The city of Kolkata was formerly known to some as Calcutta, which may be more familiar to others. It was then known as a city that was past its prime after the independence in 1947, becoming stagnant as a city, and as an economic center. That notion is quickly changing. However, like the new name; the city is starting to take on the challenge of regaining its position as a premiere economy for India.The city known before as Calcutta has been continually inhabited for over two thousand years, making it one of the oldest cities ever. But the real agent for change came when the British East India Company arrived on the scene and took the city under its wings. It was declared as the capital of British India, concentrating on activities there and fueling growth that would quickly make it one of the most modern cities of the time. The 1850s brought on a surge of growth and industrialization, largely due to the textile and jute industries. This period marked the large expansion of railways and early communications technology like the telegraph.
The 1960s and 70s brought economic growth to a plateau, because of the rise of the Naxalites, a Marxist-Maoist movement that brought on power outages along with other severe forms of damage to the city. A war also put major stress on the city infrastructure due to the increase in refugees coming in to the city. Recovery was thankfully in the works, with economic reforms leading the city to be able to rise back from its sorry state. The two sectors that are currently having a nice momentum are the IT industry and manufacturing, bringing more revenue and investments into the city.
An Economy on the Rebound
The 1960s slump brought a sad fate to many factories in Kolkata, leading many of them to downsize operations or even close entirely. Capital came rushing out of the city and into other cities more capable of growth. This was the pattern since after the independence, with political instability and trade unions backed by left-wing parties.
Good thing the economy took a turn for the better when liberalization of the economy was implemented in the 1990s. Fast forward to the present, Kolkata is now the business hub in India, and the Calcutta stock exchange is the second largest in the country. In the region, the city of Kolkata is also the only one to have an airport that is able to operate with international flights.
The informal sector has always been one of the strongest points of Kolkata investment, with roadside shops generating around two billion dollar’s worth of revenue. Kolkata has a strong background in the labor industry, with unskilled or semi-skilled blue collar workers comprising a large part of the labor force. The local government is also a very large employer of blue-collar employees.
The IT industry is experiencing a surge of growth, around seventy percent annually, more than twice the average growth in the country. This has been one of the backbones for recovery in the city, and housing and real estate projects have been a strong suit of the city, with several under construction or coming soon. The literacy rate is also improving, with over eighty percent in current times and growing.
Investing in Kolkata
With the current government policies regarding foreign investment, now is the time to make Kolkata a target for your investment goals. The city is fast getting a name in the IT industry as well, and the properties in Kolkata are easier to invest in and acquire. The posh cosmopolitan atmosphere that can only be brought on by serious changes and modernization of all infrastructures is ripe for lots of growth. The best thing about this growth spurt and rebound in the economic climate is that you can see high returns for your investment.
Major attempts to pull in foreign investors have been successful, and a Singaporean company has designs to put in two-million square feet of IT park within the locality, among other major investments, some going for as large as 3000 crore. Real estate has been pulled up by these investments, with five malls underway in the city and more in the works over the next year. The cosmopolitan cityscape is truly shaping up, with major developments like these on the rise and an onslaught still to come.
It’s a good idea to invest in the information technology game in the city of Kolkata. The sights of investors are usually set on the city of Bangalore, which is better known for the investments in this sector. This raises prices because of the reputation Bangalore carries, and thus reduces profits. However, if you’re going with Kolkata, which is lesser in the eyes of investors, you could have just hit a gold mine lying undiscovered. The growth rate of IT companies is astounding, with twice the growth in other areas. Other people are recognizing this as well, and they have started placing their bets on this city. The growth of this city is on the rise, and while prices are still relatively low, it would be wise to invest now, and reap a huge profit base later.
In an investor’s point of view, Kolkata may not be as attractive as, say, Mumbai, or even Delhi, the real estate market’s activities in the Kolkata scene have shown more stability and a better sense of the growth level in this respect. You can rest easier knowing that your investment’s growth can be predicted more accurately than wildly spiraling economies. For the moderate investor, this is a better choice when you have the option to choose whether you want high returns at a riskier pace, or more conservative options. But still, even granting that Kolkata is considered conservative, the growth potential is still very high and you can still earn more with Kolkata’s hidden potential than with higher-profile investments in other cities in India, or anywhere else for that matter.