Downfall of Bengal ( GDP, per capita income, reason of fall)

“What Bengal thinks today, India thinks tomorrow” said Gopal Krishan Gokhle . It represents the strong intellectual vision of Bengal.

Bengal GDP and Per Capita Income in 1960-61 vs 2023-24

West Bengal which held third-largest share of national GDP at 10.5% in 1960-61 now accounts for only 5.6% in 2023-24. It has seen a consistent decline throughout this period.

West Bengal per capita income has above the national average in 1960-61 at 127.5%, but its growth failed to keep pace with national trends. As a result, its relative per capita income declined to 83.7% in 2023-24, falling below that of even traditionally laggard states like Rajasthan and Odisha.

The Union Finance Minister highlighted the decline in the GDP of Bengal, which used to contribute around 25% of India’s manufacturing GDP in 1947 and now graph has gone down which represents that now Bengal contributes less than 3%. Once one of the richest states of India, its annual per capita income was the highest in the country in 1947. The state today is ranked at the bottom category she said in her address at ‘ Bisistha Nagrik Sammelan’ in Kolkata, West Bengal on May 15.

West Bengal Debt-to-GDP ratio : 39%

West Bengal’s per capita income falls behind Odisha’s: EAC-PM paper

‘Relative Economic Performance of India States: 1960-61 to 2023-24’ said the development of the eastern part of the country remained a concern. In this paper, they have focused exclusively on the relative performance of states, measured using two indicators- share in India’s GDP and relative per capita income.

• Marine Resources:The bay is rich in marine life, providing a livelihood for millions of peoples and potential for fishing and aquaculture. It also contain offshore hydrocarbon reserves, including potential for natural gas and oil discoveries. 
• Energy Potential:The Bay of Bengal has the potential for developing wind and tidal energy power plants, offering a renewable energy source. 
• Resource Extraction:The region contains heavy mineral , such as ilmenite, garnet, and zircon, these minerals be extracted and utilized . 
• Connectivity and Development:The Bay of Bengal is a key area for India trade route. It also plays an essential role in India’s Indo-Pacific strategy, aiming to strengthen regional cooperation and security. And if Bengal develops Deep Port and Robust Inland Connectivity then the trade with South Asia can be done, Moreover it can lead to India-Myanmar Trilateral highway and the development of North-East and also promotes trade with Southeast Asia and the Pacific
• Geo-economic Significance:The Bay of Bengal is a geo economic hotspot, with its rich hydrocarbon reserves and a important shipping routes making it a vital area for trade and energy security. 
• Strategic Importance: Bay of Bengal is a key point for global trade, connecting India to the East and Southeast Asia. It’s a very essential shipping route, supporting major ports and contributes in India’s trade with the East. 

Major reasons for the downfall of West Bengal

East Bengal vs West Bengal

• 4 Million refugees from East Bengal came to West.
• Industralization crash
• Vast resources and Human capital were used

Jute Industry

The Jute industry which was the main reason fot the establishment of industralization lated became the reason for the decline of the industralization. Cause 75% of the Jute growing areas went of East Bengal. And 106 mills, Barting centres and Export Hub remained in West Bengal.

Naxalism

Which was first started to archive the rights for farmers and to get what they deserve but violent behaviour students and working class radicalism behaviour turned this to a major cause for the decline of the West Bengal.

Because with this movement, in a way it was declared against the CAPITALIST and INDUSTRALIST class across the West Bengal.

Left Party Government

1970’s the rule of West Bengal was transferred to Left Parties, who ruled West Bengal for 34 years.

But acc. to Political Pundit and Economists this one party’s anti-development policies has effected West Bengal a lot. Main focus of these parties were Small Scale Agriculture and Rural Empowerment. Instead of setting up modern industralization and pro-developing policies government made these forms more hostile:

• Land Acquisition
• Labour Laws
• Business Environment

Because of this trend of Naxalism, Unsupportive Attitude of Government, and dangerous party politics industries started moving out of West Bengal.

And acc. to the reports while the total industrial development in the state by the Central Government accounted 13% of the total investment sanctioned by the centre b/w 1947 to 1968, no significant new investments were granted for Bengal in the 1970’s and 1980’s.

De-Industralization

Due to the above actions the negative consequences took place like de-industralizaton the step back of the industries from Bengal. And if there are no industries then there is no new opportunities for youth, no job refers to no income and afterall Bengal was totally dependent on Agriculture.

After this Bengal was not even strong in the agriculture sector :

• Dense Population
• Farmers small land size
• Government Agriculture Modernisation

In 2007, National Sample Survey (NSS) found that nearly 11% of families in Bengal faced starvation during several months of years the highest among any state of India.

Debt trap and LPG modernisation (1991)

Due to this behaviour of Government Bengal was caught in debt-trap and all the economic resources were used for the interest and loan repayment instead of infrastructural development.

LPG : From the last 3.5 decade (35 yers) after the LPG states like Karnataka, Andra Pardesh, Telangana, Kerala, Tamil Nadu’s industralization has went up in the skies and their ports have worked as a bone bone ports like New Manglore Port, Chennai Port, Kochi Port and Tuticorin port and on the other hand West Bengal industralization has went down to the ground.

Cause of the opposition of the LPG by the Left Party the ruling Government of the Bengal. And due to this Bengal’s industralization failed to develop.

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