Will eastern India regain its former glory?

India, it is often said, offers the 3D advantages of democracy, demography and demand to emerge as the third largest economy in the world by 2030. India's manufacturing sector, which is one of the key components of the economy, has evolved through several phases - from the initial industrialisation and the license raj to liberalisation and the current phase of global competitiveness. Today, Indian manufacturing companies in several sectors are targeting global markets and are becoming formidable global competitors. Many are already amongst the most competitive in their sectors. The manufacturing sector of India has the potential to reach $1 trillion by 2025. The implementation of the Goods and Services Tax (GST) will make India a common market with a GDP of $2.5 trillion along with a population of 1.32 billion people, which will be a big draw for investors.

However, the global pandemic has changed everything that one had or would have predicted or projected few months ago. Eastern India, once considered to be the manufacturing capital or hub of the country, had gone through years of stagnation and lull for more reasons than one. And unfortunately the pandemic came at a time when things started looking up.

However, one must remember that the eastern zone is blessed with the mineral and coal resources which are the vital inputs for modern industrial economy. Vast coastal line also helps in promoting international trade. There is huge potentiality for the eastern zone to regain its past glory and become a leader. For this, investment climate and the connectivity must be improved. Easement of business, taxation and land laws shall attract investors. Surplus and talented human capital must be engaged in productive activities. Right choice for eastern zone is the promotion of mineral based industries, power plants and food processing industries; that will kick-start faster growth. Along with the promotion of large industries, special package for MSME sector must be provided; that will create large employments and self-employments for the talented youths. By this, public opinion shall also support industrial development for the overall prosperity.

Mind you that developing infrastructure enhances a country's productivity, consequently making firms more competitive and boosting a region's economy. The accessibility and quality of infrastructure in a region help shape domestic firms' investment decisions and determines the region's attractiveness to foreign investors. In this context, it is pertinent to mention that West Bengal has the fourth largest economy in India with $155 billion in state output. It is the sixth biggest contributor to India's manufacturing, and fourth biggest in India's services, which provides nearly 40 million jobs. It contributes more than 20 per cent of the country's mineral production, and accounts for 10 per cent of the country's iron and steel exports. It is India's leading state in terms of power distribution, quality and availability. It is strategically located as a gateway to northeast India and south-east Asia, being served by key national highways and Asian highways; two large container and bulk handling ports at Kolkata and Haldia, two international airports, and several inland waterways. The economic potential of Eastern South Asia, comprising the Indian states of West Bengal, Bihar, Odisha, Jharkhand, the NER, Nepal, Bhutan, Bangladesh and Myanmar have natural gas reserves of 190 billion cubic metres, coal reserves of 909 million tonnes, hydroelectric potential estimated at 49,000 megawatts, oil reserves estimated at 513 million tonnes, limestone reserves of 4,933 million tonnes and a forest cover that accounts for a fourth of India's entire forest area. There is natural cycle of every phenomenon. And the recent lull might well have been part of that natural cycle. East will bounce back. It's only a matter of time.