Assam and Odisha quietly outpace West Bengal on growth and incomes

Odisha and Assam have overtaken West Bengal in per capita income

While West Bengal remains a much larger economy in absolute terms, both Assam and Odisha are steadily outperforming it on several key economic parameters, particularly income growth, industrial expansion and post-pandemic momentum.

In size, West Bengal still dominates. Its real gross state domestic product (GSDP) at 2011–12 prices stood at about Rs 9.4 lakh crore in 2024–25—nearly three times that of Assam and almost twice Odisha’s output. But both smaller states are growing from lower bases at a faster pace, gradually narrowing the distance with the region’s traditional heavyweight.

The shift is most visible in per capita incomes. In 2011–12, West Bengal enjoyed a clear lead over both Assam and Odisha in per capita net state domestic product (NSDP). Over the years, that advantage has steadily eroded. By 2024–25, Odisha’s per capita income had surged to Rs 96,224, overtaking West Bengal by a wide margin. Assam, too, has made significant gains, reaching Rs 85,988 and closing much of the historical gap. West Bengal’s per capita income, while higher than before, rose more gradually to Rs 82,781 over the same period.

Growth trajectories further underline the divergence. Over the past decade, Assam and Odisha have repeatedly clocked higher real growth rates than West Bengal. Assam recorded double-digit growth in multiple years—most notably in 2015–16, 2022–23 and 2023–24. Odisha’s growth has been more volatile, but its peaks have been sharper, including a striking 16.4 percent rebound in 2021–22 as the state bounced back from the pandemic shock.

West Bengal’s performance has been steadier but less spectacular. The state suffered a sharper contraction during the pandemic year of 2020–21, followed by a strong rebound in 2021–22. Since then, however, its growth has largely tracked the national average rather than consistently outperforming it, unlike Assam and Odisha, which have more frequently punched above their weight.

Industrial indicators reinforce the picture. Between FY15 and FY24, the number of factories in Assam jumped by nearly 63 percent, the fastest among the three states and far above the all-India average increase of about 13 percent. Odisha also outpaced the national trend, benefiting from investments in metals, mining-linked industries, and downstream manufacturing.

West Bengal, by contrast, saw its factory count rise by just under 11 percent over the same period, signalling slower industrial deepening.

However, the eastern powerhouse still leads Odisha and Assam in value added from factories. Factory output in West Bengal more than doubled between FY15 and FY24, growing faster than the national average and Assam. Odisha, on the other hand, witnessed a 298 percent increase during this period.