West Bengal needs 7.25% annual growth for 5X economy by 2047: ORF

West Bengal must sustain an annual real Gross State Domestic Product (GSDP) growth of 7.25 per cent to achieve a fivefold expansion of its economy by 2047, according to a new report by the Observer Research Foundation (ORF). The target significantly outpaces the state's historical trend, highlighting the need for structural reforms and improved investment realisation .

The ORF report, titled 'Bikoshito Bongo: An Evidence-Based Policy Roadmap for West Bengal's 5X Economy', was authored by Nilanjan Ghosh, Arya Roy Bardhan, Kumkum Mohata, and Diya Shah . It notes that between 2011-12 and 2024-25, the state recorded a trend growth of 4.69 per cent, leaving a gap of 2.56 percentage points . Nationally, the World Bank has indicated that India requires an average growth of 7.8 per cent over the next two decades to reach high-income status by 2047 .

Sectorally, manufacturing and other services in West Bengal are already growing above the 7.25 per cent threshold, whereas agriculture, which contributes 22.24 per cent to the state's value added, has grown at just 2.89 per cent . The report identifies six pillars for development: productive transformation, connectivity, human development, fiscal sustainability, governance, and natural capital . Key constraints include land acquisition, fragmented infrastructure, and a productivity gap in manufacturing, which is characterised by a large concentration of own-account enterprises .

To address these bottlenecks, the West Bengal 2026-27 State Budget has introduced a Rs 5,000 crore Investment Incentive Policy and a Single Window Clearance System for projects exceeding Rs 100 crore . The state is also focusing on enterprise graduation through the Banglar Udyam Credit Card and new MSME industrial parks . Furthermore, a recent MoU with the National Health Authority to extend Ayushman Bharat to 1.43 crore families is expected to unlock an estimated Rs 1,000 crore in annual central funding . On the infrastructure front, plans include a deep-sea port at Dadanpatrabarh and logistics hubs in Dankuni and Siliguri .

The divergence between investment announcements and actual ground-level execution remains the primary binding constraint for the state . While the state government has initiated policy convergence and federal alignment, the ORF report cautions that announcements must translate into functioning factories, formal payrolls, and completed assets . Land availability also presents a structural challenge, with the West Bengal Industrial Development Corporation reporting only 49.9 acres available across its 17 functional parks .

Achieving the 5X economy target by 2047 will require West Bengal to bridge its historical growth gap through sustained policy implementation. The focus must now shift from formulating roadmaps to ensuring that investment intent materialises into tangible economic output and job creation across the state.