Sobhan Dasgupta calls for Bengal to catch up with Bihar, Odisha and Assam through regional cooperation in power, tea and knowledge economy
West Bengal needs to catch up with Bihar, Odisha and Assam and adopt a more coordinated approach to economic development across Eastern India, Sobhan Dasgupta said, highlighting the region’s collective strengths in sectors such as tea, power and the knowledge economy.
Speaking at an investment and business conference, Dasgupta said Bengal had lost its position on India’s development and economic map over the past five decades and needed to rebuild its economic standing by looking beyond the state and leveraging its geographical and sectoral advantages.
Bengal’s Decline
For 50 years, Bengal somehow disappeared from the development and economic map of India, Dasgupta said, recalling the state’s industrial legacy and its earlier position among the leading economic centres of the country.
He said Kolkata and Mumbai were once pioneers of India’s industrial progress, while Bengal had at one point overshadowed other states in Eastern India. However, according to Dasgupta, the state subsequently lost its way, with its reputation and economic position suffering over several decades.
Dasgupta attributed the decline to a combination of factors, including the flight of capital amid political turbulence in the 1960s, subsequent political unrest and successive governments that, in his view, did not prioritise economic development and instead placed greater emphasis on welfare.
He said Bengal had consequently moved from being a leader in terms of GDP to a laggard and argued that the state now needed to put the past behind it.
Catching Up
I would say Bengal needs to catch up to Bihar. Bengal needs to catch up to Odisha. Bengal needs to catch up to Assam, he said, describing the need to recognise the changing economic landscape in the region.
According to Dasgupta, Bengal’s geographical position can play a key role in this effort. He said the state has a locational advantage as a gateway to Assam and the Northeast, which could allow it to benefit from stronger economic linkages with neighbouring states and regions.
He called for a broader approach that looks at Eastern India as a composite economic region rather than treating individual states in isolation.
Regional Advantage
Dasgupta said the states of Eastern and Northeastern India have individual areas of strength that could be brought together as part of a wider economic strategy.
He said Bengal’s location gives it an advantage in connecting with Assam and the Northeast, while neighbouring states can contribute through their own sectoral capabilities.
The approach, he said, should focus on building economic linkages rather than viewing Bengal, Assam or other states in isolation.
Tea Cooperation
Dasgupta used the tea industry to illustrate the potential for such coordination. He said Bengal’s tea sector should not be considered only through Darjeeling and the Dooars, but alongside Assam.
He pointed to declining global demand for tea and said the changing market environment made a more coordinated approach necessary.
It's time we need a more coordinated approach, not merely seeing Bengal in isolation, not merely seeing Assam in isolation, he said, arguing for a composite approach to the economies of Eastern India.
Power Potential
The same approach, he said, could be applied to the power sector. Dasgupta acknowledged that Bengal faces geographical and other limitations in expanding solar energy and said states such as Rajasthan, Madhya Pradesh and Gujarat have stronger capabilities in the segment.
However, he said Eastern and Northeastern India have complementary strengths that could be leveraged through greater regional cooperation.
He pointed to hydro power resources in the Northeast, including resources connected to Bhutan, Nepal and Assam, while highlighting thermal power potential in Jharkhand and Odisha.
So, a coordinated approach is very much called for, Dasgupta said, arguing that each state has its own core competence that could contribute to a broader regional economic strategy.
Knowledge Economy
Beyond industry and energy, Dasgupta identified education and the knowledge economy as areas where Bengal could rebuild its economic position.
Education had once been one of the factors that distinguished Bengal, he said, although the state had lost some of that advantage. With the knowledge economy becoming increasingly important, he argued that Bengal remains well suited to rebuild its position by leveraging its capabilities in the sector.
Corporate Ambition
Dasgupta said Bengal should also aim to change its role in the corporate landscape, moving beyond being primarily a location for branch offices of companies and working towards becoming a destination for corporate headquarters.
The broader argument in his speech was that Bengal’s economic revival would require both an internal reassessment of its strengths and closer cooperation with neighbouring states.
By positioning Bengal as a gateway to the Northeast and combining the complementary capabilities of Eastern and Northeastern states, Dasgupta said the region could pursue a more integrated approach to economic development.
For Bengal, the challenge, he suggested, is not only to reclaim its earlier economic legacy but also to identify new opportunities through regional cooperation, energy linkages and the knowledge economy.
Kalyan Shobhana
BW Reporters The author is a Trainee Correspondent at BW Businessworld.