Characteristics of Inter-Regional Income Disparities in India – 2001 to 2011

Abstract

There are concerns that regional inequality in India has increased after the economic reforms of 1991. These concerns are supported by various statistical analyses. We are examining trends in regional disparities in India over a period of 11 years (2001 to 2011). There are wide and increasing variations in economic performances of states over time. The analysis is based on all the state economies in India. Results of the analysis suggest convergent trend in regional incomes, conditional upon growth rates of inputs and rate of technological progress. The objective of the study is to make a comparison of growth across states based on key results that are gross domestic product of the states. The logical reason that assess is whether there has been inter-regional convergence in income growth and whether income differentials have narrowed over specified periods.