Trinamool’s report card: Paribartan in bits & pieces
Banerjee banks on welfare policies to complete a hat-trick of poll victories
West Bengal has not been rebuilt. Kolkata has not transformed into London. But, the “Paribartan” (change) ushered in by Chief Minister Mamata Banerjee in 2011 goes deeper than the trident lights that adorn every nook and corner of the state capital.
The poll bugle has been sounded and parties are getting battle ready for an eightphase election in West Bengal. Banerjee, who is seeking a third term, is banking on her welfare schemes and “development” work, apart from the “insider-outsider” plank, to complete the hat-trick.
The agitation over land acquisition may have catapulted Banerjee to the seat of power, but she had also promised a new Bengal. The Trinamool Congress manifesto of 2011 had said: The task before the new government is to “rebuild West Bengal” to compete with the best and fulfill the aspirations of the people. At the end of 10 years, Banerjee’s achievements are a mixed bag. On the industry front, the government’s success largely rests on the growth of micro, small and medium enterprises (MSMES). According to the Union ministry of MSMES’ annual report for 2019-20, West Bengal is second only to Uttar Pradesh in terms of number of units at 8.86 million units, accounting for 14 per cent of total MSME units (UP had 8.99 million units, accounting for 14.20 per cent). Employment in the Bengal units was at 13.55 million. In 2012-13, the number of units in West Bengal was 3.66 million and employment 8.57 million. Though it had ranked second even then, the gap with UP has narrowed. Credit flow to the sector has increased — it was around ~16,000 crore in the earlier regime, while State Level Bankers Committee (SLBC) disbursement target for the current fiscal was ~90,000 crore. However, Abhirup Sarkar, former professor of economics at the Indian Statistical Institute (ISI), pointed out that while the government focused on MSMES big industries have not come. “The average income compared to the rest of India, therefore, hasn’t increased much. Southern states are ahead in industry and, therefore, their per capita income is higher,” he added.
The TMC’S report card 2011-2020, released recently, mentions the average per person income has more than doubled from ~51,543 in 2010 to ~1,09,491 in 2019. However, it still lags behind many other states. Data collated by ICRA shows in per capita income (at current prices), West Bengal is behind Andhra Pradesh, Goa, Telangana, Haryana, Karnataka, Punjab, and Tamil Nadu, among others.
Similarly, the number of factories in West Bengal has increased from 8,232 in 2010 to 9,534 in 2017-2018, but it dwarfs in comparison with some other major states that were much ahead even in 2010-2011, according to Reserve Bank of India data on states. However, there is an improvement in the overall macro picture. At 5.2 per cent, the state’s unemployment rate in January 2021 is lower than India’s 6.53 per cent, CMIE data show. “It’s not that things have not improved. One good thing is that there is no disruption by trade union workers, but West Bengal needs more investment,” a businessman said.
That’s a recurring allegation against the government from Opposition parties as well.
Data from the Department for Promotion of Industry and Internal Trade (DPIT) suggests that there has been some growth. In 2018, 62 Industrial Entrepreneurs Memoranda (IEMS) were filed with a proposed investment of ~4,722 crore; in 2019, 48 IEMS were filed with a proposed investment of ~5,844 crore; and, up to December 2020, 27 IEMS were filed with a proposed investment of ~9,552 crore.
In comparison, the proposed investment for Karnataka up to December 2020 was ~1,62,492 crore, Gujarat at ~46,141 crore, and Maharashtra at ~44,188 crore up (Tamil Nadu was lower at ~6,807 crore).
“A comparison of IEMS filed and implemented shows that West Bengal is behind many major states,” a bureaucrat said.
The state government, however, has a different set of numbers to rely on: Proposals bagged at its investor summits, the Bengal Global Business Summit (BGBS). According to government estimates, the last five editions translated into investment proposals of around ~12.32 trillion over five editions and 40-50 per cent were under implementation.
The 200-acre proposed IT hub called the Bengal Silicon Valley, has created some excitement with a bunch of companies taking up space — TCS has taken up 20 acres to build a second campus (it employs around 45,000 at locations in the state), Reliance Jio has taken up 40 acres for a development centre, and Airtel for a data centre. Land allotment for Wipro’s second centre has been approved by the state Cabinet and a long-awaited development centre of Infosys was announced in 2018. The state has also identified that the logistics vertical has a growth potential and Flipkart is setting up its first integrated logistics hub in West Bengal. Additionally, the state’s tax collection has grown from ~21,128.74 crore in 201011 to an estimated ~75,416 crore in 2021-22. “This is due to better administration and egovernance,” explained Sarkar.
The government also laid emphasis on agriculture. The Budget estimate for agriculture and allied services sector under state development scheme increased 9.5 times under the TMC. The result: Production of food grains has increased 25.03 per cent between 2010-2011 and 2017-18. The cultivated area shot up 309 per cent between 2010-11 and 2019-20, and yield rate 70 per cent, according to the government’s economic review.
Some other numbers also look favourable. West Bengal was always burdened with debt, but the debt to GSDP ratio, which was 40.65 in 2010-11 has been estimated to have reduced to 34.81 per cent in 2021-22; total debt was ~1,87,387. 40 crore in 2010-2011 and is estimated to have increase to ~5,25,867.79 crore (BE) in FY22. And, despite the twin challenges of cyclone Amphan and Covid-19, West Bengal has projected 1.2 per cent growth (estimates as on January 31, 2020) in GSDP at constant prices, according to advance estimates for FY21.BUT, perhaps, Banerjee’s trump card is the various social and welfare schemes implemented and the focus on basics like roads, drinking water, and electricity.
A massive outreach programme — Duare Sarkar — was launched ahead of the elections to deliver 12 welfare schemes, including Khadya Sathi (food security), Kanyashree (financial assistance to girls for pursuing higher education), Krishak Bondhu (for farmers and sharecroppers) and the star attraction Swasthya Sathi (the universal health scheme).