Economist Sanjeev Sanyal, a member of the Prime Minister's Economic Advisory Council (PM-EAC), has strongly criticized historical economic policies in West Bengal, asserting they were instrumental in Kolkata forfeiting its position as a leading economic and technology hub in India. Speaking in a podcast with Abhijit Majumder, Sanyal pointed to a specific incident: a strike against IBM in Kolkata when the company sought to introduce large mainframe computers.
Kolkata's Lost Tech Edge and the 'True Founder' of Bengaluru
Sanyal vividly recalled the anti-industry sentiment that, in his view, plagued Kolkata. "I remember distinctly that when IBM was bringing in big mainframe computers, there was actually a strike in Kolkata against them," he stated. This environment, he argued, led to an exodus of skilled professionals. "One can say that the true founder of Bengaluru's IT hub is actually Jyoti Basu. All the talent then left and went off there."
Jyoti Basu served as West Bengal's Chief Minister from 1977 to 2000, leading the Left Front government for over 23 years. While his tenure saw significant land reforms and the strengthening of panchayati raj institutions, it was also characterized by a powerful trade-union movement and policies widely blamed for discouraging industrial investment and contributing to the state's economic decline.
A City in Decline: From Economic Powerhouse to Lagging State
Sanyal highlighted the stark deterioration of Bengal's economic standing over the past half-century. In 1960-61, the average Bengali's per capita income was 27% higher than the national average. Today, it stands more than 20% below the national average. "When I was born in 1970, Kolkata was still the single biggest economic hub of India," Sanyal recounted, noting Bombay (Mumbai) was only then emerging as a rival.
He emphasized that Kolkata was once a vibrant industrial and financial center, home to a serious stock exchange and numerous economic activities, including a significant part of India's nascent information technology sector. "It was all deliberately undermined," Sanyal concluded.
A Vision for Kolkata's Revival and Eastern India's Growth
Despite decades of decline, Sanyal believes Kolkata holds the key to unlocking economic growth in Eastern India. He stressed that India's economic disparity is primarily an east-west gap, not a north-south one, with Eastern India lacking a rapidly growing large urban hub. Southern India thrives with Bengaluru, Hyderabad, and Chennai; Western India with Mumbai, Pune, and Ahmedabad; and Northern India with Delhi-NCR and its expanding network.
Kolkata, as the largest urban center in Eastern India, possesses the necessary scale, infrastructure, and legacy institutions to initiate this revival. Sanyal suggests starting with Kolkata, given its inherent advantages, and then connecting it with other regional centers like Bhubaneswar, Ranchi, Patna, and Guwahati to foster broader economic development across the eastern belt.