India’s poorer states, arguably, do not gain from the ‘neighbourhood effect’, the rub-on positive impact of sharing the border with fast-growing compatriots. States have often been isolated islands, leading to uneven industrial growth and scarce employment in the country.
Some poorer states may finally be adding formal jobs quicker than traditional leaders, according to data from the Employees’ Provident Fund Organisation (EPFO). Job growth in these states is based on net payroll additions, which EPFO calculates by subtracting exits from new subscribers and adding back those who rejoined or re-subscribed the pension scheme.
Two states, Odisha and Uttar Pradesh, are in the bottom quartile in terms of per capita net state domestic product. Formal employment in Odisha has grown 57.6 per cent since Financial Year 2018-19 (FY19), faster than in any other state. Kerala is next with a growth rate of 34.1 per cent, followed by H
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