Debates around the contrasting development trajectories of Odisha and West Bengal have gained renewed prominence over the past two decades. Odisha is increasingly being recognised for its relatively robust economic growth and prudent fiscal management, while West Bengal faces growing scrutiny over concerns of slowing growth and fiscal stress.

Historically, the two neighbouring States have shared a complex relationship — marked as much by cultural affinities as by competitive assertions over language, heritage. In this context, a dispassionate and evidence-based comparison of their performance across key economic and human development indicators becomes both timely and necessary.

Odisha’s ascent

Once perceived as a laggard, Odisha has steadily climbed the growth ladder, while West Bengal, long regarded as a leading State in industry and intellectual capital, has witnessed a relative slowdown. At the heart of this story lies the changing growth dynamic. Between 2011-12 and 2023-24, Odisha’s Gross State Domestic Product (GSDP) grew at an average annual rate of 7.0 per cent, comfortably outpacing West Bengal’s 4.7 per cent and even exceeding the national average of 6.0 per cent.

Resultantly, Odisha’s share in India’s GDP has inched up from 2.7 per cent in 2000-01 to 3.0 per cent in 2023-24. In contrast, West Bengal’s share has declined from around 6.0 per cent to 5.2 per cent over the same period. This suggests not merely differential growth rates but a gradual rebalancing of economic weight within eastern India.

Odisha’s per capita surge

Perhaps the most telling indicator of convergence is per capita income. In 2000-01, Odisha’s per capita income was just ₹10,453, barely 56 per cent of the national average, while West Bengal stood at ₹16,583, or 89 per cent of the national benchmark. Fast forward to 2024-25, and the picture has dramatically changed. Odisha’s per capita income has surged to ₹1,68,966, slightly overtaking West Bengal’s ₹1,63,467. In relative terms, Odisha has risen to 82 per cent of the national average, while West Bengal has slipped to 80 per cent.

One of the most striking differences between the two States lies in their fiscal health. In the recently published Fiscal Health Index of NITI Aayog, Odisha has ranked first among 18 major States with a score of 73.1 while West Bengal ranked at 16th position with a score of 23.8. Odisha has significantly strengthened its revenue base, with State’s Own Tax Revenue accounting for 7 per cent of GSDP, compared to 5.4 per cent in West Bengal.

Fiscal health

More importantly, Odisha’s non-tax revenue stands at an impressive 6.8 per cent of GSDP, driven largely by mining, while West Bengal’s is just 0.2 per cent. This robust fiscal position has enabled Odisha to invest in infrastructure, welfare programmes, and disaster resilience, reinforcing its growth momentum. West Bengal, in contrast, faces tighter fiscal constraints, limiting its ability to undertake large-scale public investment.

Per Capita NSDP may not reflect the true distribution of the economic benefits of the State. Monthly Per Capita Consumption expenditure (MPCE) is a better indicator to measure the wellbeing of people. Rural monthly per capita expenditure (MPCE) remains higher in West Bengal (₹3,620) than in Odisha (₹3,357), indicating relatively better rural consumption. In urban areas, however, Odisha (₹5,825) slightly surpasses West Bengal (₹5,775), suggesting that its urban economy is gaining strength. This shift reflects Odisha’s increasing reliance on industry and urban-led growth.

Yet, the story becomes more complex when we move beyond income to human development. According to estimates by NITI Aayog’s Multidimensional Poverty Index (MPI) the poverty head count ratio in Odisha stands at 15.68 per cent, higher than West Bengal’s 11.89 per cent and slightly above the national average of 14.96 per cent. This suggests that poverty reduction, while significant in Odisha, still lags behind its eastern neighbour.

Social indicators

Health outcomes reveal a similar pattern. Life expectancy in Odisha (70.5 years) is close to the national average but trails West Bengal’s 72.5 years. Infant Mortality Rate (IMR) remains a concern in Odisha at 30 per 1,000 live births, compared to 17 in West Bengal and 25 nationally. Maternal Mortality Ratio (MMR) is also higher in Odisha (153) than in West Bengal (104), both exceeding the national average of 88.

At the same time, Odisha has made notable strides in education. Its Gross Enrolment Ratio (GER) for classes IX–XII stands at 72.3, slightly below West Bengal’s 75.2 but well above the national average of 68.5. This reflects sustained efforts to expand access to secondary education, which is essential for long-term productivity gains.

However, both States face a common and persistent challenge — malnutrition. Data from the recent National Family Health Survey show alarmingly high levels of anaemia among children and women. In Odisha, 64.2 per cent of children aged 6–59 months are anaemic, compared to 69 per cent in West Bengal. Among pregnant women, the figures are 61.8 per cent and 62.3 per cent respectively. These levels are higher than the national average, underscoring a deep-rooted public health concern that cuts across State boundaries.

The Sustainable Development Goals (SDG) index offers a broader perspective. West Bengal scores 70, ahead of Odisha’s 66 and close to the national average of 71. This indicates that despite slower economic growth, West Bengal has maintained relatively better performance in social and environmental indicators.

Taken together, the updated data paints a nuanced picture. Odisha’s rise is real and substantial, driven by high growth, improved fiscal health, and rising incomes. West Bengal’s relative drift is evident in slower growth and declining national share, even as it retains strengths in human development.

Divergent paths

What explains this divergence? Odisha’s growth has been powered by its natural resource base, particularly minerals, which have generated revenue and attracted investment. Equally important has been its governance model — marked by fiscal prudence, disaster preparedness, and targeted social programmes.

West Bengal’s experience, on the other hand, reflects structural challenges in reviving industrial growth and expanding its revenue base. While the State continues to benefit from strong human capital and a diversified economy, it has struggled to translate these advantages into sustained high growth.

Looking ahead, the policy priorities for the two States are clear but distinct. For Odisha, the challenge is to convert economic gains into better health and nutrition outcomes. Although Odisha has made remarkable progress in poverty reduction, IMR and MMR, it needs to strengthen public health infrastructure, maternal care, and child nutrition to improve the maternal and child health.

For West Bengal, the imperative is to reignite growth. This will require a renewed focus on industrialisation, infrastructure development, and fiscal strengthening. Leveraging its human capital and urban base could provide a pathway to revival.

The writer is Associate Professor, National Institute of Science Education and Research Bhubaneswar. Views expressed are personal

Published on May 5, 2026