A decisive policy reset on land is emerging as a top priority for industry in Bengal, with business leaders urging the new state government to overhaul existing rules to draw large investments and accelerate job creation after years of subdued manufacturing growth.

Central government data show that the growth of the manufacturing sector in Bengal has decreased from 22 per cent in FY16 to 6 per cent in FY26.

Land costs account for a substantial share of capital expenditure in large industrial projects, often determining project viability. Among the key demands is a calibrated repeal of the Urban Land Ceiling Act (ULCA) to release sizeable land parcels, stabilise or reduce acquisition costs and improve availability.

Industry has also called for differentiated pricing between industrial and commercial land, alongside targeted incentives such as SGST refunds and electricity duty waivers.

“This (change) is great for Bengal. It will bring in a lot of progress and growth,” said Umesh Chowdhary, vice-chairman and managing director of Titagarh Rail Systems. He added that competitive incentives are critical for manufacturers to match peers in other states and attract large investments.

Chowdhary said that ULCA dampens industrialisation, while the near parity between industrial and commercial land prices remains a deterrent. “As far as incentives go, there are none in the state. Even what was given was withdrawn,” he said.

However, industry leaders also cautioned that reforms must be calibrated. An outright repeal of ULCA, they warned, could trigger land grab attempts and spark political resistance.

Abhijit Roy, managing director and CEO of Berger Paints, emphasised the urgency of a comprehensive industrial policy supported by fiscal incentives.

“Once that happens, it will draw in big investors because Bengal is the biggest market in the East, with no shortage of talent, essential inputs like power and water,” he said, adding that higher infrastructure spending could further boost economic activity.

Industry leaders also emphasised that balanced growth necessitates an equal focus on both large and small industries, as MSMEs typically thrive alongside large anchor units.