Budget 2026: Poll-bound Bengal stands to gain from freight corridor, Durgapur industrial node, tourism push

Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman on Sunday announced a slew of infrastructure, logistics, rail and tourism initiatives for poll-bound West Bengal in the Union Budget for 2026-27.

A key announcement was the proposal to develop a new dedicated freight corridor from Dankuni in West Bengal to Surat in Gujarat, aimed at promoting environmentally sustainable and efficient movement of cargo.

The corridor is expected to significantly reduce logistics costs for industries in eastern India, and improve connectivity between the eastern and western markets.

Assembly elections are due in West Bengal in the coming months.

In another major push, Sitharaman said the Centre will develop an Integrated East Coast Industrial Corridor, with a well-connected industrial node at Durgapur, a key manufacturing hub in West Bengal.

The project is expected to strengthen the state’s role in the Centre’s ‘Purvodaya’ vision for accelerating industrial growth in eastern India.

The Budget also proposed the creation of five tourism destinations across the five ‘Purvodaya’ states, including West Bengal, to boost employment and regional development. To support sustainable urban mobility in these regions, the government also said it will make a provision for 4,000 electric buses.

To boost rail connectivity, Sitharaman announced plans to develop seven high-speed rail corridors across the country, with one of the proposed routes linking Varanasi in Uttar Pradesh and Siliguri in northern West Bengal. The corridor is expected to significantly cut travel time, and enhance economic and strategic integration of north Bengal with the rest of the country.

Welcoming the Budget, Mehul Mohanka, Deputy Chairman of CII (Eastern Region), said the announcements, including those on rare earths and high-speed rail corridors, would have long-term benefits for the region.

The Budget also laid emphasis on strengthening the critical minerals and rare earths ecosystem, along with measures to boost MSMEs and employment-linked manufacturing, which could benefit industrial clusters in eastern India, including West Bengal, through improved access to raw materials, logistics support and downstream manufacturing opportunities.