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West Bengal is now strategically well placed as Gateway to the East to derive full benefits from the new trade protocol with Thailand and the proposed re-opening of Nathula Pass trade route.

Kolkata , Oct. 17

THE proposal to re-open the Nathula Pass trade route between India and China, besides boosting bilateral trade ties, will also provide new opportunities to West Bengal and Sikkim to enhance trading activities in the region.

Speaking at the inaugural session of `Consumer 2003', organised by CII- Eastern Region here on Friday, the Chief Minister, Mr Buddhadeb Bhattacharjee, suggested that West Bengal and the eastern region as a whole should take steps to increase trade activities within the South Asian sphere.

Stressing on the need to identify specific opportunities, he said that his Government had already written to the Sikkim Chief Minister, Mr Pawan Chamling, seeking official level talks on the beneficial fall-out of Nathula Pass re-opening for both the States. Two senior Cabinet State ministers, including the Industry and Commerce Minister, Mr Nirupam Sen, are expected to visit Siliguri next week in this context.

Elaborating on the theme of `Resurgent East', the Chief Minister said that the boom in the retail sector in West Bengal was a clear indicator of the steady pace of economic development in the State.

Commenting on the growing purchasing power in the city, he said that as per a private survey carried out in 2002, consumers spent close to Rs 5,000 crore in just five localities in Kolkata. There was a spillover effect in the rural areas of West Bengal, with consumer spending moving towards higher value and higher unit cost. According to the survey, consumer expenditure in rural Bengal alone was Rs 13,000 crore in 2001-02.

Pointing out that the industrial production in Bengal has grown steadily during the last five years at five per cent annum, Mr Bhattacharjee informed that the State had witnessed investments of more than Rs 2,000 crore each year.

Delivering the special address, Mr Y.C. Deveshwar, Chairman of ITC Ltd, and Member, National Council of CII, said rural markets presented a vast untapped area for increase in consumer demand.

He said many Indian companies such as Hindustan Lever and Hero Honda provided successful examples of corporate strategy focusing on rural India.

West Bengal, he felt, was now strategically well placed as Gateway to the East to derive full benefits from the new trade protocol with Thailand and the proposed re-opening of Nathula Pass trade route.

Lauding the State Government's efforts on the agricultural front, especially in terms of per hectare level of productivity, Mr Deveshwar said all those companies that had left the shores of Bengal never realised the full potential of the State.

Explaining why CII seeks a continuing partnership with the Bengal Government, he said with success in land reforms and growth in agriculture, income levels had risen across a wide segment of the State's population, providing effective consumer base.

Mr Deveshwar said the pick-up in demand for consumer durables and goods was visible in rural India today, and "Consumer 2003 in future, could also be used for showcasing rural products to urban buyers — with sections on handicrafts and cottage industry produce."

Earlier, in his welcome address, Mr Sanjay Budhia, Chairman, CII (ER), said the event should generate an increase in demand for consumer goods and services in West Bengal.

CII, he said, believed that Kolkata had the potential for emerging as a trade fair and convention city, and was keen on partnering with the State Government in its developmental activities.

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