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Regional Inequality in India: A Fresh Look

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Author Info

  • Nirvikar Singh

    (University of California, Santa Cruz)

  • Laveesh Bhandari

    (Indicus Analytics)

  • Aoyu Chen

    (University of California, Santa Cruz)

  • Aarti Khare

    (Indicus Analytics)

Abstract

There are concerns that regional inequality in India has increased after the economic reforms of 1991. This concern is supported by various statistical analyses. In this paper, we show that the conclusions are sensitive to what measures of attainment are used. In particular, human development indices do not show the same increase in regional inequality. Furthermore, looking at consumption and credit indicators for regions disaggregated below the state level also suggests that inequality trends may not be as bad as suggested by State Domestic Product data, although the greater strength of the economies of the western and southern states emerges in our results. Finally, we briefly discuss policy implications within the context of India’s evolving federal polity.

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File URL: http://128.118.178.162/eps/dev/papers/0412/0412006.pdf
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Bibliographic Info

Paper provided by EconWPA in its series Development and Comp Systems with number 0412006.

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Length: 11 pages
Date of creation: 07 Dec 2004
Date of revision:
Handle: RePEc:wpa:wuwpdc:0412006

Note: Type of Document - pdf; pages: 11
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Web page: http://128.118.178.162

Related research

Keywords: regional inequality; federalism; human development;

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References

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  1. Rayaprolu Nagaraj & Aristomène Varoudakis & Marie-Ange Véganzonès, 1998. "Long-Run Growth Trends and Convergence Across Indian States," OECD Development Centre Working Papers 131, OECD Publishing.
  2. Angus Deaton & Jean Dreze, 2002. "Poverty and Inequality in India: A Re-Examination," Working Papers 184, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
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Citations

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Cited by:
  1. Ghosh, Saibal, 2007. "Economic Geography of Industrial Location: Evidence from Indian States," MPRA Paper 22441, University Library of Munich, Germany.
  2. Aviral Kumar Tiwari & Muhammad Shahbaz & Faridul Islam, 2013. "Does financial development increase rural-urban income inequality?: Cointegration analysis in the case of Indian economy," International Journal of Social Economics, Emerald Group Publishing, vol. 40(2), pages 151-168, February.
  3. Pravin Krishna & Guru Sethupathy, 2011. "Trade and Inequality in India," NBER Working Papers 17257, National Bureau of Economic Research, Inc.
  4. Singh, Nirvikar, 2005. "The Idea of South Asia and the Role of the Middle Class," Santa Cruz Department of Economics, Working Paper Series qt1ph1x8dv, Department of Economics, UC Santa Cruz.
  5. Ashish Singh, 2010. "The Effect of Family Background on Individual Wages and an Examination of Inequality of Opportunity in India," Journal of Labor Research, Springer, vol. 31(3), pages 230-246, September.
  6. Rubiana Chamarbagwala, 2010. "Economic liberalization and urban–rural inequality in India: a quantile regression analysis," Empirical Economics, Springer, vol. 39(2), pages 371-394, October.
  7. Singh, Nirvikar, 2008. "Holding India together: The role of institutions of federalism," MPRA Paper 12432, University Library of Munich, Germany.

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