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Reviving Kolkata Key to Unlocking Eastern India's Growth: Sanjeev Sanyal

Sanjeev Sanyal highlights that the real economic crisis in India is the East-West divide, not the North-South divide, with the eastern half being distinctively poorer. He argues that reviving Kolkata as a high-growth urban hub is essential to accelerate development in eastern India. Industrialist Sanjiv Goenka expresses optimism about a stable BJP-led government in West Bengal restoring investor confidence. Goenka calls for policy consistency, structural reforms, and a business-friendly ecosystem to attract talent and capital to the state.

Key Points: Kolkata Revival Key to Eastern India Growth: Sanyal

  • East-West divide is India's real economic crisis
  • Kolkata revival key to eastern growth
  • High growth driven by urban hubs
  • Sanjiv Goenka urges stable government for investment
2 min read

Revival of Kolkata holds key to trigger growth in eastern half of India: Sanjeev Sanyal

Sanjeev Sanyal says reviving Kolkata as a growth hub is crucial to boost the poorer eastern half of India, while Sanjiv Goenka backs stable government for investment.

"The secret to reviving the eastern half of India must be about the revival of Kolkata, specifically. - Sanjeev Sanyal"

Mumbai, May 6

The revival of Kolkata as a growth hub holds the key to reviving the eastern half of India which is "distinctively poorer" than the western half of the country, Member of the Economic Advisory Council to the Prime Minister, Sanjeev Sanyal, said on Wednesday.

During an event at the National Stock Exchange (NSE) here on the 'The Relative Economic Performance of Bhartiya States,' Sanyal told reporters that "The relative performance of the Indian states shows one or two very clear trends.

"The first is the much talk about the North-South divide, which is not the real economic crisis in the country. It is actually an East-West divide where the eastern half of India is distinctively poorer than the western half of the country," Sanyal explained.

He further stated that the key to accelerate development in the eastern half of India is reviving Kolkata, specifically because the high growth all over the country is ultimately driven by a handful of high-growth urban hubs. In that context, eastern India needs a high-growth hub.

"Kolkata already has some clusters and a long, glorious history. Despite the last half century of decline, I would argue that the secret to reviving the eastern half of India must be about the revival of Kolkata, specifically," Sanyal remarked.

Meanwhile, industrialist Sanjiv Goenka has expressed optimism about West Bengal's evolving political landscape, saying a stable government led by the BJP could help restore investor confidence and attract fresh investments into the state.

Speaking to NDTV after election trends emerged, the RPSG Group chairman said the focus should shift from concerns over outward migration of Bengalis to creating an environment that draws talent and capital into the state.

He emphasised the need to build a business-friendly ecosystem where both individuals and companies feel encouraged to invest and settle.

Goenka, who was born and raised in Kolkata, said he has a personal stake in the state's development and hopes to contribute to its growth story.

He stressed that policy consistency is crucial for industry, noting that frequent regulatory changes or reversals often deter long-term investment decisions.

He also flagged the need for structural reforms, criticising outdated frameworks such as the urban land ceiling regulations, which he described as obsolete and a barrier to growth.

- IANS

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Reader Comments

P
Priya S
Sanjeev Sanyal is spot on. I grew up in Kolkata and moved to Delhi for work. The difference is heartbreaking. Our city's infrastructure is crumbling, industries have shut down, and young people are migrating in droves. But I still believe in Kolkata's magic - the culture, the food, the people. If the government can fix the basics like roads, electricity, and create a business-friendly environment, we can definitely bounce back. The potential is there.
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Vikram M
Interesting analysis but I think the root cause is deeper. The eastern states - Bihar, Odisha, West Bengal, Jharkhand - were systematically deindustrialized after independence. Kolkata was a victim of politics and poor governance. The city doesn't need just revival, it needs a complete reset. Also, we must address the urban land ceiling issue that Goenka mentioned - it's killing real estate development in Kolkata. Just look at how the Salt Lake IT hub transformed when they eased some restrictions.
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Rohit P
I'm cautiously optimistic about the BJP government in Bengal. Let's be honest - the previous government's hostility to industry was a major problem. But I also worry about political instability and communal tensions. Kolkata doesn't need more polarization. We need what Sanyal and Goenka are talking about - stable policies, investment in infrastructure, and a welcoming attitude towards business. The city's revival would transform the entire eastern corridor. Let's hope this time it's different. 🤞
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Aman W
I'm a Bengali but I have to respectfully disagree with the premise. Revival of Kolkata is important, but focusing all resources on one city will only increase regional inequality within the state. What about the mining belts of Purulia and Bankura? The tea gardens of North Bengal? The coastal areas? True development of the eastern region needs a decentralized approach. Build multiple growth centers - Siliguri, Bhubaneswar, Jamshedpur, Guwahati - instead of putting all eggs in one basket.

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