Haryana Overtakes Punjab in GDP, West Bengal’s Decades-Long Economic Decline

A working paper by the Economic Advisory Council to the Prime Minister (EAC-PM), authored by EAC-PM member Sanjeev Sanyal, highlights the relative economic performance of Indian states from 1960-61 to 2023-24. Titled “Relative Economic Performance of Indian States: 1960-61 to 2023-24,” the paper reveals that West Bengal, once holding the third-largest share of the national GDP at 10.5% in 1960-61, has seen a consistent decline, now accounting for only 5.6% of India’s GDP in 2023-24. The report notes that maritime states have generally outperformed others, with the exception of West Bengal.

Performance of West Bengal

West Bengal’s per capita income was 127.5% of the national average in 1960-61 but has declined to 83.7% in 2023-24, lagging behind traditionally weaker states like Rajasthan and Odisha. The state, which was once one of India’s three largest industrial clusters, has seen continuous economic decline.

Southern and Western States Lead Post-Liberalization

The paper highlights that southern states—Karnataka, Andhra Pradesh, Telangana, Kerala, and Tamil Nadu—have collectively contributed to 30% of India’s GDP by 2023-24, especially post-economic liberalization in 1991. These states, along with Delhi and Haryana in the north, have seen a significant rise in per capita income, surpassing the national average.

Regional Economic Divergence

The study underscores the steady performance of Maharashtra, the divergence of West Bengal’s economic fortunes, and the rebound of Tamil Nadu post-1991. While Bihar’s relative position has stabilized in recent decades, it remains far behind other states in economic growth.