Economic Importance of Kolkata
Economic Importance of Kolkata
The economic potential of Bengal is enormous yet dormant. We can create a thriving global growth center in Kolkata and the economic prosperity of Bengal and India.
In most discussions, the economic potential of Bengal has been glossed over. At the most, the West Bengal Government talks about developing the IT/ITES industry. However, the reality is quite different. The economic potential of Bengal is enormous yet dormant. Should politicians and policymakers show some intent, we will create a thriving global growth centre in Kolkata and the economic prosperity of Bengal. I believe it is time to focus on Bengal’s economic potential and shake Bengal out of its stupor.
Kolkata is uniquely positioned
If Kolkata develops to its potential, it can enhance the economic potential for the hinterlands too. And Kolkata sits at a funnel of many potential economic corridors.
The Gangetic corridor is easiest to exploit because of cheap river transportation availability. The river/canal-based corridors have historically been hotbeds of economic activity. The network of canals made Britain easy to develop as a manufacturing hub during the industrial revolution. The Mississippi river corridor has a similar advantage. But that is not the sole one.
West Bengal also has a dense rail network. It allows for hinterlands around Orissa, Jharkhand and East UP to also benefit.
North-East has dense air connectivity with Bengal and stands to benefit immensely. Economic activities, art and entertainment businesses in the North-East can get access to capital and markets through Kolkata.
Bengal can act as a gateway to landlocked Nepal and Bhutan too.
Further, it can act as a hub for sea transportation to Bangladesh, Myanmar, Thailand, Malaysia, Singapore and beyond.
Kolkata sits at the funnel of the breadbasket of India
The Gangetic plains are the most fertile part of India and can support food production and the food processing industry. Kolkata has unique access to Asian cuisines too. (Try Chinese food in Kolkata).
Kolkata as a manufacturing centre
Kolkata is blessed with a mixture of industrial history and relevant educational support to turn into the manufacturing centre for India. With IIT Kharagpur, NIT Durgapur, Institute of Mines Dhanbad (Jharkhand), and Steel and metal fabrication shops around Kolkata, there are already the ingredients to kick-start the manufacturing engines. There are also oil refineries fed by oil wells in North East. This manufacturing can then quickly move inland through the pathways we discussed above.
Kolkata as the top Asian Medical centre?
Kolkata had Asia’s first college teaching modern medicine. If we are able to convert it to something that can go head-to-head with John Hopkins University in the US, we can create more value around the Bengal region too.
Kolkata as a Shipping Hub
With shipping connections with the world, Kolkata can become the hub of all shipping services for South East Asia. The advantage Kolkata has is that it is connected with the Gangetic hinterland through river navigation. If developed properly, there will be tremendous activity when it comes to water transportation access.
I have discussed this and more about the potential of Bengal and Kolkata in the RightVIEWS Podcast episode on this topic. You can listen to it here. Or watch the video of the podcast below:
(Spot the mistake in the Podcast? It is quite glaring! Leave your answer in the comments.)
Your key statement- “The economic potential of Bengal is enormous yet dormant.” - begs the question of Why is it dormant? This is, shall we say, a local problem. However, if you look beyond the local, you can see that has been a similar trend all over the world. Here in the US, innovation and entrepreneurship (See the book with that title written by Peter Drucker 35 years ago to understand that meaning.) began to decline 50 years ago. What replaced it was its opposite, the pursuit of cost-saving efficiencies. With it came the death of traditional cloth and furniture industries here where I live in the piedmont region of North Carolina. Today, it has brought us supply chain crises. I suspect that what you are recognizing is what many of us here do is that the real measure of an economy is the potential of each person to creatively contribute to it. For this reason, there are two problems to address. How must we change? And, what kind of leadership do we need to facilitate this change? The answer should at least come from a real engagement with people, otherwise the result will be a plan that will lay dormant for another generation.