After the 20th Century: Growth, Convergence and Divergence in Indian Mountainous States

Authors

  • Dr. Susheel Kumar Assistant Professor, Department of Economics, Baba Balak Nath College Chakmoh, Hamirpur (H.P.), India.
  • Dr. Naresh Kumar Thakur Principal, Baba Balak Nath College Chakmoh, Hamirpur (H.P.), India
  • Mr. Deepak Kumar Singh Assistant Professor, Government Degree College Banjar, Kullu (H.P.), India.

DOI:

https://doi.org/10.53983/ijmds.v13n7.003

Keywords:

Regional Growth, σ- β - α – Convergence & Divergence, Gini Coefficient, Coefficient of Variation, Mountainous States

Abstract

This paper deals with the growth, convergence, divergence and inequalities in the mountainous states of India. The data used in this paper was collected from the RBI site, which covers two decades – the first from 2000-01 to 2010-11 and the second from 2011-12 to 2021-22. By analyzing the data, this study attempted to address the compound annual growth rates with regression equation and concluded that, Meghalaya has the lowest and Sikkim has the highest net state domestic product growth rate for the entire time period (2000-01 to 2021-22). In mountainous states, the average growth rate of per capita net state domestic product declined from 6.13 percent in 2000-01/2010-11 to 4.40 percent in 2011-12/2021-22. Higher per capita net state domestic product growth rates were estimated for Himachal Pradesh, Mizoram, Sikkim, Tripura and Uttarakhand; when compared to the average growth rate for the mountainous states and India as a whole. Over the period 2000-01/2010-11 to 2011-12/2021-22, the states with the highest compound annual growth rates on per capita net state domestic product were Assam and Mizoram. In a detailed analysis of income inequality, the gini coefficient increased from 0.122 to 0.263 during 2000-01 to 2021-22 and the coefficient of variation also showed an increase. The findings revealed that there was a significant presence of σ - divergence, β - divergence and α - divergence in the mountainous states in the first, second decades and throughout the 21st century.

Downloads

Download data is not yet available.

Author Biographies

Dr. Susheel Kumar, Assistant Professor, Department of Economics, Baba Balak Nath College Chakmoh, Hamirpur (H.P.), India.

The research areas of Dr. Susheel Kumar’s are regional development economics, Agriculture economics as well as growth and employment structure in Indian prospective. He is currently working as assistant professor in department of economics, Baba Balak Nath College Chakmoh, Hamirpur, Himachal Pradesh; India. He has a distinguished academic experience of more than four years, where he has alsoserved Career Point University, Hamirpur, Himachal Pradesh and DAV College Kangra, Himachal Pradesh, India in the capacity of assistant professor. He has done a Master’s Degree in Economics from Himachal Pradesh University, Shimla and Ph.D. from the Central University of Himachal Pradesh, Dharamshala.

Dr. Naresh Kumar Thakur, Principal, Baba Balak Nath College Chakmoh, Hamirpur (H.P.), India

Dr. Naresh Kumar Thakur has been working in this institution since 1991.Since July 2022; he is working as a principal and has 33 years teaching experience.

References

Adabar, K. (2004), Economic growth and convergence in India, Institute for Social and Economic Change, ISEC: Bangalore.

Adabar, K. (2005), The regional dimensions of economic growth in Indian federalism. http://hd1.handle.net/10603/91343

Adabar, K. (2004), Convergence of Standards of Living across Indian States. Working Paper No. 153. Bangalore, Institute of Social and Economic Change.

Ahluwalia, M. S. (2000),Economic Performance of States in Post-Reforms Period, Economic and Political Weekly, 35(19), pp.1637–1648. http://www.jstor.org/stable/4409264

Ahluwalia, M. S. (2002),State level performance under economic reforms in India, Economic policy reforms and the Indian economy, pp.91-125. Chicago: University of Chicago Press. https://doi.org/10.7208/9780226454542-008

Aich, A., & Pal, M. K. (2022), Convergence Perspective of Growth in India, In Globalization, Income Distribution and Sustainable Development (pp.251-263). Emerald Publishing Limited. https://doi.org/10.1108/978-1-80117-870-920221033

Aiyar, S. (2001), Growth theory and convergence across Indian states: a panel study, India at the Crossroads.

Bhattacharya, B. B., & Sakthivel, S. (2004), Regional Growth and Disparity in India: Comparison of Pre- and Post-Reform Decades, Economic and Political Weekly, 39 (10), pp.1071–1077. http://www.jstor.org/stable/4414738

Birthal, P. S., Singh, H., & Kumar, S. (2011), Agriculture, economic growth and regional disparities in India, Journal of International Development, 23(1), pp.119-131. https://doi.org/10.1002/jid.1606

Chakraborty, L., & Chakraborty, P. (2018), Federalism, fiscal asymmetries and economic convergence: evidence from Indian States, Asia-Pacific Journal of Regional Science, 2, pp.83-113. https://doi.org/10.1007/s41685-018-0087-z

Cherodian, R., & Thirlwall, A. P. (2015), Regional disparities in per capita income in India: convergence or divergence?, Journal of Post KeynesianEconomics, 37(3), pp.384–407. https://doi.org/10.1080/01603477.2015.1000109

Das, S. K., & Barua, A. (1996), Regional inequalities, economic growth and liberalisation: A study of the Indian economy, The Journal of Development Studies, 32(3), pp.364–390. https://doi.org/10.1080/00220389608422420

Gaur, A. K. (2010, August), Regional disparities in economic growth: A case study of Indian states, In 31st General conference of the International Association for research in income and wealth, St. Gallen, Switzerland.

Ghosh, M. (2010), Structural breaks and performance in Indian agriculture, Indian Journal of Agricultural Economics, 65(1), pp.59-79.

Ghosh, M. (2012), Regional Economic Growth and Inequality in India during the Pre- and Post-reform Periods, Oxford Development Studies, 40(2), pp.190–212. https://doi.org/10.1080/13600818.2012.677818

Kohli, A. (2006), Politics of Economic Growth in India, 1980-2005: Part II: The 1990s and Beyond, Economic and Political Weekly, 41(14), pp.1361–1370. http://www.jstor.org/stable/4418059

Krushna, A.V. (2019), Convergence or Divergence Among Indian States: A Study Of New Series Data. IRA-International Journal of Management & Social Sciences (ISSN 2455-2267), 15(1), pp.1-6. doi: http://dx.doi.org/10.21013/jmss.v15.n1.p1

Kumar, S. (2015), Regional disparities in per capita GSDP/NSDP in the seven sister states in India: Convergence and divergence, Arthshastra Indian Journal of Economics & Research, 4(2), pp.31-46.

Kumar, U., & Subramanian, A. (2011), India's Growth in the 2000s: Four Facts, Peterson Institute for International Economics Working Paper, (pp.11-17).http://dx.doi.org/10.2139/ssrn.1962855

Kumar, U., &Subramanian, A. (2012), Growth in India’s States in the First Decade of the 21st Century: Four Facts, Economic and Political Weekly, 47(3), pp.48–57. http://www.jstor.org/stable/41419741

Mihut, I. S. and Pop, L.N. (2016), Evaluating the economic governance in terms of convergence: the case of the European Union, International Journal of Economics and Accounting, Inderscience Enterprises Ltd, 7(2), pp. 156-173.

Mishra, A., & Mishra, V. (2018), Is there conditional convergence in the per capita incomes of BIMAROU states in India?, Economic Modelling, 70, pp.429-437.

Nag, A., & Pradhan, J. (2023), Does club convergence matter? Empirical evidence on inequality in the human development index among Indian states, Humanities and Social Sciences Communications, 10(1), 1-12. https://doi.org/10.1057/s41599-023-01518-z

Nagaraj, R., Varoudakis, A., &Véganzonès, M. A. (2000), Long‐run growth trends and convergence across Indian States, Journal of International Development: The Journal of the Development Studies Association, 12 (1),pp.45-70. https://doi.org/10.1002/(SICI)1099-1328(200001)12:1<45::AID-JID586>3.0.CO;2-Z

Nayak, S. and Sahoo, D. (2022), Regional economic growth in India: convergence or divergence?, Competitiveness Review, 32 (1), pp. 155-178. https://doi.org/10.1108/CR-10-2020-0131

Nayyar, G. (2008), Economic Growth and Regional Inequality in India, Economic and Political Weekly, 43(6), pp. 58–67. http://www.jstor.org/stable/40277103

Pal, P., & Ghosh, J. (2007), Inequality in India: A survey of recent trends, DESA Working Paper no. 45 (Department of Economic and Social Affairs, United Nations, New York, 2007); available at http://www.chereum.umontreal.ca/activites_pdf/Session%201/Inequality%20in%20India%20(1).pdf

Raju, S. (2012), Growth across States in the 2000s: Evidence of Convergence, Economic and Political Weekly, 47(23), pp.76–79. http://www.jstor.org/stable/23214925

Ramaswamy, K. V. (2007), Regional Dimension of Growth and Employment, Economic and Political Weekly, 42(49), pp.47–56. http://www.jstor.org/stable/40277023

Rao, M. G., Shand, R. T., &Kalirajan, K. P. (1999), Convergence of Incomes across Indian States: A Divergent View, Economic and Political Weekly, 34(13), pp.769–778. http://www.jstor.org/stable/4407797

Ric Shand, & S. Bhide. (2000), Sources of Economic Growth: Regional Dimensions of Reforms, Economic and Political Weekly, 35(42), pp.3747–3757. http://www.jstor.org/stable/4409864

S. L. Shetty. (2003), Growth of SDP and Structural Changes in State Economies: Interstate Comparisons, Economic and Political Weekly, 38(49), pp.5189–5200. http://www.jstor.org/stable/4414376

Sharma, R. (2024), Trade Openness and Income Inequality: Evidence from India, International Journal of Economics, 9(1), pp.42-53.

Stewart, R. &Moslares, C. (2014), Regional disparities across Indian states: are the trends reversing, Journal of Economics and Development Studies, 2(3), pp.95–111. http://dx.doi.org/10.15640/jeds.v2n3a7

Tiwari, C., Bhattacharjee, S., & Chakrabarti, D. (2020), Investigating regional inequalities in India: Are Indian districts converging? Journal of International Development, 32(5), pp.684-716.

Trivedi, K. (2002), Regional convergence and catch-up in India between 1960 and 1992 (Working Paper, No. 2003-W01). Oxford: Nuffield College, University of Oxford.

Trivedi, K. (2006), Educational human capital and levels of income: Evidence from states in India 1965 – 92, The Journal of Development Studies, 42(8), pp.1350–1378. https://doi.org/10.1080/00220380600930663

Zimmermann, J. and Tideman, S.A. (2017), Accounting Convergence and International investment level. International Journal of Economics and Accounting, 8(2), pp.138-166.

Downloads

Published

31-07-2024

How to Cite

Kumar, S., N. K. Thakur, and D. K. Singh. “After the 20th Century: Growth, Convergence and Divergence in Indian Mountainous States”. International Journal of Management and Development Studies, vol. 13, no. 7, July 2024, pp. 25-38, doi:10.53983/ijmds.v13n7.003.

Issue

Section

Articles