Bengal Rising

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A Development Economy Overview of the Indian state of West Bengal

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<ul><li> 1. 1 Bengal Rising Group 1 Pritam Saha (1311034) Aswathi Sreedharan (1311006) Partha Sarathi Pahari (1311388) Shakti Mahapatra (1311401) Sushil Kumar Gautam (1311337) </li></ul> <p> 2. Rationale 2 1977 Marichjhapi Massacre(1979) Nandigram Massacre(2007) Fire Arm at Purulia (1995) 2014 2011 Ananda Marg(1982) Singur Protests(2008) Prof. Ambikash Mahapatra controversy(2012) 35 years of CPIM rule ended abruptly Both governments riddled with controversy Society versus industry debate Why West Bengal? What we are exploring? Major Economic Changes Major Industrial Changes Changes in Social Sector CPIMTMC 3. Economy 6th largest state economy of the country with a GSDP of INR 3,538.1 bn. as of 2012-13 (2004-05 constant prices) and contributes 6.4% to the national economy (INR 55,054.4 bn. at 2004-05 constant prices) The GSDP CAGR of 6.8% has under-performed the national CAGR of 8.01% in the period between 2004-05 to 2012-13 Growth has started to accelerate with the Trinamool Congress coming to power in May, 2011 and the GSDP Growth Rate exceeding national GDP Growth Rate (W.B. GSDP Growth Rate 7.5% and Indian GDP Growth Rate 5.0% in 2012-13) Per capita GSDP growth rates have been consistently lower than the national average with the trend changing only since FY12 with the Trinamool government coming to power. This is in spite of the lower population growth rate of the state compared to the national average Source: Data Book for use of Deputy Chairman, Planning Commission, March 2014. All figures in INR billion 6.3% 7.8% 7.8% 4.9% 8.0% 6.1% 6.3% 7.5% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% - 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 GSDP and GSDP Growth Rate GSDP in INR bn. (FY05 constant prices) GSDP Growth Rate CAGR 6.8% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 W.B. GSDP Growth vs. India GDP Growth (at 2004-05 Constant Prices) W.B. GSDP Growth Rate India GDP Growth Rate CPM Era TMC Era Key Highlights 5.1% 6.7% 6.7% 3.0% 6.8% 5.4% 5.4% 6.7% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 Per Capita GDP (at 2004-05 Constant Prices) and Population Growth Rates Comparison W.B. Population Growth India Population Growth W.B. GSDP Per Capita Growth Rate India GDP Per Capita Growth Rate Financial Crisis 3 4. Sectoral Economy 14% 11% 15% 1% 8% 51% W.B. GSDP Breakdown FY13 Agriculture &amp; Allied Agriculture Industry Mining &amp; Quarrying Manufacturing Services West Bengal is primarily driven by Services (51%) with Agriculture (Agriculture &amp; Allied + Agriculture) (25%) and Industry (Industry + Manufacturing +Mining &amp; Quarrying) (24%) accounting for the rest of FY13 GSDP The trend of lower total growth rates than the national average is captured in the sectoral growth rates decomposition, except Agriculture which has been anomalous Post-TMC the growth rates in all sectors have picked up and exceeded the national averages Agriculture has grown at a CAGR of 2.3% (India 3.7%), Industry at 5.3% (India 7.4%) and Services at 9.0% (India 9.6%) The share of Agriculture has steadily declined in the state from 33% (FY05) to 25% (FY13) while that of Services has steadily increased from 41% (FY05) to 51% (FY13) Key Highlights 4 -5.0% 0.0% 5.0% 10.0% FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 Agricultural Growth Comparison W.B. Agriculture Growth India Agriculture Growth -5.0% 0.0% 5.0% 10.0% 15.0% FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 Industrial Growth Comparison W.B. Industry Growth India Industry Growth 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 Services Growth Comparison W.B. Services Growth India Services Growth 5. State Finances 5 West Bengals Planned Expenditure declined from 4.2% (FY06) to 3.3% (FY11) of the national allocation, coinciding with the end of the CPM regime. Post-TMC the proportion has bounced up from 3.3% in FY10 to 4.7% (FY12) and 4.5% (FY13) West Bengal has a high debt burden historically and has been given special concessions by the 13th Finance Commission for achieving the fiscal correction targets of eliminating revenue deficit and achieving a fiscal deficit of 3% by 2014-15 which have been achieved already There has been a 23% increase in revenue receipts in FY13(RE) and it has been growing at an average 26% in the 3 year period FY11-13 whereas revenue expenditure grew by 16% in FY13(RE) with the same expected to grow at a lower pace of 8% in FY14(BE) There has been a significant improvement in all indicators post FY12 TMC regime coming into power Key Highlights 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 1995-96 to 1999- 2000 2000-01 to 2004- 05 2005-06-2009-10 2010-11 to 2013-14 (BE) Debt Performance Indicators Debt/GSDP Ratio (Average) Interest Payments to Revenue Receipts Interest Payments to Revenue Expenditure Interest Payments to GSDP -1.0% -0.5% 0.0% 0.5% 1.0% 1.5% 2.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 2004-08 2008-10 2011-12 2012-13 (RE) 2013-14 (BE) Deficit Indicators Revenue Deficit/GSDP Gross Fiscal Deficit/GSDP Primary Deficit/GSDP 3.8% 4.2% 3.7% 3.9% 3.7% 3.9% 3.3% 4.7% 4.5% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% - 50.0 100.0 150.0 200.0 250.0 300.0 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 West Bengal Planned Expenditure West Bengal Planned Expenditure (INR bn.) State as %age of Nation 6. Agriculture and Manufacturing Agricultural Production ranks 4th in India and contributes to 8% of production Major crops Jute, potato, rice, pulses and wheat Land reforms under CPIM rule Effective imposition of land ceiling and vesting of ceiling surplus land Redistribution of vested land among the landless cultivators Operation Barga Under TMC regime Agricultural growth has slowed down further to 2.2% (2012-2013) Farmer suicides. Mostly cultivators of paddy and potato Reasons for distress rising cost of inputs like fertilizers weaknesses in the procurement machinery 6 0 20,00,000 40,00,000 60,00,000 80,00,000 100,00,000 120,00,000 140,00,000 160,00,000 8,00,000 8,50,000 9,00,000 9,50,000 10,00,000 10,50,000 11,00,000 Agriculture (in INR mn.) WB India Jute fields, West Bengal Key Highlights 7. Manufacturing 7 Contribution of investments to manufacturing has been less than 4% over the last 30 years During the ISI regime West Bengal got a disproportionately smaller share of industrial licenses The state industrial policy of 1993 enacted by the CPIM providing a package of assistance to new units, expansion of existing units and rehabilitation of sick units Tax concessions However statistics show a different picture - contribution of manufacturing 18% in 1980-81 , steadily fell to around 13% in 1990-91 , further fell to around 10% by 2000-01 Under the TMC regime Increased marginally to 11.14% by 2011-12 but again fell to 10.39% in 2012-13 Major problems under TMC regime Stiff resistance to land acquisition for private and SEZs Lack of credible compensation and rehabilitation policy 0 10,00,000 20,00,000 30,00,000 40,00,000 50,00,000 60,00,000 70,00,000 80,00,000 90,00,000 0 50,000 1,00,000 1,50,000 2,00,000 2,50,000 3,00,000 3,50,000 4,00,000 Manufacturing (in INR mn.) WB India Singur Tata Nano Controversy Key Highlights 8. Services 8 Accounts for nearly 60% of the states GSDP Primarily comprises of transport and communication, trade, hotels and restaurant, banking and insurance, real estate and ownership of dwelling and business services, public administration, other services Employs upto 100,000 people Under the CPIM regime IT industry saw its inception 1992-93. Six IT parks setup in Kolkata Major fillip to the industry came under the CPIM government in year 1999-2000 when 138 firms entered into the IT industry The TMC government The robust growth of services still continue Target of achieving 25 %share in the nations IT sector Introduction of e-Governance 0 50,00,000 100,00,000 150,00,000 200,00,000 250,00,000 300,00,000 350,00,000 0 5,00,000 10,00,000 15,00,000 20,00,000 25,00,000 Services (in INR mn.) WB India DLF IT Park, Kolkata Key Highlights 9. Minerals and Mining 9 0 2,00,000 4,00,000 6,00,000 8,00,000 10,00,000 12,00,000 23,000 24,000 25,000 26,000 27,000 28,000 29,000 30,000 31,000 Mining WB India Produces 23.5% of Total Coal Production in India Coal alone accounts for 98% of the mineral production in the state Other minerals produced in the state include Natural Gas, Apatite, Clay, Felspar, Fireclay, Kaolin , Quartz and Silica Sand State accounts for 3.8% of the mineral production in the country. Ranked 7th. Employs upto 100,000 people Under the CPIM and TMC regime Illegal coal mining and coal mafia still continue to cause losses to the tune of 40,000 tonnes annually. Hardly any judicial action has been taken against such reports. But overall growth stable and much better compared to India statistics. Raniganj Coalfields Key Highlights 10. Health 10 Reported incidence of disease (2004): average number of people reporting illness per 1000 population 114 (rural), 157 (urban). Incidence of illness lower in West Bengal than other states. Access to sanitary facilities (Census 2001): low (56.3% HH no access to sanitary facility); rural areas- 73.1% HH do not have toilet facility More than 85% of doctors concentrated in urban areas. Utilisation of government facilities for outpatient care: low (National Sample Survey 60th Round) due to bad treatment, poor accessibility, long waiting time. 33% of population did not use government facilities. Policies : Employees State Insurance (ESI) Scheme; Community health care management initiative (CHCMI) Large rural-urban difference in health status of women &amp; children. TMC initiatives: Rashtra Swastha Bhima Yojna (2011-2012) Piped water supply to people of Jangalmahal region Sick new-born care units numbers increased Capacity increase for doctors Fair price shops 0 10 20 30 40 Birthrate/perthousand Birth rate W.B India 0 5 10 15 Deathrate/thousand Death Rate W.B India 0 50 100 150 IMR/perthousand Infant Mortality Rate W.B India Key Highlights 11. Employment 11 Earlier: Employment growth outside agriculture- low National Rural Employment Guarantee Scheme (NREGS) TMC initiatives: Employment Bank Portal created Swami Vivekananda Swanirbhar Karmasansthan Prakalpa - Self Employment of Unemployed Youth. State Assisted Scheme of Provident Fund for un- organized Workers (SASPFUW) FICCI enters into MoU with WB government for skill development initiatives through PPP 53% 11% 12% 24% Sector wise employment India 2009-10 Agriculture Manufacturing Non-manufacturing Services 43% 19% 8% 30% Sector wise employment W.B. 2009-10 Agriculture Manufacturing Non-manufacturing Services Key Highlights 12. Education 12 Shantiniketan, Kolkatta 0 10 20 30 40 50 60 70 80 90 1951 1961 1971 1981 1991 2001 2011 Literacyrates(in%) Literacy Rate West bengal India 1998-2000 data: 1 Ratio of primary to upper primary schools: high (ideal 1:2); High pupil- teacher ratio Primary school dropout ratio &gt;50% (high) Number of years taken for students to become primary school graduates- 14 years (high) Lower than average efficiency of education system based on input/output ratio (i.e # of students who enter in grade 1 and the # who come out from grade 5 in 5 years) Lower transition rate from primary to upper primary levels Out of 33.06 million out-of-school children (6-11 years), 4.61 million from West Bengal TMC initiatives: 903 Secondary Schools upgraded to H.S. level. The West Bengal State Higher Educational Institutions (Reservation in Admission) Bill, 2013 passed. Kanyashree Prakalpa 2013- for welfare &amp; education of adolescent girls of economically week families. 1 Education For All in India with Focus on Elementary Education: Current Status, Recent Initiatives And Future Prospects: http://www.educationforallinindia.com/page101.htm 13. 13 Q &amp; A </p>