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Regional Inequality in India in the 1990s
This note examines changes in regional inequality in India in the 1990s using data for 210 of India's districts, spread across nine states. The methodology is that of cross-section growth regressions, which seek to explain longer-run growth rates in terms of initial conditions of development. By identifying these connections, it seeks to illuminate the role of physical infrastructure, financial development, and human capital in infl uencing regional patterns of growth. In turn, this may have implications for government policies at the national and state levels.
This article is based on a study done for the Development Research Group, RBI. We are grateful to Rakesh Mohan, Narendra Jadhav, Nishita Raje, Charan Singh, Sanjay Hansda, and Ajay Prakash, all at the RBI when the study was done, for help at various stages. We are also grateful to Laveesh Bhandari for detailed comments on a draft of the study. The opinions expressed here are those of the authors and not of the RBI, or any of the RBI officials or former officials acknowledged here. Kendall’s work on this report was done while he was at UCSC, and does not refl ect the views of the Bill and Melinda Gates Foundation. The authors are solely responsible for errors and omissions.
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