The eastern states of India, including Bihar, Jharkhand, Odisha, West Bengal, and Andhra Pradesh, are poised for significant economic development, driven by a new roadmap focusing on tax incentives, skilling initiatives, and the establishment of Special Economic Zones (SEZs). This strategic plan, spearheaded by a Niti Aayog panel, aligns with the central government's "Purvodaya" mission, aiming to unlock the region's vast potential and integrate it more effectively into the national economy.
The Niti Aayog panel, led by member Ramesh Chand, is expected to submit its report next month, outlining specific measures to foster holistic growth in these states. A key component of the plan is the proposal for tax incentives and simplified compliance procedures. These measures are designed to attract investments in manufacturing and other key sectors, addressing a critical need to prevent the large-scale migration of the workforce to more industrialized states. The incentives are expected to be primarily driven by state governments, with the central government providing support through its existing programs.
Recognizing the importance of a skilled workforce, the roadmap emphasizes skill development initiatives. These programs aim to equip the local youth with the necessary skills for emerging industries, thereby enhancing their employability and fostering economic growth. Minister of State for Skill Development and Entrepreneurship, Jayant Chaudhary, has highlighted the importance of integrating skill development within the formal education system. The embedded apprenticeship degree program, with guidelines from the University Grants Commission, is one such initiative aimed at bridging the gap between academic learning and practical skills.
The establishment of new SEZs and the revitalization of existing ones is another crucial aspect of the development strategy. SEZs are envisioned as hubs for attracting investment, promoting exports, and creating employment opportunities. The government is considering measures such as a flexible framework for the sale of products manufactured in SEZs in the domestic market and streamlined approval processes to enhance their attractiveness. However, it's worth noting that in the North-eastern region, none of the five SEZs approved between 2007 and 2021 have become operational, highlighting the need for expedited action and comprehensive support to get these zones off the ground.
Infrastructure development is also a key focus, with significant funds being allocated for improving roadways, railways, waterways, and power generation. Projects like the Amritsar-Kolkata Industrial Corridor (AKIC) are being developed with industrial hubs in Bihar and Jharkhand, while investments are being made in new power plants and the expansion of ports to improve global trade.
The eastern region's combined GDP reached USD 579 billion in 2022-23, an increase from USD 185 billion in 2011-12. However, its share of India's total GDP has remained around 17%, indicating a need for accelerated growth. By implementing these strategic initiatives, the government aims to transform the eastern states into a thriving economic hub, bridging historical gaps and driving national growth.
