Inter Regional Disparities in Development

At the time of independence, considerable difference in economic and social development of different regions of tlie country existed. One of tlie main objectives of the planning process initiated in the early 1950s was to reduce these regional differences and to achieve, regionally balanced development. Various policy instruments including direct public investment by the Central in infrastructure, guided private investment and building up of capacity enhancing institutions have been tried to achieve this objective. These policies were continued during the first three decades of planning. Though these measures were not highly successful, they ensured that disparities were not getting aggravated during this period. With the initiation of economic reforms in the early 1980s, which culminated in full-fledged deregulation, liberalisation and globalisation in the early 1990s, has brought about a paradigm shift in Indian economy. The Indian economy had entered a path of rapid economic growth. There was acceleration in the growth rate of GDP and per capita income after 1991. As a result of large base and continuous growth of the economy for over two decades, India claims to have emerged as the 4th largest economy in the world in terms of ppp and the second fastest growing economy in the world. The on goring reform process has completed its 17 years, now it is relevant to ask whether economic reforms have promoted the objective of regionally balanced development.