West Bengal Elections 2026: ‘Tollabaji’ Debate in Focus
Over 6,688 companies shifted out since 2011 as critics link policy gaps, syndicate culture to long-term economic slide
-- Nirendra Dev
As West Bengal Assembly Elections 2026 approach their first phase on April 23, the political discourse has largely been dominated by high-voltage campaigning and personal attacks. Lost in the din, however, is a deeper structural concern: the long-term decline of West Bengal’s industrial ecosystem.
Data placed before Parliament indicates that over 6,688 companies have relocated their registered offices out of West Bengal between 2011 and 2025.
Additionally, around 110 listed firms have exited the state, underscoring a steady erosion of corporate presence. Critics argue that this trend reflects not just cyclical challenges but a systemic weakening of industrial confidence.
At the centre of the political debate is the role of the All India Trinamool Congress government led by Mamata Banerjee. Opposition voices accuse the regime of institutionalising what is colloquially referred to as “tollabaji”—a term used to describe alleged informal rent-seeking networks that influence construction, supply chains, and local business operations. According to critics, such practices have discouraged fresh investments and increased the cost of doing business.
Beyond political rhetoric, structural issues persist.
Infrastructure spending in the state has remained modest, with estimates suggesting it stood at just 2.95% of total expenditure in 2022–23.
Industrial policy uncertainty and bureaucratic discretion are also cited as deterrents.
The absence of a streamlined land bank mechanism and the requirement of case-by-case approvals for landholdings beyond 24 acres under the West Bengal Land Reforms Act have further complicated large-scale industrial entry.
The macroeconomic indicators tell a sobering story. West Bengal’s share in India’s GDP has declined from 10.5% in 1960–61 to around 5.6% in 2023–24—one of the steepest long-term drops among major states. Per capita income, once significantly above the national average at 127.5%, has now fallen to approximately 83.7%.
The roots of this decline, analysts say, go back decades.
The industrial climate in the state has historically been shaped by strong trade union movements and political mobilisation, particularly during the Left Front era. While the Communist Party of India (Marxist)-led governments emphasised labour rights, critics argue that excessive unionism often translated into operational rigidities and investor hesitation.
The transition to Trinamool rule in 2011 brought a shift in political language but, according to detractors, not in structural outcomes.
The Singur episode remains emblematic. While the controversy highlighted flaws in land acquisition processes—particularly issues of consent and compensation—it also sent a broader signal of policy unpredictability to investors.
Yet, the contrast with West Bengal’s past remains stark. At Independence, the state was India’s industrial powerhouse. Kolkata—then Calcutta—was the country’s premier commercial hub, supported by a dense railway network, a skilled workforce, proximity to mineral-rich regions like present-day Jharkhand, and a strategic port.
By 1950–51, West Bengal had 1,493 registered factories—the highest in the country. Its share in organised sector employment stood at 27%, while industrial output accounted for 24% of the national total. The Hooghly industrial belt was home to globally competitive jute mills and engineering units, creating a vibrant ecosystem of production and labour welfare.
Former workers from now-defunct industrial zones recount a very different era—one where companies provided housing, healthcare, education support, and even community infrastructure.
Mills operated crèches, supported cooperative stores, and contributed to local social life. For many, the decline is not just economic but deeply personal.
Over time, however, labour unrest, policy inertia, and governance challenges eroded this foundation.
Locked-out factories and abandoned industrial clusters became a recurring feature of the landscape.
What was once an engine of growth gradually turned into a cautionary tale.
Looking ahead, the industrial question is poised to become a key policy challenge for any incoming government. The Bharatiya Janata Party has indicated that, if voted to power, it would push for a rules-based, transparent industrial framework, including streamlined land acquisition and reduced discretionary approvals.
Some policy observers suggest that West Bengal could draw lessons from states like Gujarat and Telangana, where proactive governance and investor-friendly policies have driven industrial growth.
Others argue that strong political will—combined with administrative reforms—will be critical in reversing the decline.
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As West Bengal votes in phases, the question remains whether industrial revival will regain its place in the electoral narrative—or continue to be overshadowed by more immediate political battles.
FAQs:
Q1. How many companies left West Bengal since 2011?
Over 6,688 companies relocated their registered offices out of the state between 2011 and 2025.
Q2. What is ‘tollabaji’?
It is a colloquial term used by critics to describe alleged informal networks that influence business operations and increase costs.
Q3. Why is industrial decline a concern?
It affects employment, investment, and overall economic growth, making it a key long-term issue for the state.
ends
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