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Regional Growth and Disparity in India

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Has regional disparity widened in the post-reform period? This study attempts to probe this question by analysing growth rates of aggregate and sectoral domestic product of major states in the pre- and post-reform decades. The results indicate that while the growth rate of gross domestic product has improved only marginally in the post-reform decade, regional disparity in state domestic product (SDP) has widened much more drastically. Industrial states are now growing much faster than backward states, and there is no evidence of convergence of growth rates among states. Disturbingly, there is now also an inverse relationship between population growth and SDP growth. This has serious implications for employment and for the political economy of India.

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