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The spatial development of India

Author

Listed:
  • Desmet, Klaus
  • Ghani, Ejaz
  • O'Connell, Stephen
  • Rossi-Hansberg, Esteban

Abstract

In the last two decades the Indian economy has been growing unabatedly, with memories of the Hindu rate of growth rapidly fading. But this unprecedented growth has also resulted in widening spatial disparities. While cities such as Hyderabad have emerged as major clusters of high development, many rural areas have been left behind with little development benefits accruing to them. India's mega-cities have continued to grow. This situation raises a number of important policy questions. Should India aim to spread development more equally across space? Are India's cities becoming too large? Should the government invest in infrastructure in the large cities to reduce congestion or in medium-sized locations to facilitate the emergence of new economic clusters? What are the tradeoffs between agglomeration economies and congestion costs? How different is India’s experience compared with China and USA?

Suggested Citation

  • Desmet, Klaus & Ghani, Ejaz & O'Connell, Stephen & Rossi-Hansberg, Esteban, 2012. "The spatial development of India," Policy Research Working Paper Series 6060, The World Bank.
  • Handle: RePEc:wbk:wbrwps:6060
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    References listed on IDEAS

    as
    1. Ejaz Ghani & Arti Grover Goswami & William R. Kerr, 2012. "Is India’s Manufacturing Sector Moving Away From Cities?," Harvard Business School Working Papers 12-090, Harvard Business School.
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    More about this item

    Keywords

    Labor Markets; Urban Slums Upgrading; Housing&Human Habitats; E-Business; Labor Policies;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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