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What is regional disparity? How does it differ from diversity? How serious is the issue of regional disparity in India?

Q. 17. What is regional disparity? How does it differ from diversity? How serious is the issue of regional disparity in India?

Regional disparities represent one of India’s most persistent developmental challenges, creating a landscape where islands of prosperity exist amidst seas of poverty. While India’s diversity is celebrated as a strength, its regional disparities highlight significant development gaps that require targeted policy interventions.

Understanding Regional Disparity

Regional disparity refers to the unequal distribution of economic resources, development, and opportunities across different regions within a country. It results in significant differences in income, living standards, infrastructure, and employment levels across areas. This imbalance creates a situation where certain areas develop rapidly while others remain underdeveloped, leading to inequitable growth patterns.

Key indicators of regional disparity include:

  • Economic output (GSDP) differences between states

  • Variations in per capita income

  • Uneven infrastructure development

  • Disparities in social development indicators like literacy and healthcare access

  • Differences in industrialization levels and employment opportunities

Regional Disparity vs. Diversity: Conceptual Distinctions

Regional disparities and diversity represent fundamentally different concepts with distinct implications for development planning:

AspectRegional DisparityDiversity
DefinitionUnequal distribution of resources, wealth, and opportunities across different regions (negative connotation)Existence of varied cultural, linguistic, economic, and social differences (positive connotation)
BasisEconomic: Primarily economic and developmental, focusing on gaps in growth between regionsCultural: Rooted in cultural, ethnic, linguistic, and social differences
NatureExclusive: Leads to grievances and demands for equitable resourcesInclusive: Celebrates coexistence of different identities
EffectsCreates political instability, demand for autonomy, and social unrestEnhances cultural richness and plurality

For example, India’s cultural diversity includes over 2,000 distinct ethnic groups, which represents a societal strength. However, the infrastructure gap in education and health between Kerala and Bihar exemplifies problematic regional disparity.

Severity of Regional Disparity in India

Economic Dimensions

The economic divide between Indian states has widened particularly in the post-liberalization era. According to a working paper by the Economic Advisory Council to the PM titled “Relative Economic Performance of Indian States: 1960-61 to 2023-24”:

  • Western states have consistently performed well, while southern states have significantly improved post-1991 economic liberalization

  • The five southern states now account for 30% of India’s GDP (2023-24)

  • Maritime states have generally outperformed inland states, with the exception of West Bengal

  • West Bengal’s share of GDP has declined from 10.5% (1960-61) to 5.6% (2023-24)

The disparity is starkly visible in per capita income differences:

  • Maharashtra’s per capita income stands at approximately ₹215,000

  • Bihar’s per capita income is around ₹40,000, representing a more than 5-fold difference

In the past decade, GDP growth rates show significant regional variations:

  • Southern states averaged growth rates of 5-6%

  • Most northern states remained at 2-3%

  • Karnataka registered a remarkable 7.07% growth between 2010-2020

Social and Political Implications

Regional disparities have created serious social and political challenges:

  • Interstate/Intrastate agitations: The formation of Telangana was largely driven by perceptions of regional imbalance. Similar demands continue for separate Vidarbha State in Maharashtra and Bodoland in Assam

  • Migration pressures: As of 2020-21, nearly 29.1% of India’s population were migrants, primarily due to uneven work opportunities

  • Resource strain: Concentrated development has led to housing shortages and water crises in metropolitan areas like Mumbai, Delhi, Chennai, and Hyderabad

  • Reduced economic potential: A World Bank study found that a 10% decrease in regional disparities could potentially increase India’s overall GDP by 1.5%

  • Security challenges: Regional underdevelopment has contributed to insurgency in the Northeast and Left-wing extremism in central India

Government Initiatives to Address Regional Disparities

The government has implemented various measures to reduce regional imbalances:

  • Aspirational Districts Programme: NITI Aayog’s initiative targeting India’s most underdeveloped districts

  • Special Category Status: Granted to states like Himachal Pradesh and Uttarakhand to boost development

  • MGNREGA: Providing employment guarantees in rural areas to reduce migration pressures

  • Targeted policies for industrialization: Developing region-specific economic activities based on local resources and potential

Way Forward

Addressing regional disparities requires multi-dimensional approaches:

  • Decentralized planning: Empowering local governments to develop context-specific development strategies

  • Targeted skill development: Tailoring human resource development to regional economic potential

  • Infrastructure connectivity: Improving transportation and digital connectivity in underdeveloped regions

  • Diversified industrialization: Promoting industrial development based on regional comparative advantages

Conclusion

Regional disparity remains a critical challenge for India’s balanced development. While diversity represents India’s cultural richness, disparity threatens its economic and social cohesion. The persistence of significant economic, social, and infrastructural differences between regions suggests that existing policies need strengthening and better implementation.

Reducing regional disparities is not merely an economic imperative but essential for social harmony and national integration. By transforming “islands of poverty” into hubs of opportunity through targeted interventions, India can create a more balanced development model that fulfills the constitutional promise of equitable growth for all regions and communities.

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