When our thoughts turn to the star hubs of India’s new economic boom, we automatically think of Bangalore — India’s Silicon Valley — or Hyderabad, with its catchy nickname, “Cyderabad.”

But Kolkata, the capital of British India until 1911, is overcoming its “poor me” reputation of the last century, swiftly rebounding as the commercial and cultural capital of East India.

Accessibility alone renders Kolkata (formerly Calcutta) gloriously attractive to foreign investors: The city is located on the east bank of the Hooghly, a branch of the great Ganges River, which spills out into the Bay of Bengal. With easy shipping access to all of Asia, it is easy to see why the British East India Company set up shop here in the last decade of the 17th century.

Kolkata enjoyed its heyday from the mid-18th to the mid-19th centuries, when it was known as “The City of Palaces.” Industry and culture thrived for Europeans and locals alike, especially upper-class zamindars, native landowners and merchants.

Sparked by the Great Mutiny of 1857, a rising tide of nationalism began to swell toward the latter half of the 1800s. With resentment growing rapidly and Hindu-Muslim tensions building due to a failed 1905 attempt to partition Bengal, the British moved the capital to Delhi in 1911.

The shift in the geographical seat of power thus began Kolkata’s century of decline. The years following Partition in 1947 and the 1971 India-Pakistan war saw millions of Hindu refugees pour into Kolkata, solidifying the city’s reputation as a squalid, impoverished place overflowing with despair.

Now, this massive urbanscape of 11.3 million residents — backed by West Bengal’s state government and strong national support — is poised to regain its status as the prize gem of East India and the object of Western desire.

Buddhadeb Bhattacharjee, chief minister of West Bengal, is actively soliciting private investment. Delhi’s Central Government (‘‘The Centre”) has a new “Look East” policy, designed to re-establish Kolkata as a hub of Indian trade and commerce. The plan focuses on sustainable agricultural growth; increased support for special economic zones to promote investment; and increased assistance for skill development, vocational training and minority welfare programs.

A.T. Kearney, a global consulting firm, ranks India as “The No. 1 Place to Start a Business” right now, due to its worthiness as a long-term U.S. partner. India is a leader in foreign direct investment, second only to China, and Kolkata is easily more enticing than even Beijing as a target location for development, due to the high percentage of English speakers coupled with a democratic government and freedom of press.

The capital of West Bengal is astonishingly more attractive due to two key geographic characteristics: The critical trade route linking China to India, through the Nathu La Pass in the neighboring state of Sikkim, insures Kolkata’s viability as an overland import/export hub for goods and services. In addition, Kolkata boasts a riverine port as well as a deep-sea dock at Haldia.

India’s first free-trade warehousing zone — an SEZ near Haldia port — was approved in January 2008. Importers will benefit from the presence of an international, bonded warehouse, reducing the need for urgent consignments from South Asian ports. Exporters will also benefit from duty-free warehousing and access to electronic data interface.

The Indonesian conglomerate, Salim Group, is pursuing a chemical hub at Nayachar Island, connected via bridge to Haldia’s deep-sea port. India’s own Hinduja Group India and the Ambani Group are looking at developing refineries in Nayachar, and a “medi-city” is planned next door.

Kolkata boasts its own tech gem in the suburb of Salt Lake: the knowledge hub affectionately referred to by citizens and techies alike as “Sector V (Five)” — 35,000 employees and growing — located just east of the city center. IBM, HSBC and Price Waterhouse Coo pers are among the largest employers in the IT park, with global audit and consulting giant KPMG joining the throng.

Kolkata’s retail presence — already boasting five malls — is getting a shot in the arm with the revamping of Chowringhee’s Metro Shopping Center. Considered “the best department store in the East,” the Metro closed in 1950 due to post-Independence spending slumps. Restoration experts are banking on its success to add a fresh impetus to the city’s regenerative initiatives.

Gaining notice at every turn, Kolkata works hard to take advantage of its share of the tourist dollars flooding India. Emaar MGF, the largest developer in India, has initiated three major hospitality projects in Kolkata: JW Marriott, Park Hyatt and Holiday Inn. Kolkata’s once-thriving Chinatown is getting a makeover that includes infrastructure repairs, improved signage and a newly developed cultural center.

Ecotourism is another minor but meaningful player in new Kolkata industry. The South Asian Forum for Environment is rolling out a pilot project to preserve the fragile ecology of the surrounding wetlands — a natural asset that saves the city millions in sewage treatment. Tourism infrastructure will target corporate houses for low-volume, high-value groups and include an aquarium, a museum and an educational field lab.

India’s industrial giant Tata Motors chose Singur — 25 miles west of Kolkata’s city center — as the site for a 12,000-employee manufacturing plant dedicated to the production of its new Tata Nano. With a sticker price of just $2,500, the no-frills vehicle is designed to capture a chunk of India’s rising disposable income.

Entry Requirements

A valid passport and visa are necessary for all travel to India. Visa must be obtained before arrival. Three-and six-month, as well as five-and 10-year visas are issued to U.S. nationals, with maximum continuous stay not to exceed 180 days.

More Information

Embassy of India
2107 Massachusetts Ave., N.W.
Washington, D.C. 20008
tel 202 939 7000
http://www.indianembassy.org

Calcutta Chamber of Commerce
18-H Park St.
Stephen Court
Kolkata 700 071
tel 033 22290758
http://www.calcuttachamber.com

West Bengal Tourism Centre
3/2 BBD Bagh (East)
Kolkata 700 001
tel 033 22488271
http://www.wbtourism.com