Think Indian IT hub and Bengaluru, Gurgaon and others come to mind. Kolkata was once a flourishing economy and the country’s industrial engine, but in recent decades, that economic might has faded. Now a new initiative, spearheaded by the Kolkata 4.0 Foundation, a not-for-profit initiative with a vision to create a networking platform for positive thinking on Kolkata, aims to change that. Here we explore surge in new IT hub is Kolkata.
Rising Infrastructure
Salt Lake in Kolkata was once known for its serene water bodies girdled by enticing walking trails and manicured gardens. Today, pockets of that tranquility remain, but much of its skyline, especially in Sector V. And the nearby New Town, is dominated by towering glass-and-steel office complexes, tech parks and sleek corporate campuses. That house global Information Technology (IT) giants, BPOs and fintech start-ups. It is now regarded as the digital pulse of Bengal’s capital city. And is riding the crest of a remarkable IT wave that has earned it the sobriquet Silicon Valley of the East.
Kolkata 4.0
Developing an innovation ecosystem report in London alongside techUK, the technology industry group in the UK – similar to NASSCOM in India – and the Indian Chamber of Commerce. The report shows other startup ecosystems around the world grew out of a hidden spark or accidental winners. Whether a hub grew out of sensible long-term policy coordination, or mushroomed because of this serendipity, each brings with itself a unique set of characteristics. And it is these the report seeks to identify in Kolkata and explore how it can become a digital hub for India.
Beginning
It began in earnest with Bengal Silicon Valley (BSV). A technology hub with a 250-acre notified area and world-class infrastructure that was set up in 2018. And improvement in infrastructure in Sector V and New Town. Another fillip came with the displacement during the Covid-19 pandemic. When a large number of tech professionals returned home to Kolkata. Top firms soon realised the sheer number of employees from Bengal. And the chances of expansion, all of which made for perfect business sense.
Collaboration efforts
The biggies like IBM, Microsoft, Wipro, TCS and Tech Mahindra who set up shop much earlier have in the past three years been joined by well-known firms such as Calsoft, Zensar, LTI Mindtree, Grant Thornton and McKinsey. The newer lot have taken up close to a million square feet of space and have generated 20,000-plus jobs.
Drawbacks
Kolkata’s inward investment story seems one yet to be written. Tax revenues have more than doubled in the last five years due to more efficient collection of taxes. In per capita terms, incomes have grown at more than double the national rate. In Gross Value Added terms at factor cost, West Bengal’s agricultural sector is nearly five times more productive than India’s, manufacturing nearly 50% more so and services 11% more so. There is a perception gap about some of these successes.
New IT Hub is Kolkata. It can only become an innovation hub if it is done in a bottom-up, broad and inclusive manner, building on the city’s existing competitive advantages and having government, industry, academia and startups work together with international partners such as Derby.
