healthcare, tourism, financial services, education, semiconductors and electronics, green hydrogen, waste-to-energy, defence manufacturing, and food and marine products processing.
For MSMEs, additional focus areas include electric mobility and EV component manufacturing, textiles, heavy engineering, semiconductor manufacturing, electronics, defence equipment and food and marine product processing. Enterprises operating in designated thrust sectors will be eligible for enhanced capital assistance and infrastructure support.
The policy also introduces a framework for strategic and mega investment projects. Projects involving fixed capital investments exceeding ₹500 crore, where investors arrange land independently, or ₹1,000 crore, where land is allotted by the state government, will qualify under these categories.
To facilitate industrial expansion while addressing land-related concerns, the government plans to establish structured land banks to make suitable land available for industrial development and avoid contentious land acquisition practices.
Through the new policy, West Bengal aims to strengthen its position as an investment destination, encourage MSME growth, generate employment and attract investments across emerging and traditional industrial sectors.