Reviving Kolkata: India's Key to Closing the East-West Economic Gap

Kolkata's resurgence is crucial for addressing India's east-west economic disparity, argues Sanjeev Sanyal of the EAC-PM. He emphasizes the city's role as an industrial and financial hub to sustain India's GDP growth and integrate the eastern region into the global supply chain by 2047.

In a comprehensive address, Sanjeev Sanyal, a Member of the Economic Advisory Council to the Prime Minister, highlighted the urgent need for revitalizing Kolkata and West Bengal to bridge India's growing east-west economic disparity. Speaking at an event titled 'The Relative Economic Performance of Bharatiya States,' Sanyal emphasized that while southern and western states have progressed significantly since 1991, the eastern region remains economically stagnant. He noted West Bengal's declining share of the national economy from approximately 11% post-Partition to around 5.5% today.

Sanyal asserted that the core economic divide in India is not between north and south but between east and west. He proposed that Kolkata should reclaim its former status as a leading industrial and financial hub, anchoring the eastern seaboard's economic activities. This resurgence, he argued, is essential to maintaining India's 7-8% GDP growth. To achieve this, the eastern half of India needs to be integrated into the global supply chain, supported by modern infrastructure and a revitalized industrial ecosystem in Bengal.

He acknowledged that Kolkata's decline over the past 50 years has impacted the broader dynamics of society, with cultural and educational institutions diminishing and prompting youth migration. However, he noted a recent political realignment in Eastern India, creating an opportunity for a new pro-growth economic philosophy. Sanyal expressed optimism that Kolkata could once again become a crucial gateway to Southeast Asia, igniting a fresh drive in manufacturing and services exports. He concluded by urging national efforts to reinvigorate Kolkata, identifying it as a pivotal project for India's economic future.