Growth and income inequalities in Himachal Pradesh: District-wise analysis

The present empirical study deals with the pace of growth and measurement of income inequalities among different districts of Himachal Pradesh state. For this purpose, we have compiled district-wise information on Gross Value Added (at current prices) at aggregated and disaggregated levels, available for the period from 2011–12 to 2017–18 from ESO, Himachal Pradesh. Rates of growth in different aggregates were computed through the usual exponential trend approach. Through such an analysis, we have identified certain districts (like Chamba, Kinnaur and Lahaul & Spiti) which have been growing at a pace slower than that of the state as a whole. For measuring the extent of income inequalities, we have made use of alternative quantitative indexes, viz. Gini, Pietra-Ricci, Atkinson, Theil, Kolm, CV and Entropy. Of these, Theil's measure happened to be most sensitive to temporal changes. Extent of harmony among the alternative measures was assessed through correlation analysis. Severe inequalities were prevalent in respect of per capita income from secondary sector. Findings from the analysis are expected to provide useful policy input for achieving balanced growth among different districts of the state.