Beyond the FYP
The Unravelling of West Bengal’s Economic Decline
Economy & Global Systems English

The Unravelling of West Bengal’s Economic Decline

TL;DR

Hope builds at the end of prolonged deprivation. The economic decline of yesteryear India’s industrial powerhouse, West Bengal, explains why everyone has high hopes from the new government. But, what caused the decline?

19 May 2026
Table of Contents
Introductory Memo Analytical View News at Glance By The Numbers Academic Insight Social Media Pulse On Our Reading List
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Introductory Memo

Once upon a time, West Bengal was a benchmark and not a cautionary tale. Post-independence, many Indian states were economically struggling. However, West Bengal held the third-largest share of India's national GDP at approximately 10.5% in the 1960s. Its per capita income was at 127.5% of India’s national average. Mumbai is the country’s commercial nerve centre now. Back then, it was Kolkata. The Port of Kolkata, India’s oldest port, handled more container traffic than Mumbai. West Bengal was India’s industrial powerhouse. Over the years, sadly, the story took a very different turn.

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