Focus West Bengal: A strategic entry point for brands to reach Southeast Asian markets

West Bengal has been a delightful mix of the quaint and the modern bustling economy. The state has shed its colonial hangover, yet vestiges of the old world charm still exist. West Bengal is also a mix of the bhadralok and addas at tea shops, as well as violent political protests. Under the current TMC government, the state has been strongly maintaining its unique identity.

Economic might

As per IBEF, West Bengal is India’s sixth largest state in terms of economic size. The state has a projected Gross State Domestic Product (GSDP) of Rs 17.13 trillion (US$ 221.37 billion) in 2022-23. The state’s GSDP grew at a CAGR of 11.54% from 2015-16 to 2022-23.

West Bengal is the largest producer of rice in India, with rice production for the state totalling 14.99 million tonnes in 2017-18. West Bengal is also a major producer of fish. During 2018-19, the state produced a total of 1.85 million tonnes of fish, according to IBEF.

In a bid to give a boost to industrial growth, West Bengal Chief Minister Mamata Banerjee said that the State government will set up a Rs 72,000 crore (US$ 9.30 billion) industrial zone in Jangalmahal, the forested areas of south Bengal districts along the eastern freight corridor.

West Bengal also plans to raise its share in the country’s IT exports to 25% by 2030. Total export from IT sector of the state crossed an estimated Rs 22,897 crore (US$ 3.28 billion) in 2018-19, as per IBEF.

Agri-based business, tea, petroleum & petrochemicals, leather, IT, automobile & auto components, jute products and textiles are some of the major industries in the state.

Significant business presence

West Bengal, and more specifically its vibrant capital metro city – Kolkata – has been attracting significant investments by national and international organisations. Some major players of the state include: ITC, Steel Authority of India, Emami, Usha Martin, RP-Sanjic Goenka Group, Bata, Khadims, HUL, Joy Cosmetics, and many more.

Kolkata is the biggest market in the East region and has a lion’s share of the ad revenues and volumes, given the high importance it receives from brands. The Durga Puja season in West Bengal sees some of the highest ad spends by brands in the country and the consumer spends are also reciprocal, witnessing a high year-on-year growth (barring the Covid years).