Bengal Rising

1

BengalRising

Group 1Pritam Saha (1311034)Aswathi Sreedharan (1311006)Partha Sarathi Pahari (1311388)Shakti Mahapatra (1311401)Sushil Kumar Gautam (1311337)

Rationale

2

1977

Marichjhapi Massacre(1979)

Nandigram Massacre(2007)

Fire Arm at Purulia (1995)

2014

2011

Ananda Marg(1982)

Singur Protests(2008)

Prof. Ambikash Mahapatracontroversy(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

CP

IMT

MC

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. Allfigures 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

Sectoral Economy

14%

11%

15%

1%8%

51%

W.B. GSDP Breakdown FY13

Agriculture & Allied Agriculture Industry

Mining & Quarrying Manufacturing Services

West Bengal is primarily driven by Services (51%) with Agriculture

(Agriculture & Allied + Agriculture) (25%) and Industry (Industry +

Manufacturing +Mining & 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

State Finances

5

West Bengal’s 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 toRevenue Receipts

Interest Payments toRevenue Expenditure

Interest Payments toGSDP

-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

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

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

Services

8

Accounts for nearly 60% of the state’s 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 nation’s 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

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

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 &

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

Bir

th r

ate

/p

er t

ho

usa

nd

Birth rate

W.B India

0

5

10

15

Dea

th r

ate

/th

ou

san

d

Death Rate

W.B India

0

50

100

150

IMR

/per

th

ou

san

dInfant Mortality Rate

W.B India

Key Highlights

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

Education

12

Shantiniketan, Kolkatta

0

10

20

30

40

50

60

70

80

90

1951 1961 1971 1981 1991 2001 2011

Lit

era

cy r

ate

s (i

n%

)

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 >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 & 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

Q & A