West Bengal's Economic Decline: An In-Depth Analysis

West Bengal has experienced a consistent economic downturn over several decades, as highlighted by a paper from the Economic Advisory Council to the Prime Minister. Despite improvements in other regions, the state's relative GDP share and per capita income have significantly declined from 1960-61 to 2023-24.

West Bengal has been noted for its persistent economic decline over several decades, according to a working paper by the Economic Advisory Council to the Prime Minister (EAC-PM).

Authored by EAC-PM member Sanjeev Sanyal, the paper titled 'Relative Economic Performance of Indian States: 1960-61 to 2023-24' reveals concerns about the development of India's eastern region.

The study highlights that maritime states have generally outperformed others, with West Bengal being a major exception. It points out that despite Bihar stabilizing in the last two decades, it still lags behind other states. In contrast, traditionally laggard Odisha has shown significant improvement.

West Bengal, which ranked third in national GDP share in 1960-61 with 10.5%, now holds only 5.6% in 2023-24, indicating a consistent decline. Its per capita income, once above the national average, has fallen to 83.7% of the national average by 2023-24, falling behind states like Rajasthan and Odisha.

The western and southern regions have notably outperformed other parts of the country since 1960-61. Post-economic liberalization in 1991, southern states have surged ahead, contributing approximately 30% to India's GDP in 2023-24. Northern states like Delhi and Haryana also stand out, with Delhi having one of the highest per capita incomes throughout the study period.

Maharashtra, West Bengal, and Tamil Nadu were once India's largest industrial clusters in the 1960s. However, while Maharashtra maintained steady performance, West Bengal's share steadily declined, and Tamil Nadu rebounded post-1991.

The data span from 1960-61 to 2023-24, providing insights into the economic performance of individual states in response to various policies.