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Dear Comrades, CPI-M is the reason for poor economy of West Bengal. It cannot be the solution.



Ever since the results of West Bengal Assembly Elections, 2021 came out, I have come across multiple CPI-M supporters who have expressed their anger and sorrow over CPI-M’s golden duck and how they feel that the state doesn’t deserve jobs, industries etc. Barring them, nobody is in denial of the fact that 34 years of Left rule was a curse for Bengal. Hence, I decided to burst their mythical bubble by putting forth these following 7 points:-


1. GDP: In 1980-81, WB accounted for 7.2% of the country’s GDP. 10 years later, it dropped to 6.1% and stood at 5.95% by the end of 2011-12. The per capita income which was 1.02 times the all India average in 1980–81 went down to 0.96 times in 2000-2001 and it went down to 0.90 times by the end of 2011-12

2. Labour militancy endorsed by the State: The value of industrial output as a share of the total industrial output in India declined from 9.8% in 1980-81 to 5% in 1997. The share of manufacturing sector in the state economy declined from 21% in 1980-81 to 13% in 2000-01 and further down to 9.11% in 2008-09, while during the same time (2008-09) the manufacturing sector contributed 15.45% to the GDP of India.

3. Bank deposits: Bank deposits in the state accounted for 11.4% of Pan-India deposits and this fell to 7.3% by March 2000, which further saw a backward fall and eventually, the share of bank deposits came below the 7% mark (6.3% in the year 2012-13). Decline of Bank deposits is an indicator for the relative decline in wealth.

4. Bank credit: Bank credit in West Bengal accounted for 10.3% of total bank credit in the country in 1980. By 2000-01, its share had fallen to 5.9%, an indication of the lack of opportunities for funding businesses in the state.

5. Letter of Intent: Letters of intent issued for setting up industries went down from 41 in 1977 to 28 in 1991, while for Tamil Nadu over the same period they increased from 22 to 68.

6. Infrastructure development: In 1980-81, West Bengal’s index was 110.6, implying infrastructure in the state was 10.6% better than the India average. By 1996-97, it was down to 90.8. In contrast Orissa, whose relative index was 81.5 in 1980-81, had improved it to 98.9 in 1996-97. (source: State level performance under Economic Reforms in India — author Montek Singh Ahluwalia).

7. Social improvement: West Bengal’s ranked among the states was eighth in 1981 and the same in 2001. Over the same period, just to compare. Tamil Nadu improved its rank from seventh to third. (source: Planning Commission’s Human Development Report (HDR), 2001). At least they didn’t mess this up.


These 7 points are a certification to the horrible economic handling of the state under the Left rule.





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References:

  1. Live Mint

  2. RBI Statistics

  3. State level performance under Economic Reforms in India — author Montek Singh Ahluwalia

  4. Planning Commission’s Human Development Report (HDR), 2001

  5. The Wire

  6. Business Standard

  7. Economic Times

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