|Gross State Domestic Product at Current Prices (93–94 Base)|
figures in crores of Indian Rupees
|Year||Gross State Domestic Product|
Agriculture is the leading occupation in West Bengal. Rice is the state's principal food crop. Other food crops are pulses, oil seeds, wheat, tobacco, sugarcane and potatoes. Jute is the main cash crop of the region. Tea is also produced commercially; the region is well known for Darjeeling and other high quality teas. However, the service sector is the largest contributor to the gross domestic product of the state, contributing 51% of the state domestic product compared to 27% from agriculture and 22% from industry. State industries are localized in the Kolkata region and the mineral-rich western highlands. The Durgapur–Asansol colliery belt is home to a number of major steel plants. Manufacturing industries playing an important economic role are engineering products, electronics, electrical equipment, cables, steel, leather, textiles, jewellery, frigates, automobiles, railway coaches, and wagons. The Durgapur centre has established a number of industries in the areas of tea, sugar, chemicals and fertilizers. Natural resources like tea and jute in and nearby parts has made West Bengal a major centre for the jute and tea industries.
A significant part of the state is economically backward, namely, large parts of six northern districts of Cooch Behar,Darjeeling, Jalpaiguri, Malda, North Dinajpur and South Dinajpur; three western districts of Purulia, Bankura, Birbhum; and the Sundarbans area. Years after independence, West Bengal was still dependent on the central government for meeting its demands for food; food production remained stagnant and the Indian green revolution bypassed the state. However, there has been a significant spurt in food production since the 1980s, and the state now has a surplus of grains. The state's share of total industrial output in India was 9.8% in 1980–81, declining to 5% by 1997–98. However, the service sector has grown at a rate higher than the national rate.
West Bengal has the third largest economy (2003–2004) in India, with a net state domestic product of US$ 21.5 billion.During 2001–2002, the state's average SDP was more than 7.8% — outperforming the National GDP Growth. The state's total financial debt stands at 192,000 crore (US$42.62 billion) as of 2010 It has promoted foreign direct investment, which has mostly come in the software and electronics fields; Kolkata is becoming a major hub for the Information technology (IT) industry. Owing to the boom in Kolkata's and the overall state's economy, West Bengal is now the third fastest growing economy in the country. However, the rapid industrialisation process has given rise to debate over land acquisition for industry in this agrarian state. NASSCOM–Gartner ranks West Bengal power infrastructure the best in the country. West Bengals state domestic product (SDP) grew in 2004 with 12.7 % and in 2005 with 11.0 % . "Taking a cue from China, West Bengals’s Chief Minister Buddhadeb Bhattacharya has pushed through an ambitious economic reform program with an approach more capitalist than communist." Notably, many corporate companies are now headquartered in Kolkata include ITC Limited, India Government Mint, Kolkata, Haldia Petrochemicals, Exide Industries, Hindustan Motors, Britannia Industries, Bata India, Birla Corporation, CESC Limited, Coal India Limited, Damodar Valley Corporation, PwC India, Peerless Group, United Bank of India, UCO Bank and Allahabad Bank. Recently, various events like adoption of "Look East" policy by the government of India, opening of the Nathu La Pass in Sikkim as a border trade-route with China and immense interest in the South East Asian countries to enter the Indian market and invest have put Kolkata in an advantageous position for development in future, particularly with likes of Myanmar, where India needs oil from military regime.