Driving sustainable growth in the logistics sector
West Bengal is a state uniquely positioned because of its offering many advantages critical to the logistics sector. It is the sixth-largest economy in India, with a Gross State Domestic Product (GSDP) of Rs 17 lakh crore. Growing at an impressive annual rate of 15.24%, West Bengal is one of the fastest growing states in the country. With an estimated population of over 100 million, the state represents both a massive consumption base and an ever-growing industrial hub.
What truly sets West Bengal apart, however, is its strategic geographic advantage. Positioned as the gateway to India's Northeast and land-locked neighbors like Bhutan and Nepal, it also acts as India's vital conduit to Southeast Asia. This strategic geographic significance makes West Bengal the ideal destination for investments in the logistics sector.
The state's logistics sector is poised for an exponential growth, with the current market size estimated at $20 billion. Our key infrastructures includes strategically-located seaports in the form of the Syama Prasad Mookerjee Port (erstwhile Kolkata Port Trust) and Haldia Dock Complex. Together, they serve as major gateways for cargo, offering robust multi-modal connectivity. Together, these ports handle over 65 million metric tons of cargo annually. The proposed Tajpur Deep-Sea Port is likely to be a game-changer that will accommodate large vessels and significantly reduce logistics costs.
Haldia Dock Complex (Image credit: SMP website)
Extensive inland waterways provide immense opportunities for development of tourism, passenger and cargo services. With 4,593 kilometers of navigable waterways, including the National Waterway-1 and the Indo-Bangladesh Protocol Route, we are fostering greener and more efficient cargo transport systems. These waterways link us not only to Northeast India, but also to Southeast Asia and beyond, providing a cost-effective alternative to road and rail.
Under the West Bengal Inland Water Transport, Logistics and Spatial Development Project, the state is exploring ways and means to operationalise the RoRo (Roll-on, Roll-off) service on NW-1, especially in and around the Kolkata metropolitan area. The initiative, if successful, is likely to reduce travel time for cargo and passenger movement while also significantly reduce the carbon footprints as a result of vehicles having to travel lesser distance. The state has already operationalised RoRo and RoPax services in the Sundarbans and Gangasagar areas. There are many private players who are also bracing to introduce RoRo services along the NW-1, not to speak of Inland Waterways Authority of India (IWAI) similarly conducting studies to this effect.
West Bengal Inland Water Transport, Logistics and Spatial Development Project (Image credit: West Bengal government website)
Better air connectivity is an advantage that drives the logistics sector in the state. Kolkata Airport, the largest freight facility in eastern India, is a critical hub for high-value and perishable goods. Recent enhancements, such as express courier terminals and the Centre for Perishable Cargo, strengthen its capabilities. The airports at Andal, Bagdogra and Cochbehar add to the available options and could be further leveraged for seamless logistics movement across the state using its airways. The state is further exploring the possibilities at such other locations as Malda, Balurghat, Charra (Purulia), Kalaikunda and Hasimara.
West Bengal's extensive road and rail network is yet another infrastructural advantage that catalyses the logistics sector. Our road network spans over 100,000 kilometers, with 33 national highways connecting the state to the neighboring regions. Additionally, 1,409 kilometers of the Eastern Dedicated Freight Corridor run through West Bengal, connecting Dankuni to Uttar Pradesh and beyond. This must be leveraged to the advantage of smooth cargo movement from West Bengal to the other states.
Extensive warehousing facilities including better inventory management practices and cold chain networks, as existing in the state, provide the enabling springboard for the sector. It is notable that West Bengal leads eastern India in warehousing capacity, with hubs like Dankuni and NH-16 witnessing a surge in demand. Modern facilities cater to sectors like e-commerce, FMCG and pharmaceuticals, meeting the needs of a fast-evolving market.
Now, what makes West Bengal a preferred destination for logistics investment? These three core drivers include a conducive industrial ecosystem, well-endowed economic corridors and and strategic geographic location. West Bengal is home to a thriving industrial base, from MSMEs to large-scale enterprises. The state's Micro, Small, and Medium Enterprises (MSME) sector boasts over 42 lakh units, contributing 7.2% to India's total MSMEs. Our industrial clusters span sectors like textiles, leather, chemicals, and hi-tech electronics, driving demand for logistics services.
The state serves as the terminus for several mega-corridors, including the Amritsar-Kolkata Industrial Corridor and the East Coast Economic Corridor. These corridors promise seamless connectivity to global value chains and open doors for exports and imports, enhancing the state's logistics ecosystem. West Bengal's connectivity with Southeast Asia through projects like the Kaladan Multimodal Transit Transport Project and the Trilateral Highway (India-Myanmar-Thailand) positions us as a strategic partner for India's integration into global value chains.
Route of Amritsar-Kolkata Industrial Corridor (Image credit: NICDC)
The Government of West Bengal is committed to creating an investor-friendly environment. The West Bengal Logistics Policy, 2023 embodies this vision. Some of the key features include industry status to the logistics sector, development of multi-modal logistics parks and freight villages, dedicated land banks for logistics infrastructure, streamlined approvals through an integrated single-window system, development of green logistics and the adoption of digital technologies and the existence of the West Bengal Logistics Centre of Excellence for fostering innovation and skill development.
Additionally, initiatives like the West Bengal Apprenticeship Promotion Scheme and the Utkarsh Bangla Scheme, as conceived and stewarded by the Department of Technical Education, Training and Skill Development, are ensuring a ready-made pool of skilled workforce tailored to the sector's needs. Premier institutions such as IIT Kharagpur and IIM Calcutta complement this effort by nurturing managerial talent and innovation. Industries and businesses are availing the opportunity for sector-specific customized capacity building of human resources as required for spurring the economic and commercial activities in repective sector.
Utkarsh Bangla Scheme (Image credit: NITI Aayog)
As global supply chains shift toward greener practices, West Bengal is leading the charge with initiatives in green logistics. From leveraging inland waterways to reduce carbon footprints to integrating renewable energy in logistics parks, sustainability is at the heart of our strategy. Furthermore, the 'Blue Economy'—focusing on fisheries, maritime tourism, and coastal trade—is further set to unlock significant opportunities.
The rise of e-commerce has also transformed logistics. Companies like Amazon and Flipkart are investing heavily in the state, creating a ripple effect in warehousing and last-mile delivery solutions. Quick commerce, driven by demand for shorter-delivery times, is further fueling the need for modern infrastructure and technological innovation.
West Bengal's logistics story is one of opportunity and transformation. The state's strategic location, growing industrial base, skilled workforce, and investor-friendly policies make it the ideal destination for those looking to make impactful investments. From infrastructure development to operational innovation, the opportunities here are vast and varied.
Whether it is developing multi-modal logistics parks, investing in cold chain solutions, or pioneering green logistics practices, West Bengal offers a platform for sustainable and profitable ventures. Leveraging all these advantages, the State has already created a logistics ecosystem that not only powers economic growth, but also enhances the quality of life for millions.West Bengal's strong infrastructures, ingenuous policies, facilitatory ecosystem and a strong commitment provide the enabling ambience for everyone to be part of this fascinating growth story.
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