West Bengal Introduces New Investment Policy Offering Up to 120% Assistance

The West Bengal government has introduced its Investment Promotion Policy 2026 to attract industrial investments, encourage manufacturing and generate employment opportunities across the state.

Under the new policy, eligible businesses operating in designated priority areas and thrust sectors can receive financial assistance of up to 120% of their eligible investment in plant and machinery. The assistance will be distributed over a period of up to ten years from the commencement of production.

The identified priority sectors include semiconductors, electronics, electric vehicles, batteries, automotive manufacturing, specialty steel, critical minerals processing, green hydrogen, pharmaceuticals, defence and shipbuilding.

Regular manufacturing units can receive assistance of up to 100% of eligible fixed capital investment, while qualifying businesses in thrust sectors and priority locations can access higher incentives.

The policy also introduces benefits linked to State GST, electricity duty, employee provident fund contributions and stamp duty. Service-sector businesses are also eligible for specific incentives, including rental assistance.

The initiative is designed to improve the state's industrial competitiveness and encourage both domestic and strategic investments.

However, the government will need to address infrastructure, land availability and the estimated ₹50,000 crore backlog of earlier industrial incentives to strengthen investor confidence.