- Jul 19, 2026
- Mukul Asher
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India’s Demographic Centre of Gravity is Aligned with Pursuing Viksit Bharat Goals
Alignment of India’s demographic centre of gravity, located in the Ganga River Valley (GRV), with state governments whose governance philosophy and economic development vision are coordinated with those of the government at the centre led by PM Modi, augurs well for India’s goal of becoming a Viksit Bharat by 2047, 100 years after independence in 1947. India’s demographic centre of gravity is in the Ganga River Valley. River Ganga originates as the Bhagirathi River from the Gangotri Glacier at Gaumukh in Uttarakhand at an elevation of 3,892 metres. After merging with the Alaknanda River at Devprayag, the stream is officially named Ganga. Flowing for nearly 2,525 km, the Ganga passes through the states of Uttarakhand, Uttar Pradesh, Bihar, Jharkhand, and West Bengal, before entering the Bay of Bengal. It forms the world’s largest delta, the Sundarbans, along with the Brahmaputra River. Major tributaries of the Ganga include Yamuna, Ghaghara, Gandaki, Kosi and Son, which significantly contribute to the Ganga River, playing a vital role in irrigation, drinking water, and impact on cultural lives of the people. The Ganga River valley forms one of the world’s most densely populated basins, accounting for 26.4 per cent of India’s geographical area and supporting nearly 50 per cent of India’s population of about 1450 million. Figure 1: Population Density of India Along the Ganga River Valley The very high continuous density of India’s population is clearly observable from Figure 1. In the rest of India, Ahmedabad, Surat, Mumbai, Bengaluru, Chennai, and Visakhapatnam are other areas, almost all in coastal areas, that exhibit high population density. Globally, coastal cities have been prominent contributors to agglomeration economies, density and complexity of economic and cultural activities, international trade and investments, and to technical innovations. India’s Sagarmala program, designed to accelerate port-led development, aims to utilise India’s coastline of about 11,099 kilometres, along with nearly 14,500 kilometres of potentially navigable waterways. Coastal regions are home to major ports that connect India with global shipping routes and facilitate the movement of goods and passengers. Around 95% of the country’s trade by volume and about 70% by value is handled through maritime routes 1. For enhanced effectiveness of Sagarmala, Bharatmala Pariyojana is also being implemented. It is a massive umbrella program designed to optimise the efficiency of freight and passenger movement. It focuses on constructing economic corridors, coastal and port connectivity roads, and greenfield expressways 2. Along with the coastal development, and Bharat Pariyojna, and rail and air connectivity initiatives being undertaken, if the states along the Ganga River Valley align their policies to significantly raise their currently low per capita income, particularly in Uttar Pradesh (population 241 million), Bihar (130 million ), West Bengal ( 100 million) and Odisha ( 49 million ), a combined population of 520 million, 35 percent of India’s population, that would augur well for India achieving its Viksit Bhart goals by 2047. Five indicators, not often emphasised, of the progress of the Indian policies so far, may be briefly mentioned. The first is the declining logistics costs, India’s logistics costs have declined substantially from approximately 16 per cent of GDP in earlier years to current estimates of around 8-10 per cent of GDP, depending on measurement methodology. This improvement reflects ongoing infrastructure development, policy reforms, and technological adoption across the logistics sector 3. Second, the time taken to voluntarily close a company has declined sharply from nearly 500 days in 2020-21 to just 60 in 2024-25 (Figure 2), facilitating a shift towards more productive use of factors of production. Figure 2: Time Taken in India to Voluntarily Close a Company Third, as Figure 3 indicates, between 2014 and 2024, India has made impressive progress in electrification throughout the country. Figure 3: Impressive Progress in Electrification throughout India Between 2014 and 2024 Fourth, in 2024, India became the fifth-largest manufacturer in the world, with output valued at USD 490 billion, equivalent to 2.91 per cent of the global output. It is now behind only China, the USA, Germany, and Japan. As India’s manufacturing sector grows rapidly, it can conservatively hope to significantly narrow the difference in the value of output with at least Germany and Japan 4. Fifth, in 2025-26, India’s total exports were USD 863 billion, with an ambitious target of USD 1000 billion in 2026-27. This will require merchandise exports to increase from USD 442 billion to USD 530 billion, and services exports from USD 421 billion to USD 470 billion. India is aiming to be among the top few trading nations in the world 5. Select Initiatives of States in the River Ganga Valley Examples of the progress by India noted above did not fully benefit from the alignment of population density along the Ganga River Valley and state governments along it, with alignment to the Central government. A brief overview of the recent initiatives of Uttar Pradesh, Bihar, West Bengal, and Odisha, whose development policies are now aligned with those of the Central government, is presented below. Uttar Pradesh Uttar Pradesh has been led by Yogi Adityanath of the Bharatiya Janata Party, which is also the ruling party at the national level, since March 2017. Thus, its policies have been aligned with those of the national government for some time. Its per capita income in 2026-27, however, is still only 56 per cent of India’s total of USD 3073. If the state can raise the relative per capita income significantly in the coming years, as seems likely, its economic weight will improve further. Given its large population, the GDP of Uttar Pradesh in 2025-26 is officially estimated at INR 36 trillion (about USD 430 billion), accounting for about 9.0 per cent of India’s GDP. The state officially aspired to generate a GDP of USD one trillion in the medium term. If it grows at an average of 12 per cent in nominal GDP terms, it can achieve this inspiration in about a decade. Since becoming Chief Minister of Uttar Pradesh, the most impressive achievement of Yogi Adityanath has been to end the climate of fear, insecurity, and lawlessness that prevailed earlier. This has played a key role in improving household welfare and instilling confidence in the state. In addition to the above, there have been many initiatives by the state since 2017. Only select examples, particularly those that are future-oriented, are provided below. First, connectivity, critical for creating new growth nodes, is being substantially enhanced. Uttar Pradesh is positioning itself as India’s expressway hub with 22 expressways. It has the largest rail network in the country and plans to expand its aviation ecosystem to 24 airports, including five international ones. Uttar Pradesh is positioning itself as India’s expressway hub with 22 expressways, has the largest rail network in the country, and plans to expand its aviation ecosystem to 24 airports, including five international ones. Noida International Airport, Jewar, began operations in June 2026. It has an initial capacity of 12 million passengers and a final capacity of 70 million annual passengers. This will make it India’s largest airport and one of the largest airports in Asia. By the beginning of 2027, international flights will also be operating from Jewar. Second, urban management is being given due consideration. Specifics include the creation of a Lucknow State Capital Region and plans for 100 new townships to manage urban expansion. Varanasi is also being transformed through projects such as the ropeway, ring road, Kashi Multimodal Hub, and double-decker Ganga Bridge. Third, the first EXIM-grade container was produced in Uttar Pradesh. Maersk company has placed an order for 1000 made-in-India containers, a beginning for developing a new manufacturing sub-sector in India. Fourth, Uttar Pradesh has ambitious plans to become one of the aerospace and defence manufacturing centres in the country. BrahMos manufacturing and integration production location is in Lucknow. Fifth, Uttar Pradesh ranked fourth among the large states in the Export Preparedness Index (EPI). A creditable performance for a landlocked state 6. Sixth, Uttar Pradesh is aiming to transform its agriculture to improve yield and sustainability, with diversification as a key objective. One of the partners of the state is the World Bank. This partnership is designed to integrate digital platforms, finance, infrastructure, and private investment in the food sector. Uttar Pradesh is aiming to use direct-seeded rice to double yields while driving down water use, emissions and costs for farmers 7. Seventh, the start-up ecosystem of Uttar Pradesh is progressing well. One of the indications of this is that the listed market capitalisation of start-ups from Noida (USD 63 billion) exceeds that of Bengaluru (USD 46 billion), an impressive achievement in a relatively short time. (Figure 4). Finally, Uttar Pradesh leads in domestic tourism by a large margin. The Ministry of Tourism data indicate that in 2025, the number of domestic visitors attracted by Uttar Pradesh was nearly 650 million, and with 310 million tourists, Tamil Nadu is at a distant second. Figure 4: Listed Startup market Capitalisation: Gurugram and Bengaluru Bihar The current Chief Minister of Bihar is Samrat Choudhary. He assumed office on April 15, 2026, becoming the first Bharatiya Janata Party (BJP) leader to hold the top post in the state. Thus, the alignment of Bihar with the national government is very recent. Bihar is among the poorest of the states, with per capita GDP in 2026-27 equivalent to 34 per cent of the Indian total. Among the initial initiatives of the Samrat Choudhary government is to create a greater sense of security and increase trust and confidence in state institutions. This is essential for Bihar’s faster development in both economic and non-economic areas. Bihar can play a significant role in enhancing the role of inland waterways in India. This is exemplified by four massive refinery columns originating in Dahej port, Gujarat, reaching Bihar via the Ganga River for delivery at the Barauni refinery, situated on the northern banks of the Ganges River Bihar’s plans to access the municipal bond market, a very much underutilised avenue for urban infrastructure, also hold promise. Thus, Patana Municipal Corporation plans to issue municipal bonds worth INR 20 billion for infrastructure. Bihar’s plans for accelerated infrastructure investment are in the early stages. The Patna metro has, however, become operational. The state expects to attract investments in textile, biotech and other sectors. Bihar’s young workforce, combined with the policy initiatives of the new government, is expected to attract labour-intensive sectors to the state. It will, however, be some years before the impact of this new alignment is reflected in economic data and in Bihar’s rankings. West Bengal The potential contribution West Bengal can make to India’s Viksit Bharat goals is indicated by the extent to which its rank in terms of per capita income among the Indian states has declined over the decades. It ranked third among the Indian states in 1960-61 but declined to twenty-fourth by 2023-24 (Figure 5). In 2026-27 (estimated), the per capita GDP of West Bengal was 75 per cent of India’s average. Figure 5 Since May 2026, when the state electorate entrusted the governance responsibilities to the Bharatiya Janata Party, led by Suvendu Adhikari, there have been encouraging signs of the revival of the West Bengal economy, though the massive challenges facing the government should not be underestimated. The biggest factor in optimism regarding the revival of West Bengal State is that the climate of fear and lawlessness that existed before May 2026 no longer exists, enabling enterprise and creativity to flourish, while greatly improving the business climate. It is reported that “there is growing optimism within policy circles that improved coordination between the Centre and the state, along with a more investment-friendly environment, could encourage greater industrial participation in Bengal. Large corporate groups and infrastructure companies, including organisations such as Larsen & Toubro, have reportedly shown renewed interest in investment opportunities in the state. If these proposals materialise, they could contribute significantly to industrial growth, job creation, and long-term economic development” 8. It is reported that West Bengal is undergoing a massive INR 70 billion infrastructure and economic overhaul, driven by a mix of central and state government initiatives. Key projects focus on connectivity, industrial corridors, aviation expansion, and port-led development to transform the region's economic landscape. The Projects include a bullet-train project from Delhi to Siliguri in the northern part of West Bengal, through Varanasi and Lucknow, a second Kolkata Airport, a deep-sea Port at Dadanpatrabar, AI & Data Centres and the extension of Kolkata's rapid transit systems, including battery-powered Water Metros. There are also plans to transform Kolkata’s historic trams into an integral part of the modern urban transit system. West Bengal’s traditional weaving clusters are reportedly finding a larger national market through e-commerce. Indeed, West Bengal has the potential to emerge as one of India’s important digital hubs. Another encouraging sign is that the Marwari community, long a key element of West Bengal’s economy but driven out by the previous government, is beginning to invest again in the state. This is exemplified by the inauguration of INR 150 billion (to be invested in phases) Mejia Shyam steel plant in July 2026 by a Marwari community business group 9. Odisha There is alignment between the Bharatiya Janata Party-led government of Mohan Charan Majhi. It is a mineral-rich state and in alignment with the central government. There are significant opportunities in the natural resource sector, including in the critical rare earth minerals. In 2026-27 (estimated), Odisha’s per capita GDP was 80 per cent of India’s average. Several major projects have been announced for Odisha. Examples include: Kansariguda Refinery (Rayagada district) project of the Aditya Birla Group. This is the core of the new USD 1.26 billion expansion, scaling alumina production to 3 million metric tons per annum. Adani Group and Abu Dhabi's International Holding Company (IHC) are building a USD 11.5 billion (INR 1.1 trillion) aluminium greenfield project. It is the largest foreign investment in India's metals sector and will generate over 53,500 jobs. The Odisha government has claimed good progress in becoming a textile hub, with good employment and export potential. It is reported by the state authorities that around 55 companies have signed MoUs in this sector, of which 33 have already acquired land, and nearly 10 are already operational. Roads and Highways projects include the construction of the Rs 8,300 crore Coastal Highway connecting Gopalpur to Digha, and a new 6-lane 111 km access-controlled bypass ring road around Bhubaneswar, Cuttack, and Khordha. Encouragingly, Odisha has been ranked among the top performers in the 2026 index by NITI Aayog on investment friendliness 10. It is reported that Odisha plans to reclaim nearly 400 acres Jagannath Temple land, expected to generate INR 100 million for creating a Temple Fund 11. In addition to the above states, Uttarakhand, led by Pushkar Singh Dhami since 2021, and Assam, led by Himanta Biswa Sarma since 2021, both of Bharatiya Janata Party, have also aligned their policies with those of the national government. In a recent report, Uttarakhand and Assam have been ranked first and second among the Hilly and North Eastern States 12. Assam aims to be a key centre through which India can reach out to Southeast Asia. Tata Electronics is set to build a state-of-the-art, greenfield semiconductor assembly and test facility in Jagirod, Assam. The facility will be built with an investment outlay of INR 270 billion, a significant milestone for the state 13. In conclusion, after a long time, India’s demographic centre of gravity in the Ganga River Valley and the development policies and governance philosophy of the states in the valley are aligned with those of the national government. This is a very positive development auguring well for achieving the goals of Viksit Bharat. Competence, outcome or result orientation, patience, good political management, and some luck will be needed to realise the potential of this alignment. 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- Dr. Nidhi Shendurnikar
