India's east-west economic imbalance: Can a BJP-led West Bengal help tip the scales back?
India's eastern states, including West Bengal, Assam, and Bihar, have seen a significant decline in their share of the country's GDP and per capita income relative to the national average since 1960-61. The BJP's victory in West Bengal elections has raised hopes that a change in governance may help address the region's economic imbalance.
India's eastern states have lagged behind the rest of the country, particularly western states like Gujarat and Maharashtra, in economic development. West Bengal's share of India's GDP declined from 10.5% in 1960-61 to 5.6% in 2023-24, with its per capita income dropping from 127.5% to 83.7% of the national average over the same period. Assam and Bihar also saw significant declines in their relative per capita income. The eastern states have been resource-rich but were held back by adverse factors, including lack of business-friendly policies, difficulty in land acquisition, and poor law-and-order. With the BJP now in power in West Bengal and part of ruling alliances in Bihar and Odisha, investors may expect improved business conditions. If the eastern states undergo a gear shift in favour of economic growth, it could help address India's economic divide.
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