In the evolution of spatial economies, it may so happen that regions may converge at one "spatial scale" but can diverge at another scale, or there may be marked presence of "convergence clubs". This paper analyses sectoral and aggregate per capita incomes in Maharashtra over the period 1993-94 to 2002-03. In contrast to the trend of divergence at the interstate level, the regional economies in Maharashtra are converging, though with significant differences in the rates of convergence across various sectors and regions. Marathwada and Vidarbha, with weak industrial sectors, have been the most underdeveloped regions in the state over the years. The study also highlights the impact of "spatial spillovers" on regional patterns of economic development in the state and its policy implications.
