The economy of West Bengal has struggled with persistent challenges over the past several decades, according to a recent paper by the Economic Advisory Council to the Prime Minister (EAC-PM). This paper highlights several key issues contributing to the state’s economic underperformance.
Source:-bbc news
One major concern is the stagnation in industrial growth. West Bengal, once a prominent industrial hub, has seen a decline in industrial output and investment. Factors such as outdated infrastructure, bureaucratic hurdles, and labor issues have deterred both domestic and foreign investments. This stagnation has led to a lack of job creation and limited economic diversification, impeding overall growth.
Source:- news 18
Agriculture, while still a significant part of the economy, has also faced difficulties. The sector suffers from low productivity, inadequate infrastructure, and issues related to land management. Despite various government initiatives aimed at modernizing agriculture, the sector continues to lag behind in terms of technological adoption and efficient practices.
The service sector, although growing, has not been sufficient to compensate for the declines in industry and agriculture. The paper notes that the growth in services has not translated into broad-based economic improvements due to the limited reach and quality of service-related employment opportunities.
Additionally, the state has faced challenges in improving its human capital. Educational outcomes and skill development programs have not sufficiently aligned with the needs of a modern economy, affecting productivity and innovation.
Overall, the EAC-PM paper underscores the need for comprehensive policy reforms to address these structural issues. It calls for a renewed focus on improving infrastructure, enhancing the business environment, and investing in human capital to spur economic growth and development in West Bengal.
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