Whalesbook
Income Gap Narrows
Assam and Odisha are steadily closing the economic gap with West Bengal, outperforming it in key growth metrics and per capita income, despite West Bengal remaining the larger economy. This economic divergence is most evident in per capita income figures. While West Bengal's economy is nominally larger, its per capita net state domestic product (NSDP) projections for 2024-25 place it behind both Odisha and Assam.
In 2024-25, Odisha's per capita income is projected to reach ₹96,224, a significant lead over West Bengal's ₹82,781. Assam's per capita income is also set to climb to ₹85,988, underscoring the rapid gains made by the northeastern state. This contrasts sharply with the 2011-12 period when West Bengal held a clear advantage.
Growth Trajectories Diverge
Growth rates further highlight this changing dynamic. Assam has recorded multiple years of double-digit economic expansion, particularly in recent fiscal years. Odisha, though more volatile, has achieved sharp peaks, including a substantial rebound post-pandemic. West Bengal, conversely, has seen steadier but less spectacular growth, frequently tracking the national average rather than consistently exceeding it, unlike its eastern counterparts.
Industrial Momentum Builds
Industrial indicators reinforce the trend. Between FY15 and FY24, Assam saw its factory count surge by nearly 63 percent, far exceeding the all-India average. Odisha also benefited from investments in its core sectors, outpacing national industrial growth. West Bengal experienced a more modest rise in factory numbers during the same period, signalling slower industrial deepening.
However, West Bengal still commands a larger value added from its factories. Its factory output more than doubled, growing faster than Assam's. Odisha's factory output saw a remarkable 298 percent increase, demonstrating substantial growth from a lower base. The ongoing economic shifts suggest a potential re-evaluation of regional investment potential and growth drivers.