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T BENG S A E L W The Core Committee The composition of the Core Committee for preparation of West Bengal State Development Report is as follows: 1 Shri Anwarul Hoda, Member Planning Commission, Government of India Chairman 2 Smt. Jaya Das Gupta, Principal Secretary, Development & Planning Department, Government of West Bengal Member 3 Dr. B.P. Syam Roy, Special Officer and Ex-Officio Special Secretary, Development and Planning Department, Government of West Bengal Member 4 Shri Harish Chandra, Adviser Planning Commission, Government of India Member-Secretary mik/;{k ;kstuk vk;ksx Hkkjr DEPUTY CHAIRMAN PLANNING COMMISSION INDIA ,e. ,l. vkgyqokfy;k MONTEK SINGH AHLUWALIA FOREWORD India has grown at a rate of over 9 per cent for the last three years. Yet, behind this single macro indicator of growth, lie huge inter-state variations in growth rates. This underscores the importance of the fact that economic circumstances and performance of the individual states, is varied, and thus it is necessary to examine development challenges of states in a framework of state specific constraints and resources. One of the important Tenth Plan initiatives of the Planning Commission was to sponsor the preparation of the State Development Reports. To ensure quality, the work was given to National Level Institues of repute. These State Development Reports were to serve as well researched, analysed and credible documents to help chart out the developmental agenda for faster economic growth of states. The West Bengal State Development Report reviews West Bengal's experience and highlights issues critical for the State's development in the years ahead. I hope its publication will stimulate debate on growth strategies appropriate for West Bengal. I am sure the road map indicated in the Report will provide useful information on the critical policy issues facing the State and policy options available to shift to a higher growth path and achieve all round human and economic development. (Montek Singh Ahluwalia) ;kstuk Hkou] laln ekxZ] ubZ fnYyh & 110001 nwjHkki % 23096677] 23096688 QSDl % 23096699 Yojana Bhawan, Parliament Street, New Delhi : 110001 Phones: 23096677, 23096688 Fax : 23096699 E-mail : [email protected] 8 WEST BENGAL DEVELOPMENT REPORT Writers’ Buildings, Kolkata-700 001 West Bengal, India E-Mail : [email protected] : [email protected] CHIEF MINISTER Fax : 0091-033-22145480 WEST BENGAL Tel : 0091-033-22145533 MESSAGE State Development Report is an expression and a description of the status of economic scenario of the State. It is also a benchmark of the sectoral development status on the given date. It gives us enough factual data and analysis of the transformation of the state economy—both inter-sectoral as well as intra-sectoral. It also enjoins us to reintrospect and revisit the priorities of the State economy and the way forward to improve delivery of services. I am glad that Institute of Development Studies, Kolkata has prepared the West Bengal State Development Report 2008 objectively and professionally, based on validated data available in the public domain—both Central and the State and highlighted the strength and weakness of the State economy. The State Government intends to internalise the findings of the State Development Report in its work programmes and address the relative deficit areas through appropriate interventions for ensuring faster and inclusive growth of our economy. I thank the Planning Commission of India for commissioning this State Development Report through the Institute of Development Studies Kolkata, an Institution of excellence in the State of West Bengal. (Buddhadeb Bhattacharjee) YOJANA BHAVAN ANWARUL HODA PARLIAMENT STREET Member New Delhi - 110 001 Planning Commission Tel. : 23096756(O) Government of India 23096774(Fax) E-mail : [email protected] MESSAGE In keeping with the Central Plan Scheme of the "50 Year Initiative for Planning", the Planning Commission has been getting the State Development Report (SDR) prepared for each state. These SDRs aim to compile quality reference documents on the profile and strategy for accelerating the pace of development in the respective states. The Reports will be of immense help to both Central and State authorities and agencies engaged in steering the plan process of the State on a higher and equitable growth path. The State Development Report (SDR), West Bengal presents a comprehensive and scholarly analysis of the major issues faced by the State's economy. It provides a road map for accelerated growth in the medium and long term. It offers a basis for West Bengal to strive to attain high levels of prosperity and human development. I would like to place on record Planning Commission's appreciation to all those who have worked hard in preparing the report, especially the Institute of Development Studies, Kolkata. The effort made by the Institute in coordinating and preparing the final report deserves to be specially noted. In particular I would like to commend the contributions of Prof. Amiya Kumar Bagchi and Prof. Debdas Banerjee from the Institute in bringing out this valuable document. 12 WEST BENGAL DEVELOPMENT REPORT I am thankful to the Government of West Bengal for rendering full cooperation and support to the partner agency involved in preparation of the report. The work done by the State Plan Adviser Shri Harish Chandra in liaising with State Government and partner agency is noteworthy. I would also like to place on record the active participation of the officers of the State Plan Division, particularly Dr. Sharad Pant, Deputy Adviser, Shri S. Talukdar, Economic Officer and Ms. Kuhumita Bhattacharya, Consultant. (Anwarul Hoda) T BENG S A E L W Preface The State Development Report has been prepared by the Development and Planning Department, Government of faculty of the Institute of Development Studies Kolkata West Bengal in entrusting us with the task of preparing (IDSK) with the assistance of some external collaborators the State Development Report. Comments made by and by utilising the background papers that were made participants in a workshop held in November 2007 on the available to the IDSK in 2007 for preparing the Report. first draft of the Report, especially those offered by Dr. The list of the background papers and their authors has Asim Dasgupta, Finance Minister, Government of West been attached separately. The basic part of the work for Bengal, Dr. Anwarul Hoda, member, Planning this Report was carried out by Professor Debdas Banerjee, Commission, Government of India and Professor Dr. Subrata Mukherjee and Dr. Panchanan Das of the Nikhilesh Bhattacharya, member, State Planning Board, IDSK with separate chapters on employment, unorganised Government of West Bengal were particularly helpful in sector, environment, public finance and urbanisation preparing the final report. I would also like to thank contributed by our external collaborators, Professors Professor Subimal Sen, Vice-Chairman, West Bengal State Shankar Kumar Bhaumik, Ishita Mukhopadhyay, Ashis Council of Higher Education for critical help in obtaining Ghosh, Jayanta Acharya and Smt. Nandita Sen data for the chapter on education. Chakraborty. We are indebted particularly to the external We also acknowledge the constant help of Dr. B.P. collaborators for their help. Some portions of the Syam Roy, Special Officer and Ex-Officio Special Secretary, Background Papers listed separately have been used for Department of Development and Planning, Government of the report. We are also thankful to all the staff of the West Bengal and Ms. Jaya Dasgupta, Principal Secretary, IDSK, especially to Smt. Sanchari Guha, for their Department of Development and Planning, Government of unstinting help in preparing this report. West Bengal. None of the persons mentioned above are We acknowledge the initiatives taken by the Planning responsible for any errors remaining in the Report. Commission, Government of India and by the Amiya Kumar Bagchi Director Institute of Development Studies Kolkata T BENG S A E L W Contents The Core Committee. 5 Foreword by Deputy Chairman, Planning Commission. 7 Message from Chief Minister, West Bengal. 9 Message from Member, Planning Commission. 11 Preface . 13 List of Tables, Figures and Appendices.. 19 Introduction . 25 1. Growth and Structural Changes.. 31 Introduction Structural Break in Output Growth Growth Performance of West Bengal Changes in Sectoral Composition of Income and Employment Informalisation and Casualisation of Labour Concluding Remarks References 2. Agriculture. 39 Introduction Changes in Cropping Pattern Agricultural Growth in West Bengal Compared to Other States in India Growth of Production, Yield and Acreage of Major Crops in West Bengal Input Use Pattern Distribution of Land Holdings Incidence of Indebtedness Concluding Remarks References 3. Industry. 63 Introduction Industrial Policies of the Government of West Bengal Value Added, Employment and Number of Factories: Share of West Bengal to All India Level Industrial Structure Characteristics of Manufacturing Industries in the Registered Sector 16 WEST BENGAL DEVELOPMENT REPORT Output and Employment Growth in Registered Manufacturing Sources of Employment Growth Growth Rates of Productivity and Wage in the Factory Sector Concluding Remarks References 4. The Services Sector.. 73 Unorganised Services Economy Comparative Growth Status Information Technology 5. Employment. 79 Marginalisation Status Distribution of Employed 6. Unorganised Sector. 87 Number of Enterprises Employment Gross Value
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