West Bengal has lost its glorious position in the industrial map of the country. Why has it been so? Many are of the view that the Union Government's step-motherly treatment toward the State is one of the main reasons of West Bengal's present plight. It is true that in the present constitutional set-up the States have practically no power in the economic field. The Union Government issues licences, distributes scarce raw materials, regulates foreign exchange and export-import business, controls almost all big and All-India financial institutions including commercial banks, manages money and capital markets. No big industry can be set up in any State without the approval of the Central Government. The central investments are also made keeping in view the political viability of the project.
In the political field also the Union Government manoeuvres over the States' politics. Chief ministers remain in power at the pleasure of the Union Government, although there is no such constitutional provision. The Governors are used as political scapegoats and the Centre advises the Governor of a State to dismiss the Chief Minister and dissolve the elected Assembly if it is dis- pleased with the activities of a State Government.
Therefore, both in the economic and political fields the states have no power. This has happened because our constitution is more unitary than federal. During emergency, it is completely a unitary State.
West Bengal has been the victim of the present constitutional provisions. Now, the question may arise why and how other States, especially the southern and western States have developed so much within this constitutional limitations. The query is pertinent indeed. But the answer of this question can be given in this way. First, the cruel axe of the MRTP Act (1970) fell heavily on West Bengal. Before partition many British companies set up big industries in the State.
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