July 26,2025:
West Bengal witnessed the closure or exit of 6,688 registered companies between 2011 and 2024, according to data from the Ministry of Corporate Affairs (MCA). The figures, covering the 14-year tenure of Chief Minister Mamata Banerjee, have sparked criticism over the state’s industrial policies and raised concerns about the overall business climate in the region.
The data was sourced from the government’s MCA21 portal, which tracks company registrations and closures across the country. During this period, thousands of businesses in West Bengal either wound up, were dissolved, or became inactive. Industry experts have cited multiple reasons for this decline, including policy stagnation, infrastructural challenges, and a lack of investor confidence.
“The state has seen a consistent drop in new industrial investment proposals and a rise in business exits. West Bengal is falling behind states like Maharashtra, Gujarat, and Tamil Nadu when it comes to fostering a growth-oriented environment,” said an economist based in Kolkata.
Among the worst-affected sectors are manufacturing, textiles, logistics, and small and medium enterprises (SMEs), which have traditionally played a vital role in Bengal’s economy. Business chambers have highlighted ongoing challenges such as complex regulatory approvals, issues in land acquisition, and the absence of an effective single-window clearance mechanism.
While the state government has defended its industrial track record—pointing to achievements in MSME growth, the expansion of the IT sector, and initiatives like the Bengal Global Business Summit—critics argue that such efforts have largely failed to result in actual project implementation.
Opposition parties, particularly the Bharatiya Janata Party (BJP), have strongly reacted to the data. “The exit of over 6,000 companies is a reflection of the government’s failure to create a supportive environment for business. Bengal has tremendous potential, but it is being stifled by poor governance and lack of industrial vision,” a BJP spokesperson said.
However, state officials have responded by stating that the figures do not fully represent ground realities, as companies may shut down for reasons unrelated to the state’s policies—such as mergers, internal restructuring, or national-level economic shifts.
Still, experts believe the trend indicates systemic issues in the state’s approach to industrialization. “It’s true that some company closures are part of the normal business cycle. But the scale seen here points to deeper challenges that need immediate policy attention,” the economist added.
The report comes at a time when West Bengal is preparing for the 2026 Assembly elections, and economic performance is expected to be a major campaign issue. With political narratives already forming around jobs, industry, and development, the state’s business climate is likely to remain a focal point of public debate in the months ahead.
