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Business News›News›India›West Bengal needs 7.25% annual growth to achieve 5X economy by 2047: ORF report

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West Bengal needs 7.25% annual growth to achieve 5X economy by 2047: ORF report
Synopsis

A report details West Bengal's path to a fivefold economy by 2047. It identifies growth gaps and proposes six pillars for development. The state budget aligns with productivity and capital formation goals. Investment incentives and single window clearance aim to boost realization. Infrastructure and federal alignment are key steps for future growth.

PTI

New Delhi: 'Bikoshito Bongo: An Evidence-Based Policy Roadmap for West Bengal's 5X Economy', a special report published by the Observer Research Foundation (ORF), examines the conditions required for West Bengal to achieve a fivefold expansion of real GSDP by 2047.



Authored by Nilanjan Ghosh, Arya Roy Bardhan, Kumkum Mohata, and Diya Shah, the report identifies a significant growth gap: the 5X ambition requires sustained annual growth of 7.25 per cent, compared with the state's 4.69 per cent trend growth between 2011-12 and 2024-25.



Also Read: West Bengal plans incentives to spur industrial investments

Manufacturing and other services are the two major sectors currently growing above this threshold, while agriculture, which accounts for 22.24 per cent of value added, has grown at 2.89 per cent.



The report analysis identifies constraints across productive sectors, infrastructure, labour, public finance and state capacity.




Manufacturing is characterised by a large concentration of own-account enterprises and a significant productivity gap. Agriculture has strong production capabilities in vegetables, fish and potatoes, while substantial value is lost through post-harvest losses, weak processing and limited organised procurement.

Services generate a large share of state value added, but tourism and digital economic activity remain underdeveloped relative to their potential. Connectivity is constrained by land acquisition and fragmented infrastructure, while fiscal pressures limit the scope for public investment, the ORF report highlighted.

The report proposes six pillars covering productive transformation, connectivity, human development, fiscal sustainability, governance and natural capital, with measurable targets and implementation mechanisms to support long-term growth.



This coincides with early policy convergence in the West Bengal 2026-27 State Budget, which pivots toward productivity, delivery, and capital formation rather than traditional subsidies.



Also Read: BJP gains in Bengal may accelerate reforms push amid economic headwinds



To tackle investment realisation, named as the primary binding constraint, the budget introduces a Rs 5,000 crore Investment Incentive Policy, a corridor-based promotion framework, and a Single Window Clearance System for projects over Rs 100 crore to ease frictions surrounding land, approvals, and capital formation.



Enterprise graduation and the "missing middle" are targeted through the Banglar Udyam Credit Card, new MSME industrial parks, and the rejuvenation of legacy clusters.



A shift toward federal alignment is already delivering dividends, highlighted by a Memorandum of Understanding (MoU) with the National Health Authority to extend Ayushman Bharat (PMJAY) to 1.43 crore families, unlocking an estimated Rs 1,000 crore in annual central funding, the report noted.



On the infrastructure front, connectivity is being addressed as a comprehensive system via the deep-sea port at Dadanpatrabarh, logistics hubs in Dankuni and Siliguri, and border export-promotion investments.



The ORF report underlined that these are necessary first steps, not sufficient ones. It cautions that a budget can announce, but only delivery converts. The real test is how quickly investment intent becomes a functioning factory, a formal payroll, and a supplier network and whether announcements are tracked through to jobs, exports, and completed assets.

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West Bengal 5X EconomyObserver Research Foundation reportannual growth rate West BengalGSDP growth West BengalInvestment Incentive Policy West Bengalmanufacturing sector growthagriculture growth challengesinfrastructure development West Bengalservice sector growth

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