Economic Review West Bengal: Project Report Submitted As Part of EEP Course (Term2)

ECONOMIC REVIEW WEST BENGAL
Project Report submitted as part of EEP course (Term2)
12/16/2012
Submitted by
Group 10 Section D
Arpit Jain (12P189) Girish Chandra Joshi(12P199) umar Abhina!(12P209) "arunChopra(12P219) SantoshGarbham(12P229) "i#ash"(12P2$9)
Acknowledgement
We would like to express our gratitude to all t ose w o made it possible for us to conduct t is anal!sis" We would especiall! like to t ank Pro%& Suni' Ashra for pro#iding us wit an opportunit! to work on t is topic t ereb! elping us gain #aluable insig ts about t e econom! of West $engal% as well as for pro#iding us guidance and support wit respect to our project" We are also grateful to our college for pro#iding us wit t e infrastructure w ic ser#ed to be a useful aid and would like to t ank t e librar! staff for rendering significant cooperation towards t e same" We would also like to t ank our friends w o elped us wit suggestions and encouragement t roug out our course of anal!sis
Group 10 Section D
Page 2
Contents
1.
Growth perfor an!e Benga"############$$%
of
West
2.
Inf"at&on############$$ ############$$##$#23
3.
Se!tor'w&se !ontr&()t&on #######$$####2%
to
GS*P##$
4.
Se!tor w&se !ontr&()t&on ######$###3,
to
E p"o+ ent$
5.
*e(t s&t)at&on &n #########3-
West
Benga"#######$
.$ /&s!a" *ef&!&t ,0
7.
Con!")s&on###################$ ########,1
8.
Referen!es###################$ ########,2
Group 10 Section D
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Group 10 Section D
Page ,
ECONOMIC REVIEW O/ WEST BENGAL

Th&s report &s a !o prehens&2e st)3+ of 2ar&o)s a!roe!ono &! para eters of West Benga" state$ It ana"+4es 3ata 5)a"&tat&2e"+ an3 5)ant&tat&2e"+ s&n!e 1670s &n 2ar&o)s para eters "&8e GS*P9 &nf"at&on9 se!tor'w&se 3&str&()t&on of GS*P9 e p"o+ ent9 ana"+s&s of 2ar&o)s se!tors an3 the f&nan!&a"s of the state$
1$ Growth perfor an!e of West Benga"

1.1 Current Position:
West Benga" &s the f&fth "argest state &n ter s of GS*P as a per!entage of G*P after Maharashtra9 :ttar Pra3esh9 Ta &" Na3) an3 An3hra Pra3esh$ It &s the th&r3 "argest !ontr&()tor &n agr&!)"t)ra" se!tor of rea" G*P$ In ser2&!es se!tor a"so9 &t;s f&fth "argest !ontr&()tor to G*P$ Area w&se &t ran8s 12th$
B)t &t;s ran8e3 fo)rth &n ter s of pop)"at&on$ As a res)"t 3esp&te &ts spe!ta!)"ar !ontr&()t&on9 per !ap&ta G*P &s not h&gh$ It;s a 3ense"+ pop)"ate3 state w&th r&!h nat)ra" reso)r!es$ As a res)"t9 the pr& ar+ se!tor o)tp)t &s a"wa+s on a h&gh &n West Benga"$ A !o parat&2e ana"+s&s w&th so e a<or states &s shown &n graphs (e"ow$ The 3ata &s ta8en fro Ta("e 1$1
Real GSDP (in absolute values)

West Benga" :ttar Pra3esh Ta &" Na3) Ra<asthan Maharashtra Ma3h+a Pra3esh =era"a =arnata8a An3hra Pra3esh 0$00 3393%9-31$-0 ,290091.%$10 ,19.%9,6,$10 219%,9%3%$ -0 -09%0931 3$20 20926970-$ 70 209-,9.-1$ 60 2691.9.1,$ -0 ,097.9110$00 ,09009000$0 .0900900 0 0$00 GS*P> Rs$ &"" &on?
209009000$ 00
-09009000$ 00
Group 10 Section D
Page %
Real GSDP (% e contribution)

West Benga" :ttar Pra3esh Ta &" Na3) Ra<asthan Maharashtra Ma3h+a Pra3esh =era"a =arnata8a An3hra Pra3esh 2$0 0 ,$ 00 . $ 0 0 3$ 6 0 ,$ 0 1 %$ . 1 7$ 3 -$ 00 10 $0 0 12$ 00 1, $0 0 1.$0 0 1-$ 00 ,$1 , 1%$ ,7 .$ , 1 -$07 -$01
0$00
as a @ge of Rea" G*P
GDP per capita (real)

In3&a West Benga" :ttar Pra3esh Ta &" Na3) Ra<asthan Maharashtra Ma3h+a Pra3esh =era"a 319 ,. 279 -%0 .090 .3 2097 0,. 9% %% 37 90 70 .19% 31
709-%
=arnata8a An3hra Pra3esh 0 109 000 2090 00 30900 0 ,090 00
,-9 7-6 ,79 -,%09 .09 00 00 0 0
7090 00
-09 000
Per Cap&ta GS*P
It;s !o pare3 &n no &na" ter s &n the graphs (e"ow$
GSDP !o"inal
West Benga" Ta &" Na3) Maharashtra %,91%9%%$.0 .-97-93.2$-0 .396092,.$ 00 192,9-,9%2-$ 00
3.9-3916%$20
=era"a An3hra Pra3esh
319%39..$.0 329..96 2-$60 ,%9-69027$,0 .79%796-0$00
0.0
209009000$,09009000$.09009000$-09009000$1900900900019209009000$ 19,09009000$$00
Group 10 Section D
Page .
GSDP !o"inal
West Benga" Ta &" Na3) ,$,7 Maharashtra 3 $ 3 3$ 6 7 .$ %-$3% 7$ 7. 1%$1 .
=era"a
% $ % 7
An3hra Pra3esh 0$00 2$0 0 ,$00 .$0 0
-$2 1 -$00 10 $0 0 12$ 00 1,$ 00 1.$0 0
as a @ge of G*P
1.2 Contribution to # riculture$ %n&ustr' an& Service sectors:

The 3ata (e"ow re2ea"s that a<or !ontr&()t&on to In3&an G*P fro West Benga" !o es fro agr&!)"t)ra" se!tor$ At neAt stan3s the tert&ar+ or ser2&!es se!tor$ The an)fa!t)r&ng &n3)str+ o)tp)t &s 2er+ "ow !o pare3 to the GS*P o)tp)t of th&s state &n other se!tors$ The so)r!es for th&s &s 3ata are Ta("e 1$1 an3 Ta("e 1$2$
Percenta e Contribution to !o"inal GDP in # riculture

West Benga" :ttar Pra3esh Ta &" Na3) Ra<asthan Maharashtra Ma3h+a Pra3esh =era"a =arnata8a An3hra Pra3esh 0$00 2$0 0 6$ 13 1, $. %$-2 7$, -
6$ 3-
.$1% 3$22 %$17 10 $0 0 10$ 3% -$ 00 12$00 1,$ 00 1.$0 0
,$00
.$00
As a @ge of G*P agr&!)"t)re
Group 10 Section D
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Percenta e Contribution to !o"inal GDP in %n&u str'

West Benga" :ttar Pra3esh Ta &" Na3) , $ , ,$%6 7$ 0 0
-$ -,
Ra<asthan
Maharashtra Ma3h+a Pra3esh =era"a =arnata8a An3hra Pra3esh
1 7$ . 0
,$1. 3$2 0
%$ 7 6
-$ %. -$ 0 0 1 2$ 00 2 0$ 0 0
0$00
2$ 00
,$0 0
.$ 00
10$00
1,$0 0
1.$ 00
1-$0 0
As a @ge of G*P &n3)str+
Percenta e Contribution to !o"inal GDP in Servi ces

West Benga" :ttar Pra3esh Ta &" Na3) Ra<asthan 3$%, .$7 . 7$ 37$6 % 1 %$ , 1
Maharashtra
Ma3h+a Pra3esh =era"a =arnata8a An3hra Pra3esh 0$00 2$0 0
3$1 %
,$ % ,
%$ % 7
7$ %3 -$00 10$ 00 1 2$ 00 1, $0 0 1.$ 00 1 -$ 00
,$0 0
.$00
As a @ge of G*P ser2&!es
Sectoral Contribution to GDP

West Benga" 6$ 1 3 1,$. %$2 7$ , 6$ 3.$ 1 % 3$22 %$17 10$ 3% 10 @ 20 @ 3 0 @ ,0 @ %0@ 3$2 0 %$7 6 -$ %. .0@ 7 0 @ 17$ .0 -$ -, ,$ , 1 %$ , 1 3$ 1% ,$ %, %$%7 7$%3 -0 @ 60 @ 100 @ ,$ %6 7$ 0 0 .$7.
:ttar Pra3esh
Ta &" Na3) Ra<asthan
7$37 $ 6 % 3$ %,
Maharashtra Ma3h+a Pra3esh =era"a =arnata8a An3hra Pra3esh 0@
,$1.
GS*P agr&!)"t)re
GS*P &n3)str+
GS*P Ser2&!es
Group 10 Section D
Pag e-
1.( Gro)t* Per+or"ance in 2011,12:

The growth perfor an!e of West Benga" has o)tperfor e3 In3&a;s growth &n agr&!)"t)ra" se!tor$ The agr&!)"t)ra" se!tor saw a growth of 16$6%@ >no &na"? wh&"e In3&a;s a2erage was at aro)n3 6$,%@$ B)t &n rea" ter s9 we 3&3n;t see so )!h of growth &n th&s se!tor$ That !an (e attr&()te3 to h&gh foo3 &nf"at&on &n the !o)ntr+$ B)t st&"" as per RBI E!ono &! re2&ew for 2011'129 West Benga"9 B&har an3 Bhar8han3 reg&stere3 s&gn&f&!ant &n!rease &n +&e"39 pro3)!t&on an3 !)"t&2ate3 area$ Benga" &s the "argest pro3)!er of r&!e &n the !o)ntr+$ Tho)gh there &s spe!ta!)"ar growth &n agr&!)"t)re9 the growth &n other se!tors was (e"ow a2erage$ A "oo8 at ta("e (e"ow re2ea"s that$ The !o p"ete 3ata !an (e fo)n3 &n the anneA)re &n Ta("es 1$3 an3 1$,$ Growth &n S*P At !)rrent pr&!es C In3&a C 2011'12 C @ !hange per ann) GS *P NS* P Per !ap&ta GS*P West Benga" In3&a 1%$7 1%$0 2 1%$6 2 1%$0 . 1,9-0 139-. Per !ap&ta NS*P 1,9-. GS*P agr&!)"t )re 16$6% 6$,% GS *P &n3)st r+ 1,$. 12$0 2 GS*P ser2&!es
1%$0, 17$.
Growth &n S*P At !onstant pr&!es C In3&a C 2011'12 C @ !hange per ann) GS *P West Benga" In3&a NS* P Per !ap&ta GS*P .$%% .$,.$.. .$,%9%7 %9,3 Per !ap&ta NS*P %9.7 GS*P agr&!)"t )re 3$. 3$0% GS *P &n3)st r+ 3$71 3$3GS*P ser2&!es -$37 -$61
1.- .istoric Gro)t* Per+or"ance o+ /est 0en al:

1et*o&olo ': *ata &s a2a&"a("e w&th (ase +ears at 1670'-09 16-0'-19 1663'6, an3 200,'0%$ Con2ert&ng fro one (ase to another (ase &s not a stra&ght
etho3o"og+$ Th&s &s so (e!a)se when 3ata &s !on2erte39 the &n3&2&3)a" !o ponents wo)"3 2ar+ 3rast&!a""+ &f on"+ !o pos&te f&g)res are ta8en$ S& &"ar"+ &f &n3&2&3)a" !o ponents are !on2erte3 &n3&2&3)a""+9 the !o pos&te 2a")es !hange$ A"so9 "ong ter 3oesn;t ref"e!t the perfor an!e effe!t&2e"+$ So the etho3o"og+ fo""owe3 here &s as fo""owsC 1. Ser&es w&se a(so")te 2a")es are ta8en an3 growth rates are ana"+se3 for rea" GS*P 2. As the 2a")es of GS*P are not a2a&"a("e &n 1670 ser&es9 NS*P 2a")es are ana"+4e3
3. As the !)rrent 2a")es !an (e eas&"+ !on2erte39 the "ong ter

ana"+4e3 on the (as&s of !)rrent 2a")es of GS*P$ growth rate &s a"so ana"+se3 for "ong r)n
e2o")t&on &s
4. As growth per!entage re a&ns !onstant &rrespe!t&2e of (ases9 rea" G*P
Group 10 Section D
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10
1.-.1 Gro)t* Per+or"ance (1230 series):

The fo""ow&ng graph shows the growth rate for the 3ata a2a&"a("e &n 1670'71 ser&es for NS*P$ >Refer Ta("es 1$%?
1230,31 series !SDP

.9009000$ 00 %9009000$ 00 ,9009000$ 00 39009000$ 00 29009000$ 00 19009000$ 00 0$00 &'()* (& & ' ( & * ( 2 & ' ( 2 * ( + & ' ( + * ( ,
& ' ( , * ( & ' ( *
& ' ( . * ( (
& ' ( ( * ( / & ' ( / * ( ' & ' ( '
& ' / ) * / &
& ' / & * / 2
& ' / 2 * / +
& ' / + * / ,
& ' / , * / -
&'/-*/.&'/.* /(&'/(*//
( .
* / )
NS*P &n Rs$"a8h
NS *P
Agr&!)" t)re
In3) str+
Ser2&! es
1230,31 series !SDP

,0$0 0 30$0 0 20$0 0 10$0 0 0$00 ' 10$00 ' 20$ NS*P D'o'D Growth Agr&!)"t)re D'o'D Growth Ser2&!es D'o'D Growth NS*P D'o'D Growth In3)str+ D'o'D Growth
The growth rate of rea" NS*P &s h&gh"+ f")!t)at&ng 3)r&ng the +ear 16-0 an3 16-3$ /ro the 3ata on the net state 3o est&! pro3)!t an3&ts !o ponents9 &t wo)"3 appear that NS*P growth ratesp&!8e3 )p &n the 16-0s9 the a&n !ontr&()tor to thata!!e"erat&on (e&ng agr&!)"t)re$As po&nte3 (+ p"ann&ng !o &ss&on report of 2010 on West Benga"9 an+ ana"+sts ha2efo)n39 the "an3 refor s !arr&e3 o)t (+ the Go2ern ent of West Benga"9 !o (&ne3 w&th the operat&ona"&4at&on of thee"e!te3 Pan!ha+at& Ra< Inst&t)t&ons pro2&3e3 (othreso)r!es an3 &n!ent&2es to the s a"" an3 arg&na"peasants an3 there(+ he"pe3 ra&se the rates of agr&!)"t)ra"growth to a h&stor&! h&gh$
Group 10 Section D
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11
Regress&on ana"+s&s for NS*P a!ross three se!tors wo)"3 re2ea" how e!ono + was hea2&"+ 3r&2en (+ agr&!)"t)re &n those 3a+s an3 that a"so shows wh+ West Benga" was a a<or state 3)e to strength of &ts nat)ra" reso)r!es then$ So9 pr& ar&"+ &t !an (e seen that the state was agrar&an e!ono + 3)r&ng 1670s$
Dependent Variable: GROWTH Method: Least Squares Date: 12/1 /12 Ti!e: 1":#2 Sa!ple $ad%usted&: 1'(1 1')( *n+luded obser,ations: 1( a-ter ad%ust!ents 2rob / 4/44 44 4/44 44 4/44 44
Variable 3GR* *6D7 S0RV R1squared 3d%usted R1squared S/0/ o- re8ression Su! squared resid Lo8 li9elihood
.oe--i+ient 4/#4#244 4/2) #'4 4/2'2(14 4/''(5#1 4/''("4# 4/2'2)## 1/24454" 11/ '"5#2
Std/ 0rror 4/44)#5' 4/4215#5 4/42#12)
t1Statisti+ #(/(2(' 1"/1))) 12/1"1(#
Mean dependent ,ar S/D/ dependent ,ar 39ai9e in-o +riterion S+h:ar; +riterion Durbin1Watson stat
"/ 22"(1 /5"'(#2 4/ #4#2) 4/5)(#55 1/())'24
1.-.2 Gro)t* 0 Per+or"ance (1240,41 2%900 0 series):

The !onstant GS*P for rea" 2a")es &s ana"+4e3 &n the graphs (e"ow$ >Refer Ta("e 1$.?
20900 0 1%900 0 10900 0 %9000 0
30900
Group 10 Section D
Page 11
GS*P
12
GSDP Gro)t* 1240,41 series

30$0 0 2%$0 0 20$0 0 1%$0 0 10$0 0 %$00 0$00 '%$00 ' 10$ ' 1%$0 0 GS*P D'o'D Growth Agr&!)"t)re D'o'D growth
In3)str+ D'o'D Growth
Ser2&!es D'o'D Growth
Dependent Variable: GSD2G0 Method: Least Squares Date: 12/1 /12 Ti!e: 1(:12 Sa!ple $ad%usted&: 1')1 1''( *n+luded obser,ations: 1( a-ter ad%ust!ents 2rob / 4/44 44 4/44 44 4/44 44
Variable GSD23G0 GSD2*G0 GSD2SG0 R1squared 3d%usted R1squared S/0/ o- re8ression Su! squared resid Lo8 li9elihood
.oe--i+ient 4/2)''11 4/"14))' 4/")# 2( 4/''2))# 4/''1)5( 4/25 #)' 4/')5()# 4/4("##(
Std/ 0rror 4/44))15 4/42)("4 4/424" '
t1Statisti+ "2/))"#) 14/)24'' 1)/))((5
/"55)2" 2/'#"' 5 4/"##"44 4/#'1"") 1/5#44(
Eere &t !an (e seen that agr&!)"t)re &s pre3o &nant an3 16-1'-2 was the go"3en +ear for West Benga"$ Th&s &s tr)e ()t as 1660 approa!hes we !an see a gra3)a" sh&ft &n!rease the ser2&!es se!tor of the state$ The transportat&on ser2&!es are a a<or !ontr&()tor &n th&s state$ In the a(o2e graph we see an &nterest&ng s&t)at&on$ 5*is is sta e )*en /est 0en al ra&uall' trans+or"e& +ro" bein an a rarian state to a service sector &o"inate& state. If we "oo8 at 166.' 679 towar3s the en3 of the graph9 the state has a hea"th+ ser2&!es se!tor grow&ng at a rate of 10$,.@ whereas agr&!)"t)re se!tor was grow&ng at a 3&s a" 1$-7@$ Nonethe"ess the state;s pr& ar+ o)tp)t has ore than 3o)("e3 &n two 3e!a3es !) )"at&2e"+$
Group 10 Section D Page 12
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There eA&sts a pro("e w&th an)fa!t)r&ng se!tor$ The state has a goo3 an)fa!t)r&ng se!tor 3)r&ng 16.0s an3 &t re a&ne3 stagnant s&n!e$ It aga&n starte3 grow&ng &3 1660s$ Strong tra3e )n&on&s &n West Benga" &s often a""ege3as a a<or !a)se for &n3)str&a" s"ow3own &n the state$La(o)r &"&tan!+ rea!he3 a pea8 &n the "ate 16.0s an3!ont&n)e3 for se2era" +ears thereafter9 part&!)"ar"+ &n WestBenga"$ B)t pro(a("+ that &"&tan!+ was an eApress&on ofthe wor8ers; anger aga&nst the ass&2e "a(o)r3&sp"a!e ent$ The sharp fa"" of e p"o+ ent9 espe!&a""+ &nthe "ate 16.0s9 "e3 to a!)te "a(o)r ag&tat&ons &n WestBenga"$ So et& es str&8es were pro2o8e3 or e2eneng&neere3 (+ the anage ent of f&r s as an eA!)se for3e!"ar&ng "o!8o)ts$ When we !o pare the growth of the state w&th the !o)ntr+;s growth9 we see that the e!ono + hasn;t perfor e3 at the rate at wh&!h the !o)ntr+ &s grow&ng$ B)t post 16609 we !an see that West Benga";s growth rate has o)tperfor e3 In3&a;s growth rate$ B)t &n sp&te of a grow&ng &n3)str+9 t*e contribution to GDP b' /est 0en al *as &ecline& over t*e t)o &eca&es$
GSDP vs GDP
1,$0 0 12$0 0 10$0 0 -$00 .$00 ,$00 2$00 0$00 ' 2$00 ',$ GS*P D'o'D Growth G*P Growth Rate GS*P as @ge of G*P
Group 10 Section D
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1,
GSDP as a % e o+ GDP
-$. 0 -$, 0 -$2 0 -$0 0 7$0 7$. 0 7$, 0 7$2 0 7$0 0 .$0 1 2 3 , % . 7 1 6 0 GS*P as @ge of G*P 1 1 1 2 1 3 1 , 1 % 1 . 1 7
1.-.( Gro)t* Per+or"ance(122(,2- series):

Refer Ta("e 1$7 for 3ata$
GSDP 122(,2series
1920900 0 1900900 0 -09000 .09000 ,09000 209000 0
GS*P
GS*P Agr&!)"t)re
GS*P In3)str+
GS*P Ser2&!es
Group 10 Section D
Page 1,
1%
GSDP Gro)t* 122(,2series

20$0 0 1%$0 0 10$0 0 %$00 0$00 '%$00 ' 10$0 0 GS*P D'o'D Growth In3)str+ D'o'D Growth Agr&!)"t)re D'o'D growth Ser2&!es D'o'D Growth
Dependent Variable: GSD2G0 Method: Least Squares Date: 12/1 /12 Ti!e: 1):25 Sa!ple $ad%usted&: 2 12
*n+luded obser,ations: 11 a-ter ad%ust!ents 2rob / 4/44 44 4/44 1( 4/44 44
Variable GSD23G0 GSD2*G0 GSD2SG0 R1squared 3d%usted R1squared S/0/ o- re8ression Su! squared resid Lo8 li9elihood
.oe--i+ient 4/2)1))2 4/1)4411 4/ 2(22' 4/55'4)2 4/ )5" " 4/"#121" 4/'"1#4) 12/42'4)2
Std/ 0rror 4/422421 4/4"))1 4/42"124
t1Statisti+ 12/)44)5 #/5"((21 22/)4"((
(/455"'1 4/ "4 "4 4/'1#"() 1/422)' 2/ (1'44
The regress&on ana"+s&s a(o2e re2ea"s the fa!t that GS*P &s now pre3o &nant"+ 3epen3ent on ser2&!es se!tor$ Agr&!)"t)re se!tors !oeff an3 the other got &nter!hange3$ The an)fa!t)r&ng se!tor &s 3e!"&n&ng towar3s ear"+ 2000$ B)t there was a steep r&se &n ser2&!es se!tor perfor an!e$ The !ontr&()t&on of the ser2&!es se!tor to the WestBenga";s G*P has (een &n!reas&ng rap&3"+ 3)r&ng the post' refor per&o3$ W&th&n th&s se!tor tra3e're"ate3 a!t&2&t&esare grow&ng faster &n West Benga"$ In the !o)ntr+s&3e ofthe state9 transport're"ate3 a!t&2&t&es )n3er own a!!o)ntser2&!e enterpr&ses a!!o)nte3 for the h&ghest share$ B)t &n)r(an areas9 Fe3)!at&on; a!!o)nts for the "argest n) (erof own a!!o)nt ser2&!e enterpr&ses$
Group 10 Section D Page 1%
1.
The state o)tperfor e3 the !o)ntr+;s growth rate an3 &ts !ontr&()t&on to G*P has &n!rease3 o2er the "ast 3e!a3e$
GSDP vs GDP
6$0 0 -$0 0 7$0 0 .$0 0 %$0 0 ,$0 0 3$0 0 2$0 0 1$0 0 0$0 0
GS*P D'o'D Growth
G*P growth
GSDP as % e o+ GDP
-$. 0 -$, 0 -$2 0 -$0 0 7$0 7$. 0 7$, 0 7$2 0 7$0 0 .$0 .$. 0 1 2 3 , % . 7 GS*P as @ge of G*P 6 10 1 1 1 2
Group 10 Section D
Page 1.
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1.-.- Gro)t* Per+or"ance (200(,0- series):

In re!ent +ears9 West Benga";s an)fa!t)r&ng an3 agr&!)"t)ra" se!tor perfor an!e ha2e !o e 3own 3rast&!a""+$ B)t &ts ser2&!es se!tor st&"" p"a+s a a<or ro"e$ In fa!t th&s se!tor 3&3 we"" 3)r&ng the +ears of re!ent g"o(a" s") p a"so$ In the +ears (efore 2007'0-9 In3&a was grow&ng at a 2er+ fast pa!e$ B)t West Benga" was not a("e perfor at that pa!e$ Th&s !an (e attr&()te3 to the go2ern ent that &s there for 33 +ears &n r)"e$ As a res)"t we !an a"so see that the &ts o2era"" !ontr&()t&on to G*P has !o e 3own$ Refer Ta("e 1$-$
GSDP 200(,0Series
,900900 0 39%0900 0 3900900 0 29%0900 0 2900900 0 19%0900 0 1900900 0 %09000 0
200,'0% 200%'0. 200.'07 2007'0- 200-'06 2006'10 2010'11 2011'12 GS*P GS*P GS*P GS*P Agr&!)"t)re In3)str+ Ser2&!es
GSDP Gro)t* 200(,0Series

12$0 0 10$0 0 -$00 .$00 ,$00 2$00 0$00 ' 2$00 ' ,$00 200,' 0% 200%'0. 200.' 07 GS*P D'o'D Growth In3)str+ D'o'D Growth 2007'0- 200-'06 2006'10 Agr&!)"t)re D'o'D Growth Ser2&!es D'o'D growth 201 0'11
Dependent Variable: GSD2G0 Method: Least Squares Date: 12/1 /12 Ti!e: 1':1' Sa!ple $ad%usted&: 2 ) *n+luded obser,ations: ( a-ter ad%ust!ents
Group 10 Section D
Page 17

Variable GSD23G0 GSD2*G0 GSD2SG0 R1squared 3d%usted R1squared S/0/ o- re8ression Su! squared resid Lo8 li9elihood .oe--i+ient 4/24"12 4/21('"1 4/ (#"2) 4/')1"14 4/'(1'5 4/1)51(1 4/1")5") "/('"(24 Std/ 0rror 4/4"4212 4/4251(( 4/41"2 "
12rob/
t1Statisti+
5/(2"2( )/"2 "'2 #"/""#"
4/44 2 4/44 11 4/44 44
5/'"(5"' 1/111)'2 14/225((( 14/2#'' ) 4/#2)#)1 G*P
GSDP 200(,0Series Group

12$0 0 10$0 0 -$00 .$00 ,$00 2$00 0$00 200,'0% 200%'0. 200.'07 2007'0GS*P D'o'D Growth
10 Section D
Page 1-
GSDP as a % e o+ GDP
7$20 7$00 .$-0 .$.0 .$,0 .$20 .$00 200,'0% 200%'0. 200.' 07 2007'0- 200-'06 2006'10 2010'11 2011' 12 G S *P as @ ge of

1.-.6 Gro)t* Per+or"ance 7on
16
5er":
In WestBenga"9 the o2era"" e!ono &! growth rate & pro2e3 &n the16-0s9 an3 a!!e"erate3 f)rther &n the 1660s !o pare3 tothe perfor an!e &n the 1670s$ The rate of growth of thestate e!ono + after the 16-0s >1661'200.? ha3 (eennear"+ 3o)("e the rate pre2a&"e3 &n the 1670s$ *)r&ng "ate 1670s an3 ear"+ 16-0s West Benga" rate of growth rates were rap&3 tho)gh the+ were &n a!!or3an!e w&th !o)ntr+;s growth rate$ The rap&3&t+ shows greater !ontr&()t&on to G*P an3 hea2+ 3epen3en!e on pr& ar+ se!tor$ Th&s ta("e shows how WB growth rate has 2ar&e3 on a !o po)n3e3 on %'+ear"+ (as&s$ It shows West Benga" was 3o&ng we"" &n 3)r&ng per&o3s 1670'7%9 16-0'-%9 1660' 2000 an3 aga&n 200%'2012$ Refer Ta("e 1$6 CAGR 1670'167% 167%'16-0 16-0'16-% 16-%'1660 1660'166% 166%'2000 2000'200% 200%'2010 2010'2012 GS*P WB 3$1, 2$,% ,$03 3$-2 %$03 .$6. %$.6 7$13 .$-6 G* P 2$-2 2$-. 3$7% ,$37 ,$31 ,$%, %$., .$%1 ,$6
The e!ono + perfor e3 at a )!h (etter pa!e 3)r&ng ear"+ 1660s$ Of "ate &t !an (e seen that the e!ono + was s"ower that In3&a;s growth pa!e 3)r&ng 200,'0per&o3$
Group 10 Section D
Page 16
20
GDP vs GSDP /0
1,$0 0 12$0 0 10$0 0 -$00 .$00 ,$00 2$00 0$00 ' 2$00 ',$ ' .$00 ' -$00
G*P growth rate
WB GS*P growth
West Benga" perfor e3 (etter &n agr&!)"t)re s&n!e theear"+ 16-0s$ A!!or3&ng to a p"ann&ng !o &ss&on report9 the state starte3 to "ose &ts pro &nen!e &n an)fa!t)r&ng growth s&n!e the &3'16.0s$ B)t &t !an (e seen that the rate of an)fa!t)r&ng growth &n!rease3 after the &3'1660s$
In WestBenga"9 the o2era"" e!ono &! growth rate & pro2e3 &n the16-0s9 an3 a!!e"erate3 f)rther &n the 1660s !o pare3 tothe perfor an!e &n the 1670s$ The rate of growth of thestate e!ono + after the 16-0s >1661'200.? ha3 (eennear"+ 3o)("e the rate pre2a&"e3 &n the 1670s$ It went )p fro 3@ to a" ost .@$ The graph (e"ow shows how se!tor'w&se !ontr&()t&on to GS*P 2ar&e3 o2er t& e$ It &s !"ear that agr&!)"t)re se!tor pro &nen!e has 3e!"&ne3$ Eowe2er9 &t;s 3&shearten&ng that an)fa!t)r&ng se!tor &s a"so now hea"th+ g&2en &ts nat)ra" reso)r!es$ The a<or !ontr&()tor &s Ser2&!es se!tor !"ear"+$ Agr&!)"t)re &n West Benga" ar8e3 the en3 ofF& passe; &n the 16-0s$
Man)fa!t)r&ng &n West Benga"grew at aro)n3 the rates of 2 per !ent an3 3 per !ent9respe!t&2e"+ 3)r&ng the 1670s an3 16-0s an3 the rate& pro2e3 to .$. per !ent 3)r&ng 1661'200.$ The growthperfor an!e of th&s se!tor t)rne3 (etter after the &3'16-0s !o pare3 to the per&o3 of state !ontro"$ In3)str&a" growth &n West Benga"9 as &n other!onst&t)ent states &n In3&a9 has "arge"+ (een 3eter &ne3 (+the stan!e of e!ono &! po"&!+ a3opte3 (+ the Centra"go2ern ent9 the a""o!at&on of !entra" p)("&! &n2est ent &n&n3)str+ an3 &nfrastr)!t)re9 the a""o!at&on of !re3&t (+(an8s an3 ter "en3&ng &nst&t)t&ons )n3er the !ontro" ofthe Centra" go2ern ent an3 the genera" att&t)3e of "arge()s&ness ho)ses an3 )"t&nat&ona" !orporat&ons towar3s&n2est ent &n that part&!)"ar state$
Group 10 Section D
Page 20
21
The s"ow growth of an)fa!t)r&ng &nthe eastern part of the !o)ntr+9 part&!)"ar"+ &n WestBenga"9 was a 3a ag&ng !onse5)en!e of the "&!ense per &tra<$ The po"&!+ ofe5)a"&s&ng the pr&!es of !oa" an3 stee" "e3 to the "oss of !o parat&2e a32antage of reso)r!e'r&!h states s)!h asWest Benga"9 B&har9 Or&ssa an3 Ma3h+a Pra3esh as reporte3 (+ P"ann&ng Co &ss&on s)r2e+$
Percenta e Sectoral Contribution to GSDP

70 .0 %0 ,0
30 20 10 0
Agr&!)"t)re
In3)str +
Ser2&!es
The growth of the ser2&!es se!tor &sa s)(<e!tof )!h 3&s!)ss&on$ In!o e fro the ser2&!es se!tor has (een grow&ngat a faster rate s&n!e the ear"+ 1660s$ A !aref)" o(ser2at&on at !o ponent (rea8')p of GS*P shows that the h&gher growthof ser2&!es &n!o e &s "arge"+ 3)e to the rap&3 growth&n!o e fro tra3e're"ate3 a!t&2&t&es fo""owe3 (+ (an8&ngan3 f&nan!&a" ser2&!es$ The graph (e"ow re2ea"s that West Benga" &s not perfor &ng at the pa!e of &ts other a<or states &n re!ent +ears$ Its G*P !ontr&()t&on has !o e 3own o2er the +ears fro aro)n3 -@ to "&tt"e ore than .@ of "ate$
Group 10 Section D
Page 21
22
GSDP % e o+ GDP
6$00 -$00 7$00 .$00 %$00 ,$00 3$00 2$00 1$00 0$00
GS*P as a @ge of G*P
Note that Ta("es 1$% to 1$6 are !o p)te3 fro
Ta("es S79 S69 S- an3 S11$
Ta("es S1 G S1, g&2e !o p"ete 3ata a(o)t West Benga" an3 In3&a &n ter s of GS*P>Constant9 C)rrent?9 NS*P>Constant9 C)rrent?9 G*P>Constant9 C)rrent? N*P>Constant9 C)rrent? respe!t&2e"+$
Group 10 Section D
Page 22
23
2$ IN/LATIONC
S&n!e CPI WPI &s not a2a&"a("e for e2er+ +ear9 the 3ef"ator etho3 for &nf"at&on was 3one for (oth West Benga" an3 In3&a$ The graph (e"ow shows that the pr&!e "e2e"s are !ons&stent w&th the !o)ntr+;s pr&!e "e2e"s$ The+ are re"at&2e"+ on a "&tt"e h&gher s&3e h&stor&!a""+$ A !"earer p&!t)re !an (e re2ea"e3 (+ +ear on +ear &nf"at&on as shown &n the neAt graph$ Refer ta("e 2$1for 3ata$ It &s !o p)te3 fro S1, an3 S7'S12$
S1%9 S1.9 S17 g&2e 3ata for CPI9 WPI>In3&a? an3 CPI WB$
GSDP vs GDP De+lator

1-0 1.0 1,0 120 100
-0 .0 ,0 20 0
&'/)* /&&'/&* /2&'/2*/+& '/+*/,&' /,*/-&'/ -*/.&'/.* /(&'/(* //&'//*/'& '/'*')&' ')*'&&'' &*'2&''2* '+&''+* ',&'',*'-& ''-*'.
&''.*'(&' '(*'/&'' /*''&'''* ))2)))* )&2))&*)22 ))2*)+2) )+*),2)) ,*)-2))-* ).2)).* )(2))(*)/2 ))/*)'2) )'*&)2)& )*&&2)&&* &2
GS*P *ef"ator
G*P *ef"ator
Group 10 Section D
Page 23
2,
/0 vs %n&ia %n+lation
1. 1, 12 10 . , 2 0
'2
/&/ 2 /+/ ,/-/./ (///'' )'& ' 2'+ ', '-
'. '( '/'' ))) &) 2 )+ ), )-) .)() /)' &) &&
&'/)* &'/&*&'/2* &'/+*&'/,* &'/-*&'/.* &'/(*&'//* &'/'*&'')* &''&*&''2* &''+*&'',*
&''-*&''.* &''(*&''/* &'''*2)))* 2))&*2))2* 2))+*2)),* 2))-*2)).* 2))(*2))/* 2))'*2)&)*
WB Inf"at&on
In3&a Inf"at&on
Th&s shows that h&stor&!a""+ WB &s ore than that of the !o)ntr+$ Eowe2er &t got sta(&"&4e3 &n ear"+ 2000s ()t st&"" &t &s often ore than the !o)ntr+;s a2erage$
Group 10 Section D Page
2%
3.
Se!tor'w&se GS*P
Contr&()t&on
to
3.1 # riculture Sector

The Agr&!)"t)re Se!tor !ons&sts of the fo""ow&ng
1 2 3
Agr&!)"t)re /orestr+ an3 Logg&ng /&sh&ng
In West Benga"9 pro3)!t&2&t+ growth &n agr&!)"t)re9 part&!)"ar"+ &n foo3 gra&n pro3)!t&on9 !ontr&()te3 s&gn&f&!ant"+ to o2era"" e!ono &! growth of the state s&n!e the ear"+ 16-0s$ There has (een a grow&ng !on!ern &n re!ent +ears a(o)t the 3e!e"erat&on of agr&!)"t)ra" o)tp)t &n ost of the agr&!)"t)ra" states &n In3&a s&n!e the ear"+ 1660s$ The pos&t&2e & p)"se of the fast grow&ng +&e"3 rate to o)tp)t growth of the a<or !rops as o(ser2e3 &n the 16-0s ha2e (een petere3 o)t &n the phase of neo' "&(era" refor s &n In3&a$ In the !onteAt of agr&!)"t)ra" growth &n In3&a9 a s&gn&f&!ant
Group 10 Section D
Page 2%
2.
fa"" &n p)("&! se!tor !ap&ta" for at&on &n agr&!)"t)re was a a<or !onstra&nt on pro3)!t&2&t+ growth &n agr&!)"t)re$ *e!"&n&ng tren3 &n the s)pp"+ of &nst&t)t&ona" !re3&t &n the post'refor per&o3 &n In3&a has a"so (een respons&("e for near stagnat&on &n +&e"3 "e2e"s$ West Benga" wh&!h too8 )p the & p"e entat&on of Esta("&sh ent of an Agen!+ for Report&ng of Agr&!)"t)ra" Stat&st&!s >EARAS? s!he e &n 16-0'-1 on a p&"ot (as&s has (een a("e to !o2er a sa p"e s&4e of a(o)t 1, per!ent on"+$ Efforts are )n3erwa+ to &n!rease the sa p"e s&4e a3e5)ate"+ &n the !)rrent +ear$ =era"a wh&!h ha3 o3&f&e3 the sa p"&ng 3es&gn w&th effe!t fro 16-7'-- ha2e a"so (een a32&se3 to fo""ow the st&p)"ate3 pattern$
W&th referen!e to Ta("e 3$19 Tota" foo3 gra&n pro3)!t&on &n West Benga" was ro)gh"+ 1. &""&on tonnes !ontr&()t&ng 7$, per !ent of the !o)ntr+;s tota" foo3 gra&n o)tp)t an3 ran8e3 ,th a ong the a<or states &n In3&a &n 200.'07$ W&th r&!e o)tp)t of 1,$%1 &""&on tonnes &n 200.'079 the state "e3 a"" the a<or states &n pro3)!t&on of r&!e an3 !ontr&()te3 near"+ 1. per !ent of the !o)ntr+;s tota" r&!e o)tp)t$ The share of the state &n foo3 gra&ns pro3)!t&on has (een &n!reas&ng stea3&"+ 3)r&ng the past two an3 a ha"f 3e!a3es$
Group 10 Section D
Page 2.
27
In "&ne w&th the !hang&ng tren3 a!ross the !o)ntr+9 West Benga" has eAper&en!e3 a str)!t)ra" sh&ft &n o)tp)t front as the share of agr&!)"t)re &n the State;s G*P &s re!or3e3 to ha2e !o e 3own fro a(o)t 33 @ &n 1666'2000 to a(o)t 2% per!ent &n 2007'0-$ Eowe2er9 &n!reas&ng tren3s of rea" wages &n the "atter ha"f of the 16-0s were not s)sta&ne3 &n the s)(se5)ent +ears$ The 3e!"&ne &n wage rate has (een o(ser2e3 &n the f&rst ha"f of the 1660s$ The "atter ha"f of the 3e!a3e starte3 w&th re!o2er+ of the wage rate ()t aga&n 3e!"&ne3 &n the (eg&nn&ng of the 2000$
(.2 %n&ustrial Sector

The In3)str+ Se!tor !ons&sts of the fo""ow&ng
1 2 3 4 5
M&n&ng an3 H)arr+&ng Man)fa!t)r&ng Constr)!t&on Reg&stere3 Ser2&!es :nreg&stere3 Ser2&!es
Group 10 Section D
Page 27
2-
West Benga"9 o2er the past three 3e!a3es$ In In3&a93&fferent reg&ons ha2e (een grow&ng at )ne2en rates$ Thereg&ona" 3&spar&t&es &n growth ha2e (een h&gh"+ asso!&ate3w&th )ne5)a" &n!&3en!e of &n3)str&a" 3e2e"op ent$
Cap&ta" &ntens&t+ &n reg&stere3 an)fa!t)r&ng &n!rease3 3)r&ng 16-1'20029 ()t &t &s )!h "ower &n the fa!tor+ se!tor &n West Benga"$ La(o)r pro3)!t&2&t+ eas)re3 (+ 2a")e'a33e3 per e p"o+ee &n th&s se!tor &n the state a"so &n!rease39 ()t e o") ent per e p"o+ee re a&ne3 at the sa e "e2e" 3)r&ng th&s per&o3 as s)r2e+e3 (+ P"ann&ng Co &ss&on$
Group 10 Section D
Page 2-
26
W&th referen!e to Ta("e 3$29 In West Benga"9 the an)fa!t)r&ng se!tor has not perfor e3 as an eng&ne of growth o2er the past three 3e!a3es &n a !a)sa" sense$ The rate of growth of "a(o)r 3e an3 &s g&2en (+ the eA!ess of the rate of growth of o)tp)t o2er the rate of growth of "a(o)r pro3)!t&2&t+$ O)tp)t growth &n the an)fa!t)r&ng se!tor has p"a+e3 an &ns&gn&f&!ant ro"e &n pro ot&ng e p"o+ ent growth &n the state$ A"so there were se2era" !r&t&!&s s of the !o)ntr+Is &n3)str&a" po"&!+ fra ewor89 ost"+ on the reg& e of "&!ens&ng9 for reg&ona" 3&2ers&t&es &n growth$
Group 10 Section D
Page 26
30
Man+ st)3&es ha2e 3o!) ente3 a &s at!h (etween o)tp)t growth an3 e p"o+ ent growth &n In3&an an)fa!t)r&ng &n the 16-0s9 "ea3&ng to 2&rt)a""+ <o("ess growth$ The s&t)at&on has (een no 3&fferent &n West Benga"$ In3)str&a" o)tp)t grew )p !ons&stent"+ w&th so e f")!t)at&ons9 ()t the "e2e" of e p"o+ ent &n reg&stere3 &n3)str&es 3e!"&ne3 &n the 16-0s fo""owe3 (+ a stagnat&ng or r&s&ng phase &n the ear"&er 3e!a3e$
Group 10 Section D
Page 30
ECONOMIC REVIEW WEST BENGAL (.( Service Sector

The In3)str+ Se!tor !ons&sts of the fo""ow&ng
31
1 2 3 4 5 6 7 8
E"e!tr&!&t+9Gas an3 Water s)pp"+ Transport9Storage an3 Co )n&!at&on Ra&"wa+s Transport (+ other eans Co )n&!at&on Tra3e9Eote"s an3 Resta)rants Ban8&ng an3 Ins)ran!e Rea" Estate9Ownersh&p of *we""&ngs an3 B)s&ness Ser2&!es 9 P)("&! A3 &n&strat&on 10 Other Ser2&!es
In West Benga"9 the respons&2eness of the growth of the ser2&!es a!t&2&t&es to the growth of the !o o3&t+ se!tor >agr&!)"t)re an3 a""&e3 a!t&2&t&es an3 an)fa!t)r&ng? an3 to the growth of rea" &n!o e of the rest of the e!ono + &s fo)n3 to (e ore than proport&ona" &n s)!h s)('se!tors as tra3e9 (an8&ng an3 transport$ Growth &n se!tors "&8e rea" estate an3 p)("&! a3 &n&strat&on was "ess than proport&ona" to the growth &n the rest of the state;s e!ono +$ As per !ap&ta &n!o e r&ses9 3e an3 sh&fts awa+ f&rst fro the agr&!)"t)ra" !o o3&t&es an39 then9 e2en fro &n3)str&a" goo3sJ ore an3 ore 3e an3 &s !reate3 for ser2&!es s)!h as e3)!at&on9 hea"th9 to)r&s 9 et!$ Th)s9 an &n!reas&ng share of nat&ona"Kstate &n!o e or&g&nates &n the ser2&!es$ If the "a(o)r pro3)!t&2&t+ re a&ne3 )n!hange39 the ser2&!es se!tor a"so generates re"at&2e"+ ore e p"o+ ent$
Group 10 Section D
Page 31
32
W&th referen!e to Ta("e 3$39 the s&4e of the tert&ar+ se!torL!o pr&s&ng transport an3 !o )n&!at&on9 tra3e9 hote"s an3 resta)rant9 (an8&ng an3 &ns)ran!e9 rea" estate an3 ownersh&p of 3we""&ng an3 ()s&ness ser2&!es9 p)("&! a3 &n&strat&on9 other ser2&!e &n ter s of share of NS*P at !onstant pr&!es9 has (een "arger than e&ther the pr& ar+ or the se!on3ar+ se!tor &n the state$
In the )r(an9 Fe3)!at&on; a!!o)nts for the "argest n) (er of own a!!o)nt ser2&!e enterpr&ses$ Th&s was fo""owe3 (+ Fother transport an3 re"ate3 a!t&2&t&es;$ Of the )r(an ser2&!es esta("&sh ents9 the "argest &s Fresta)rants;9 &n n) (ers$ In ter s of e p"o+ ent9 howe2er9 Fe3)!at&on; &s the "ea3&ng s)('se!tor w&th&n the r)ra" Fown a!!o)nt ser2&!e enterpr&ses;9 th&s was fo""owe3 (+ Fother !o )n&t+ so!&a" an3 persona" ser2&!es;$ The h&ghest share of e p"o+ ent &n r)ra" ser2&!e esta("&sh ents was that of F e!han&se3; roa3 transport;$
Group 10 Section D
Page 32
33
A"" the a(o2e fa!tors !o""e!te3 fro 2ar&o)s reports show how the !ontr&()t&on of ser2&!es se!tor to GS*P has &n!rease3 o2er +ears$
Group 10 Section D
Page 33
3,
4.
Se!tor Contr&()t&on E p"o+ entC
w&se to
The f")!t)at&on &n e p"o+ ent or )ne p"o+ ent has to!o e to ter s w&th the per&o3&! &nsta(&"&t+ of the growthpro!ess$ The tren3 &n e p"o+ ent9 &n fa!t9 &s theFo)t!o e; of the !hang&ng !o (&nat&ons of !ap&ta"9te!hno"og+ an3 the "a(o)r ar8et &nst&t)t&ons$ Th&s &s state &s pre3o &nant"+ a r)ra" state w&th ost of the 3epen3ent on agr&!)"t)re$ Of "ate9 ser2&!es starte3 !ontr&()t&ng ore$ Eowe2er9 there &s a steep 3e!"&ne &n an)fa!t)r&ng se!tor$ A !o parat&2e ana"+s&s (etween 1666 an3 2002 shows th&s$
Industry-wise Employment in Organised Sector in West Bengal

(1990 and 2002) (In la !) "u#lic Industry Agriculture and Allied Mining and Quarrying Primary Sector Manu acturing 1990 0.3 1.78 2.08 2.82 2002 0.22 1.65 1.87 1.81 2.05 5.14 1.77 3.89 "ri$ate 199 0 2.05 200 2 1.77 %otal 1990 2.35 1.78 4.13 7.96 2002 1.99 1.65 3.64 5.7
!lectricity " #a$ %on$truction Secondary Sector &'ole$ale and (etail )rade* +otel$ and (e$taurant$ )ran$,ort- Storage and %ommunication .inance- /n$urance " (eal !$tate Ser0ice$ )ertiary Sector %otal
0.43 0.54 3.79
0.4 0.61 2.82
0.16 0.04 5.34
0.17 0.04 4.1
0.59 0.58 9.13
0.57 0.65 6.92
0.12 3.58 0.95 6.33 10.98 1&'( )
0.12 3.3 1.02 7.26 11.7 1&'* 9
0.21 0.08 0.2 1.02 1.51 ('9
0.23 0.06 0.17 1.14 1.6 +', +
0.33 3.66 1.15 7.35 12.49 2)'+ )
0.35 3.36 1.19 8.4 13.3 2*'( &
The growth &s happen&ng pre3o &nant"+ &n ser2&!es se!tor wh&"e the other two se!tors 3e!"&ne3 w&th t& e$ A ore 3eta&"e3 (rea8')p of the e p"o+ ent &s g&2en &n the anneA)re$
Group 10 Section D
Page 3,
3%
Th&s &s the growth rate (etween 2000 an3 200% an3 &t &s 2er+ !"ear that the tert&ar+ se!tor &n r)ra" areas &s grow&ng at a rap&3 pa!e$ The a(o2e ta("e &s ta8en fro E!ono &! Re2&ew 2006'10 of west Benga" (+ state go2ern ent$
It &s seen fro a(o2e ta("e9 that 3a&"+ e p"o+ ent &n!rease3 (etween 2002 an3200- &n a"" a<or &n3)str+ gro)ps "&8e R&!e9 Tea9 Pr&nt&ng an3 A""&e39 R)((er M R)((erPro3)!ts9 Che &!a" an3 Che &!a" Pro3)!ts9 G"ass M G"ass Pro3)!ts9 Eng&neer&ng9 E"e!tr&!&t+ an3 for a"" &n3)str&es as a who"e$ the Group 10 Section D
Page 3%
3.
growth of the State *o est&! Pro3)!t at!onstant pr&!es fro has reg&stere3 s&gn&f&!ant growth &n re!ent +ears$
the tert&ar+ se!tor
The growth of e p"o+ ent &n the tert&ar+ se!tor has (een 5)&te& press&2e$ The rap&3 growth of e p"o+ ent &n shops9 !o er!&a" esta("&sh ents9!&ne as9 theatres an3 other esta("&sh ents of p)("&! enterta&n ent &n the State !onfor toth&s o(ser2at&on re2ea"e3 fro NSS 3ata$ The tota" 3a&"+ e p"o+ ent &n theseesta("&sh ents &n!rease3 to 7$-2 "a8h on 30th Septe (er9 2006 fro .$-3 "a8h on 30thSepte (er9 2007$ Th&s &s e2&3ent fro ta("e (e"ow that &n sp&te of the a32erse effe!t ofre!ess&on the e p"o+ ent &n these esta("&sh ents &n!rease3 !ons&3era("+$
*ata &s ta8en fro
S1-for the neAt two f&g)res$
Group 10 Section D
Page 3.
37
Sector )ise e"plo'ee &istribution o+ Rural %n&ia

p e r 1 0 0 0 p e r s o n s 1 @ 0 2 0 0 @ @1 60 0@ @0 - @ 0 @ 7 0 0 @ u l . 0 ! @ % & 0 @ ' , / 0 ( @ * 3 0 0 0 u u u b n n n e e e e r e m & & & & b ' ' ' ' e / ' ' ' r / ) & & 2
0 u u u n n n e e e e & ' ' + & ' ' , & ' ' -
0 u l ! & ' / ' *
0 u l ! & ' ' ) * 0
0 u l ! * 1 e c e m
0 a n u a r ! * 1 e c
0 a n u a r ! * 0 u n
0 u l ! & ' ' + * 0
0 u l ! & ' ' , * 0
0 u l ! & ' ' *
0 a n u a r ! * 1 e c
& ' ' .
Sector )ise e"plo'ee
& s ribution i t o+ 8rban

t1 '0 e0
t ar+ se!tor e se!on3ar+ se!tor r t&
%n a &i
pr& a r+ se!tor
A ( i s ) i
@ .0@ %0@ @ ,0@ 30@ 6 20@ 0 @ - 0@ 0 @ 7 0
0 u l ! 10@ & ' / ( *
0 u l ! & ' / '
0 u l ! & ' ' ) *
0 u0 lu !n *e 1 e& tert&ar+ c ' se!tor e/ se!on3ar+ m /

se!tor
pr& ar + se !t or
s 3 A sharp& !hange &ns t tren3 G r (etween west Benga"& an3 In3&a &s( the tert&ar+) t se!tor &n & r)ra" In3&a o 3&3n;t n !hange )!h &n &ts shareo whereas &nf West Benga" the tert&ar+e se!tor &s grow&ng at ap rap&3 pa!e &n" o r)ra" areas + a"so$ As a res)"t of &tse ser2&!es n se!tor9 &tst e!ono + &s 3o&ng we""$a B)t there &s a! "ot of s!oper to & pro2eo an)fa!t)r&n s s g se!tor for a (etter 2 e!ono &! a 3e2e"op ent r $ & o S16 g&2es ) re!ent
3-
%$ *e(t S&t)at&on &n West Benga"

The f&s!a" s&t)at&on of West Benga" &s !hara!ter&4e3 (+ the fa!t that &t has the *e(tK GS*P rat&o of ,2$% @ wh&!h &s the se!on3 h&ghest a ongst the non spe!&a" !ategor+ states &n In3&a$ Another fa!t &s that West Benga" has own taA re2en)e>OTR?K GS*P rat&o of ,$1@9 wh&!h &s the "owest for an+ non spe!&a" !ategor+ state$ These are two reasons for the h)ge 3e(t of West Benga"$
Proble" o+ .i * Debt/GSDP ratio in /est 0en al:
On ana"+s&s of the *e(tK GS*P Rat&o of a"" the states fro the a(o2e f&g)re9 we !an !on!")3e that the *e(tK GS*P rat&o of a"" the states ha2e &n!rease3 fro 1667 onwar3s an3 starte3 to 3e!"&ne fro 2003'200,$ B)t &n West Benga" the rat&o starte3 to 3e!"&ne fro 200%'200.$ Moreo2er the *e(tK GS*P rat&o was h&gher for West Benga" as !o pare3 to a"" the other states of In3&a$ One of the a&n reason for the r&se of *e(tK GS*P rat&o of a"" the states !an (e attr&()te3 to the feat)res of the State Go2ern ent /&nan!es of In3&a$ One of the 8e+ feat)res of the /e3era" Go2ern ent has (een that the reso)r!es are ost"+ !on!entrate3 &n the han3s of Centra" Go2ern ent w&th the states ha2&ng "& &te3 power to !o""e!t taAes an3 o(&"&se reso)r!es$ In a33&t&on to &t a"" the 3e2e"op ent wor8 &s 3one (+ the state go2ern ent wh&!h a33s to the eApen3&t)re of the State Go2ern ent$ Th&s as+ etr+ &n re"at&ons "ea3s to the 3epen3en!e of State Go2ern ent on the Centra" Go2ern ent &n or3er to !arr+ o)t the&r eApen3&t)re respons&(&"&t&es$ Aga&nst th&s (a!83rop9 the fo""ow&ng feat)res of state go2ern ent f&nan!es !an (e as!erta&ne3C
Revenue Receipts:
The re2en)e re!e&pts of the states9 as we 8now9 !ons&st of not on"+ &ts own re2en)e re!e&pts9 ()t a"so re2en)e transfer fro the !entre &n the for of grants an3 shares &n the !entra" taAes$ S&n!e the "e2e" of re2en)e transfers re a&ns o)ts&3e the p)r2&ewof the statesI own e!ono &! po"&!&es9 the 3eter &nat&on of tota" re2en)e re!e&pts a"so (e!o es eAogeno)s to the state go2ern ent
Group 10 Section D
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36
%nterest Rate The &nterest rate &s 3eter &ne3 eAogeno)s"+ (+ the Centra" Go2ern ent 3epen3&ng on the onetar+ po"&!+ of the !o)ntr+$ In In3&a &t &s RBI$ a"" the states 3eter &ne3 (+ /or the RBI has !onst&t)t&ona" power to eAtent an3 the ter s of (orrow&ng 3eter &ne (oth the fro a"" the reso)r!es$
*)r&ng the "&(era"&4at&on of the e!ono + the &nterest rate has a ten3en!+ to r&se$ If the rate of &n!rease of &nterest rate &s ore than the rate of &n!rease of GS*P the 3e(tK GS*P rat&o w&"" &n!rease wh&!h happene3 w&th a"" the states &n In3&a fro 1667 onwar3s$ The *e(tK GS*P rat&o for West Benga" &s h&gher than other states (e!a)se of the fa!t that the re2en)e re!e&pts of WB &s "ower than the other states an3 the effe!t&2e rate of &nterest &s h&gher for WB !o pare3 to other states$ The effe!t&2e rate of &nterest for WB &s h&gher a&n"+ (e!a)se of the !o pos&t&on of "&a(&"&t&es of WB ha2&ng a h&gher share of NSS/ "oans$ States ha2e to !o p)"sor&"+ (orrow a f&Ae3 port&on of NSS/ f)n3s that the+ !o""e!t$ S&n!e WB has a )!h h&gher proport&on of NSS/ "oans9 &t has to (orrow ore fro th&s poo"$ The h&gher &nterest rate on these "oans &n t)rn &n!reases the &nterest ()r3en of WB$
B)t &f we ana"+4e the re"at&onsh&p (etween *e(t an3 GS*P of West Benga"9 &t &s e2&3ent fro the a(o2e graph that the&r GSDP *as increase& at a *i *er rate as co"pare& to t*e Debt. *ata &s ta8en fro ta("e %$1$
Group 10 Section D
Page 36
,0
.$ /ISCAL *E/ICIT
The /&s!a" *ef&!&t of West Benga" has stea3&"+ &n!rease3 o2er the past 2% +ears$ As e2&3ent &n the graph the f&s!a" 3ef&!&t of West Benga" &s a(o2e - @ of the tota" f&s!a" 3ef&!&t s&n!e 1666 t&"" now wh&!h &s a a<or !on!ern of the West Benga" Go2ern ent$
Group 10 Section D
Page ,0
,1
7.
CONCL:SION
The e!ono + of West Benga" ha3 a h&stor+ of o)tpa!&ng the In3&aIs growth rate an3 (e a a<or !ontr&()tor to the !o)ntr+Is G*P$ A a<or sh&ft fro agr&!)"t)re to ser2&!es se!tor was o(ser2e3 thro)gho)t th&s t& e per&o3$ B)t an)fa!t)r&ng was a"wa+s stagnant$ Tho)gh &t ran8s &n top % states &n GS*P o)tp)t9 &t 3oesn;t f&g)re e2en &n top 10 for per !ap&ta GS*P$ Th&s &s (e!a)se of &ts 3ense pop)"at&on$ B)t (e+on3 pop)"at&on growth9 proper reso)r!e )t&"&4at&on was not there &n an+ se!tors$ So9 we wo)"3 !on!")3e that g&2en the nat)ra" reso)r!es an3 h) an !ap&ta" of West Benga"9 &t has a prospe!t of grow&ng at a faster rate w&th a proper po"&!+ to re2&2e an)fa!t)r&ng se!tor an3 !onso"&3ate other areas$
Group 10 Section D
Page ,1
,2
-$ RE/ERENCES
www$statesof&n3&a$! &e$!o www$&n3&astat$!o *o est&! Pro3)!t of States of In3&a (+ EPW Resear!h /o)n3at&on www$r(&$org E!ono &! Re2&ew 2006'10 West Benga" E) an *e2e"op ent Report '*e2e"op ent an3 P"ann&ng *ept9 Go2t of WB West Benga" *e2e"op ent Report ' P"ann&ng Co &s&on of In3&a 2010 Transfor &ng West Benga" (+ B&(e8*e(ro+ an3 La2eeshBhan3ar&
Group 10 Section D
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ECONOMIC REVIEW WEST BENGAL

Project Report submitted as part of EEP course (Term2)