Post-Liberalisation Triumph: Southern States Surge Ahead While Uttar Pradesh and Bihar Face Economic Setback
After the economic liberalization of 1991, southern Indian States experienced a sharp increase in per capita income, establishing themselves as “leading performers,” according to an analysis by the Economic Advisory Council to the Prime Minister (EAC-PM). Conversely, the economic conditions in Uttar Pradesh and Bihar deteriorated post-bifurcation.
In the western region, Maharashtra and Gujarat maintained strong economic performance, with Gujarat showing notable rapid growth since the early 2000s. In the north, both Delhi and Haryana excelled economically, although Haryana’s strength was largely concentrated around Gurugram and its neighboring areas. Punjab, which initially benefited from the Green Revolution, has seen a consistent economic decline; the EAC-PM’s report suggests this might be due to an overemphasis on agriculture at the expense of industrialization.
The report raises concerns about the eastern States, particularly West Bengal, which plummeted from having the third-highest per capita income in the 1960s to ranking 14th among major States. The analysis does not include Goa, Himachal Pradesh, the northeastern States (excluding Assam), and Union Territories other than Delhi.
Rajasthan and Odisha, which had seen economic declines until the pre-liberalization period, witnessed some improvement afterward, though their per capita income growth was modest. Chhattisgarh and Madhya Pradesh have consistently low per capita income levels.
Chart 1 illustrates the relative per capita income levels by comparing each State’s per capita Net State Domestic Product to the all-India per capita Net National Product. Chart 2 depicts States’ contributions to the national GDP, with darker shades of blue indicating a larger share.
This comprehensive analysis, authored by Sanjeev Sanyal and Aakanksha Arora, offers an insightful perspective on the economic trajectory of Indian States from 1960 to 2024. The findings underscore notable regional disparities and prompt a reflection on policy approaches tailored to each region’s unique economic context.
Original Story https://www.thehindu.com/data/post-liberalisation-analysis-shows-southern-states-as-leading-performers-while-uttar-pradesh-and-bihar-regressed-economically/article68656214.ece
Category : Data
Tags:
