Bengal tops in net per capita income growth
After becoming one of only two large-economy states to register a positive GDP growth in FY 2020-21, Bengal has now been acknowledged to have had the highest net per capita income growth.
Despite the effects of the COVID-19 pandemic, the economic approach taken by the Bengal government has ensured that it has been ranked number one in the country on net per capita income growth in financial year (FY) 2020-21.
This was revealed from data released by the Reserve Bank of India (RBI) recently. The achievement is all the more cause for celebration because the same data has revealed that India in FY 2020-21 registered a negative net per capita income growth.
Bengal’s Finance Minister Amit Mitra tweeted on October 1: “W.Bengal ranked No 1 State by RBI on Net PerCapita Income Growth in 2020-21. Bravo! WB’s growth + 7.16% while India average – 3.99. Flying colours for @MamataOfficial & contrasting incompetence of @narendramodi.”
While Bengal registered growth in net per capita income of 7.16 per cent, the same for the country for FY 2020-21 is -3.99 per cent.
This development comes close on the heels of Bengal emerging as one of only two states, the other being Tamil Nadu, in the over-Rs-10-lakh-crore GSDP club to register a positive GDP growth and therefore, becoming, along with the southern state, one of only two to post a GSDP of more than Rs 10 lakh crore. GSDP, or gross state domestic product, is the term for the state’s counterpart of the gross domestic product, or GDP, which is used when referring to the country’s economy.
According to a report by NITI Aayog, in FY 2020-21, Bengal witnessed a 1.2 per cent growth in GSDP, when the same for the country was -7.7 per cent, and posted a GSDP worth Rs 13.7 lakh crore.
Bengal managed to achieve these numbers despite the ravaging pandemic—highest net per capita income growth, positive GSDP growth (when both the numbers for India were in the negative) and one of only two states to cross Rs 10 lakh crore GSDP—by taking a stand of emphasising on a demand stimulus policy through ensuring cash flow to the hands of people at a time of economic slowdown.
This policy is in contrast to that being taken by the Union government, which is taking a stand of only ensuring supply-side growth (by providing stimuli to manufacturers) as opposed to demand-side growth (by providing stimuli to the people through cash incentives). Without creating demand, there is no use in having supply.
