On the occasion of the Special Section on West Bengal, Rajarshi Ghosh spoke to Mr P Roy, Director General, Bengal Chamber of Commerce & Industry (BCCI), on the state of the national and State economy and the vision and role of BCCI in facilitating the same.

Excerpts:

How is the national economy performing?

The Index of Industrial Production shows a 17.6% growth in April 2010 compared to April 2009. Moreover, India's GDP grew by 8.6% in the last quarter of 2009-10, on a year on year basis. Growth is right on track, but food inflation remains a matter of concern at 16.9% for the week ended June 12, compared to 16.12%, one week earlier.

What are the steps needed for macro management?

This is the ideal time to press for structural reforms, like decontrol of oil prices, savings interest rates, etc. The meeting of the Empowered Group of Ministers on June 25, on the freeing of petrol prices, as an initial step is a welcome move. Maybe a modest hike in interest rates by RBI would be needed to curb inflationary expectations, but a steep hike is avoidable as that would affect the growth momentum.

How is the state economy performing in West Bengal?

The rate of growth of the State economy in terms of State Domestic Product (SDP) at constant 1999-2000 prices, is 7.6% in 2008-09, compared to 7.89% in 2007-08, as per the latest data. In the longer run, between 2000-01 to 2008-09, the State's SDP grew by 6.6%, compared to the average all India growth rate of 8.7% over the same period.

How would you describe the present economic environment in West Bengal in view of partial changes in the political economy?

The State is learning and evolving post Nandigram and Singur, to a stage where politics is slowly getting delinked from industrialisation, which is what it should be. The acquisition of M/s Burn Standard and Braithwaite by the Ministry of Railways is a welcome step in that direction. Also, the many projects announced on Railway land. However, 'Wait and Watch' is the keyword as far as majority of private investment is concerned, especially with regard to heavy industry such as power plants and steel plants, which are linked to allocation of land and coal blocks. But the 'glimmer of hope' is fortified by the reversal in decision by some corporates to relocate out of West Bengal, Wipro agreeing for further expansion in Rajarhat, etc.

Please tell us about the Bengal Chamber of Commerce & Industry and the developmental initiatives carried out.

The Bengal Chamber of Commerce and Industry is a 157-year-old institution, which is also the oldest chamber east of the Suez. The chamber was set up in 1853. For the last one and a half centuries, the chamber was witness to the momentous events that have shaped India's industrial and social character. Donning its multiple roles as a catalyst, initiator, facilitator, business partner and service provider, the chamber has helped governments, both at the Centre and State in crafting, pioneering and significant legislations.

The Bengal Chamber has managed to remain both young and relevant simply because it is quick to recognise and value the only constant in time - change. Apart from our basic identity as the vanguard of business and industry, the chamber has now assumed a multi-faceted role. Over time, the chamber has become more and more multifaceted, addressing the concerns relating to not only trade and industry, but other social issues - civic infrastructure, public health, education and community development. The chamber's institutional attitude is based on the conviction that development is meaningful only when it is composite, and inclusive of the diverse parameters that drive growth. The chamber, therefore, acts as a central point of reference for both the industry in West Bengal and the Eastern part of India.

What has been the role played by BCCI in the development of the MSME sector in West Bengal?

The role is multi pronged. There is an initiative to provide an award in 'Manufacturing Excellence' to the SME sector. There is also a plan to provide them professional advice -technical, managerial or financial at a very reasonable cost. The chamber is actively trying to promote the recognition of the 'tiny' enterprises with below Rs 5 lakh turnover, which hardly get any assistance. All these measures are in alignment with the national policy of promoting the smaller enterprises, the bulk of industry in any country across the world. In fact going a step beyond, the chamber is promoting economic inclusion for the individual, the base of the pyramid.

What do you have to say about the proposed association of BCCI with IPF and Engeetech?

IPFonline Limited is organising Engeetech - the first International Engineering, Industrial Products and Machinery Expo & Symposium, which is primarily aimed at promoting B2B business and strengthen the links in the supply chain between the MSME sector and the large enterprises.

BCCI is proud to be the 'West Bengal Partner' for Engeetech and promote the same, in alignment with its policy on the MSME sector.