Purvodaya – The Ascent of the East (Independent perspective) Subhajit Mazumder MBA 1st Year VGSOM, IIT Kharagpur Introduction India, the largest democracy in the world, is a land of myriad diversity. Seventh-largest country by geographical area and the second most populous country in the world, it has 28 regional states and 7 union territories. The regions are unique in themselves with each one having distinct demographic characteristics, food, culture, values, occupations etc. Each part of the country is endowed with a variety of natural elements – the North and the North Eastern states are partly situated in the Himalayan Range; in the West lies the Thar Desert; the East is resplendent with rich deposits of natural resources and minerals, tea gardens, large stretches of lush green fertile lands. With a GDP growth rate of 9.2% in 2006, India is the fastest growing economy in the world. It has the 4th largest gross GDP in the world. However this evidence of glittering prosperity is not uniform and its main contributors are found in pockets of highly industrialized states of Maharashtra, Gujarat and to an extent Punjab (which is the most successful of the states in terms of agricultural output). Purvodaya – The Need The Eastern part of India constitutes the North-Eastern states, Sikkim, West Bengal, Chattisgarh, Orissa, Bihar, Jharkhand and to an extent Andhra Pradesh. From lush green flora, vibrant fauna, the sloping greens of the tea gardens, rich mineral / ore deposits, places famous globally for historical relevance, cultural heritage – Eastern India has it all. Therefore Eastern India has tremendous potential in conventional smoke stack industries, in the booming service sector, in tourism and as a investment destination overall. However a look at some of the states in the region reveals a reality that holds a lot of potential but is yet to reach there: Chattisgarh – This mineral-rich state with GDP greater than $12 bn has immense potential to graduate into the league of the advanced states provided it implements a well planned strategy. The states economy is driven by Bhillai Steel Plant under SAIL, South Eastern Coalfields (SECL) under CIL, BALCO Aluminum Plant and NTPC. Assam – The state’s GDP is greater than $13 bn. Its biggest driver is its tea, which is famous globally for its superior quality and aroma. It also produces crude oil and gas. However economic progression has often been hindered in the past with militant unrest prevalent in the region.
Jharkhand – The state’s GDP is greater than $14 bn. It is a hub of the modern steel industry with Tata Steel and Bokaro Steel Plant (BSP) under SAIL being the largest steel plant in Asia. It has immense mineral resources: 1st in iron ore, 3rd in coal, 1st in copper ore, 1st in mica, 3rd in bauxite, manganese, clay, graphite etc. Bihar – The state’s GDP is close to $19 bn. The dairy and sugar industry look promising with the state being deprived of its earlier assets in terms of natural resources (which is now part of Jharkhand). Sikkim – Situated in the ecological hotspot of the lower Himalayas, the forested regions of the state boast of exotic flora and fauna. The state’s GDP is estimated at $478 mn with its economy being mainly agrarian. West Bengal – Agriculture is the main occupation. Rice and Jute are some of the crops that are famous its output in this region. However over the last 5 years, the service sector has been the chief (approx. 51%) contributor to the state’s GDP which is around $22 bn. This is the 3rd fastest growing state economy in the country. Now more than never before, the Eastern region is poised to make its mark in the National economic arena. Some of the key drivers are: •
Manufacturing Sector gets an impetus with existing players like Tata Steel, SAIL, Tata Motors, Coal India, Posco, Arcelor Mittal Steel, JSW Steel and others expanding / setting up new plants in the eastern region to leverage the rich endowment of minerals
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One of the fastest growing Service sectors in the country with an exponential rise in IT and ITES services, financial services etc.
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Real Estate boom in the eastern region with tremendous excitement in the sector for both commercial and residential projects
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Plans of setting up SEZs in West Bengal and elsewhere with focus on rapid industrialization with supportive business environment
Purvodaya – The Challenges & Opportunities The progression towards a state of abundant economic bliss is however dotted with challenges and opportunities which need to be grasped and taken advantage of. In recent times, it has been seen that economic progression has been initiated with little thought of other socio-political factors and every time this has happened the super fast locomotive of prosperity has screeched to a grinding halt. Ways and means for growth – sustainable growth under all possible adversities have to be envisaged and implemented with forethought, reason and grit. The immense diversity and
constant conflict of interests of various sections of the Indian society always have to be kept in mind. Conclusion At ‘Purvodaya – The Ascent of the East’, the National Conclave at Vinod Gupta School of Management, IIT Kharagpur, the vision of a resurgent east is set to unfold with a rare confluence of ideas, thoughts and opinions flowing from the best minds of the country drawn from the Government, Industry and Academia – the three pillars of any economic system. The conclave hopes to culminate in a way forward with innovative ideas from invited speakers, panelists, media and other delegates present. Purvodaya – may the east scale the zenith of success and chart out the vision of the Nation that is set to be a global thought leader.