West Bengal’s economic standing has weakened sharply over the past five decades, with the state’s per capita income falling from being higher than the national average in 1978 to around 23 per cent below it in FY25, according to an SBI Research analysis of the state’s FY27 Budget.
The report notes that West Bengal ranked fifth in the country in per capita income in FY78, when its per capita income stood at Rs 1,266 compared with the national average of Rs 1,194. By FY25, however, the state’s per capita income had reached Rs 1.81 lakh, ranking 19th among states, while the all-India figure stood at Rs 2.35 lakh.
SBI Research said West Bengal’s per capita income grew 3.2 times between FY12 and FY25, slightly below the national growth of 3.28 times over the same period.
West Bengal’s per capita income slide since 1978
SBI Research says the state was above the national average in FY78, but stood around 23% below the all-India level in FY25.
5th rank in India
Above all-India level of ₹1,194
19th rank among states
Around 23% below all-India level of ₹2.35 lakh
FY25: 23% below national average
Source: SBI Research analysis of West Bengal FY27 Budget.
The report describes the trend as a long-term deterioration in the state’s relative economic position despite steady growth in gross state domestic product over the years.
It also notes that services account for 58.3 per cent of West Bengal’s Gross Value Added, followed by industry at 21.6 per cent and agriculture at 20.1 per cent.
According to SBI Research, reversing the decline in per capita income will require stronger investment-led growth and higher productive capacity.