Management of Regional Diversities in Growth and Employment in India

Regional disparities are one of the major areas of concern for the Indian economy since independence. The reforms since 1991 with stabilization and deregulation policies as their key instruments and a very significant role for the private sector seem to have further aggravated the inter-state disparities. An analysis of the growth in domestic product of Indian states in the last two decades reveals that the development process has been uneven across states. The regional disparity in the growth rates becomes sharper in terms of per capita income. The poorer states have not only performed poorly but their failure to control population growth has left them in even worse position. The immediate requirement of these states is more investment in their social and infrastructural sectors. To improve the level of social services massive investment in primary education and primary health services are required. There is also an urgent requirement of the growth of nonfarm employment and it can be a good avenue for other sources of income within the village. This can lead to a reduction in both the inter-state and intra-state disparities.

Improvement in the basic infrastructural facilities like power, irrigation, transport and telecommunication in the backward states is a pre-condition of improving the quality of life of the people and to usher in sustainable economic development in those states. Availability of assured power supply, developed transport system and modern telecommunication facilities are important factors to attract private investments into these States. Similarly, development of the irrigation potential filly will go a long way in improving the productivity of agriculture and fully engaging the unemployed and underemployed rural labour productively which in turn will improve the rural incomes substantially and reduce the rural poverty significantly.

The paper attempts to look at and analyze the growth and disparity among the major states in India.