West Bengal - Economy

Economy

In 2009–10, the tertiary sector of the economy (service industries) was the largest contributor to the gross domestic product of the state, contributing 57.8% of the state domestic product compared to 24% from primary sector (agriculture, forestry, mining) and 18.2% from secondary sector (industrial and manufacturing). Agriculture is the leading occupation in West Bengal. Rice is the state's principal food crop. Rice, potato, jute, sugarcane and wheat are the top five crops of the state. Tea is produced commercially in northern districts; the region is well known for Darjeeling and other high quality teas. State industries are localised in the Kolkata region, the mineral-rich western highlands, and Haldia port region. The Durgapur–Asansol colliery belt is home to a number of major steel plants. Manufacturing industries playing an important economic role are engineering products, electronics, electrical equipment, cables, steel, leather, textiles, jewellery, frigates, automobiles, railway coaches, and wagons. The Durgapur centre has established a number of industries in the areas of tea, sugar, chemicals and fertilisers. Natural resources like tea and jute in and nearby parts has made West Bengal a major centre for the jute and tea industries.

A significant part of the state is economically backward, namely, large parts of six northern districts of Cooch Behar, Darjeeling, Jalpaiguri, Malda, North Dinajpur and South Dinajpur; three western districts of Purulia, Bankura, Birbhum; and the Sundarbans area. Years after independence, West Bengal was still dependent on the central government for meeting its demands for food; food production remained stagnant and the Indian green revolution bypassed the state. However, there has been a significant spurt in food production since the 1980s, and the state now has a surplus of grains. The state's share of total industrial output in India was 9.8% in 1980–81, declining to 5% by 1997–98. However, the service sector has grown at a rate higher than the national rate.

In terms net state domestic product (NSDP), West Bengal has the sixth largest economy (2009–2010) in India, with an NSDP of 366,318 crore Indian rupees, behind Maharashtra (817,891 crores), Uttar Pradesh (453,020 crores), Andhra Pradesh (426,816 crores), Tamil Nadu (417,716 crores), and Gujarat (370,400 crores). In the period 2004–2005 to 2009–2010, the average gross state domestic product (GSDP) growth rate was 13.9% (calculated in Indian rupee term), lower than 15.5%, the average for all states of the country. The state’s per capita GSDP at current prices in 2009–10 was US$ 956.4, improved from US$ 553.7 in 2004–05,but lower than the national per capita GSDP of US$ 1,302. The state's total financial debt stood at 191,835 crore (US$34.91 billion) as of 2011.

The state has promoted foreign direct investment, which has mostly come in the software and electronics fields; Kolkata is becoming a major hub for the Information technology (IT) industry. Rapid industrialisation process has given rise to debate over land acquisition for industry in this agrarian state. NASSCOM–Gartner ranks West Bengal power infrastructure the best in the country. Notably, many corporate companies are now headquartered in Kolkata include ITC Limited, India Government Mint, Kolkata, Haldia Petrochemicals, Exide Industries, Hindustan Motors, Britannia Industries, Bata India, Birla Corporation, CESC Limited, Coal India Limited, Damodar Valley Corporation, PwC India, Peerless Group, United Bank of India, UCO Bank and Allahabad Bank. In 2010s, events such as adoption of "Look East" policy by the government of India, opening of the Nathu La Pass in Sikkim as a border trade-route with China and immense interest in the South East Asian countries to enter the Indian market and invest have put Kolkata in an advantageous position for development in future, particularly with likes of Myanmar, where India needs oil from military regime.