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*
Reader & Head, Department of Economics, Govt. Girls (P.G.) College, Sirsaganj, Firozabad (U.P.).
**
Reader & Head, Department of Economics, Agra College, Agra (U.P.)
***
Research Scholar, Department of Economics, Agra College, Agra (U.P.)
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SECTION - I
PATTERN OF GROWTH DURING PLANS
Inter-state disparities in socio-economic fields have been a
common phenomenon right from attaining independence in August
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1947 till today. The pattern of growth shows that the so called
developed states, what so ever, at the time of independence,
maintained their position at least in economic terms i.e. higher growth
rate of state domestic product, rapid industrialization and finally the
development of service sector at a rapid pace (Maharashtra, Gujarat,
Tamil Nadu, NCR Delhi, West Bengal etc.). It is another thing that track-
record of some of these states on social parameter is at par with other
lesser developed states. In to this, newly created states like contrast
Punjab, Haryana, Himachal Pradesh, Uttranchal, Jharkhand and
Chhattisgarh are showing better results not only in economic terms but
also on social fronts.
plan of Eleventh Five Year Plan states "a widespread perception all
over the country is that disparities among states, and regions within
the states, between urban and rural areas, and between various
sections of the community, have been steadily increasing in the past
few years and that the gains of rapid growth witnessed in this period
have not reached all parts of the country and all sections of the people
in an equitable manner" (GOI, 2008). This statement is more than
enough to prove that the forces of divergence have increased the inter-
state as well as intra-state disparities even in a better growth
environment in the Indian Economy. The Eleventh Plan document
further states that "there is some evidence to indicate a movement
towards convergence on human development indicators across the
states, one of the reasons for this convergence could also be that most
of the human development indicators have a value cap (GOI, 2008,
p.137).
(1.6%) and Andhra Pradesh (1.5%) were other major states lagging
behind in growth process. These states recorded a negative growth
rate in per capita Net State Domestic Product (NSDP) in the same
period (Table 1).
A new series of GSDP data was released by CSO in the year 2000
and subsequently updated in November 2001. On the basis of new
data, the growth rate of GSDP has been calculated for 1993-94 to
1998-1999 and presented in Table-2. The growth record shows an
increase in the divergence of individual states. Standard deviation
increased from 1.19 in the 1980s to 1.60 in the 90's in terms of GSDP
broadly along the pattern that had come to be established during the
decade of the seventies with some notable differences. However, the
difference between the highest and the lowest value for GSDP growth
rate across states in the seventies was 4.8 percentage point which
increased to 5.5 percentage point during nineties, indicating widening
of the spread over the preceding decade (Difference between the
highest and lowest growth rates during eighties was only 1.8
percentage points). Another notable point during 90s was that Punjab
and Haryana which were recording consistently higher growth rate
since 1960s recorded a lower growth rate as compared to the national
average. In contrast to this Karnataka, Gujarat, Maharashtra,
Rajasthan, West Bengal and Tamil Nadu recorded much higher growth
rates.
Thus, the overall disparity in inter state growth of NSDP and per
capita NSDP of states increased considerably during the nineties, as
compared to the eighties and seventies.
NSDP Per
capita
1960-61 to 2.14 2.05 4.01
1969-70
1970-71 to 2.22 1.81 3.67
1979-80
1980-81 to 1.71 1.02 0.71
1990-91
1993-94 to 3.13 2.40 5.29
1998-99
1999-00 to 2.82 2.43 3.97
2004-05
Source : GOI (2002); Tenth Five Year Plan, Vol. III, Planning
Commission, p.37 and Economic Survey 2007-08.
–
47.00%
(Bihar)
= 43.86
percentage
point
Note :Calculated on the basis of data of Table-6.
SECTION II
SOCIAL AND DEMOGRAPHIC FACTORS IN CONVERGENCE AND DIVERGENCE
Besides difference in GSDP growth rates, and absolute levels of
per capita GSDP, there are wide variations between states even on
other indicators like health, education and infrastructure etc. In the
current scenario where high growth rates have led to a spiral of
commercial and service sector activity in the already developed
regions, the backward areas continue to lack even basic amenities
such as education, health, housing, rural roads, drinking water and
electricity. Livelihood options are also limited as agriculture does not
give adequate returns and industry is virtually absent in many areas
leading to limited trade and services.
percentage point (90.86 – 47.0 = 43.86). Along with this difference the
level of standard deviation being 10.37 also shows the high level of
divergence in Indian States. Infant mortality rate is another parameter
which not only decides the level of standard of living but also the
trends in birth rate.
Punjab and Haryana were the two states that benefited the most
from the Green revolution and this led to a spurt in growth in these
states in the sixties up to the end of the green revolution in the
eighties. However, both Punjab and Haryana failed to maintain their
growth rate after the reforms mainly due to stagnation and subsequent
decline in agricultural productivity. Also the urban-rural ratio failed to
increase in both these states. However, despite a decline in the growth
rates of Punjab and Haryana, their overall position remains quite high
in per capita NSDP.
Another highlight of the post reform period has been the fast
growth of Orissa as compared to the pre-reform period. Orissa became
an innovator in economic reforms especially in the power sector and
set out a strong industrial policy. Also it introduced new agricultural
and tourism policies. In the post reform period, Orissa ranks sixth in
foreign investment. Due to its abundant natural resources, the
investors both foreign and domestic have been attracted towards
Orissa. However, despite its resource wealth, Orissa is still
predominantly an agricultural state and thus for its future income
growth, the poor performance of the primary sector has to be dealt
with.
SECTION IV
STRATEGY FOR REDUCING DISPARITIES
SECTION V
CONCLUSION
The findings of the study carried out in the paper reveal that
although there are claims that inequality has decreased in the post-
liberalisation period, these views are mostly unsubstantiated. Analysis
of data shows that on almost all socio-economic indicators, inequality
has in fact increased in varying degrees. The intra and inter state
disparities in India are a result of historical events before independence
as well as faulty unified and centralised planning after independence. It
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was only in the Tenth Plan that the government realised the need for
different growth targets and strategies for different states. Accordingly,
it advocated a multi-pronged approach to reduce the regional
disparities. The eleventh plan has continued the process started in the
Tenth Plan and by the end of the plan, we hope to achieve some
positive results.
REFERENCES
13. Sachs, Jeffery D.; Bajpai Nisupam and Ramiah Ananthi (2001);
"Understanding Regional Economic Growth in India", Paper
presented in the Asian Economic Pannel Meeting in Seol, On Oct
25-26, 2001.
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