Regional disparities in india

1. Regional Disparities in India:
Top 8 Indicators
Let us make in-depth study of the indicators of regional imbalances or
disparities in India.
India is facing the problem of acute regional imbalances and the indicators
of such imbalances are reflected by the factors like per capita income, the
proportion of population living below the poverty line, the percentage of
urban population of total population, percentage of working population
engaged in agriculture, the percentage of workers engaged in industries,
infra-structural development etc.
A region may be known as economically backward as it is indicated by the
symptoms like excessive pressure of population on land, too much
dependence on agriculture, high incidence of rural employment and high
degree of under-employment, low productivity in agriculture and cottage
industry, under urbanisation, absence of basic infra-structural facilities etc.
In India, some important socio-economic indicators arc very prominent to
reflect the regional imbalances between various regions or states of the
country.
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The following table reveals such socio-economic indicators:

2. 1. State per Capital Income as an Indicator of Regional
Imbalance:
The most important indicator of regional imbalance and disparity among the
different states of India is the difference in per capita state income figures.
It is revealed from Table 6.8 that in 2000-01, the national average per
capita income in India was Rs. 10,254. The states whose per capita income
figures were higher than this national average include Punjab, Goa,
Haryana, Maharashtra, Gujarat, Karnataka, Tamil Nadu and Kerala.
Among these nine states, Punjab, Haryana, Maharashtra and Gujarat have
attained a high degree of agricultural as well as industrial development.
Although West Bengal and Karnataka attained per capita income higher

3. than the all India average in 1094-95 but it started trailing behind the all
India average in recent years due to its poor rate of economic growth.
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In 2002-03, the per capita income of the bottom poorest states, lying below
the national average of Rs. 11,088 were Rs. 4,048 for Bihar, Rs. 5,836 for
Orissa. Rs. 7,015 for Madhya Pradesh, Rs. 5,610 for Uttar Pradesh, Rs.
6,221 for Assam and Rs. 7,608 for Rajasthan. In 1971-72, all these states
also remained at the bottom stage.
Moreover, the range of regional disparity in India has been widening
continuously is reflected from the differences between per capita income of
Bihar at the bottom and that of Punjab at the top. In 1971-72, the per capita
income of Bihar at the bottom was only Rs. 406 as compared to that of Rs.
1,084 of Punjab at the top and in 2002-03, the per capita income of Bihar at
the bottom was Rs. 4,048 as compared to that of Rs. 15,264 of Punjab at
the top. While in the former case, the ratio between the two lowest and
highest figures was 1 : 2.7 and in the second case the same ratio stood at
1 : 3.8. This shows how the regional disparity between the states is
widening gradually.
The present trend of growing income disparity among various States of
India has been continuing in recent years. In 2004-05, the per capita
income figures at current prices of different major Indian states reveals that
Delhi tops the list having the per capita income of Rs. 53,976 followed by
Punjab at Rs. 30,701, which is 135 per cent higher than the all India
average per capita income of Rs. 22,948.

4. At the bottom of the ladder comes Bihar with per capita income of Rs.
5,772, which, is less than half the national average. The states whose per
capita income figures was lower than that of all India average include Bihar,
Jammu & Kashmir, Orissa, Uttar Pradesh, Rajasthan, Madhya Pradesh.
Assam, West Bengal, Kerala, Andhra Pradesh, Himachal Pradesh and
Karnataka.
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In 2004-05, the per capita income of Bihar at the Bottom (at current prices)
was only Rs. 5,772 as compared to that of Rs. 53,976 of Delhi at the top
showing the ratio between the two lowest and highest figures at 1 : 9.35.
This again proves how the income disparity among the major Indian states
is widening gradually with the passage of time.
2. Inter-State Disparities in Agricultural and Industrial
Development:
Another important indicator of regional disparities is the differences in the
levels of agricultural and industrial development between different states of
the country. In India, states like Punjab, Haryana- and part of Uttar Pradesh
had recorded a high rate agricultural productivity due to its high proportion
of irrigated areas and higher level of fertilizer use.
In 1987-88, net irrigated area as per cent of net area sown in Punjab was
as high as 91 per cent in Punjab, 80 per cent in Haryana as compared to
that of only 14 per cent in Kerala, 17 per cent in Himachal Pradesh and 21
per cent in Assam.
Due to the adoption of HYVP or New Agricultural Strategy the combined
share of Punjab and Haryana in total production of food grains of the

5. country increased from 7.5 per cent in 1964-65 to 16.8 per cent in 1992-93
and more particularly the share in wheat production was as high as 34.3
per cent in 1992- 93 although these two states accounted for only 4.3 per
cent of the total population of the country.
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Accordingly, in 1990-91, the per capita output of food grains in Punjab and
Haryana were 968.1 kg and 577.6 kg respectively as compared to that of
national per capita output of 197.4 kg. Moreover, the pace of
industrialization is also an important indicator of regional imbalance. Before
independence, West Bengal and Maharashtra were the two most
industrialized states of India. But after independence Gujarat, Punjab and
Tamil Nadu have developed the industrial sector considerably by
developing industrial units of all different sizes.
On the other hand, states like Assam. Bihar, Orissa and Uttar Pradesh
have been lagging behind in respect of the pace of industrialization. Taking
Western region and West Bengal together, their combined share was 59.25
per cent of total productive capital. 63.03 per cent of total persons
employed, 60.41 per cent of gross ex-factory value of output and 63.95 per
cent of value added by manufacturing sector of the country.
3. Population below Poverty Line:
Percentage of population living below the poverty line in different states is
another important indicator of regional imbalance or disparities. Table 6.8
shows that the percentage of population living below the poverty line for the
whole country was 26 per cent in 1999-2000 and there were 12 states
whose percentage of population living below the poverty line have
exceeded this all-India average.

6. Bihar, Orissa, Madhya Pradesh and Uttar Pradesh are the four states
which have the highest percentage of population below the poverty line as
well as they have the lowest per capita income in the country.
Again there are some states like Andhra Pradesh, West Bengal, Karnataka
and Tamil Nadu which have achieved a comparatively higher per capita
income but instead they maintain higher percentage of population living
below the poverty line. The main reasons behind such poverty are greater
inequality of incomes and the neglect of the backward classes of
population.
Again Punjab is the state which is maintaining the highest per capita
income among all the states and the lowest percentage of population living
below the poverty line i.e., only 6.16 per cent as compared to that of 42 per
cent for Bihar, 47 per cent for Orissa and 26 per cent for all India.
The main reasons behind this low percentage of poverty in Punjab and
Haryana arc their strong production base and better distribution of income.
Although Maharashtra, Tamil Nadu and West Bengal are having a strong
production base but they did not experience a fair distribution of income.
This has resulted a comparatively higher degree of poverty in these states
in spite of having strong production base.
4. Spatial Distribution of industries:
Another important indicator of regional imbalance is the uneven pattern of
distribution of industries. Since independence, states like Karnataka,
Andhra Pradesh, Kerala, Gujarat, Punjab and Haryana have achieved
considerable development in its industrial sector. But West Bengal could
not keep pace in its industrial growth as much as other industrially

7. developed states. In this way disparities in industrial growth between
different states have been reduced to some extent.
One more thing that is to be noticed is that as the country as a whole has
achieved industrial development at a fair rate since independence but the
spatial distribution of such industrial development between different states
remained almost uneven.
The above table reveals that there is a gross imbalance in the regional
location of industries in India. The five major industrial states of India, i.e.,
Maharashtra, Tamil Nadu, Gujarat, West Bengal and Andhra Pradesh
jointly accounted 40 per cent of total location of all large factories, 55 per
cent of total industrial employment, 59 per cent of total industrial output and
58 per cent of value-added.
All other states and Union Territories jointly accounted the remaining 60 per
cent of total location of large factories, 45 per cent of total industrial
employment, 41 per cent of total industrial output and 42 per cent of value-
added. Thus the present trend reveals that industrially advanced states
achieved much industrial progress and industrially backward states have
remained backward leading to uneven spatial distribution of industries.
In respect of small scale industries, there has been a considerable
concentration of such industrial unit in these five major industrially

8. advanced states. But due to repeated efforts of the government to disperse
such concentration, the degree of such concentration has been declining
gradually. In recent years, the states like Punjab, Haryana, Kerala and
Karnataka have recorded considerable development of industries,
especially in the small scale sector.
5. Degree of Urbanisation:
Disparities in the degree of urbanisation are another important indicator of
regional imbalance. In respect of urbanisation, the percentage of urban
population to total population is an important indicator. The all-India
average of such percentage of urban population stands at 26 per cent in
1991.
The states which are maintaining higher percentage of urban population
than the national average include Maharashtra, Tamil Nadu and Gujarat
and then followed by Karnataka, Punjab, Andhra Pradesh and West
Bengal. Whereas, the states which are having a lower degree of
urbanisation include Himachal Pradesh, Assam, Bihar, Orissa, Arunachal
Pradesh etc.
6. Per Capita Consumption of Electricity:
Per capita consumption of electricity is also another important indicator of
regional disparities. States like Punjab, Gujarat, Haryana, Maharashtra etc.,
having higher degree of industrialisation and mechanisation of agriculture,
have recorded a higher per capita consumption of electricity than the
economically backward states like Assam, Bihar, Orissa, Madhya Pradesh
and Uttar Pradesh. Thus the per capita consumption of electricity of Punjab
was as high as 790 kWh in 1996-97 as compared to that of only 108 kWh
in Assam.
7. Employment Pattern:

9. Employment pattern of workers is also an important indicator of regional
disparities. States attaining higher degree of industrialisation are
maintaining higher proportion of industrial workers to total population.
Average daily employment of factory workers per lakh of population as
shown in Table 6.8 is an important indicator in this regard.
It is found that industrially developed states like Maharashtra, Gujarat,
Haryana, Punjab, Tamil Nadu and West Bengal are maintaining a higher
average daily employment of factory workers per lakh of population as
compared to that of lower average maintained in industrially backward
states like Assam, Orissa, Uttar Pradesh, Rajasthan etc.
In 1985, the average daily employment of factory workers per lakh of
population was as high as 1,890 for Gujarat, 1,750 for Maharashtra, 1,630
for Haryana as compared to that of only 400 for Assam and Orissa, 470 for
Uttar Pradesh, 520 for Rajasthan and 600 for Bihar.
Even the industrially developed states like Gujarat, Maharashtra, Tamil
Nadu and West Bengal are still maintaining a higher proportion of
agricultural labourers to total workers as the industrial sector of these
states has failed to enlarge the scope of employment sufficiently to engage
more and more rural workers.
8. Intra-State Imbalance:
Intra-state imbalance is another important indicator of regional imbalance
existing within each particular state. There is a growing tendency among
most of the advanced states to concentrate its developmental activities
towards relatively more developed, urban and metropolitan areas of the
states while allocating its industrial and infra-structural projects.

10. As for example, in West Bengal, about 70 per cent of its new industrial
concentration was located in the Hoogly district. Similarly, about 86 per
cent of registered factories in Maharashtra were mostly concentrated in a
few urban areas, leaving the other potential areas untouched.
In Punjab such concentration of industries in a few urban areas is as high
as 96 per cent. Therefore, a huge proportion of small scale industrial units
are gradually being located in relatively more advanced districts having
better infra-structural facilities and comparatively more urbanized. Thus a
high degree of intra-state imbalances or disparities exists within almost all
the states of the country