Mamata's new Bengal a mixed bag as 'paribartan' has come in bits and pieces

Icra data shows that in per capita income (at current prices), the state is behind AP, Goa, Telangana, Karnataka, Haryana, Punjab, Tamil Nadu, among others

West Bengal has not been rebuilt. Kolkata has not transformed into London. But the “Paribartan” ushered in by Mamata Banerjee in 2011 goes deeper than the trident lights that adorn every nook and corner of the city.

The poll bugle has been sounded and parties are getting battle ready for an eight-phase election in West Bengal. Banerjee, who is seeking a third term, is banking on her welfare schemes and “development” work, aside of the “insider-outsider” plank, to do a hat-trick.

It is widely known that the agitation over land acquisition catapulted Banerjee to the seat of power in Bengal. But that apart, she had also promised a new Bengal; the Trinamool Congress manifesto of 2011 had read: the task before the new government is to “rebuild West Bengal” to compete with the best and fulfill the aspirations of the people. At the end of 10 years, Banerjee’s achievements are a mixed bag.

On the industry front, the government’s success largely rests on the growth of micro, small and medium enterprises (MSMEs).

According to the annual report of the Union ministry of MSMEs for 2019-20, West Bengal has one of the largest number of units after Uttar Pradesh at 8.86 million units, accounting for 14 per cent of the total number of MSME units (UP had 8.99 million units, accounting for 14.20 per cent). Employment in the Bengal units was at 13.55 million.

In 2012-13, the number of units in West Bengal had stood at 3.66 million and employment at 8.57 million. Though it had still ranked second, the gap with UP has narrowed since.

Credit flow to the sector has increased; it was around Rs 16,000 crore in the earlier regime and State Level Bankers Committee (SLBC) disbursement target for the fiscal was Rs 90,000 crore.

However, Abhirup Sarkar, former professor of economics at the Indian Statistical Institute (ISI) pointed out that the government focused on MSMEs, but big industries have not come.

“The average income compared to the rest of India, therefore, hasn’t increased much. Southern states are ahead in industry and therefore their per capita income is higher,” he added.

TMC’s report card 2011-2020, released ahead of the elections, mentions that the average per person income has more than doubled from Rs 51,543 in 2010 to Rs 1,09,491 in 2019. While that has happened, in a relative world, it lags behind many other states.

Data collated by ICRA shows that in per capita income (at current prices), West Bengal is behind states like Andhra Pradesh, Goa, Telengana, Haryana, Karnataka, Punjab, Tamil Nadu, among others.

Similarly, the number of factories in West Bengal has increased from 8,232 in 2010 to 9,534 in 2017-2018, under the current regime, but it dwarfs in comparison with some other major states who were much ahead even in 2010-2011, as per RBI data on states.

But there is an improvement in the overall macro picture. The unemployment rate in the state at 5.2 per cent in January 2021, is lower than India’s at 6.53 per cent, CMIE data show.

“It’s not that things have not improved under the current regime. One good thing is that there is no disruption by trade union workers, but West Bengal needs more investment,” a businessman said.

That’s a recurring allegation against the government from Opposition parties as well.

Data from the Department for Promotion of Industry and Internal Trade (DPIT) suggest that there has been some growth; in 2018, 62 IEMs were filed with a proposed investment of Rs 4,722 crore; in 2019, 48 IEMs were filed with a proposed investment of Rs 5,844 crore and up to December 2020, 27 IEMs were filed with a proposed investment of Rs 9,552 crore.

The proposed investment for Karnataka up to December 2020, was at Rs 1,62,492 crore, Gujarat at Rs 46,141 crore and Maharashtra at Rs 44,188 crore up (Tamil Nadu was lower at Rs 6,807 crore).

“A comparison of IEMs filed and implemented shows that West Bengal is behind many major states,” a bureaucrat pointed out.

The state government, however, has a different set of numbers to rely on, which are proposals bagged at its investor summits, the Bengal Global Business Summit (BGBS).

According to government estimates, the last five editions translated into investment proposals of around Rs 12.32 trillion over five editions and 40-50 per cent were under implementation.

The 200-acre proposed IT hub called the Bengal Silicon Valley, has created some excitement with a bunch of companies taking up space; TCS has taken up 20 acres to build a second campus (it employs around 45,000 at locations in the state), Reliance Jio has taken up 40 acres for a development centre and Airtel for a data centre.

Land allotment for Wipro’s second centre has been approved by the Cabinet and a long-awaited development centre by Infosys was announced in 2018. The state has also identified the logistics vertical has a growth potential and Flipkart is setting up its first integrated logistics hub in West Bengal.

But even as many of these are work-in-progress, state’s tax collection has grown; it was at Rs 21,128.74 crore in 2010-2011 is estimated to increase to Rs 75,416 crore in 2021-22. “This is due to better administration and e-governance,” explained Sarkar.

The government also laid emphasis on agriculture; the budget estimate for agriculture and allied services sector under state development scheme increased 9.5 times under the tenure of the government. The result: production of food grains has increased 25.03 per cent from 2010-2011 to 2017-18; between 2010-2011 to 2019-2020, the area has increased 309 per cent and yield rate 70 per cent, according to the government’s economic review.

Some other numbers also look favourable. West Bengal was always burdened with debt, but the debt to GSDP ratio, which was 40.65 in 2010-11 has been estimated to reduce to 34.81 per cent in 2021-22; debt was at Rs 187,387. 40 crore in 2010-2011 and is estimated to increase to Rs 525867.79 crore (BE) in FY2022.

And despite the twin challenges of cyclone Amphan and Covid, West Bengal has projected a 1.2 per cent growth (estimates as on January 31, 2020) in GSDP at constant prices as per advance estimates in 2020-2021.

But perhaps, Banerjee’s trump card is the various social and welfare schemes that she has implemented over the years and focus on basics like roads, drinking water and electricity.

A massive outreach programme – Duare Sarkar –was launched ahead of the elections to deliver 12 welfare schemes including Khadya Sathi (food security), Kanyashree (financial assistance to girls for pursuing higher education), Krishak Bondhu (for farmers and sharecroppers) and the star attraction Swasthya Sathi (the universal health scheme) at the doorstep.

“There is some scheme or the other for everyone and that has been a major focus for this government,” a state government official pointed out.

Focus has also been laid on education and building health infrastructure. “An unprecedented number of schools and colleges have been built, but the question is, has the quality of education improved,” asked political commentator, Sabyasachi Basu Ray Chaudhury.

Clearly, there is scope for Paribartan to go further and deeper.

Then and Now

GSDP

2010-2011: Rs 4.60 trillion (base year 2004-2005)

2021-2022: Rs 15.10 trillion (base year 2011-12)

Own tax revenue

2010-2011: Rs 21,128.74 crore

2021-2022: Rs 75,416 crore

Debt-GSDP ratio

2010-2011: 40.65

2021-2022: 34.82

Fiscal Deficit-GSDP ratio

2010-2011: 4.24

2021-2022: 2.94

Total budget allocation

2010-2011: Rs 84,803 crore

2021-2022: Rs 2,99,688 crore

State development allocation

2010-2011: Rs 19,059 crore

2021-2022: Rs 1,14,898 crore

Capital outlay

2010-2011: Rs 2,226 crore

2021-2022: Rs 31,180 crore