West Bengal Finance Minister Swapan Dasgupta announced on Friday that the state government will scrap the Urban Land Ceiling Act to attract large-scale investments, according to The Hindu BusinessLine. The move is part of a broader reform agenda to make Bengal the fastest-growing Indian state within four years.
Announcement and Rationale
Speaking at an event organized by the Bengal Chamber of Commerce & Industry, Dasgupta said the government will "scrap" the Urban Land (Ceiling and Regulation) Act, 1976, which he described as a major bottleneck for attracting large-scale investments. The Act had been a recurrent demand from industry for removal. The government will also streamline clearances for investments of Rs 1,000 crore and above. Presenting the state budget on Monday, Dasgupta had first signalled a re-examination of the Act.
Investment Incentives and Competitive Positioning
The West Bengal government is framing necessary rules to incentivize fresh investment. At the outset, incentives are expected to be on par with those of neighbouring states like Odisha and Assam to ensure a level playing field for attracting investment.
| State | Incentive Status |
|---|---|
| West Bengal | Framing rules, targeting parity with neighbours |
| Odisha | Existing competitive incentives |
| Assam | Existing competitive incentives |
Economic Growth Target
Dasgupta expressed confidence that Bengal can achieve the highest growth rate among Indian states in the next four years, given an enabling framework. "Apart from sops, we need an environment which is friendly towards business. We are banking on growth and banking on people like you (industrialists) to optimise our potential. Bengal will be back with a bang," he said.
Budgetary Shift and SBI Research
SBI Research, in its report on the West Bengal budget for financial year 2026-27, noted a "decisive shift" in the budget towards investment-led growth and economic transformation. The report highlighted themes such as investment, governance, fiscal management, technology, entrepreneurship, tourism, and climate resilience — previously absent in earlier budgets — suggesting a strategic reorientation towards industrialisation, productive capacity creation, and long-term growth acceleration.
Next Milestones
The scrapping of the Urban Land Ceiling Act requires legislative approval. The government is expected to introduce the necessary bill in the state assembly. The framing of incentive rules is underway, with details to be announced.
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