Industry & Economy
-
Economy
Government
-
States
`Increased gap between States, a sign of success'
Sudhanshu Ranade
Chennai
,
Sept. 1
Growth rates before 1980 were below 2 per cent in almost all States with the exception of Punjab, Haryana and Maharashtra. According to a May 2006 World Bank report, the first stirring of reforms in the early 1980s led to a marked acceleration in every major State, specially in the slower-growing States.
Things changed after reforms began in real earnest in1991. Growth rates now went up sharply in some States, but actually fell in others. High growth performers included rich States such as Gujarat and Maharashtra, and middle-income States such as Karnataka, Kerala and West Bengal. Growth rates, however, failed to pick up in States such as Bihar, Orissa and Uttar Pradesh that were already poor to begin with. However, according to Mr Montek Singh Ahluwalia, Deputy Chairman of the Planning Commission, this is a sign of policy success, rather than failure.
The increasing gap between rich and poor states did not come about because growth slowed in low-income states, on average, but rather because growth picked up in the middle and upper income states.
Rates of growth actually fell in the richer northwestern states of Haryana and Punjab. But, this was because they, like many others, insisted on clinging to old ways in a rapidly changing world. In the words of an earlier World Bank report, it is arising tide, but not all boats will rise with it.
More Stories on :
Economy |
States
Article
E-Mail
::
Comment
::
Syndication
::
Printer Friendly Page
|
