West Bengal: Trade and Commerce | WBCS Preparation: All Subjects - WBCS (West Bengal) PDF Download

Bengal has enjoyed prosperity in trade and commerce since ancient times. The extensive network of rivers facilitated internal trade, while its strategic location on the Bay of Bengal allowed participation in sea-borne trade dating back to the second millennium BC.

History

• West Bengal spans from the Himalayas in the north to the Bay of Bengal in the south. Until the 16th century, Bengal was likely the most affluent region of the Indian subcontinent. The late 15th century saw the arrival of Portuguese traders and missionaries in Bengal, marking the initial European contact. Following them, representatives from the Netherlands, France, and the British East India Company entered Bengal.
• During the latter part of the 16th century, the Portuguese established the major port of Hooghly and built up their presence in Chittagong and mercantile colonies around Dhaka. Although European merchants did not replace Asian traders in Bengal's maritime trade, their presence in the 16th century spurred demand for Bengali manufactures, leading to increased local production.

17th Century Onwards

• From 1615, the Dutch East India Company engaged in trade with Bengal, establishing a settlement at Chinsurah in 1635. The Dutch traded in opium, salt, muslin, and spices. The 17th century witnessed thriving trade in Bengal, with the Dutch allowing Hooghly-Chinsura to trade directly with the Dutch Republic in 1734. Chandannagar, established as a French colony in 1673, became a permanent French settlement in 1688 and a key center for European commerce in Bengal.
• The only other Dutch East India Company settlement to have this right was Dutch Ceylon. Chandannagar was established as a French colony in 1673, when the French obtained permission from Ibrahim Khan, the Nawab of Bengal, to establish a trading post on the right bank of the Hooghly River. It became a permanent French settlement in 1688, and in 1730 Joseph François Dupleix was appointed governor of the city, during whose administration more than two thousand brick houses were erected in the town and a considerable maritime trade was carried on.
• After the Battle of Plassey in 1757, the East India Company solidified its control over Bengal, and Calcutta became the capital of British India. The Dutch and French initially dominated the jute trade during the 17th and 18th centuries. The 19th century brought industrialization, with the British Empire and Dundee jute factory playing significant roles in the jute industry. Bengal's industrial rise continued with the establishment of paper mills, coal companies, and various other industries.
• Scotland’s Dundee jute factory injected new blood to the industry. This company and later the British Empire had monopolistic access to this trade during that time. Jute factories were set up around the areas where it mainly grew, the Hooghly river-banks. The agents of the East India Company first visited the provinces of Bengal, Bihar and Odisha, for trade during the period of Ibrahim Khan (ca 1617-1624), the Subahdar(Governor) of Bengal at the time of Delhi Emperor Jahangir.
• The first “factory” (that is, warehouse and trading post) was established in Surat in 1620. In 1634, a Firman (royal decree) was obtained from the Emperor Shah Jahan which allowed them to establish a factory in Bengal. The investment in Bengal soared, the Bengal residency was separated from Madras. The nineteenth century saw a major rise in the industrial scenario of Bengal.
• Mechanized paper manufacture was started in Bally Mills, Hooghly around 1870. Paper Mills were consequently established in Titagarh in 1884 and in Hooghly in 1894. In Raniganj, Bengal Paper Mill was set up in 1891. Mining Industry too flourished during this period as Bengal Coal Company was established in 1843. By 1860, fifty collieries were functioning in and around Raniganj.
• In 1820, Breen & Company and Butterly Company merged to establish M/s Jessop and Co. Cotton Mills, Jute Mills and Plantation firms too grew at a rapid pace along the Hooghly River Bank during this period. Many PSUs too chose Calcutta to establish their headquarters. In 1910, Imperial Tobacco Company (later ITC), was formed with its headquarters in Calcutta. In 1975, Coal India Limited was founded and headquartered in Calcutta.
• In 1931 Bata India Limited the Company was incorporated at Calcutta. In 1892 Britannia Industries were established in Calcutta. In 1948, Damodar Valley Corporation was established with its headquarters in Calcutta. Apart from these, CESC Limited, IFB Industries, RPG Group, Bengal Ambuja, Linc Pen & Plastics, Philips India, Eveready Industries, Visa Group, India Govt. Mint, Peerless Group, Usha Martin, Jai Balaji group, Orient Airways, KKN Group, Bengal Ambuja, Berger Paints India Ltd, SIMOCO (First Wireless Equipment and Mobile phone manufacturers from East India), Emami Ltd., Eveready Industries India Ltd., Stewarts & Lloyds of India, Ltd., and Titagarh Wagons and National Insurance Company have also established their headquarters in Calcutta more recently.

Entrepot of the Silk Route:

Facts:

• Location Advantage:-
  Positioned as a traditional market for eastern India, the Northeast, Nepal, and Bhutan, Bengal's strategic location also serves as a crucial entry point for Southeast Asian markets. Kolkata, the state's capital, boasts lower business operating costs compared to other major cities.
• 6th Largest Economy:-
  As India's sixth-largest economy, West Bengal achieved a gross state domestic product (GSDP) of US$ 114.6 billion in 2012-13, with a notable compound annual growth rate (CAGR) of 14.6% from 2005 to 2013.

Rich In Natural Resources And Minerals:-

• Endowed with rich natural resources and favorable agro-climatic conditions, West Bengal is in proximity to mineral-rich states like Jharkhand, Bihar, and Odisha. 
• The state aims to increase the textile industry's contribution to the GSDP from 5.2% in 2009-10 to 10.0% by 2022-23.

Excellent Connectivity:-

• West Bengal offers exceptional connectivity to the rest of India through well-developed railways, roadways, ports, and airports. The northern districts of the state are traversed by major sections of the golden quadrilateral project. 
• The recent decision by the West Bengal government to construct three river bridges over the Hooghly and Ajay rivers underscores its commitment to enhancing trade and linking culturally significant locations. 
• Specifically, one Hooghly river bridge will connect Shantipur in Nadia district to Kalna in East Burdwan district, while another will link Budge Budge in South 24 Parganas district to Fuleshwar in Howrah district.