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West Bengal’s Economic Legacy Since Independence and Future Prospects

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  • Shiladitya Chatterjee

Abstract

During the Mughal and colonial periods, Bengal was among the most prosperous regions of the subcontinent. Despite the rapacity of the colonial administration, and despite partition, at independence, West Bengal was one of the most industrialised and developed states of India. However, its performance now is just average among Indian states. This article investigates the causes of this decline, objectively, taking a holistic view and analysing all relevant factors, using available public data and assessing the various views that are offered by scholars over the years. While partition dealt a heavy blow to West Bengal, several other factors aggravated the state’s economic problems, including central and state policies. These impinged in areas of industrial and agricultural growth, urban development, human development and the state’s resources for growth. In recent years West Bengal has seen better overall growth, including the industrial sector. State finances have improved and have the potential for further consolidation. Kolkata has better urban infrastructure. Increased regional cooperation with Bangladesh can undo the loss of markets and resources that partition had imposed. If managed properly, the state can further improve its overall development performance. This article offers suggestions regarding the priority development interventions that are necessary.

Suggested Citation

  • Shiladitya Chatterjee, 2024. "West Bengal’s Economic Legacy Since Independence and Future Prospects," Arthaniti: Journal of Economic Theory and Practice, , vol. 23(2), pages 145-178, December.
    • Handle: RePEc:sae:artjou:v:23:y:2024:i:2:p:145-178
    DOI: 10.1177/09767479211050983
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    References listed on IDEAS

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    1. Ranjan Kumar Mohanty & N.R. Bhanumurthy, 2018. "Assessing Public Expenditure Efficiency at Indian States," Working Papers id:12837, eSocialSciences.
    2. Mukherji, A. & Das, B. & Majumdar, N. & Nayak, N.C. & Sethi, R.R. & Sharma, B.R., 2009. "Metering of agricultural power supply in West Bengal, India: Who gains and who loses?," Energy Policy, Elsevier, vol. 37(12), pages 5530-5539, December.
    3. Banerjee, Abhijit, 2002. "Strategy for Economic Reform in West Bengal," Working Papers 02-13, Cornell University, Center for Analytic Economics.
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