BS EDIT: Regional divergence in India’s growth

By Business StandardPublished On Sep 20, 2024

Uneven development

India's rapid growth has led to unbalanced development, with prosperity concentrated in a few regions, increasing inequality

Success of West, South

States like Maharashtra, Gujarat, and southern states account for about 30% of India's GDP, with per capita incomes above the national average

Declining states

Bihar, West Bengal, Assam, and Uttar Pradesh have seen a drop in relative per capita income since the 1960s, lagging behind the national average

Diverging neighbours

Punjab's economic growth fell behind Haryana's despite a shared Green Revolution boost, showing varying state-level growth trajectories

Policy challenges

Growing disparities pose challenges in fiscal resource distribution, calling for targeted interventions to uplift lagging states

The way forward

Balanced regional growth requires improving infrastructure, urbanisation, and human capital in underperforming states through focused policies