Eastern India lagging despite strong national growth; FY'27 Budget resilient: Sanjeev Sanyal

Kolkata, Member of the Economic Advisory Council to the Prime Minister, Sanjeev Sanyal, on Tuesday flagged growth disparities in some states, and said eastern India continues to lag, due to the "long-term decline" of Kolkata as an industrial hub and slower infrastructure development.

Addressing members of the Calcutta Chamber of Commerce here, Sanyal said the benefits of economic reforms have been uneven in regions.

"After the 1991 reforms, southern states gathered momentum and today contribute over 30 per cent of India's GDP, while parts of eastern and northern India have not kept pace," a statement issued by the chamber said, quoting him.


Stressing the need for strong urban engines, Sanyal said regional development hinges on building "anchor cities" that can drive investment and productivity, citing Bengaluru, Hyderabad and the Mumbai-Pune corridor as successful examples.

Sanyal termed the Union Budget 2026-27 as resilient and growth-oriented, advocating a capital expenditure-led strategy alongside fiscal consolidation, according to the statement.

He welcomed the budget's focus on reducing the fiscal deficit, higher infrastructure spending and asset monetisation, while also backing policy measures that encourage innovation and risk-taking.

"A dynamic economy must also be willing to accept business failure as a natural outcome of experimentation," Sanyal said, underlining the need for a supportive ecosystem for entrepreneurship.