Decaying Kolkata? Harsh Goenka says GDP tells a different story vs Bengaluru, Chennai

There is a widespread perception that Kolkata’s economy, much like the rest of West Bengal, has declined sharply over the past few decades. However, hard numbers present a more nuanced picture.

Kolkata, the capital of West Bengal, remains among India’s richest cities by GDP, with substantial economic contributions. It continues to be a major trade and industrial hub, supported by its strategic location along the Hooghly River and the presence of the Port of Kolkata.

Industrialist Harsh Goenka recently highlighted this contrast. In a post on X, he noted that while Bengaluru’s tech boom dominates headlines and Kolkata is often seen as a fading city, GDP figures suggest a different reality.


According to the data he shared, Mumbai leads with a GDP of ₹25.73 lakh crore, followed by Delhi NCR at ₹24.37 lakh crore. Kolkata, with a GDP of ₹12.45 lakh crore, ranks ahead of Bengaluru (₹10.9 lakh crore) and Chennai (₹9.5 lakh crore), underscoring its continued economic relevance.



At the same time, the broader economic trajectory of Indian states has shifted significantly since Independence. Historically dominant states such as Uttar Pradesh and West Bengal have seen their share of national GDP decline, while Maharashtra and Tamil Nadu have maintained or strengthened their positions. The post-liberalisation period, in particular, has seen southern states emerge as major economic engines, widening the gap between eastern India and faster-growing regions.

In the 1960s, undivided Uttar Pradesh, Maharashtra, West Bengal, Tamil Nadu, and undivided Bihar were the top five contributors to India’s GDP, driven by strong industrial bases and agricultural output. Over time, their paths diverged.

Undivided Uttar Pradesh’s share fell from 14.4% in 1960-61 to 9.3% in 2020-21, before edging up slightly to 9.5% in 2023-24 (or 8.4% excluding Uttarakhand). Maharashtra remained relatively stable, increasing its share from 12.5% to 13.3% over the same period. West Bengal, however, saw the steepest decline, with its share dropping from 10.5% in 1960-61 to about 5.6% today (as per 2024 data).

This relative decline is also reflected in per capita income. In 1960-61, West Bengal’s per capita income was 127.5% of the national average, making it the third-richest state. Today, it stands at about 83.7% of the national average (as per 2024 data). As per latest estimates, West Bengal’s per capita income stands at Rs 82,781.