Opinion | Rebuilding Sonar Bangla—The Gateway To The East

What extends beyond the industrial rejuvenation of West Bengal is its strategic position that no other Indian state can replicate

Bengal had sustained a vibrant economy since pre-colonial times. When the British arrived, they described Bengal as “the richest, most populous and best cultivated countries". The region’s commercial sophistication, skilled artisans, and fertile hinterland had made it the envy of the known world.

By the time of India’s independence in 1947, no state stood taller in the industrial sector than West Bengal. The Bengal Presidency, which was the seat of British India for 139 years, absorbed much of colonial investment in infrastructure, from railways to ports and from factories to financial institutions. The Census of Manufacturing Industries (1951) reported that the state had 1,493 registered factories, the highest in the nation, even surpassing the combined number of factories in Maharashtra and Gujarat. Employment in the organised sector accounted for 27% of the national share and industrial output at 24%. At independence, the Calcutta port alone handled about 40% of India’s total maritime traffic, ahead of Bombay by 25%. Along the Hooghly belt stood world-class jute mills, heavy engineering workshops, and port infrastructure that together made Kolkata the commercial capital of the subcontinent’s eastern half. These structural advantages, i.e., a deep-water port with direct access to global shipping routes, a dense railway network, a highly literate and financially competent workforce, and closeness to the coal and steel belts, did not just diminish but were buried over the years due to misgovernance. Young officers working in jute mills and tea gardens were the most sought-after bridegrooms. During Dr BC Roy’s government, West Bengal got its first steel plant at Burnpur and a large thermal power plant at Bakreshwar.

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The first blow to West Bengal’s industrial edifice came not from economic competition, but from political geography. The Partition of 1947 overnight affected the jute industry, which was one of Bengal’s most important industrial pillars. While West Bengal got 106 mills in India, most of which were located in the districts of Howrah, Hooghly, and 24 Parganas, East Bengal received more than 75% of the land used for jute production of undivided India. In addition, Bengal jute used to be exported through Calcutta, which was essentially the sole port. The effects of partition were immediately felt on the jute industry. As early as October 1947, the Trade Commissioner of the British government in Calcutta reported that the arrival of the total amount of jute to the city was two-thirds of the normal volume. Five jute mills in West Bengal closed down within a year of partition.

The region suffered a subsequent structural setback due to a central policy enacted by the Congress administration in its quest to balance the economically developed East compared to the West. This measure, known as the Freight Equalisation Policy, was implemented by the union government in 1952 and persisted until 1993, seeking to stimulate countrywide industrialisation by offering subsidised mineral transportation. It implied that industrialists used to get raw minerals, such as coal, iron ore, aluminium, bauxite, limestone, mica, etc., at the same price they could get in mineral-rich states, eliminating precisely the competitive edge that West Bengal possessed. Bengal’s industries lost their locational advantage overnight, but on the reverse, there was no movement from West to East. The refugee crisis inflicted by the Partition brought nearly 3.7 million........

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