Policy Update
Shailja Singh
Background
The West Bengal Information Technology and Electronics Policy, 2018 was introduced on 13 August 2018 following Cabinet approval on 27 July 2018. The policy was designed to strengthen West Bengal’s information technology (IT), IT-enabled services (ITeS), information and communication technology (ICT), and electronics ecosystem while promoting employment, innovation, digital governance and social welfare. It also identified emerging technologies such as Artificial Intelligence (AI), Big Data, Blockchain, Cyber Security, Data Science, Drones, FinTech, Internet of Things (IoT), Robotics, Industry 4.0, Quantum Computing and 5G as areas of future growth (Government of West Bengal, 2018).
The policy sought to attract investment by providing fiscal and non-fiscal incentives, developing IT infrastructure and creating an enabling environment for technology enterprises. It was complemented by subsequent initiatives and policy measures, including the Telecom Infrastructure Guidelines, 2020; State Broadband Policy, 2020; guidelines relating to AI-ML, Blockchain and Drones; and the West Bengal Data Centre Policy, 2021 (Government of West Bengal, 2020a, 2020b, 2021).
A clarification issued by the Government of West Bengal in September 2024 stated that the 2018 policy would continue to remain in force until further orders. It also clarified the applicability of incentives, including a 15% Floor Area Ratio (FAR) incentive and 50% property tax exemption for eligible units for 12 years, up to 12 August 2030 (Government of West Bengal, 2024).
Functioning
The policy operates through a combination of infrastructure development, investment incentives, institutional facilitation and technology-focused initiatives. It provides support for the establishment and expansion of IT and electronics units, IT Parks, Hardware Parks and Electronics System Design and Manufacturing (ESDM) clusters. The Bengal Silicon Valley Tech Hub has emerged as one of the State’s major initiatives for attracting technology investment and creating a large-scale technology ecosystem (Government of West Bengal, 2018, 2026a).
The policy framework also supports infrastructure development through fiscal incentives, including exemptions and subsidies relating to land, electricity and property taxes, depending on the nature and location of eligible projects. These measures are intended to reduce the cost of establishing technology infrastructure and improve the State’s competitiveness as an investment destination (Government of West Bengal, 2018).
Implementation is supported through the Department of Information Technology and Electronics and associated state agencies. The State has also expanded digital infrastructure through initiatives involving broadband connectivity, State Wide Area Network (WBSWAN), State Data Centre facilities and video-conferencing infrastructure (Government of West Bengal, 2026b).
Performance
West Bengal has expanded its technology infrastructure since the introduction of the policy. According to the State’s administrative reporting, there were 22 IT Parks, one Hardware Park and two ESDM clusters, with an average occupancy rate of 91.78% as of November 2024. The high occupancy level indicates sustained demand for available technology-related infrastructure (Government of West Bengal, 2026a).
The State has also expanded dedicated IT infrastructure. As reported in the 2026–27 Budget documents, 32 IT Parks and IT buildings were operational, covering approximately 9.37 lakh square feet of built-up area and accommodating around 11,724 IT professionals (Government of West Bengal, 2026a). These figures indicate that the policy has contributed to the creation and utilisation of physical infrastructure for the technology sector.
The Bengal Silicon Valley Tech Hub represents another major component of the State’s strategy. Spread over approximately 250 acres, the project is projected to attract around ₹30,000 crore in investment and generate approximately 75,000 direct and indirect employment opportunities. Data-centre investments, including projects by ST Telemedia and CtrlS, have also strengthened the State’s digital infrastructure capacity (Government of West Bengal, 2026a).
Export performance has shown an upward trend. Data from Software Technology Parks of India (STPI) indicate that West Bengal’s IT/ITeS exports increased from approximately ₹7,391.05 crore in 2020–21 to ₹8,450 crore in 2021–22, ₹12,750.72 crore in 2022–23 and ₹13,148.30 crore in 2023–24 (STPI, 2025). This indicates considerable growth in the State’s technology-services export base, particularly after 2021–22.
The State has also continued to allocate resources towards IT and digital infrastructure. The 2026–27 Budget provided ₹506.18 crore under the Information Technology and Electronics sector, including allocations for promotion of IT industries, video-conferencing and network infrastructure, WBSWAN and the State Data Centre (Government of West Bengal, 2026b).
Impact
The strongest impact of the policy has been the gradual consolidation of West Bengal as an important IT and digital-services centre in eastern India. The rise in Software Technology Parks of India (STPI)-recorded exports after 2021–22, increasing occupancy of IT Parks and the development of the Bengal Silicon Valley Tech Hub indicate that the State has developed a more diversified technology ecosystem (Government of West Bengal, 2026a; STPI, 2025).
The expansion of IT infrastructure has also contributed to employment opportunities and improved the State’s capacity to attract technology enterprises. The operationalisation of IT Parks and dedicated technology hubs provides firms with physical infrastructure while reducing some of the barriers associated with setting up technology operations (Government of West Bengal, 2026a).
The State’s performance, however, remains smaller in scale than that of leading Indian technology hubs. West Bengal’s IT/ITeS exports of ₹13,148.30 crore in 2023–24 were substantially below the corresponding figures reported for Karnataka, Maharashtra and Telangana, indicating that the State still has considerable room to expand its technology-export base (STPI, 2025).
The policy’s impact is therefore mixed: while infrastructure utilisation, exports and investment initiatives show positive progress, the gap with leading technology states suggests the need for greater investment, innovation capacity, high-value technology activities and employment generation.
Emerging Issues
Despite these developments, several challenges remain. First, the 2018 policy framework predates the rapid expansion of AI, cloud computing, advanced data centres, cybersecurity, semiconductors and other emerging technologies. A comprehensive policy review is therefore required to ensure that incentives and institutional mechanisms reflect current technological and industrial priorities.
Second, there is a need for stronger policy-specific outcome monitoring. Existing information provides data on infrastructure, investment and exports, but consolidated information linking specific policy incentives with employment, investment realised and other outcomes remains limited. This makes it difficult to assess the effectiveness of individual policy interventions.
Third, technology infrastructure remains concentrated around Kolkata and adjoining areas. Greater regional diversification is necessary if the benefits of technology-led development are to reach other parts of the State.
Fourth, employment and skills remain important concerns. Expansion of physical infrastructure does not automatically translate into adequate availability of skilled workers in emerging areas such as AI, cybersecurity, cloud computing and advanced electronics. Stronger linkages between industry requirements, training programmes and employment outcomes are therefore needed.
Finally, ESDM and advanced electronics require sustained investment, specialised skills, reliable infrastructure and integration with wider supply chains. The State will need to strengthen these capabilities if it aims to move beyond IT services towards higher-value technology manufacturing and innovation.
Way Forward
West Bengal’s IT and electronics ecosystem has expanded significantly since the introduction of the 2018 policy. However, the changing technology landscape and the growing importance of artificial intelligence, cloud computing, cybersecurity, data centres, semiconductors and other emerging technologies make it necessary to strengthen the policy framework through clearer targets, regular evaluation and outcome-based monitoring. The following measures can make the policy more responsive and measurable.
1. Introduce a time-bound policy review with measurable targets.
The State should undertake a comprehensive review of the 2018 policy and establish annual targets for investment realised, IT and ITeS exports, employment generation, IT Park occupancy and ESDM development. This is necessary because the policy was formulated in 2018, while the State’s technology priorities and industry requirements have evolved considerably since then. A formal review every two years, supported by annual progress reports, would help identify implementation gaps and allow incentives to be revised where expected outcomes are not being achieved.
2. Establish a public policy-performance dashboard.
A dedicated dashboard should publish annual data on investment realised, employment generated, exports, IT Park occupancy, number of beneficiary units and district-wise distribution of projects. This is necessary because the absence of consolidated, policy-specific outcome data makes it difficult to assess the actual performance of the policy and distinguish realised outcomes from investment announcements or broader sectoral growth. Public reporting would improve transparency and allow progress against policy targets to be monitored.
3. Set measurable targets for regional diversification.
The State should identify priority districts outside the Kolkata metropolitan region and establish annual targets for new IT/ITeS units, incubation facilities and technology-related employment in these areas. This is necessary because technology infrastructure and economic activity remain concentrated around Kolkata and its adjoining areas. District-level targets, supported by annual progress reviews, would provide a measurable basis for assessing whether the benefits of the policy are reaching other parts of West Bengal.
4. Link incentives more closely with realised outcomes.
Future incentives should be linked, wherever feasible, to verifiable outcomes such as investment actually realised, employment generated, exports achieved and continued operation of supported units. This is necessary to ensure that public incentives translate into tangible economic benefits rather than being assessed primarily on the basis of investment commitments or project announcements. An annual review of major beneficiaries could help determine whether firms are meeting their stated commitments.
5. Introduce measurable employment and skill-development indicators.
The State should establish annual targets for technology-sector employment and industry-oriented training in areas such as artificial intelligence, cybersecurity, cloud computing, data management and semiconductor-related technologies. This is necessary because the expansion of physical IT infrastructure alone does not guarantee the availability of skilled workers required by emerging industries. Training programmes should therefore report indicators such as the number of persons trained, certifications obtained and placements or employment outcomes.
6. Strengthen monitoring of ESDM and emerging technologies.
The government should track measurable indicators such as new ESDM units, investment realised, production capacity, R&D projects, startups supported and skilled jobs created. This is necessary because infrastructure creation and investment announcements alone do not establish whether West Bengal is developing a sustainable, high-value technology and manufacturing ecosystem. Regular monitoring of these indicators would help identify implementation gaps and assess whether incentives are producing the intended outcomes.
Overall, the Way Forward should shift the policy from a primarily incentive- and infrastructure-oriented framework towards time-bound targets, outcome-based incentives, annual monitoring and transparent reporting. These changes are necessary to ensure that the expansion of IT infrastructure and public support translates into measurable improvements in investment, employment, exports, innovation and more balanced regional development.
References
Government of West Bengal. (2018). Information Technology and Electronics Policy, 2018. Department of Information Technology & Electronics. https://itewb.gov.in/wb-it-policy-2018/
Government of West Bengal. (2024). Clarification on Property Tax and Other Incentives for IT/ITeS Companies (Notification No. 941-ITE-14020/1/2021). Department of Information Technology & Electronics. https://www.labour.wb.gov.in/sites/default/files/upload/notice/No-941-ITE-14020-1-2021%20Dated-06-09-2024.pdf
Government of West Bengal. (2026a). Budget Speech 2026–27. Finance Department. https://finance.wb.gov.in/writereaddata/Budget_Speech/2026_English.pdf
Government of West Bengal. (2026b). Budget Publication No. 3: Detailed Demands for Grants, 2026–27. Finance Department. https://finance.wb.gov.in/writereaddata/Budget_Publication/2026_bp3.pdf
Software Technology Parks of India. (2025). Annual Report 2024–25. Ministry of Electronics and Information Technology, Government of India. https://stpi.in/sites/default/files/annual-reports-documents/stpi_annual_report_2024_2025_eng.pdf
Software Technology Parks of India. (2026). About STPI-Kolkata. Ministry of Electronics and Information Technology, Government of India. https://kolkata.stpi.in/about-stpi-kolkata
About the Contributor
Shailja Singh is an undergraduate student of Political Science with an interest in public policy, governance, international relations and policy research.
Acknowledgement
The author sincerely acknowledges the IMPRI team for their guidance, valuable feedback, and continuous support throughout the preparation of this Policy Update.
Reviewers–
Purbaa and Mannat
Disclaimer
This article is intended for academic purposes only. The views expressed are those of the author and do not necessarily reflect the views of IMPRI or any government.
