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Since WB elections are round the corner let’s burst the myth regarding Industrialisation in West Bengal.
A thread.
You would have always heard vaguely that LF govt in general and Jyoti Basu in particular destroyed the industries of West Bengal.1/11
A thread.
You would have always heard vaguely that LF govt in general and Jyoti Basu in particular destroyed the industries of West Bengal.1/11
Industries really do fled from West Bengal, there is no doubt about that. But was only Jyoti Basu responsible for that. What was the industrial growth in WB before LF came to power. Let’s see....
WB industrial history can be divided in 4 phases after independence.2/11
WB industrial history can be divided in 4 phases after independence.2/11
They are as follows:-
1) 1948- 1965
Under the five year plan adopted by Nehru (a replica of Soviet model), there was development of new industries in WB. Durgapur steel plant and DVC started functioning.3/11
1) 1948- 1965
Under the five year plan adopted by Nehru (a replica of Soviet model), there was development of new industries in WB. Durgapur steel plant and DVC started functioning.3/11
Annual compound growth rate between 48-58 was 3.31%,higher than national average of 2.75%.But this period also shows that during this time WB began to lose its eminent position to Bombay. By 1966 the number of license approved for Maharashtra was much higher than that of WB.4/11
*For all those who don’t know, before 1991,state had to take permission from centre to set up any industry or bring any investment.
2) 1966-1976
During this period WB relative position began to decline further. The centre policy of FREIGHT COST EQUALISATION for coal and steel5/11
2) 1966-1976
During this period WB relative position began to decline further. The centre policy of FREIGHT COST EQUALISATION for coal and steel5/11
gave a major blow to the engineering industry of the state. Central government tried to protect industries based on domestic market through import tariffs,it did very little to promote export oriented industries like jute and tea. As the employment fell between 1965 and 1970,6/11
labour unrest began.
This was the time when Capital started flying from WB. But it can not be only explained in terms of labour trouble alone, since Maharashtra also witnessed severe labour problem during this era. However number of licences given to WB in 1977 was 40 and 7/11
This was the time when Capital started flying from WB. But it can not be only explained in terms of labour trouble alone, since Maharashtra also witnessed severe labour problem during this era. However number of licences given to WB in 1977 was 40 and 7/11
Maharashtra received 150.
3) 1978-1985
In 1977, LF came to power and Jyoti Basu became CM. He already inherited a declining industrial economy. He gave priority of land reforms and small and cottage industries. New industrial policy of 1978 gave priority to small and 8/11
3) 1978-1985
In 1977, LF came to power and Jyoti Basu became CM. He already inherited a declining industrial economy. He gave priority of land reforms and small and cottage industries. New industrial policy of 1978 gave priority to small and 8/11
cottage industries like handlooms , fisheries etc. The policy was not much successful. This could be because of poor implementation or because of conflict with central government.
4) 1986-2000
During this era WB again saw industrial growth but was far behind other states. 9/11
4) 1986-2000
During this era WB again saw industrial growth but was far behind other states. 9/11
In term of value added WB was 5th in country. As soon as liberalisation started in 1991 and License permit Raj was gave away, WB formulated new industrial policy in 1994. Two major industries were started in WB. Haldia Petrochemical in 1994 and 10/11
Bakreshwar thermal power plant in 1999.
Source- Thesis on “Politics Of industrialisation in WB(1948-2000)
11/11
Source- Thesis on “Politics Of industrialisation in WB(1948-2000)
11/11
