India Inc has today that the Tata Motors [Get Quote] pulling out the prestigious Nano project from West Bengal is a loss for the industrialisation of the state and will reflect badly on the investment climate there.

The Federation of Indian Chambers of Commerce and Industry (Ficci) Secretary General, Amit Mitra, said, "The Tata project could have brought about a major change in the industrial scenario in the state. This was not a one-off auto project, but would have given a boost to a host of ancillaries as well."

Commenting on the fate of West Bengal's traditional engineering and heavy industry, Mitra said these industries suffered over time because of the lack of fresh investments, which even led to the closure of many units.

The fact that the Nano project ran into trouble due to land disputes has made industry chambers ask for a clear policy on land acquisition from the government.

"A full review and consensus need to be reached on how land acquisitions should happen in the future," said Chandrjeet Banerjee, director general, Confederation of Indian Industry (CII).

"The onus should be on the political leadership of the country to ensure and facilitate investments in the country without unnecessary delays," he added.

The Associated Chambers of Commerce and Industry of India (Assocham), without blaming the West Bengal government, condemned the vested interests of a section of political parties.

"The blame lies with a section of the polity and people will have to pay a serious price for it," said D S Rawat, secretary general, Assocham. However, he does not see the pull-out hampering future prospects of the state in terms of investment inflows.