Mamata’s remarks at Infosys event shed light on Bengal’s ease of doing business conundrum

Bengal Chief Minister Mamata Banerjee recently inaugurated an Infosys data center in Rajarhat, Kolkata. She warned against “outside interference” with Infosys’ operations, specifically targeting her party’s local MLA, Saokat Molla, and party functionaries. This warning highlights the widespread problem of rent-seeking among TMC leaders and cadres who demand bribes and favors from investors and entrepreneurs. They extort money and influence contracts, and even demand a share of equipment purchases. The problem is so prevalent that it has become a major obstacle to attracting big-ticket investments to Bengal. The Chief Minister has received numerous complaints about her party’s interference in the functioning of industries and businesses, including the IT sector. She has adopted a dual approach to resolving these issues, either by sending senior leaders to mediate or making a one-time payment to the troublemakers. The bureaucracy is also notorious for demanding bribes and delaying clearances, making it difficult for investors to set up their businesses. The Chief Minister’s warning to her party functionaries is a sign that she is aware of the problem and wants to attract big-name investors to Bengal.