ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Intra-State Economic Disparities: Karnataka and Maharashtra

This study addresses issues related to definition, dimension, and measure of economic disparities from the perspective of the finance commission. It illustrates concepts and measures within the Kuznets framework for Karnataka and Maharashtra. Though the two states are better off than the nation as a whole in terms of mean-based estimates of average income, they have pronounced inter-regional disparities, interpersonal inequalities and intra-regional deprivations. Broad-based and inclusion measures are generally higher in poor backward regions and vice versa, implying broad-based backwardness and inclusion in deprivation. Such a scenario sets limits on the potential for resource mobilisation and makes a case for investment strategies that promote broad-based inclusive growth across all regions at the state level.

The author would like to thank Vinod Vyasulu for his comments on a previous version of this paper.

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