Over 6,600 Companies Exit West Bengal Since 2011 Amid Governance Concerns

In a significant trend raising concerns over West Bengal’s industrial climate, a total of 6,688 companies shifted their registered offices out of the state between April 2011 and March 2025, according to data presented by Union Minister of State for Corporate Affairs, Harsh Malhotra, in the Rajya Sabha.

Among these firms, 110 were publicly listed when they relocated. The outflow peaked between 2015 and 2018, notably with 1,027 companies moving out in 2017–18 alone. The preferred destinations included Maharashtra (1,308 firms), Delhi (1,297), Uttar Pradesh (879), and Chhattisgarh (511), followed by Gujarat, Karnataka, and Telangana.

The Centre attributed this trend to issues like bureaucratic hurdles, lack of investor-friendly policies, and inefficient administrative processes. According to Malhotra, companies have increasingly favored states offering smoother governance, more robust infrastructure, and a more predictable regulatory environment.

The exodus has sparked a political war of words. The BJP slammed the Trinamool Congress (TMC) government, citing the data as proof of deteriorating investor confidence and poor governance during its tenure. They argued that the state’s hostile business environment is forcing entrepreneurs and corporations to relocate.

In response, TMC leaders refuted the allegations, arguing that the data was being misused for political motives. They claimed that the migration of registered offices does not necessarily indicate economic decline and pointed to increased investments and job creation within the state during the same period.

Nevertheless, experts believe the trend underlines the urgent need for policy reforms and enhanced ease of doing business in West Bengal. Once a major industrial hub, the state’s contribution to India’s GDP has fallen significantly over the decades, intensifying calls for stronger investment frameworks to revive its economic standing.