February 03, 2026
January 24, 2026
Shri Sanjeev Sanyal, Hon’ble Member, Economic Advisory Council to Prime Minister shared insights on the geographic, demographic, investment and market fitness of the States and on the Budget 2026-27.
Member of the Economic Advisory Council to the Prime Minister, Sanjeev Sanyal, on Tuesday flagged growth disparities in some states, and said eastern India continues to lag, due to the “long-term decline” of Kolkata as an industrial hub and slower infrastructure development. Addressing members of the Calcutta Chamber of Commerce here, Sanyal said the benefits of economic reforms have been uneven in regions.
Sanual said, "There is absolute consciousness about the fact that something needs to be done about eastern India,... Begin to think Kolkata again as a growth generator...” He explained, "At least as the maths stands today, the only credible one that you can get into a high growth zone is Kolkata. It just is by some margin much bigger than any other existing economic cluster in eastern India. So reviving Kolkata, as I keep saying is critical in getting eastern India going again because as Kolkata generates growth, it will not just generate growth for West Bengal..."
Shri Sanjeev Sanyal advocated for focused modernization and the establishment of high-growth, advanced, and modern industrial complexes in Kolkata and its catchment areas to spur high-growth economic development in West Bengal and the eastern states of India. He stated that such development in Kolkata would create a ripple effect, contributing to the growth of neighboring states including Odisha, Bihar, Jharkhand, Sikkim, and the North Eastern states. It will create more employment opportunities in West Bengal
Sanyal noted that West Bengal was the third-highest contributor to India's GDP, at 10.5%, in 1960-61. However, he pointed out that West Bengal's GDP contribution has been steadily declining since the mid-1960s. Sanyal emphasized that high-growth urban clusters are key to economic progress. He also highlighted India's economy shifting from an agricultural base to one driven by manufacturing and services.
He called for reforms in municipal management, including the effective implementation of the Swachh Bharat program, as well as the introduction of high-technology-based transformations to convert municipal waste into wealth, such as through energy generation like bio-gas. He stressed that each state must capitalize on its available resources and utilize them for economic development. Every state needs to focus on targeted industrial growth, he added, noting that the future of any state's economic development will depend on its ability to fast-track industrial progress with an emphasis on manufacturing industries.