Inter-district disparities in social sector activities: An empirical analysis for Himachal Pradesh state

In this paper, an attempt has been made to examine inter-district disparities in Himachal Pradesh state with respect to social sector activities. The study was based on secondary data compiled on as many as 35 indicators of social sector activities at five points in time (1999–2000, 2004–05, 2009–10, 2014–15 and 2018–19) for twelve districts of the state. With a view to nullify the effect of varying sizes of population and area among the districts, data on the indicators were suitably expressed on per capita (or per unit of area) basis and were, then, retransformed appropriately so as to ensure stabilisation with respect to both mean and variability. The resulting data set was then subject to Exploratory Factor Analysis (with promax rotation), duly followed by Confirmatory Factor Analysis. Values of Composite Index were obtained so as to assess relative positioning of different districts with respect to their social sector development. As per the main findings, a totality of four latent factors were extracted which, taken together, were capable of explaining 74.6% of the total variance in the data set. Confirmatory factor analysis has pointed towards the appropriateness of the factors extracted. As per the computed values of composite index, Kullu, Kinnaur, Chamba, and Lahaul & Spiti happened to be laggard districts. Notably, relative positioning of the districts in respect of social sector development failed to show any association with that in respect of the performance of real sector (viz., GVA per capita). The findings have thus point towards the need to adopt suitable corrective measures (devoid of political factors) by the state government, specifically in respect of the laggard districts, so as to ensure balanced development of social sector activities in the state.