'Reviving Kolkata necessary to bridge economic divide'
- Abhijit Mulye
- 5 hours ago
- 3 min read

Mumbai: India's most pressing economic imbalance is not the widely debated north-south gap, but a stark east-west divide. According to Sanjeev Sanyal, a member of the Prime Minister’s Economic Advisory Council, rectifying this massive disparity hinges almost entirely on the revival of one city: Kolkata. Speaking on the relative economic performance of Indian states, Sanyal emphasized that restoring Kolkata to its former glory as a premier industrial and financial hub is no longer just a regional aspiration, but an urgent national necessity. If India aims to sustain a robust growth trajectory and realize the vision of a "Viksit Bharat" by 2047, Kolkata must step up to serve as the anchor engine for the entire eastern seaboard.
The history of India’s economic growth demonstrates that urban centers act as the true spine of regional development. In the early 1960s, West Bengal was among the top five economic contributors in the country. Alongside states like Maharashtra, Tamil Nadu, Uttar Pradesh, and Bihar, it helped generate more than half of the national GDP. During this era, Kolkata stood as an industrial colossus, arguably more important commercially than Mumbai, Sanyal said giving growth statistics.
He furthermore pointed out that the region's entrepreneurial spirit dates back centuries. He noted that the original Swadeshi movement of 1905 was heavily rooted in modernization and enterprise. Yet, tragically, this rich culture of industry vanished within just fifty years.
Economic Decline
The economic decline of West Bengal has been one of the most visible and disappointing trajectories in India’s modern history. Sanyal candidly remarked that Kolkata did not merely die; it was "murdered." The state's share of the national economy plummeted from around eleven percent after Partition to a mere five and a half percent today.
This steady downward spiral, particularly exacerbated by a severe phase of de-industrialization starting in the 1980s, crippled the broader eastern region. Because Kolkata stopped functioning as a heavyweight economic driver, the entire east suffered. The collateral damage extended well beyond manufacturing, leading to a corresponding degradation of the city's celebrated cultural and educational institutions. This systemic decay ultimately triggered a massive and continuous flight of young, ambitious talent away from Bengal.
This stagnation stands in sharp contrast to the economic boom witnessed in the western and southern parts of the country following the 1991 liberalization. States like Maharashtra maintained steady dominance, while Gujarat transformed significantly over the last twenty-five years to boast a per capita income well above the national average.
Southern states, heavily anchored by booming urban centers in Telangana, Karnataka, and Tamil Nadu, also surged far ahead. Even historically poorer eastern states like Odisha managed to drastically improve their standing through consistent policy efforts, eventually overtaking West Bengal in relative per capita performance.
The glaring lesson across the nation is that major urban hubs are the vital engines that generate high growth, an asset eastern India has sorely lacked due to Kolkata's prolonged dormancy.
India’s Gateway
To bridge this crucial east-west divide, Sanyal argues that Kolkata must be rebuilt as India's gateway to Southeast Asia. The city needs to plug the eastern region deeply into global supply chains through enhanced infrastructure, industrial growth, and export-oriented development. Recent electoral shifts and changing political dynamics in West Bengal have sparked a renewed focus on the state's economic future.
With a changing environment that Sanyal describes as possessing a pro-growth philosophy for the first time in two generations, there is finally a tangible hope for revival. Rebuilding Kolkata's industrial and financial strength must be treated as a critical national project, essential for getting the eastern half of India firing on all cylinders once again.

