Regional Disparity in Development (India)

• Disparity in Relative Per Capita Income:

• • • Western and Southern regions (Delhi, Telangana, Karnataka, Haryana) lead in per capita income.
    • Delhi’s per capita income is 2.5 times the national average.
    • Odisha shows significant improvement in per capita income, but West Bengal lags.

• Dominance of Southern States in GDP Contribution: Southern states contribute over 30% to India’s GDP.

• Better Performance of Maritime States: States with maritime access outperform others, except West Bengal.

• Punjab vs. Haryana: Punjab’s per capita income growth lags behind Haryana’s.

• Eastern States Remain a Concern: Development is slow due to economic and social challenges, despite some stability in Bihar.

Factors Responsible for Regional Disparity:

• • Historical: British-era policies favored certain regions, leading to long-lasting economic imbalances.

• Geographical: Difficult terrain in areas like the North-East impacts development.

• Economic: States with advanced industries (Maharashtra, Gujarat) have higher incomes than agrarian states (Bihar, UP).

• Infrastructure Deficit: Poor infrastructure limits growth in underdeveloped regions.

• Governance: Political instability deters investment.

• Failure of Planning Mechanisms: Industries prefer regions with established infrastructure and resources.

Note:

“Dutch disease“ refers to when rapid development in one sector, especially natural resources, negatively impacts other sectors.

Implications of Regional Disparity in Development:

 

• Security Threats: Naxalism is concentrated in underdeveloped areas with large developmental gaps.

 

• Political Fragmentation: Demands for statehood (e.g., Telangana, Vidarbha) arise from regional imbalances.

• Migration for Livelihood: High migration from underdeveloped states (e.g., UP, Bihar) to more developed areas.

•  Reinforcing Imbalance: Wealthy areas attract more investment, leading to faster growth in cities like Chennai and Bangalore.

• Environmental Impact: Industrial concentration causes pollution, e.g., air and water pollution in Delhi.

Initiatives to Eliminate Regional Disparity in Growth:

• Aspirational Districts Programme (ADP): Focuses on transforming 112 underdeveloped districts.

•  Aspirational Block Programme (ABP): Aims to improve governance and enhance citizens’ quality of life.

•  ‘Vocal for Local’ for Self-reliance: Promotes grassroots entrepreneurship and self-reliance in backward regions.

• Human Resource Development: Focuses on skill development and institutional delivery.

•  Border Area Development Programme (BADP): Addresses needs of people in remote border areas.

Way Ahead to Reduce Regional Disparity:

Tailored Approaches: Use targeted programs like Hilly Area Development rather than a one-size-fits-all approach.

• Performance-Based Funding: Tie funding to developmental standards and prioritize backward regions.
• Strengthening Governance: Improve administration in backward states to boost revenue and investment.

• Balanced Infrastructure Development: Enhance infrastructure in underdeveloped states to improve investment.

 Sectoral Investment:

• Increase agricultural investment, especially in lagging regions.

• Focus on the service sector to drive growth in backward areas.

Conclusion: For balanced regional development, focus on fostering investment, efficient resource use, better governance, infrastructure improvement, and promoting competitive federalism.