“West Bengal, which held the third-largest share of nationwide GDP at 10.5% in 1960-61, now accounts for less than 5.6% in 2023-24. It has seen a constant decline all through this era.” the paper mentioned.
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West Bengal has skilled a steady decline in its relative economic performance over a number of many years, in response to a working paper by Financial Advisory Council to the Prime Minister (EAC-PM).
Authored by EAC-PM member Sanjeev Sanyal, the paper ‘Relative Economic Performance of Indian States: 1960-61 to 2023-24’ mentioned the event of japanese a part of the nation stays a priority.
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It mentioned maritime States have clearly outperformed different States, apart from West Bengal.
Though Bihar’s relative place has stabilized within the final twenty years, it stays considerably behind different States and requires a lot quicker progress to catch up, the paper famous.
Conversely, Odisha, historically a laggard, has proven a marked enchancment in recent times.
“West Bengal, which held the third-largest share of nationwide GDP at 10.5% in 1960-61, now accounts for less than 5.6% in 2023-24. It has seen a constant decline all through this era.
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“West Bengal’s per capita earnings was above the nationwide common in 1960-61 at 127.5%, however its progress didn’t maintain tempo with nationwide traits. In consequence, its relative per capita earnings declined to 83.7% in 2023-24, falling beneath that of even historically laggard States like Rajasthan and Odisha,” the paper mentioned.
It additional famous that the western and southern areas of India have carried out notably higher than different elements of the nation from 1960-61 to 2023-24.
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Southern States have considerably outpaced others after financial liberalization in 1991, with the 5 States — Karnataka, Andhra Pradesh, Telangana, Kerala and Tamil Nadu — collectively accounting for about 30% of India’s GDP in 2023-24.
“Earlier than 1991, southern States didn’t present distinctive efficiency. Nonetheless, for the reason that financial liberalization of 1991, southern States have emerged because the main performers,” it mentioned.
As well as, per capita earnings of all southern States turned larger than the nationwide common after 1991.
The paper additionally famous that within the north, States like Delhi and Haryana additionally stood out. “Delhi has one of many highest per capita incomes all through the examine interval.” As per the paper, Maharashtra, West Bengal and Tamil Nadu have been residence to India’s 3 largest industrial clusters within the Sixties.
“Their fortunes subsequently diverged- Maharashtra confirmed broadly regular efficiency all through, West Bengal’s share has been in steady decline. After a decline, Tamil Nadu picked up post-1991,” it mentioned.
All information used are in present costs and the evaluation spans 1960-61 to 2023- 24, offering insights into how particular person States have carried out in response to modifications in nationwide and State-specific insurance policies.
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