Regional Disparities In The Post Reform Period

Interstate economic disparities in India have sharply risen in the post reform period, bringing back the issue of regional disparities into the debate on Indian political economy. Present paper contends that while the economy has moved to a higher growth path, the pattern of growth has been regionally concentrated and many regions have been bypassed in the race towards economic growth. This uneven pattern of growth lies behind the demand for creation of separate states from different regions of the country. A valid question that rises in this context is whether the creation of new and smaller states will be desirable in the national interest and help in promoting faster development in the lagging regions. The author is of the view that the feelings of regional identity if channelled into healthy lines can provide a powerful force to mobilise people of a region for regional and national development and there is a strong case for another reorganisation of the Indian states into smaller units based on objective criteria. Political sagacity demands that a rational and objective view of these issues is taken and timely action initiated instead of waiting till the time when the situation takes a violent turn and goes out of hand as has happened in several parts of the country recently. It is high time for a Second State Reorganisation Commission.