Sanyal: West Bengal's revival key to fix east-west economic gap

Sanjeev Sanyal of the EAC-PM stressed that reviving Kolkata and West Bengal is crucial to fix India's east-west economic disparity and sustain national GDP growth, calling the city's resurgence a critical 'national project'.

The revival of Kolkata and West Bengal are the most critical factors in addressing India's widening east-west economic disparity, said Sanjeev Sanyal, Member of the Economic Advisory Council to the PM (EAC-PM), on Wednesday.

'East-West Disparity is India's Real Economic Gap'

While addressing the gathering on the topic "The Relative Economic Performance of Bharatiya States," Sanyal noted that although the southern and western states have surged ahead post-1991--accounting for a significant portion of the national GDP--the eastern region has historically lagged. He added that West Bengal's share of the national economy has declined from roughly 11% in the post-Partition era to nearly 5.5% today.

"The real economic gap in India is not north-south, but east-west. To fix this, we must restore Kolkata to its former position as a premier industrial and financial hub. The city must serve as the 'anchor engine' for the entire eastern seaboard," Sanyal said.

Sanyal argued that Kolkata's resurgence is a national necessity to sustain India's 7-8% GDP growth. He added that the eastern half of the country must be integrated into the global supply chain through modern infrastructure and a revitalized industrial ecosystem in Bengal if India wants to become a 'Viksit Bharat' by 2047.

"Eastern India's problem is that its heavyweight, Kolkata, has not been pumping for at least half a century. It did not only see the de-industrialization that happened [in the 80s], it went into that loop... the culture... it took with it all the other dynamics of society," Sanyal said. He added that despite "the Bengalis being very proud of their culture," cultural and educational institutions declined, leading the youth to leave.

Kolkata's Revival a 'National Project'

Pointing to the recent shift in the political landscape of Eastern India, Sanyal said that for the first time in a long period, there is alignment between the political dispensations in Bengal and at the Centre.

"The net result is that now that the economic and political configurations of Eastern India have shifted very dramatically, we can begin to think of it in a very different way," Sanyal said, adding, "For the first time in two generations, the underlying economic philosophy of the regime is pro-growth."

Sanyal stated that Kolkata can once again become the gateway to Southeast Asia, driving a new wave of manufacturing and services exports that will propel India's future economic milestones.

He said, "This is not only important from the perspective of West Bengal or Kolkata itself; it is a critical part of getting the eastern half of India to fire away."

Concluding his address, the EAC-PM member said, "It is really our best bet--not just West Bengal generally, but specifically getting Kolkata to fire away--has to be a national project that we all need to contribute to."

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