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West Bengal: Foreign Direct Investment Policy

The Government of India recognizes the importance of FDI in the long term development of the country not only as a source of capital but also for enhancing competitiveness of the domestic economy through transfer of technology, strengthening infrastructure, raising productivity and generating new employment opportunities. In this view, The West Bengal government welcomes foreign Technology and Investments as may be appropriate for the needs of the State and is mutually advantageous.


  • To boost economic growth, improve physical and social infrastructure and reduce unemployment and
  • To set up balance between the requirements of gobalisation and the needs of self-reliance while according topmost priority to FDI proposals which are being promoted vigorously particularly in areas where it has competitive advantages.

FDI Routes:

There are two distinct routes for making FDI in the State:

    Not requiring any prior clearance from the Foreign Investment Promotion Board (FIPB) or the Reserve Bank of India.
  • FIPB
    Investments not on automatic route require prior permission Foreign Investment Promotion Board.

Prohibited Sectors:

At present Foreign Investment is not allowed in following sectors:

  • Gambling Lottery Business
  • Atomic Energy
  • Retail Trading

Nodal Agency:

Foreign Investment Implementation Authority (FIIA) is the nodal agency for the policy implementation. FIIA acts as the single point interface between the investor and the government agencies and helps the former to obtain necessary approvals, sort out operational problems and expedite implementation.


Prior Government approval for FDI is mandatory in the following circumstances:

  • In case the foreign investor has /had any previous joint venture or technology transfer /trademark agreement in the same field or allied field in India.
  • Where more than 24% foreign equity is proposed to be inducted for manufacture of items reserved for the small scale sector.
  • Items requiring Industrial License and not on automatic route viz. manufacture of cigars & cigarettes and defense products.

Source: WBIDC

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