Archive · 31 Dec 2025
West Bengal's Economic Decline from 3rd Richest State
West Bengal was once the 3rd richest state in India, with people earning more than the national average.
Over time, things changed.
In the 1960s, the state was very rich and had many big industries.
But then, workers started protesting a lot, and businesses left because they felt unwelcome.
The state didn't change with the times, and other states like Karnataka and Andhra Pradesh grew richer.
In 2008, a big company wanted to build a factory in West Bengal, but protests made them leave.
Now, West Bengal is the 24th richest state, and people earn less than the average Indian.
This happened because of many decisions over the years that didn't support businesses.
West Bengal was the 3rd richest state in India in 1960, with a relative per capita income of 127.5%.
The state's economic decline began in the late 1960s due to militant unionism and capital flight.
By 1980-81, the relative income had dropped to 96.9%, making the average Bengal resident poorer than the average Indian.
The state failed to attract investment after the 1991 economic liberalization, remaining stuck in a low-growth agrarian economy.
The 2008 Singur agitation led to the relocation of Tata's Nano plant to Gujarat, further damaging the state's industrial prospects.
- Who
- West Bengal, a state in India
- What
- Economic decline from being the 3rd richest state to the 24th rank
- When
- Over the past 60 years, with significant events in the 1960s, 1980s, 2008, and 2024
- Where
- West Bengal, India
- Why
- Due to militant unionism, ideological resistance to capital, and political decisions that deterred industrial investment
- Rank in 1960
- 3rd
- Rank in 2024
- 24th
- Relative per capita income in 1960-61
- 127.5%
- Relative per capita income in 1980-81
- 96.9%
- Relative per capita income in 2024
- 83.7%
- Year of Tata Nano plant controversy
- 2008
- Source of economic data
- Economic Advisory Council to the Prime Minister (EAC-PM)