‘State’s investment in human capital led to Bengal’s IT boom’

Kolkata: The state government’s thrust upon investment in human capital right from the bottom of the pyramid has led to a boom in Information Technology, said Amit Mitra, principal chief adviser to Bengal Chief Minister Mamata Banerjee and Finance department.

Mitra’s statement assumes significance in the backdrop of the Chief Minister on Wednesday inaugurating the iconic Infosys Development Centre on 17 acres of land at Hatisala. The IT major’s 320,000 sq ft state-of-the-art development centre entailing an investment of Rs 426 crore will accommodate over 4,000 employees in a hybrid working model.

“Every one dollar spent on human capital produces 11.3 dollar worth GDP. Over 44 per cent of the GDP in the east is contributed by Bengal which is much greater in comparison to other eastern states. This bears testimony to the fact that Bengal is rising at a faster pace,” Mitra said, at an event ‘Rising Asia – The Bengal Pivot to the East’ organised by Bengal Chamber of Commerce & Industry (BCC&I) on Friday.

According to Mitra, since 2011 when the Mamata Banerjee government assumed office for the first time, the capital expenditure has risen by 16 times to Rs 35,866 crore from Rs 2,026 crore in 2010-11. Mitra said since 2011, several new educational institutions have come up in Bengal that include 905 primary schools, 6069 upper primary, 747 secondary, 2096 higher secondary, 52 government colleges, 543 private colleges and 38 new polytechnic colleges. Nineteen state-aided universities and 11 private universities also came up. Mitra was critical of the national policy, calling it “faulty”.

“They have cut corporate tax for attracting investment but results aren’t fruitful with massive inequality and unemployment at the national level. On the contrary, Bengal has looked at human capital right from the bottom of the pyramid. Wipro, Cognizant, TCS and now Infosys have also come in a big way. The attrition rate in IT companies in Bengal is three percent while in Bengaluru it is 35 per cent. Hence, IT companies are coming in large numbers. Bengal is the cement hub in India with the presence of all big companies,” said Mitra.

He said that though at present the eastern states contribute to 12.82 per cent of the country’s GDP, the pendulum is moving to the east and with Bengal rising, the eastern states will also rise.