Effective Regional Development: A State-Wise Analysis of India

• Main Author: Shah, Anshu
• Format: Others
• Published: Scholarship @ Claremont 2015
• Subjects: India; Regional Development; Infrastructure; Electricity; Roads; States; Growth and Development; Income Distribution; Regional Economics
• Online Access: http://scholarship.claremont.edu/cmc_theses/1097; http://scholarship.claremont.edu/cgi/viewcontent.cgi?article=2228&context=cmc_theses

Regional Development is a potentially powerful approach to help lower the inequality among Indian states. This study uses a robust control model for residuals analysis of infrastructure levels (rate of rural electrification and provision of all-weathered roads) to identify states that are over-performing and under-performing. The results show that a large disparity exists in providing adequate infrastructure among Indian states. While states such as, Kerala and Tamil Nadu are outdoing expectations, Bihar and Uttar Pradesh are under-performing. A closer look at state policies adopted after the economic reforms, helped shed light on possible measures that under-performing states could adopt in order to improve standards of infrastructural development. Since infrastructure is closely related to overall economic development, adopting policies that are conducive to investments can help improve per capita income as well as the output of a state.