For decades, the economic trajectory of West Bengal has been discussed through the prism of industrial decline. Once among India’s foremost manufacturing and trading centres — with its engineering industries, jute mills, port economy, and commercial networks — the state gradually ceded ground to western and southern states such as Gujarat, Maharashtra, and Tamil Nadu.
The long shadow of industrial decline in Bengal
Over the past decade and a half, West Bengal’s share in India’s organised manufacturing has remained modest and, in relative terms, has lagged behind the rapid expansion witnessed in leading industrial states such as Gujarat, Maharashtra, and Tamil Nadu. The western and southern states strengthened their position as India’s principal industrial hub through export-oriented manufacturing, port-led development, and stronger infrastructure ecosystems.The evidence becomes even more striking when one examines the trend in Gross Value Added (GVA) relative to fixed capital in organised manufacturing. Figure 2 reveals that West Bengal’s GVA-to-fixed-capital ratio has remained significantly below that of leading industrial states and has generally weakened over time. This suggests lower capital productivity and slower value creation relative to competing manufacturing centres, highlighting the need for a renewed industrial strategy.Figure 1. Share in total industrial output (% share)
