There are indications of a sharp turnaround in West Bengal’s industrial growth after the mid-2000s. Evidence on this comes from the recent Annual Survey of Industries (ASI) and National Sample Survey Organization’s (NSSO) reports on Employment and Unemployment. The new data also puts to rest all criticisms against the West Bengal's Left Front government regarding generation of industrial employment.
ASI collects information on organized-sector factories – that is, factories that employ more than 10 workers and operate with the aid of electric power as well as factories that employ more than 20 workers without the aid of electric power. According to ASI data, employment in West Bengal’s organized-sector factories was somewhat stagnant during the first half of the 2000s, but has been rising steadily since 2006-07. Thus organized-sector factory employment in West Bengal was 5.1 lakh in 2006-07, rose to 5.7 lakh in 2009-10, 6.4 lakh in 2010-11 and still further to 6.5 lakh in 2011-12 (see Figure 1).
More striking has been the extremely rapid growth of employment in the small, unorganized-sector manufacturing units in the State. NSSO reports on Employment and Unemployment provide data on total manufacturing employment, which include employment in the organized- and unorganized-manufacturing sectors. According to NSSO survey in 2004-05, the size of West Bengal’s manufacturing workforce (usual principal and subsidiary status) was 56.8 lakhs. This increased to 67.9 lakh in 2009-10 and still further to 84.2 lakhs in 2011-12.
In other words, manufacturing employment in West Bengal increased by an impressive 27.4 lakhs during the seven years between 2004-05 and 2011-12. This was more than half of the incremental employment created in manufacturing in the entire country during this period of time (which was 51.3 lakhs). Gujarat is only a distant second to West Bengal with respect to the addition of new manufacturing jobs after 2004-05 (9.5 lakh new jobs in Gujarat compared to West Bengal’s 27.4 lakhs) (see Table 1).
It is also notable that in 2011-12, West Bengal had more manufacturing workers than Tamil Nadu (66 lakhs), Maharashtra (59.6 lakhs), and Gujarat (52.5 lakhs).
A remarkable feature of the industrial growth revival in West Bengal since the mid-2000s is that it has created more jobs in rural areas than in urban centres. Out of the 27.4 lakh new manufacturing jobs created in West Bengal after 2004-05, 17 lakh jobs were in the rural areas. At the same time, between 2004-05 and 2011-12, rural manufacturing employment declined in absolute numbers in most other Indian States, including Gujarat.
Another noteworthy aspect of West Bengal’s industrial growth in recent years is that it has created employment opportunities for women as well. Women workers numbered 11.3 lakh out of the 27.4 lakh new manufacturing jobs added in West Bengal during the seven years after 2004-05. Here again, West Bengal stands out among Indian States as female employment in manufacturing declined or increased only marginally in most other Indian States after 2004-05. For instance, in Gujarat, while total manufacturing employment increased by 9.5 lakhs, females employed in manufacturing increased by only 70,000.
To sum up, industrial employment in West Bengal increased impressively after the mid-2000s. A large part of this employment growth after 2004-05 occurred in small industrial units in the unorganized sector, although growth in the organized-sector factory industries too witnessed a turnaround after 2006-07. In general, the growth of small and micro industries has been in a state of crisis in India after the middle of the 2000s. Given such a context, the fast growth achieved by small-scale manufacturing sector in West Bengal was clearly the result of the plans and policies implemented by the Left Front government (when Nirupam Sen was the Industries Minister) during this period of time. It is also commendable that unlike in most other regions of India, industrial growth in West Bengal has benefitted rural areas and women significantly.