The eastern regional states of West Bengal, Bihar, Odisha, Jharkhand and Assam were expected to contribute at least 25 per cent of the country’s GDP by 2035, according to a report prepared by leading consultancy firm KPMG. The report said that the country’s GDP would touch Rs 195 lakh crore by that period.

West Bengal was having the highest share in the eastern region GSDP pie at 39 per cent, followed by Bihar at 18 per cent and Odisha at 15 per cent, the report said. The key industries which would drive the eastern India’s economy were jute, leather, tea, locomotives, steel and mining. The region contributes more than 20 per cent of the national output in each of these industries, the report said.

According to the report, the region has a direct influence on over 30 per cent of the IIP by weight and 57 per cent of the core industries. The region was heavily dependent on the informal sector, with the MSMEs being the highest contributing segment in the industrial output. However, access to finance remained largely impeded on account of fewer banking facilities, the report said.

Annual per capita income in the eastern region had been on a steady rise. With the exception of West Bengal, all the other eastern states accrued a major portion of their GVA (Gross Value Added) from the rural segments.

Published on January 23, 2018