What does incoming CM Suvendu Adhikari need to do to revive West Bengal’s economy?

BJP leader Suvendu Adhikari is set to take oath as the Chief Minister of West Bengal today at 11 am, ushering in a major political shift in the state after the BJP’s decisive victory in the 2026 Assembly elections. The result marks the end of nearly five decades of strained Centre-state political dynamics in Bengal.

The new administration now faces the critical task of translating its electoral mandate into long-term economic revival by addressing years of policy stagnation, institutional weakening, and lost industrial opportunities.

JM Financial has said that the recent political transition in West Bengal could pave the way for a major industrial and infrastructure revival in the state, potentially improving growth prospects for several Bengal-linked companies.

BJP’s rule in West Bengal

In a strategy report released on May 8, the brokerage highlighted that the Bharatiya Janata Party’s decisive victory in the 2026 West Bengal Assembly elections marks one of the biggest political changes in eastern India in decades, ending the Trinamool Congress’ 15-year rule. The report said the scale of the mandate could materially improve policy execution visibility and revive investor confidence in the state.

According to JM Financial, the BJP’s ‘Bhoroshar Shopoth’ manifesto outlines an industrialisation-led growth strategy focused on manufacturing revival, logistics expansion, infrastructure creation, and investment promotion. Key proposals include industrial parks in Singur, four major industrial zones, modern steel plants, defence manufacturing facilities, logistics hubs, deep-sea ports, and faster completion of stalled metro and railway projects.

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The brokerage believes these initiatives could support stronger industrial activity, infrastructure spending, and consumption growth over the medium term.

Companies to benefit

JM Financial identified several companies that could benefit from the proposed development push. CESC may gain from higher industrial and commercial electricity demand, while ITC could benefit from stronger rural consumption and improved logistics infrastructure. Berger Paints may see higher demand from housing and infrastructure activity, while Texmaco Rail could benefit from railway modernisation and logistics expansion.

The report also highlighted Shyam Metalics as a potential beneficiary of the proposed steel manufacturing focus, while Emami may gain from stronger regional consumption trends and employment generation measures.

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JM Financial compared the situation to Andhra Pradesh after N. Chandrababu Naidu’s return to power, when infrastructure-linked and state-focused companies witnessed strong market re-rating amid expectations of faster project execution and governance reforms.

Bengal’s civilisational identity

The report comes amid a wider debate about West Bengal’s long-term economic trajectory and cultural identity. In his column, “The Renaissance Required in the East Again”, economist and writer Sanjeev Sanyal argued that Bengal’s economic decline cannot be explained only by policy failures or industrial slowdown.

Sanyal noted that before Partition in 1947, undivided Bengal contributed nearly 10 per cent of India’s GDP, with Kolkata serving as one of the country’s leading centres for trade, industry, literature, and science. Over the decades, however, Bengal steadily lost economic prominence due to Partition-related disruptions, socialist planning, anti-industry politics, militant trade unionism, and weak infrastructure development.

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But Sanyal argued that economic explanations alone are insufficient. According to him, “Bengali identity roots have been systematically chipped away”, creating what he described as an “intellectual and socio-cultural vacuum”.

He further wrote that this disconnect from Bengal’s cultural and historical roots contributed to “political anarchism, mindless trade unionism, militant student activism and deadwood intellectualism”.

Beyond investment and infrastructure

Sanyal argued that Bengal’s revival requires more than investment inflows and governance reforms. He believes long-term economic recovery depends on rebuilding cultural self-confidence and reconnecting with the state’s historical strengths in entrepreneurship, education, literature, and intellectual leadership.

“The time has come to recapture its civilisational identity,” he wrote, adding that Bengal and Kolkata must “rise again” by rediscovering the cultural foundations that once made the region prosperous and globally influential.