Table Of Contents
- The Income Divide Across States
- Historical and Geopolitical Causes
- Post-Independence Policies and Regional Effects
- Government Initiatives and Future Directions
- Leveraging Regional Resources for Equitable Growth
Even after 78 years of Independence, regional disparity remains as one of the most puzzling and challenging issues facing Indian policymakers. This disparity contributes to region-based discrimination, widespread migration, and the formation of slums in nearly all major cities.
It has been observed that in many states people have formed a stereotype and an opinion of hatred toward the people of those states who are generally bound to migrate to other parts of the country in search of better educational, health care and employment opportunities.
The Income Divide Across States:
At the start of the millennium, the per capita income in India’s five wealthiest states was 145% higher than in the country’s poorest states. This gap increased to 289% in 2010-11 and further to 338% by 2017-18. Another indicator of inequality is the coefficient of variation in per capita income across states, which rose from 42.2% in 2000-01 to 57.8% in 2017-18, underscoring the growing disparity in the economic fortunes of Indian states.
Historical and Geopolitical Causes:
The reasons for this regional disparity are numerous. Historically, India faced invasions from Central Asia (e.g., Afghans) through its northern regions. These invasions caused significant destruction of temples and cultural sites in the north, eroding the region’s socio-political structure and wealth reserves. In contrast, the southern part of India remained relatively unaffected, allowing it to preserve and grow its cultural heritage and prosper economically.
During the colonial era, British administrators prioritised development in only a few cities—Bombay, Calcutta, and Madras—while largely neglecting peripheral states such as Odisha and Bihar.
Post-Independence Policies and Regional Effects:
At the beginning of the millennium, the per capita income of five richest states of India were 145% higher than that of the bottom states, and now it soared to 289% in 2010-11 and 338% in 2017-18.
Another way to gauge the inequality between states is to look at the coefficient of variation in per capita incomes, which provides a summary measure of the extent of differences between the states.
This measure rose from 42.2% in 2000-01 to 57.8% in 2017-18, indicating a growing divergence in the fortunes of states.
Post-independence policies also reinforced disparities. The Green Revolution, for instance, benefitted mainly Haryana, Punjab, and Western Uttar Pradesh, while incentives for population control disproportionately favoured the southern states. The northeastern states along with Bihar and Orissa, meanwhile, continued to be neglected.
Industrial growth has concentrated in regions that inherited British-built infrastructure and advantageous geographic locations. Additionally, regions affected by separatist, Naxalite, or insurgent movements have faced stagnation, leading to reduced trade and commerce that still hampers growth.
Adding to these challenges, the government’s policy of redistributing tax revenues from developed to underdeveloped states based on population has sparked discontent. People in economically advanced states often feel that their resources are being unfairly allocated and that incoming migrants are taking away local jobs. This has heightened tensions between North and South India.
Government Initiatives and Future Directions:
The government’s policy of distributing the tax resources from the developed states to the under-developed states based on population size faces huge uproar because they feel that they are deprived of their own resources and anyways migrants are coming to their land and taking away their jobs.
This has also been the reason for tensions between the Northern and Southern parts of India. The government tried to implement measures to cope with these situations. Some of these measures include, restoring the heritage sites, initiating numerous infrastructure projects in the NorthEastern regions. These measures would optimistically lead to a boost in the tourism sector and a good connectivity between the NorthEastern region and the rest of India.The Infrastructure minister had mentioned that it was a challenging task to build the Bogibeel bridge, but they somehow made it .
However, the government should also focus on ensuring that the funds allocated to the underdeveloped states are being properly used and it shouldn’t be such that the developed states have to bear all the burden otherwise it could lead to a lot of chaos in the country which may lead to bad impression on the foreign investors which could impact the FDI flow.
Leveraging Regional Resources for Equitable Growth:
To promote balanced development, the government should maximise the potential of each state’s unique resources. For example, Bihar’s seasonal fruits have strong global demand, Jharkhand is rich in mineral ores, and the Northeast’s hilly landscapes could be developed as alternative tourist destinations to crowded spots like Shimla, promoting regenerative tourism.
The Government must ensure that investment by both private entities and state authorities are taken uniformly across the country and benefits are reaped by all the citizens in the country.
The positive things have started to come up though according to a report of HCE it’s being noticed that inequality is narrowing down but it’s at a much lower rate and that too inadequate.
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