Regional disparity in India

Analysis of Inter-regional disparities is meaningful because it has a potential drag effect on the economic growth of the country. This Paper examines the dynamics of growth in the country which is resulting in regional imbalances. It makes a long-run investigation of economic performance of different states with secondary data on GSDP with the latest base year i.e., 2004–05. It divides the entire period into two phases-the post liberalization phase (1990–91 to 2002–03) and the high growth phase 20). It examines the regional disparity in economic performance for the period (1980 to 2010) as well as separately for the high growth phase (2003 to 2010). It makes a sectoral decomposition of the growth in order to isolate the leading or lagging sectors in each state and over time which has crucial policy implications. The economic disparities in India have become widened due to flawed development plans and attained such a alarming proportion that not only the economic growth is being adversely hit but socio-cultural fabric also has come under tremendous pressure. A n ever-widening gulf is being created between poor and rich and a hiatus among leading and lagging regions is generated in terms economic development. Widening divergence has retarding effect on economic progress and potential political crisis. On the other hand, structural adjustments covered trade policy, industrial policy, agricultural policy, human resource and energy issues. Herein involved are the policies of liberalization, privatization and globalization. With the passage of time, these reforms have provoked.