Economic Liberalisation, Changes in Industrial Locations and Regional Development in India

概要

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During post-1991, India has been witnessing a rapid and widespread growth in industrialisation, especially in the service sectors, like the IT, visual media and entertainment. These sectors grow at a CGR rate of 30-40 per cent a year. Moreover, they tend to locate in agglomerated markets (large cities, e.g.). What are the implications of this in terms of regional economic development in India ? There are signs that since the mid 1980s, there has been a new impetus on increasing regional economic disparities [9]: “divergence” rather than “convergence” in per capita State Domestic Product (SDP) has been the norm among the Indian states. The paper intends to assess the locational shift in industrialisation in recent times and its implications for the regional economic development of India. The process entails (i) political fall-out in terms of lagging regions, which cannot capitalise on the new technology and investments in service industries; (ii) large-scale migration of young manpower to employment opportunities in the fast growing regions; and (iii) increasing of income differentials and social welfare standards between the constituent states of India.JEL Classification: R12