The Bengal Renaissance: The Second Coming

Dhaka-Kolkata Corridor Poised for Growth

The Bengal region, encompassing West Bengal and Bangladesh, is experiencing a remarkable economic resurgence. This echoes its historical prominence as a centre of wealth and prosperity, particularly during the Mughal era and early British colonial period. Recent economic growth in Bangladesh and stable growth in West Bengal mark a return to this economic significance.

This renewed economic power is poised for further acceleration through the development of the Dhaka-Kolkata Economic Corridor (DKEC) under the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC). The DKEC presents a golden pathway for the future of the Bengal region, fostering deeper economic integration and collaboration between Bangladesh and India.

Historical Legacy of Prosperity

For centuries, the Bengal region thrived as a vibrant hub of trade and commerce. During the Mughal era, Bengal emerged as a leading economic power, famed for its production of textiles, agricultural abundance, and flourishing port cities. This prosperity continued into the early British colonial period, with Bengal contributing significantly to the colonial economy.

Economic Decline: Colonial and Post-Colonial Exploitation

British Exploitation:

The economic decline of Bengal began with British colonial rule. The British East India Company and later the British Crown systematically exploited Bengal's resources, leading to:

• Deindustrialization: The destruction of Bengal's thriving textile industry as British manufactured goods flooded the market.
• Resource Extraction: Heavy taxation and resource extraction impoverished local communities.
• Famine: Policies like forced cultivation of indigo and the diversion of resources contributed to famines, notably the Great Bengal Famine of 1943.

Pakistan Government's Plunder:

Post-independence in 1947, Bengal was partitioned into West Bengal (India) and East Bengal (later East Pakistan, now Bangladesh). Under Pakistani rule (1947-1971), East Bengal faced:

• Economic Discrimination: The central government in West Pakistan neglected East Pakistan’s development, leading to significant underinvestment in infrastructure and industry.
• Resource Drain: Revenues generated in East Pakistan were largely spent in West Pakistan, exacerbating regional disparities.

Indian Government's Policies and Discrimination:

West Bengal, post-independence, also faced challenges under Indian governance, including:

1. Freight Equalization Policy: This policy neutralized the geographical advantage of mineral-rich states like West Bengal, leading to industrial stagnation as industries did not feel the need to be close to raw materials.
2. Shifting of SBI Headquarters: The State Bank of India's headquarters was moved from Kolkata to Mumbai in 1955, impacting the financial influence of West Bengal.
3. Shifting of LIC Headquarters: Similar to SBI, the Life Insurance Corporation's headquarters were moved to Mumbai, further reducing the financial clout of Kolkata.
4. Closure of Major PSUs: Important Public Sector Units such as National Fertilisers, Mining and Allied Machinery Corporation (MAMC), Bharat Ophthalmic Glass, and Bengal Crockeries were closed down, leading to job losses and economic downturn.
5. Withholding Development Funds: The central government has been accused of withholding development funds, slowing down infrastructure and economic development.
6. Decline of Kharagpur Railway Workshop: Once a major employer and industrial hub, the workshop faced neglect and underinvestment, leading to its decline.
7. Neglect of Jute Industry: Lack of support and modernization funds led to the decline of the jute industry, once a major economic driver in West Bengal.
8. Underfunding Educational Institutions: Premier institutions like Jadavpur University and Calcutta University have faced financial neglect, impacting their growth and development.
9. Delay in Metro Projects: Frequent delays and inadequate funding for metro rail projects in Kolkata have hampered urban development and connectivity.
10. Neglect of Ports: Ports like Kolkata and Haldia faced underinvestment and lack of modernization, impacting trade and economic activities.
11. Bengal Chemicals and Pharmaceuticals: The oldest pharmaceutical company in India, headquartered in Kolkata, faced a severe decline due to lack of support.
12. Marshalling of Coal Resources: Inefficient policies regarding coal resource management led to economic disadvantages for West Bengal.
13. Environmental Regulation Bias: Strict and often biased environmental regulations have hindered industrial growth in the state.
14. Infrastructure Projects: Delays and cancellations of key infrastructure projects, such as highways and bridges, have stunted economic growth.
15. Promotion of SEZs Elsewhere: Special Economic Zones (SEZs) were promoted more vigorously in states like Gujarat and Maharashtra, leading to industrial flight from West Bengal.

The Resurgence of the Bengal Economic Powerhouse

Following these periods of economic stagnation and exploitation, the Bengal region is witnessing a remarkable revival. Bangladesh has experienced rapid economic growth over the past decade, with a robust textile industry, a growing export base, and expanding industrial and service sectors. West Bengal, while demonstrating stable growth, boasts a diverse economy anchored in agriculture, manufacturing, and services.

Dhaka-Kolkata Economic Corridor: A Catalyst for Growth

The DKEC, a key initiative under BIMSTEC, presents a transformative opportunity for the Bengal region. This corridor aims to create a seamless economic zone connecting Dhaka, the capital of Bangladesh, with Kolkata, the capital of West Bengal. This will involve:

• Infrastructure Development: Upgrading transportation networks, including roads, railways, waterways, and logistics facilities, to facilitate the movement of goods and people.
• Trade Facilitation: Simplifying customs procedures, harmonizing trade regulations, and promoting cross-border trade.
• Investment Promotion: Creating a more attractive environment for investment in both the countries, fostering industrial collaboration, and developing special economic zones.
• Skill Development: Investing in education and training programs to equip the workforce with the skills needed to thrive in the integrated economic zone.

Potential Benefits of the DKEC

The DKEC has the potential to unlock immense economic benefits for the Bengal region. It will:

• Boost Trade and Investment: Improved connectivity and trade facilitation will stimulate cross-border trade and attract foreign investment, leading to economic growth and job creation.
• Enhance Regional Integration: The corridor will foster closer economic ties between Bangladesh and India, creating a more robust and integrated regional economy.
• Knowledge Sharing and Collaboration: The DKEC will promote collaboration between businesses, universities, and research institutions, leading to knowledge sharing, innovation, and technological advancements.

The Bengal region's economic resurgence is a testament to its enduring potential. The Dhaka-Kolkata Economic Corridor, as a key pillar of BIMSTEC, presents a golden opportunity to capitalize on this momentum. By fostering deeper economic integration and collaboration, the DKEC has the potential to propel the Bengal region towards a future of shared prosperity and pre-eminence.