Rising inequality in economic development among Indian states

The inequality in economic development among Indian states is a striking feature in the country's economic history.

- Kishore Kumar Biswas

Such disparities are not unique to India; they are often inherent in the development process itself. Across the world, uneven regional development is a common phenomenon, as observed in countries like the UK, the USA, and China. In India, this regional disparity has been evident since independence. Some states have surged ahead economically, while others have lagged behind or remained stagnant.

Economic disparities at the time of independence

One of the most notable early examples of regional economic strength was West Bengal. In 1947, the state accounted for around 27% of India's gross industrial output. While Maharashtra was dominant in cotton textiles, West Bengal led in jute textiles. Most of India's pharmaceutical industries were concentrated in Greater Calcutta. The state also boasted a robust engineering and metalworking sector. Howrah, in particular, earned the nickname "the Sheffield of India" due to its engineering prowess during World War II.

At that time, West Bengal had the highest per capita income, Calcutta was India's largest port, and the state was well-equipped with raw materials like coal and steel, skilled manpower, and communication infrastructure. Only Maharashtra (including present-day Gujarat) slightly outpaced West Bengal in terms of industrial GDP.